\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 926 Bank Of Hangzhou Co.Ltd(600926) )
Event company released the first quarterly report of 2022.
In 2022q1, the company achieved an operating revenue of 8.769 billion yuan, a year-on-year increase of 15.73%, and the net profit attributable to the parent company was 3.309 billion yuan, a year-on-year increase of 31.39%; The annualized ROE (weighted average) was 16.2%, with a year-on-year increase of 1.19 percentage points; The basic EPS was 51 million yuan, a year-on-year increase of 34.21%. The company’s performance exceeded expectations, mainly driven by the rapid growth of non interest income and the lower increase of impairment provision than the same period last year. In 2022q1, the company’s credit impairment loss was 3.016 billion yuan, a year-on-year increase of 5.48%.
Net interest income increased slightly, deposits and loans grew steadily in 2022q1, and the company’s net interest income was 5.459 billion yuan, a year-on-year increase of 1.42%. The growth rate is weak, which is expected to be affected by the rise of debt cost. In 2022q1, the company’s interest expense increased by 21.63% year-on-year. Asset side loans grew steadily. By the end of March 2022, the company’s loan balance was 630.41 billion yuan, an increase of 7.11% over the beginning of the year. Among them, corporate loans and retail loans increased by 9.89% and 2.49% respectively over the beginning of the year; The proportion in total loans was 63.52% and 36.48% respectively. Deposits on the liability side grew steadily. By the end of March 2022, the company’s deposit balance was 869077 billion yuan, an increase of 7.21% over the beginning of the year, accounting for 63.72% of the total liabilities.
Non interest income continued to increase, and the middle income financial management business performed well. In 2022q1, the company’s non interest income was 3.309 billion yuan, an increase of 50.87% year-on-year, accounting for 37.74% of operating income, an increase of 8.79 percentage points year-on-year. The intermediate business income was 1.482 billion yuan, with a year-on-year increase of 20.1%, which continued to expand compared with 2021, mainly due to the impact of the increase of handling charges such as financial services. By the end of March 2022, the balance of financial products of Bank of Hangzhou was 328313 billion yuan, an increase of 7.04% over the end of the previous year. Other non interest income continued to benefit from the high growth of investment business income. The company’s non interest income was 2022q1 billion, with a year-on-year increase of 1.89%. Among them, investment income (including profit and loss from changes in fair value) increased by 90.15% year-on-year.
The asset quality has been continuously optimized, and the provision level is leading in the industry. By the end of March 2022, the company’s non-performing loan ratio was 0.82%, down 0.04 percentage points from the end of the previous year; Concern loans accounted for 0.38%, unchanged from the end of the previous year; The provision coverage rate was 580.09%, achieving the leading level in the industry, an increase of 12.38 percentage points over the end of the previous year, and the risk offset ability was greatly enhanced.
Based in Hangzhou and Zhejiang, the investment advice company has obvious advantages in regional layout, strong credit growth momentum and excellent asset quality. The company’s latest five-year strategic plan has been issued. Focusing on the “second five year plan” strategy, the company has orderly promoted business transformation and structural adjustment, cultivated market segment competitiveness, accelerated the iteration of scientific and innovative financial services, focused on retail finance, wealth management and consumer credit, and achieved remarkable results in financial management and consignment business. The consumer financial market has a broad space, and small and micro finance has maintained rapid growth. We are optimistic about the company’s future business growth. In combination with the company’s fundamentals and stock price elasticity, we maintain the “recommended” rating. From 2022 to 2024, bvps13 83 / 15.64/17.86 yuan, corresponding to the current share price of PB1 07X/0.94X/0.83X。
The risk indicates that the macroeconomic growth is less than expected, resulting in the risk of deterioration of asset quality.
