\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 838 Bank Of Chengdu Co.Ltd(601838) )
Net profit growth exceeded expectations. In the first quarter of 2021 and 2022, the operating revenue was 17.9 billion yuan and 4.8 billion yuan, with a year-on-year increase of 22.5% and 17.7% respectively. The growth rate was lower than that in the third quarter of last year, which was mainly caused by the decline in the growth rate of net interest income; In the first quarter of 2021 and 2022, the net profit attributable to the parent company was 7.83 billion yuan and 2.15 billion yuan, with a year-on-year increase of 30.0% and 28.8%, mainly due to the reduction of the pressure on provision provision under the condition of the improvement of asset quality. The growth rate of the company's revenue basically met the expectations, but the growth rate of net profit attributable to the parent company exceeded the expectations. Weighted roe17 in 2021 6%, still in the forefront of the industry.
Assets still maintained rapid growth, with outstanding deposit growth. In 2021 and the first quarter of 2022, the total assets increased by 17.8% and 17.4% year-on-year. At the end of the first quarter of 2022, the total assets reached 0.84 trillion yuan, and the growth rate remained basically stable. Among them, deposits increased by 22.3% and 22.5% respectively year-on-year, showing a bright performance. The average daily deposit growth rate in the annual report also reached 20.6%. On the one hand, the advantages of corporate demand deposits continued, on the other hand, the efforts of time deposits were strengthened; Loans increased by 37.2% and 33.4% year-on-year, mainly due to the rapid growth of corporate loans; At the end of the first quarter, the core tier 1 capital adequacy ratio was 8.34%.
The net interest margin decreased slightly year-on-year. The company disclosed that the average daily net interest margin in 2022 was 2.13%, a year-on-year decrease of 6bps, which was the main reason for the decline in revenue growth. The decrease in net interest margin is mainly due to the company's increasing efforts to absorb time deposits, and the deposit cost has increased. In 2021, the deposit cost increased by 13bps to 1.98% year-on-year. The company did not disclose the average daily net interest margin in the first quarter of this year, but from the attribution of net profit growth, the adverse impact of net interest margin on performance growth has been eliminated, and the net interest margin is expected to remain stable on the whole.
The quality of assets is excellent, and the provision for safety cushion is thickened. The estimated NPL generation rate in 2021 decreased by 42bps to 0.06% year-on-year, close to zero, and the asset quality is excellent. The company's non-performing rate and attention rate continued to decrease, with the non-performing rate at the end of the first quarter being 0.91%, the attention rate being 0.45%, and the overdue rate at the end of 2021 being only 0.96%. With the improvement of asset quality, the company's provision pressure was significantly reduced, which became the main driving force for the rapid growth of net profit. However, the provision coverage continued to rise, reaching 436% at the end of the first quarter of this year, and the safety cushion was further thickened.
Investment suggestion: the growth of the company's net profit exceeded the expectation. We raised the profit forecast slightly. It is expected that the net profit attributable to the parent company will be 9.5/114/13.6 billion yuan from 2022 to 2024, with a year-on-year growth rate of 21.9/19.6/19.2%; Diluted EPS is 2.56/3.08/3.69 yuan; The current share price corresponds to PE of 6.2 / 5.2 / 4.3 and Pb of 1.06/0.92/0.79x. The growth and profitability of the company rank among the top listed banks and maintain the "buy" rating.
Risk tip: the weakening macroeconomic situation may have an adverse impact on the quality of bank assets.
