\u3000\u3 China Vanke Co.Ltd(000002) 142 Bank Of Ningbo Co.Ltd(002142) )
The company released its quarterly report of 2022.
The performance continued to grow in double digits, and the pressure of impairment provision was released. In 2022q1, the company realized an operating revenue of 15.263 billion yuan, a year-on-year increase of 15.4%, and the net profit attributable to the parent company was 5.72 billion yuan, a year-on-year increase of 20.8%, maintaining a rapid growth; The annualized ROE (weighted average) was 16.63%, a year-on-year decrease of 1.23 percentage points; Basic eps0 87 yuan, a year-on-year increase of 10.13%. The company’s impairment provision pressure has been slightly released. In 2022q1, the company’s credit impairment loss was 4.252 billion yuan, a year-on-year increase of 22.18%, far less than the growth rate of more than 40% last year.
Nim rebounded month on month, deposits increased significantly in 2022q1, the company’s net interest income was 9.494 billion yuan, a year-on-year increase of 12.59%, the net interest margin was 2.24%, a year-on-year decrease of 0.31 percentage points and a month on month rise of 0.03 percentage points. On the asset side, corporate loans performed steadily, the growth rate was better than that in the same period last year, and retail loans increased slightly. By the end of March 2022, the company’s loan balance was 929914 billion yuan, an increase of 7.79% over the beginning of the year, of which corporate loans and retail loans increased by 10.82% and 2% respectively year-on-year, accounting for 55.35% and 36.54% of the total loans; The growth rate of deposits on the liability side is bright, and the cost advantage is enhanced. By the end of March 2022, the company’s deposit balance was 1.3 trillion yuan, a year-on-year increase of 23.34%.
The contribution of non interest income increased. The intermediate business was under short-term pressure in 2022q1. The company’s non interest income was 5.769 billion yuan, a year-on-year increase of 20.34%, accounting for 37.8% of operating income, a year-on-year increase of 1.55 percentage points. The income from intermediate business was 1.809 billion yuan, with a year-on-year increase of 0.95%. It is expected to be affected by the adjustment of market shock and the pressure on consignment business. Other non interest income maintained rapid growth and investment income performed relatively well. In 2022q1, the company’s investment income (including profit and loss from changes in fair value) was 4.133 billion yuan, a year-on-year increase of 49.64%.
The asset quality is stable and improving, and the risk offset ability is enhanced. By the end of March 2022, the company’s non-performing loan ratio is 0.77%, unchanged from the beginning of the year, maintaining a low level in the industry; Concern loans accounted for 0.51%, an increase of 0.03 percentage points over the beginning of the year; The provision coverage rate was 524.78%, down 0.74 percentage points from the beginning of the year.
The investment suggestion company is deeply engaged in the economically developed areas of the Yangtze River Delta, focusing on the expansion of large retail and light capital business, with excellent business quality and profitability ranking at the forefront of the industry. The growth momentum of asset side credit is strong, the contribution of personal loans to consumer credit is high, and the structure is excellent, which supports the net interest margin and keeps the industry better. The growth rate of deposits on the liability side is leading, and the cost advantage is enhanced. The company is committed to building a diversified profit center, consolidating the development moat and continuously enhancing its competitiveness. We are optimistic about the company’s future development prospects. In combination with the company’s fundamentals and stock price elasticity, we maintain the “recommended” rating, bvps23.5 from 2022 to 202446 / 27.09/31.37 yuan, corresponding to the current share price Pb 1.5x/1.3x/1.12x.
The risk indicates that the macroeconomic growth is less than expected, resulting in the risk of deterioration of asset quality.
