\u3000\u3 China Vanke Co.Ltd(000002) 839 Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) )
Key investment points
Highlights of quarterly report: 1. The revenue is upward, with the year-on-year growth rate of PPOP and net profit of nearly 30%. In the first quarter, driven by the good start of credit and non interest income, the revenue is upward, with a year-on-year increase of 11.8%; At the same time, the operating income of PPOP increased by 29.6% year-on-year. The provision provision has remained relatively stable on the whole, and the year-on-year growth rate of net profit has remained at a high level of nearly 30%. 2. Deposits and loans made a good start in the first quarter. Driven by the good start of credit in the first quarter, they increased by 6.9% month on month, and increased by 6.84 billion in a single quarter, including 3.94 billion in corporate loans in a single quarter, and the proportion of corporate loans in interest bearing assets increased to 34.8%; Deposits on the liability side increased by 6.1% month on month. 3. Credit risk indicators are stable and excellent. Non performing: the non-performing rate was flat month on month. The non-performing rate remained at a low level, stable at 0.94% month on month, maintaining a low level since 2012. The annualized net generation rate of non-performing products in a single quarter was 0.65%, up 29 BP month on month, and remained low overall. The concern category accounted for 1.54%, down 7 BP month on month, and there is little pressure to migrate downward into bad in the future.
Provision: the safety margin continues to be consolidated. The company’s provision coverage was 482.32%, up 6.7 percentage points month on month. The loan allocation ratio was 4.53%, up 4bp month on month. 4. In the first quarter, net non interest income increased by 40.7% year-on-year, mainly driven by net handling fee income, and the growth rate of net other non interest income was generally stable. Among them, the net handling fee income increased by 337.5% year-on-year, mainly due to the growth contribution of agency business. It is expected that the company’s sales revenue from private banks will increase; And the contribution of acquirer fee growth. Under the high base, the year-on-year growth rate of net other non interest income was 27.6%, which was generally stable (a year-on-year increase of 32.5% in 2021).
Insufficient quarterly reports: 1. The annualized net interest margin in a single quarter decreased by 10bp to 2.21% month on month. The decline in net interest margin was mainly due to the pressure on the asset side yield, which fell 25 BP month on month, mainly due to the dual impact of loan pricing and structure. In the future, with the structural adjustment of the asset side, the retail credit supply has warmed up, driving the asset side yield to stabilize; The reduction of the upper limit of deposit pricing on the liability side can continue to slow down the company’s debt cost, and the interest margin is expected to stabilize.
Investment suggestion: 2022e, 2023e Pb 0.92x/0.82x; PE 7.73x/6.73x (rural commercial bank Pb 0.70x/0.64x; PE 6.81x / 6.11x), the company actively transformed small and micro businesses, continuously improved the contribution of deposit and loan and revenue of retail business, greatly optimized and consolidated asset quality, and generally stable fundamentals. It is recommended to pay active attention.
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
