\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 036 China Merchants Bank Co.Ltd(600036) )
The year-on-year growth rate of performance declined, and the non interest income was slightly weak
The company disclosed that in the first quarter report of 2022, the revenue and net profit attributable to the parent company increased by 8.54% and 12.52% year-on-year, and the year-on-year growth rate decreased by 5.49pct and 10.68pct compared with the whole year of 2021. Among them, the net interest income increased by 9.97% year-on-year, and the growth rate remained stable as a whole; Non interest income increased by 6.53% year-on-year, with a year-on-year growth rate of 14.23pct lower than that of 2021, and the year-on-year growth rate of net income from handling fees and commissions decreased by 13.33pct.
The net interest margin rose month on month, and the increase of deposits was stronger than that of credit
The net interest margin of 22q1 company was 2.51%, 3 BP higher than that of 21q4, which was mainly caused by the cost optimization on the liability side. On the asset side, the sluggish macro-economy led to insufficient effective credit demand. The Q1 loan amount of the parent company was 70% of that of the same period last year. Among retail loans, the personal housing mortgage market remained depressed, and the demand for small and micro credit declined. The new loans in Q1 were 33% and 50% of that in the same period last year. In addition, the balance of credit card loans decreased slightly. Corporate loans benefit from rich project reserves, and the overall credit supply is relatively good. On the liability side, the deposit scale of new customers in 22q1 was 167% of that in the same period last year. In terms of average balance, 22q1 customer deposits accounted for 81% of interest bearing liabilities, which continued to increase by 2.42pct compared with 21q4.
The market downturn has dragged down AUM growth, and the growth of long tail customer base is still strong
The sluggish performance of the capital market has put pressure on the company’s wealth management business, which has a certain drag on the overall AUM growth. At the end of 22q1, the company’s retail AUM had a year-on-year growth rate of 18.18%, a year-on-year growth rate of 2.14pct lower than that at the end of 21q4. Among them, the year-on-year growth rates of private AUM and non private golden sunflower customer AUM decreased by 5pct and 1.52pct respectively. It is worth noting that AUM growth of customers below sunflower continued to rise year-on-year, reaching 21.50% at the end of 22q1, and the basic customer base continued to be consolidated.
Credit risk picked up slightly and asset quality remained stable
At the end of 22q1, the non-performing rate of the company reached 0.94%, which was 3 BP higher than that at the end of 21q4, and the non-performing generation rate was 0.21 PCT higher than that in 2021; In addition, the proportion of concerned loans and overdue rate increased by 12bp and 7bp respectively. The marginal of the company’s asset quality related indicators deteriorated slightly, which was mainly affected by the rising risk of real estate customers and the impact of the epidemic in some areas on retail loans, but the key indicators remained low. At the same time, the company increased the provision for non-performing loans, and the credit impairment loss of 22q1 loans increased by 82% year-on-year. Although affected by the increase in the generation of non-performing loans, the company’s provision coverage decreased by 21.19pct compared with the end of 21q4, it remained at a high level as a whole.
In terms of real estate, under the continuous exposure of credit risks of some enterprises, the non-performing rate of the parent company against public real estate increased by 1.18pct month on month at the end of 21q4, the balance of business related to the group’s real estate that bears credit risk increased by 1.17% month on month, and the balance of business that does not bear credit risk decreased by 8.18% month on month. The overall real estate business risk balance fell 3% month on month, and the exposure continued to shrink.
Investment suggestion: Although there are adjustments in the short term, the long-term development toughness is still sufficient
Looking forward to the follow-up, with the weakening of the impact of the epidemic and the continuous development of the steady growth policy, the company’s credit supply is expected to usher in restorative growth, and the asset quality tends to be stable. At the same time, with the continuous polishing of the value cycle chain of great wealth management, the medium income growth is expected to recover. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will increase by 15.55%, 15.83% and 15.91% year-on-year. As of the closing on April 22, the company’s Pb (LF) was 1.46 times, maintaining the 2022 target of PB1 95 times, corresponding to the target price of 63.63 yuan, maintaining the “buy” rating.
Risk warning: weak macro-economy, insufficient credit demand and fluctuation of credit risk.
