\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 901 Jiangsu Financial Leasing Co.Ltd(600901) )
Open the dual leading strategy of “retail + technology”, and the spread expansion brings upward profit growth
The company’s operating revenue / net profit attributable to the parent company in 2021 were 3.94 billion / 2.07 billion respectively, with a year-on-year increase of + 5.0% / + 10.4%, and a weighted average roe of 15.5% 36%, year-on-year + 0.21pct. In 2022q1, the operating revenue / net profit attributable to the parent company was 1.07/620 billion, a year-on-year increase of + 2.8% / + 10.6%, and the annualized roe16.6% 6%, in line with our expectations. The company paid a cash dividend of 3.5 yuan for every 10 shares, and the dividend payment rate rose to 50.4%, a year-on-year increase of + 2.7pct. The slowdown in profit growth was mainly affected by the reduction of interest margin in 2021, and the growth rate of asset scale and asset quality remained stable. Considering the impact of the epidemic on the economy, we lowered the forecast of the company’s net profit attributable to the parent company from 2022 to 2023 to 2374 million / 2845 million (2669 / 3122 million before the adjustment), and increased the forecast of net profit of 2024 to 3.277 billion, with a year-on-year increase of + 15% / + 20% / + 15%, roe of 15.6% / 17.0% / 17.6% and EPS of 0.79/0.95/1.10 yuan respectively. In 2022, the company started the dual leading strategy of “retail + technology”, with obvious advantages in management mechanism and technology investment, and high roe and low non-performing products are expected to continue. The decline of short-term interest rate is expected to drive the company’s profit growth upward in 2022. The current share price corresponds to the company’s dividend rate of 6.9%, corresponding to pb0.5% in 202295x, pE6 4X, the valuation is lower than that of comparable companies, and the “buy” rating is maintained.
The proportion of “small single retail” transformation business continued to increase, and the interest margin at both ends of assets and liabilities narrowed
(1) the balance of finance lease receivables of the company at the end of 2021 was 93.7 billion, up + 17% from the beginning of the year, and the lease balance at the end of 2022q1 was 98 billion, up + 15.5% year-on-year, with significant growth month on month. The direct rent scale with stronger financial property accounted for nearly 50% of the new investment in the whole year, and the average single scale decreased to 710000 yuan, with obvious characteristics of small retail orders. The proportion of traditional businesses (infrastructure + utilities) in the asset scale fell to 28%, and the proportion of transportation, energy, tooling and construction machinery rose to 49%. (2) We estimate that the company’s return on interest bearing assets in 2020 / 2021 / 2022q1 will be 7.63% / 7.35% / 7.19% respectively. The decline in the return on assets may be due to the intensification of competition for high-quality assets and the decline in long-term interest rates, superimposed with the increase in interest payment costs, resulting in the reduction of the company’s interest margin in 2021. The decrease of short-term interest rate is expected to drive the expansion of interest margin of the company in 2022, and the net interest margin of the company in 2020 / 2021 / 2022q1 is 3.91%, 3.47% / 3.57%.
The asset quality is stable, the provision is sufficient, and financial technology leads the business development
The non-performing rate of the company at the end of 2021 / 2022q1 was 0.96% / 0.94%, and the non-performing rate in 2021 was 0.41%, with a year-on-year increase of -0.08pct. The asset quality of the company remained stable. The provision coverage rate at the end of 2021 / 2022q1 is 432% / 436%, and the loan ratio at the end of 2022q1 is 4.12%. The company has sufficient provisions. The company’s financial technology has started enabling business, and has formed an IT capacity supporting an annual investment of 100000 single orders. The issuance of 5 billion convertible bonds has consolidated the capital base.
Risk warning: the macro-economy brings uncertainty to the company’s profit and bad performance; Increased competition narrowed the interest margin.
