\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 926 Bank Of Hangzhou Co.Ltd(600926) )
The event company released its annual report for 2021.
The company’s performance increased steadily and high, and the pressure of impairment provision was relieved. In 2021, the company achieved an operating revenue of 29.361 billion yuan, a year-on-year increase of 18.36%, and the net profit attributable to the parent company was 9.261 billion yuan, a year-on-year increase of 29.77%; Roe (weighted average) was 12.33%, with a year-on-year increase of 1.19 percentage points; The basic EPS was 143 million yuan, a year-on-year increase of 22.22%. The performance of the company is excellent, and the growth rate of net profit is further expanded, which is mainly affected by the relief of impairment provision pressure. In 2021, the company’s credit impairment loss was 10.5 billion yuan, a year-on-year increase of 5.44%, which was significantly narrowed compared with the first three quarters.
The net interest margin was under pressure, credit expanded steadily, and the proportion of deposits decreased. In 2021, the company’s net interest income was RMB 21.036 billion, a year-on-year increase of 9.15%; The net interest margin was 1.83%, a year-on-year decrease of 15bp, which was mainly affected by the decline of asset side yield and the increase of active liabilities. Asset side credit expanded steadily, and the growth momentum of corporate loans was strong. By the end of 2021, the company’s loan balance was 588563 billion yuan, a year-on-year increase of 21.69%. Among them, corporate loans and retail loans increased by 23.27% and 19.21% respectively year-on-year; The proportion in total loans was 61.02% and 38.08% respectively. The deposit on the liability side increased and the cost decreased. By the end of 2021, the company’s deposit balance was 810658 billion yuan, a year-on-year increase of 16.14%, accounting for 62.33% of total liabilities, a year-on-year decrease of 1.8 percentage points; The average cost rate of deposits was 2.21%, a year-on-year decrease of 12bp.
The non interest income of the company has performed brilliantly, and the strength of financial management and consignment sales has increased. In 2021, the non interest income of the company was 8.325 billion yuan, with a year-on-year increase of 50.44%, continuing the high growth since the third quarter, accounting for 28.36% of the operating income. The intermediate business income was 3.608 billion yuan, with a year-on-year increase of 19.69%. The growth rate picked up compared with the first three quarters. The good development of financial management business and the strength of consignment sales were the main reasons. In 2021, the Commission of custody and other entrusted businesses was 2.198 billion yuan, an increase of 28.96%; The handling fee of agency business was 316 million yuan, an increase of 33.34%. By the end of 2021, the retail AUM of the company had reached 424231 billion yuan, a year-on-year increase of 10.91%. The total retail wealth management products sold in the whole year were 859214 billion yuan (including consignment sales), a year-on-year increase of 12.93%. Other non interest income continued to benefit from the rapid growth of investment business income. In 2021, the company’s other non interest income was 4.717 billion yuan, a year-on-year increase of 87.23%. Among them, investment income (including profit and loss from changes in fair value) increased by 78.72% year-on-year.
The asset quality has been continuously optimized, and the provision level is leading in the industry. By the end of 2021, the company’s non-performing loan ratio was 0.86%, down 0.21 percentage points from the end of 2021; Concern loans accounted for 0.38%, down 0.2 percentage points from the end of 2021; The provision coverage rate was 567.71%, achieving the leading level in the industry, an increase of 98.17 percentage points over the end of 2021, and the risk offset ability was greatly enhanced.
Based in Hangzhou and Zhejiang, the investment advice company has obvious advantages in regional layout, strong credit growth momentum and excellent asset quality. The company’s latest five-year strategic plan has been issued. Focusing on the “second five year plan” strategy, the company has orderly promoted business transformation and structural adjustment, cultivated market segment competitiveness, accelerated the iteration of scientific and innovative financial services, focused on retail finance, wealth management and consumer credit, and achieved remarkable results in financial management and consignment business. The consumer financial market has a broad space, and small and micro finance has maintained rapid growth. We are optimistic about the company’s future business growth. In combination with the company’s fundamentals and stock price elasticity, we maintain the “recommended” rating. From 2022 to 2024, bvps13 79 / 15.62 / 17.86 yuan, corresponding to the current share price of PB1 11X/0.98X/0.86X。
The risk indicates that the macroeconomic growth is less than expected, resulting in the risk of deterioration of asset quality.
