\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 009 Bank Of Nanjing Co.Ltd(601009) )
Highlights of the financial report: 1. The net profit continued to maintain 20% + high growth. In 2021, the annual revenue and PPOP growth were slightly narrowed and still maintained a growth of nearly 20%; In the first quarter of 2012, driven by the good start of credit and other non interest income, the revenue continued to rise, with a year-on-year increase of 20.5%. The year-on-year growth rate of net profit continued to remain at a high level of more than 20%, with a year-on-year increase of 21.1% and 22.4% in 2021 and the first quarter of 22 respectively. 2. Deposits and loans made a good start in the first quarter, and AUM, a retail customer, maintained a good growth. In the fourth quarter, retail loans continued to maintain a good growth (the main contribution of consumer credit loan growth, accounting for 51% of the total loans). In the first quarter, corporate loans made a good start, with a 10 percentage point month on month increase in loans, and the proportion of credit rose to an all-time high. For two consecutive quarters, the deposit on the liability side maintained a strong growth rate, with a 13.2% month on month increase in 1q, and the proportion of savings deposits continued to increase. At the same time, the growth of high-end retail customers was good. In 21 years, AUM of private customers increased by 17.5%, which was higher than that of total retail customers. 3. In the future, the company's new branch outlets will form a new growth point for the company's deposits and loans. In the first quarter, the company added three branch outlets in Suzhou, and the coverage of county branches in the province increased from 80% at the end of 2020 to 90%. In 2022, it is planned to set up 47 new sub branches. The newly established branch network will become a new deposit and loan growth pole of the company. 15 newly established sub branches in 2021 contributed 11.52% of deposit increment in Q1; Contribute 25.32% of the loan increment. 4. Asset quality remains excellent. In the first quarter, the non-performing ratio decreased 1bp to 0.90% month on month, and the proportion of attention + non-performing loans decreased to 1.90%, which was the best level in history. The provision coverage ratio increased from + 1.04% to 398% month on month, and the provision loan ratio remained stable at a high level of 3.58%.
Insufficient earnings: 1. The interest margin is slightly under pressure and narrowed month on month. The main reason is that there is a certain pressure on the return on the asset side, and the continuous decline of the cost on the liability side contributes positively to the interest margin. The asset side is expected to be mainly affected by loan pricing. At the same time, the public door red forecast in the first quarter also led to a slight decline in the proportion of retail loans in terms of structure. In the future, on the one hand, the reduction of the deposit pricing ceiling is expected to continue to slow down the company's debt cost. On the other hand, with the adjustment of the company's asset side structure, the proportion of high-yield retail credit will continue to increase, which will drive the decline of the asset side yield to narrow and stabilize, and the interest margin is expected to remain flat and stable.
Investment suggestion: the company is steady and upward, which is the gold stock we recommended at the beginning of the year. We will continue to recommend it. 1. High roe and low value of the company: 2022e and 2023epb0 95X/0.84X； PE6. 34x / 5.38x (City Commercial Bank pb0.77x / 0.68x; pe6.40x / 5.63x). The company has sound fundamentals and strong profitability, with net profit of 20% + high growth, and stable and excellent asset quality; 2. Sustainable and steady development in the future can be expected: Bank Of Nanjing Co.Ltd(601009) excellent management and developed regional economy; The bank is promoting the strategic transformation of its large retail and trading banks; Sub branches in Jiangsu Province accelerated the layout of outlets and formed new growth points for new deposits and loans. In 21 years, the company issued 20 billion convertible bonds. It is expected that the performance of the next quarter will maintain a steady and high growth, and continue to be recommended.
Note: according to the 21st Annual Report, we fine tune the profit forecast and predict that the net profit attributable to the parent company from 2022 to 2023 will be 19.193 billion and 22.57 billion (the previous values were 18.636 billion and 21.444 billion).
Risk tip: the macro economy is facing downward pressure, the company's deposit competition is facing pressure, and the operating performance is less than expected.
