\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 187 Xiamen Bank Co.Ltd(601187) )
Highlights of the quarterly report: 1. The performance turned upward, achieved double-digit growth, and the revenue and PPOP became positive significantly. Driven by interest income and other non interest income, revenue increased by 18.3% year-on-year, while PPOP also improved significantly to 14.3%; The asset quality was stable and good, the provision provision was generally relatively stable, and the net profit increased by 16.5% year-on-year. 2. Credit risk indicators are improving. Non performing: the non-performing rate continued to decline 1bp to 0.90% month on month at a low level, and the stock risk continued to be cleared. The proportion of attention categories decreased by 8bp to 0.83% month on month. From the stock level, the proportion of attention categories of the company is relatively low, and the overall risk in the future is acceptable. Provision: the company’s provision coverage rate is 371.43%, which is firmly at a high level.
3. Net non interest income in the first quarter increased by 73.4% year-on-year, supported by net handling fee income and net other non interest income. Among them: 1. The net fee income increased by 21.1% year-on-year, maintaining a high growth rate. It is expected that the investment bank fee support. 2. The year-on-year growth rate of net other non interest income was significantly positive to 177.1%, generally maintaining a high growth rate (a year-on-year increase of – 17.3% in 2021), mainly due to the thickening of investment income and exchange income.
Insufficient quarterly reports: the interest margin dragged down the net interest income by – 8.2% month on month, and the annualized net interest margin in a single quarter decreased by 18bp month on month, mainly due to the obvious decline of the asset side yield and the decline of the asset side yield by 16bp month on month, which is expected to be mainly affected by the structure and pricing. In terms of structure, loans grew steadily in the first quarter, mainly in bill discounting and general corporate (accounting for 42% / 36% of the increase respectively), and the proportion of loans in interest bearing assets decreased by 0.4 percentage points month on month. In terms of interest rate, repriced loans accounted for more than 41% in the first quarter. At the same time, it is expected that the loan pricing will decline due to the weakening demand of the epidemic. In the future, with the end of the epidemic, the demand on the asset side will pick up, the retail credit supply will accelerate, and the influence of repricing factors will weaken. The downward range of asset side yield is expected to slow down; The reduction of the upper limit of deposit pricing on the liability side can slow down the cost of deposits, and it is expected that the decline in interest rate spread will narrow or stabilize.
Investment suggestion: Xiamen Bank Co.Ltd(601187) is located in a better regional economy; The company has decentralized and balanced ownership structure, good governance structure and market-oriented gene; Business focus on small, medium and micro enterprises; The asset quality is generally sound, and it is recommended to maintain active attention. Company 2022e, 2023epb0 69X/0.63X； PE6. 10x / 5.30x (City Commercial Bank pb0.72x / 0.64x; pe5.99x / 5.27x).
Risk tip: the macro economy is facing downward pressure, the company’s deposit competition is facing pressure, and the operating performance is less than expected.
