\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 577 Bank Of Changsha Co.Ltd(601577) )
The profit is stable and good, the retail strategy is strong, and the bad is stable.
Key investment points
Performance overview
2022q1 Bank Of Changsha Co.Ltd(601577) net profit attributable to parent company increased by 13.1% year-on-year, and the growth rate decreased by 5.0pc compared with 2021; Net profit excluding non net profit increased by 13.1% year-on-year, 0.4pc higher than that in 2021; The revenue increased by 12.0% year-on-year, and the growth rate decreased by 3.8pc compared with 2021; Roe (annualized) was 14.6%, with a year-on-year decrease of 1.9pc; ROA (annualized) was 0.93%, with a year-on-year increase of 2bp. The defective rate at the end of 2022q1 was 1.19%, down 1bp from the beginning of the year; The provision coverage rate was 301%, up 3pc from the beginning of the year.
Operating characteristics
1. The profit is stable and good. 2022q1 Bank Of Changsha Co.Ltd(601577) deducted non net profit increased by 13% year-on-year, 0.4pc higher than that in 2021, and the profit growth was stable and good. From the perspective of driving factors: ① in terms of supporting factors, the drag of interest rate spread on profitability has subsided significantly. ② In terms of drag factors, the scale expansion slowed down and the growth rate of non interest income decreased. Looking forward to the future, the promotion of retail and county strategies is expected to support the rapid growth of Bank Of Changsha Co.Ltd(601577) profits.
2. The interest margin level stabilized. 2022q1 Bank Of Changsha Co.Ltd(601577) net interest margin (opening and closing caliber, the same below) was 2.04%, slightly lower than 2021q4 by 1bp, and the interest margin stabilized month on month. Specifically: ① on the asset side, the return on assets decreased 3bp to 4.17% compared with 2021q4. It is speculated that it is mainly dragged down by the decline of loan interest rate. ② On the liability side, the debt cost ratio decreased 2bp to 2.35% compared with 2021q4, and the debt cost control was effective.
3. Retail strategy Bank Of Changsha Co.Ltd(601577) retail strategy has been put into force, and the transformation results have gradually appeared. ① Channel end, further sinking the county. In 2021, 13 new outlets and 901 rural gold stations will be added. At the end of 2021, the county coverage rate reached 92%, which was further improved compared with 86% at the end of 2021h1. ② At the consumer end, consumer finance and credit card business increased rapidly. In 2021, personal consumption loans increased by 23% year-on-year, and the amount of credit card consumption transactions increased by 30% year-on-year. ③ On the wealth side, retail AUM increased by 25% year-on-year, up 5pc from 2021h1.
4. Keep the defect stable. At the end of 2022q1, the Bank Of Changsha Co.Ltd(601577) non-performing rate decreased by 1bp to 1.19% compared with the beginning of the year, the attention rate increased slightly by 1bp to 1.99% compared with the beginning of the year, and the asset quality remained stable. In terms of provision, the provision coverage at the end of 2022q1 increased 3pc to 301% compared with the beginning of the year. Looking forward to the future, the quality of Bank Of Changsha Co.Ltd(601577) assets is expected to improve steadily.
Profit forecast and valuation
Bank Of Changsha Co.Ltd(601577) profit is stable and positive, retail strategy is strong, and bad performance remains stable. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will increase by 9.48% / 15.02% / 15.07% year-on-year, corresponding to bps13.5% 47 / 14.98/16.73 yuan shares. The current price corresponds to 0.55/0.50/0.44 times of Pb valuation. Maintain the target price of 11.35 yuan / share, corresponding to pb0.5 yuan in 202284 times, the current price corresponds to pb0.5% in 202255 times, 53% of the current price space.
Risk tip: macroeconomic stall and substantial exposure of adverse.
