\u3000\u3 China Vanke Co.Ltd(000002) 142 Bank Of Ningbo Co.Ltd(002142) )
The performance release remains strong and the profitability remains high
The company’s 22q1 revenue and net profit attributable to the parent company increased by 15.40% and 20.80% year-on-year. The company’s revenue and net profit attributable to the parent company still achieved good growth on the basis of the high base in the same period last year. From the perspective of performance growth attribution, it mainly benefited from the expansion of interest bearing assets. In addition, the improvement of investment income and cost optimization also made a certain positive contribution to performance growth. Over a longer period of time, the compound year-on-year growth rate of net profit attributable to the parent company in the past two and three years was 19.55% and 19.07%, with a high level of performance release. In addition, the company’s 22q1 weighted average roe reached 16.63%, maintaining still strong profitability.
In terms of revenue splitting, the net interest income and non interest income increased by 12.59% and 20.34% year-on-year, of which the net income of handling fees and commissions increased by 0.95% year-on-year. It is expected that the equity market in Q1 will fluctuate greatly, dragging down the income of wealth management. With the stabilization of the economy and the recovery of the market, the wealth management business is expected to usher in restorative growth.
Both deposits and loans are booming, and the focus of credit supply is prominent
The net interest margin of 22q1 company reached 2.24%, an increase of 3bp compared with 2021. From the perspective of credit supply, 22q1 still maintained high growth. The year-on-year growth rate of total loans at the end of the period was as high as 26.27%, which was 0.82pct higher than that at the end of 21q4. 22q1 company increased its loans by 67.2 billion yuan, an increase of 18.4 billion yuan year-on-year, of which corporate loans increased by 17.8 billion yuan year-on-year. The active private economy in the region gave birth to a strong demand for credit, which made the company’s credit a “good start”. The growth of corporate deposits also showed a bright performance. At the end of 22q1, the total amount of corporate deposits increased by 25.21% year-on-year, with a year-on-year growth rate of 11.40pct significantly higher than that at the end of 21q4. New deposits in a single quarter reached 245.8 billion yuan, an increase of 133.7 billion yuan year-on-year, nearly 90% of which was contributed by the public end. The increase of deposit growth rate also continuously optimizes the debt structure, which is conducive to reducing costs.
We will increase the write off of non-performing assets and continue to consolidate the quality of assets
At the end of 22q1, the non-performing rate was 0.77%, which was the same as that of 21q4, and the proportion of concerned loans was 0.51%, slightly increased by 3bp compared with that at the end of 21q4. The total proportion of non-performing and concerned loans reached 1.28%, which was still at a low level. At the same time, the company increased the provision for impairment. The impairment loss of 22q1 loans increased by 101% year-on-year, and the write off of non-performing loans increased by 116% year-on-year. With the continuous consolidation of asset quality, the provision coverage rate of the company reached 524.78% at the end of 22q1, which continued to remain at a high level.
Endogenous and exogenous two pronged approach, capital supplement helps asset expansion
By the end of 22q1, the company’s core tier 1 capital adequacy ratio was 9.93%, down 23bp from the end of 21q4. Asset expansion is inseparable from capital support. The company completed the share allotment in the fourth quarter of last year, and the core Tier-1 capital was effectively supplemented. At the same time, the high-level release of performance also helps to strengthen the endogenous growth ability. At present, the company’s core Tier-1 capital is relatively abundant and asset expansion is supported.
Investment suggestion: the company has excellent location, capital and expansion, and its performance is expected to continue to grow at a high level. The booming deposits and loans in the first quarter once again highlights the excellent operating level of the company. At present, the company has capital and asset expansion space, and the asset quality is solid. The operating benefits of the company will be accelerated by the subsequent gold consumption license. We are optimistic about the release of the company’s performance. It is expected that the net profit attributable to the parent company will increase by 21.19%, 18.44% and 17.77% year-on-year from 2022 to 24. At present, the company’s Pb (LF) is 1.72 times, maintaining the 2022 target of Pb2 3 times, corresponding to the target price of 53.78 yuan, maintaining the “buy” rating.
Risk tip: the epidemic situation is repeated, the development of small and micro businesses is less than expected, and the credit risk fluctuates
