\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 187 Xiamen Bank Co.Ltd(601187) )
Deep ploughing in Xiamen, radiating Fujian, has a vast space Xiamen Bank Co.Ltd(601187) is based in Xiamen and radiates the whole Fujian Province. It is the first urban commercial bank to complete the full coverage of its business outlets in nine prefecture level cities in Fujian Province. Xiamen’s rapid economic development and rich people’s livelihood have created a good environment for the development of Xiamen Bank Co.Ltd(601187) . At the same time, Fujian’s GDP, resident population and the scale of deposits and loans are several times that of Xiamen, which means Xiamen Bank Co.Ltd(601187) has a broader credit market space. In addition, the company has also set up branches in Chongqing.
Small and medium-sized corporate services, steady progress in retail business, and build a comprehensive financial service provider. (1) In terms of corporate business, Xiamen Bank Co.Ltd(601187) based on the local economy, serves small and medium-sized enterprises, and realizes the incremental expansion of customers of small and medium-sized micro enterprises by continuously enriching the product system Xiamen Bank Co.Ltd(601187) medium, small and micro enterprise loans account for more than 80% of the total enterprise loans. By the end of 2021, Xiamen Bank Co.Ltd(601187) Pratt & Whitney’s small and Micro customers and loan balance had increased by 22.17% and 29.20% year-on-year respectively. At the end of the year, the balance of Pratt & Whitney’s small and micro loans reached 44.4 billion yuan, accounting for 25% of all loans. (2) In terms of retail business, Xiamen Bank Co.Ltd(601187) adheres to the market positioning of “facilitating people’s lives and improving people’s livelihood services” and deepens the strategic transformation of large retail. By the end of 2021, Xiamen Bank Co.Ltd(601187) managed personal financial assets of 77.981 billion yuan, an increase of 26.13% over the end of the previous year. (3) Xiamen Bank Co.Ltd(601187) relying on the advantages of licenses, it has built a first-class comprehensive financial service provider in the region. At present, it has developed into one of the urban commercial banks with complete business qualifications and licenses in the financial market.
Serve both sides of the Strait and create exclusive features. Fujian and Taiwan face each other across the sea, and the two sides are closely linked in culture and economy, which creates unique conditions for Xiamen Bank Co.Ltd(601187) “serving the two sides”. The business of Taiwan Commercial Bank will be further promoted to the “business department of Taiwan Commercial Bank in 2021”. Relying on the background and location advantages of Taiwan funded shareholders, Xiamen Bank Co.Ltd(601187) building a comprehensive cross-strait financial business system has achieved remarkable results. At present, Taiwan funded customers contribute Xiamen Bank Co.Ltd(601187) 12% of corporate deposits, 8% of retail deposits and 6% of personal financial assets.
The asset quality is excellent and the provision is relatively sufficient Xiamen Bank Co.Ltd(601187) has a sound overall business style and strict recognition of non-performing loans. Loans overdue for more than 60 days are classified as non-performing loans. The asset quality is relatively excellent among urban commercial banks. The provision coverage rate at the end of 2021 is 371%, and the provision is relatively sufficient, which also provides a safety cushion for future performance growth.
Profit forecast and Valuation: we expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 2.55/29.6/3.32 billion, with a year-on-year increase of 17.7% / 15.8% / 12.4% and EPS of RMB 0.97/1.12/1.26 respectively. Based on the absolute valuation and relative valuation, we believe that the reasonable valuation range of the company’s stock is between 6.9-7.7 yuan, corresponding to the dynamic pb0.5 yuan in 2022 8-0.9 times, with “overweight” rating for the first time.
Risk tip: changes in various factors may affect our judgment. See the text for details.
