\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 128 Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) )
Highlights of quarterly report: 1. PPOP rose sharply, and the net profit maintained a high increase of 23%. In the first quarter, credit made a good start, and the interest margin increased year-on-year, driving the net interest income to increase by 24% year-on-year, driving the revenue growth to continue to rise, realizing a high increase of nearly 20%. While the growth rate of taxes and expenses remained stable, the growth rate of PPOP rose 5pct to 24%. Under the excellent asset quality, the company slightly increased the provision based on the principle of prudence, and the net profit increased by 23.4% year-on-year. 2. Deposits and loans made a good start, with 1.8 billion new small and micro enterprises in a single quarter. In the first quarter, loans on the asset side achieved a strong growth rate, with a month on month increase of 6.3%. The total loans increased by 10.3 billion in a single quarter, of which corporate credit accounted for 60% of the increase under the condition of early delivery and early income. Retail credit increased by 3.1 billion in a single quarter, an increase of 3.2% month on month, of which personal business loans increased by 1.8 billion in a single quarter in the first quarter, higher than 1.3 billion in Q1 in 20 years and 1.1 billion in Q1 in 21 years. The proportion of total credit is generally stable at a historically high level of 38.5%. The debt side deposits made a good start, adding 21.5 billion yuan in a single quarter, an increase of 11.8% month on month, and accounting for 85.5% of interest bearing liabilities. 3. Asset quality remained stable and excellent. The book non-performing rate remained stable at a low level of 0.81%, and the low level of annualized net non-performing products in a single quarter continued to decline. The risk offset capacity was consolidated at a high level, with a provision coverage rate of 533% in the first quarter, up slightly by 1.2 percentage points month on month.
Insufficient quarterly reports: the interest margin was dragged down by the asset side, down 11bp month on month. This is mainly due to the downward drag on the asset side yield and the positive contribution of the liability side cost to the interest margin. The downward trend of asset side interest rate is expected to be mainly affected by the repricing of loans in the first quarter. At the same time, in terms of structure, the proportion of high-yield loans in total assets in the first quarter is slightly downward, which is also a drag. The interest payment rate of interest bearing liabilities on the liability side decreased month on month, which is expected to be brought about by the optimization of the internal structure of liabilities. Deposits made a good start in the first quarter, with a single quarter increase of 21.5 billion (an increase of 3 billion year-on-year), accounting for 85.5%. It is expected that the company’s net interest margin is expected to stabilize in the second quarter. On the one hand, the sharp decline in the interest rate of new loans is limited. At the same time, the investment in the peak season of personal business loans in the second and third quarters can improve the return on assets from the perspective of structure. In addition, from the perspective of liabilities, the reduction of the deposit pricing ceiling can continue to slow down the company’s debt cost.
Investment suggestion: company 2022e, 2023epb 1.02x/0.91x; PE 8.28x/6.96x (rural commercial bank Pb 0.71x/0.65x; PE 6.91x / 6.19x), the company focuses on personal business loan, has excellent risk control, and continues to sink channels and broaden the market. The increase in the incremental contribution of loans and the proportion of credit in the inclusive financial pilot zone will continue to increase the company’s interest margin and drive the growth of the company’s revenue Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) business model is focused, the customer structure continues to be small and scattered, and the asset quality remains at an excellent level. With the stabilization and structural optimization of the interest rate of new loans, the interest margin has entered the improvement channel. 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.
