\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 926 Bank Of Hangzhou Co.Ltd(600926) )
The growth rate of net profit attributable to the parent company reached a new high in 9 years, and the matching between revenue and performance growth is high
The company disclosed its 2021 annual report, and its performance was basically consistent with that disclosed in the express. The annual revenue and net profit attributable to the parent company were 29.361 billion yuan and 9.261 billion yuan, with a year-on-year increase of 18.36% and 29.77% respectively. The growth rate of the company’s return to parent performance reached a new high in recent 9 years, the operating efficiency continued to improve, and the weighted average roe increased by 1.19pct to 12.33% year-on-year. From 2019 to 2021, the compound growth rates of revenue and net profit attributable to parent companies were 17.11% and 18.44% respectively. There was a solid revenue foundation for performance release. The two-year compound growth rate of net profit attributable to parent companies ranked second among listed banks with disclosed data, only slightly lower than 19.38% of Bank Of Ningbo Co.Ltd(002142) .
Credit supply has been steadily accelerated, and Q4 retail supply has been accelerated
The net interest margin in 2021 was 1.83%, a year-on-year decrease of 15bp. Among them, the loan interest rate decreased by 26bp year-on-year, mainly because the company’s corporate oriented credit structure was greatly affected by the implementation of reducing entity financing costs. In 2020, the cumulative effect of multiple LPR cuts was obvious. The decline in the price of credit increased. The total amount of corporate loans at the end of 21q4 increased by 21.69% year-on-year, 2.09pct higher than that at the end of 21q3. The year-on-year expansion of credit accelerated quarter by quarter. The investment and lending of 21q4 reached 70% of 21q1 in a single quarter, higher than that of 21q2 and 21q3. In terms of structure, retail loans were accelerated in 21q4, and new loans accounted for 62%. The high credit demand and boom highlight the regional advantages. The company’s outlets are mainly distributed in the developed economic circle of the Yangtze River Delta dominated by Zhejiang Province. The upgrading and adjustment of industrial structure and the transformation of economic kinetic energy in the region are relatively leading. Taking Hangzhou as an example, the added value of private economy accounts for more than 60% of GDP, and the demand for credit is strong. At the same time, the rich residents provide fertile ground for the development of retail finance.
While the asset side maintains rapid expansion, the liability side also maintains the advantage of low interest cost. In 2021, the company’s deposit cost ratio fell by 12bp year-on-year, driving the cost ratio of interest bearing liabilities to fall by 4bp. Demand deposits accounted for 53.53% at the end of 21q4, an increase of 14bp compared with the end of 21q3. Among them, corporate accounts for 90% of demand deposits, showing the company’s strong ability to activate corporate deposits. At the same time, the company took many measures at the same time, using bond underwriting, cash management and other products to improve the precipitation of low interest deposits and maintain the debt side advantage.
The asset quality will be further consolidated and the non-performing rate will run at a low level
At the end of 21q4, the non-performing rate and the proportion of concerned loans were 0.86% and 0.38%, down 4bp and 18bp compared with the end of 21q3, with a total of 1.24%, a record low. The non-performing rate of most corporate industries fell further than that at the end of 21q2, and the non-performing rate of retail consumer loans fell to a low level below 0.5%. At the same time, the provision coverage rate continued to remain high, reaching 567.71% at the end of 21q4, with an increase of 311.71 PCT in recent three years. It continued to reach a new high and ranked first among listed banks with disclosed data, laying a solid foundation for business development and performance release.
Investment suggestion: the “February 25th five year plan” has made a good start, and the high growth of performance is expected to continue
The company made a good start in the opening year of the “2255” plan, laying a solid foundation for further in-depth implementation of the strategy. The construction of Zhejiang common prosperity demonstration zone has entered a substantive stage, the favorable policies continue to be released, the regional financial demand is expected to remain active, and there is a large space for credit demand. The company’s two growth poles of “expanding retail” and “optimizing small and micro enterprises” are expected to accelerate. At present, the company still has nearly 15 billion yuan of convertible bonds in the stock conversion period. According to the static calculation, if the stock conversion is completed, the core Tier-1 capital adequacy ratio can be improved by 1.74 PCT, effectively supporting the credit expansion. We are optimistic about the growth of the company’s performance. It is expected that the net profit attributable to the parent company will increase by 22%, 18.38% and 17.07% year-on-year from 2022 to 2024. At present, the Pb (LF) of the corresponding company is 1.24 times, maintaining the target of pb1.1 in 2022 5 times, corresponding to the target price of 20.30 yuan, maintaining the “buy” rating.
Risk warning: the epidemic situation is repeated, the credit demand is insufficient, the credit risk fluctuates, and the Aum growth is less than expected
