\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 187 Xiamen Bank Co.Ltd(601187) )
Steady growth in performance. In the first quarter of 2022, the revenue was 1.37 billion yuan, a year-on-year increase of 18.2%, an increase of 8.6 percentage points over the revenue growth rate of comparable caliber in last year’s annual report, mainly due to the contribution of investment income; In the first quarter, PPOP increased by 14.3% year-on-year; The net profit attributable to the parent company in the first quarter was 630 million yuan, with a year-on-year increase of 16.5%, and the growth rate decreased by 2.5 percentage points compared with last year’s annual report. However, considering the low year-on-year base of last year’s annual report, the two-year average growth rate of net profit attributable to the parent company in the whole year last year was 12.6%. In contrast, the performance growth rate in the first quarter of this year actually rebounded slightly compared with the adjusted growth rate of the annual report. In the first quarter, the weighted ROE (non annualized) was 2.71%, a year-on-year decrease of 0.18 percentage points.
The growth of asset scale accelerated. In the first quarter of 2022, the total assets increased by 20.0% year-on-year to 343.8 billion yuan, and the growth rate was higher than that in the annual report. Among them, deposits increased by 26.9% year-on-year to 186.1 billion yuan, and loans increased by 20.8% year-on-year to 181.1 billion yuan; At the end of the period, the core tier 1 capital adequacy ratio was 10.19%, 0.28 percentage points lower than that at the beginning of the year, but it was still very abundant.
The growth rate of net interest income fell, and investment income contributed to the growth of income. The company did not disclose the average daily net interest margin in the first quarter, but the company’s net interest income in the first quarter increased by 10.5% year-on-year, 2.9 percentage points lower than the growth rate of net interest income of comparable caliber last year. It is expected that the net interest margin is still facing certain downward pressure. However, in the first quarter of this year, the investment income increased significantly year-on-year, contributing half of the income increment, which has become an important contributing factor to the recovery of income growth.
Generally speaking, the asset quality remained stable and the provision was sufficient. The company’s non-performing loan ratio at the end of the first quarter was 0.90%, down 0.01 percentage points from the beginning of the year; The concerned loan ratio at the end of the first quarter was 0.83%, down 0.08 percentage points from the beginning of the year, and at a low level; The provision coverage rate was 372%, an increase of 1 percentage point over the beginning of the year. According to the information disclosed in the first quarterly report, the overall asset quality of the company remains stable, the stock provision is also sufficient, and the safety cushion is thick.
Investment suggestion: maintain the “overweight” rating. We keep the profit forecast unchanged. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.55/29.6/3.32 billion, with a year-on-year increase of 17.7% / 15.8% / 12.4% and EPS of RMB 0.97/1.12/1.26 respectively. The current share price corresponds to PE of 6.0/5.2/4.6x and Pb of 0.69/0.63/0.57x, maintaining the “overweight” rating.
Risk tip: the continued weakening of the macroeconomic situation may have an adverse impact on the quality of bank assets.
