\u3000\u3000 Industrial Bank Co.Ltd(601166) (601166)
Event description
The company announced the performance express for 2021, and realized a revenue of 221.236 billion yuan in 2021, a year-on-year increase of + 8.91%; The net profit attributable to the parent company was 82.680 billion yuan, a year-on-year increase of + 24.10%, and the weighted average roe was 13.94%, an increase of 1.32 percentage points over the same period last year.
Event comments
The performance improved significantly month on month, and continued to work in the fourth quarter. The growth rate of the company's annual operating revenue and net profit was 8.91% / 24.10% respectively, which continued to increase by 0.83/0.65 percentage points compared with the first three quarters, increased by 11.36% / 26.38% respectively in the fourth quarter, and increased by 4.94/2.31 percentage points compared with the growth rate of Q3. The profit before provision increased by 6.73%. In 2021, the provision for impairment was 66.899 billion yuan, a year-on-year decrease of 11.20%. The slow release of provision promoted the growth of net profit. Roe returned to the rising channel, increasing by 1.32 percentage points to 13.94%.
Asset investment increased steadily and asset quality continued to improve. Total assets increased by 8.96%, total liabilities increased by 8.77%, the growth rate was slower than that in the first three quarters, and the balance of various loans increased by 11.66%, the growth rate was the same as that at the end of the third quarter; The balance of deposits increased by 6.63%, which was higher than that at the end of the third quarter. At the end of the year, the non-performing loan ratio was 1.10%, down 0.15 percentage points, the provision coverage increased to 268.73%, the non-performing loan ratio decreased for five consecutive years, reaching the best level since 2015, and the risk offset ability continued to improve.
Convertible bonds consolidated capital strength and accelerated international layout. The company has steadily promoted the implementation of international business strategy. In October 2021, the board of directors of xingyin international invested and established xingyin international, which has become an important part of the company's "commercial bank + investment bank" strategy. By the end of 2021, the issuance of convertible bonds was completed, raising 50 billion yuan to further enhance the company's capital strength.
The strategy of "commercial bank + investment bank" promotes sustained growth. Under the background of steady growth in 2022 and the marginal support of real estate, the banking sector has performed prominently since the beginning of the year. It is expected that the valuation repair of the banking sector will continue with the improvement of the business environment. Industrial Bank Co.Ltd(601166) is the first listed bank to disclose the performance express. Its operating performance exceeds expectations and has a bright performance. At the same time, from the data of the third quarterly report, the growth rate is outstanding among the listed banks. Under the background that corporate credit still needs to be restored, the company's "commercial bank + investment bank" strategy promotes the company's medium income business to remain competitive. In the first three quarters of 2021, the company's non interest income accounted for 35%, which is at a high level in the industry, providing impetus for the continuous growth of the company's performance.
Investment advice
The current valuation of the company is only 0.74 times, with high cost performance. At the same time, the asset quality is stable and good. The provision slow-release provides space for the release of future performance and is optimistic about the future performance growth of the company. It is estimated that the company's revenue from 2021 to 2023 will be 221.236 billion yuan, 243.734 billion yuan and 266.398 billion yuan respectively, the net profit attributable to the parent company will be 82.680 billion yuan, 96.325 billion yuan and 108.548 billion yuan respectively, the EPS will be 3.98, 4.64 and 5.23 respectively, the net assets per share will be 33.42, 34.81 and 38.37, and the corresponding Pb will be 0.62, 0.59 and 0.54 times respectively. Give "overweight" rating.
There are risks
The macro economy has declined sharply; Major risk events occur in the company; The local epidemic situation is repeated.
