\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 128 Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) )
Event: on April 22, the company released 22q1 financial report, with a revenue of 2.13 billion yuan, yoy + 19.3%; Net profit attributable to parent company: 660 million yuan, yoy + 23.4%; The non-performing rate is 0.81%, the provision coverage rate is 533%, and roe13 05%。
The growth rate of revenue and profit increased, and the performance of net interest income was outstanding. 22q1 company’s revenue increased by + 3.0pct year-on-year, and the net profit attributable to the parent company increased by + 2.0pct year-on-year, highlighting the high performance. In terms of revenue growth, net interest income is the core driving force, with a significant year-on-year growth rate of 11.8pct month on month. The strong scale expansion is the main reason, and the net handling fee income fluctuates greatly, mainly due to factors such as the recognition frequency of management fee income of financial management business. At the same time, the small base also amplifies the fluctuation. From the perspective of net profit contribution factor, scale expansion is a solid support, the month on month improvement effect of net interest margin appears, and the provision is a drag, reflecting the more restrained performance release of the company.
The credit supply is strong and the net interest margin is expected to remain stable. The net interest margin of 22q1 company is 3.09%, which is + 3bp compared with the beginning of the year, showing a continuous upward trend since 21h1. In a single quarter, the net interest margin of 22q1 is – 12bp month on month, mainly the yield of interest bearing assets is – 13bp month on month, which is in line with the overall trend of the industry. The cost management at the liability end is good, with a month on month ratio of – 1bp. As of 22q1, the year-on-year growth rate of loans was as high as 24.5%, leading the growth rate of assets by 7.4pct. Among them, enterprise loans contributed 58.3% of the net increase of 22q1 loans, reflecting the strong financing demand of local entities. The asset expansion is inclined to credit, which is expected to support the stability of net interest margin.
The asset quality continued to be excellent, and the provision coverage increased slightly. Since 21q3, the company’s non-performing loan ratio has stabilized at an excellent level of 0.81%; The provision coverage rate continued to increase slightly by 1.2pct on the basis of the high level, with sufficient profit space for back feeding, which can effectively buffer the possible phased impact of the epidemic.
Investment suggestion: strong expansion, high performance, excellent quality, further upward performance growth, strong credit supply, which is expected to support the stability of net interest margin and the continued excellent asset quality. It is estimated that the EPS of 22-24 years will be 0.92 yuan, 1.12 yuan and 1.38 yuan respectively. The closing price on April 22, 2022 corresponds to 1.0 times of 22 years Pb, maintaining the “recommended” rating.
Risk warning: macroeconomic growth rate is down; Frequent epidemic risks; Credit risk exposure.
