\u3000\u30006 Shenzhen Zhenye(Group)Co.Ltd(000006) 00000)
Quarterly summary: 6 China Vanke Co.Ltd(000002) 022q1 achieved a net profit of 19.388 billion yuan, a year-on-year increase of 3.7%. Among them, the net interest income increased by 2.5%, the net fee income increased by 2.5%, other non interest income decreased by 7.1% and the operating income increased by 1% year-on-year. Total assets increased by 3.5% over the beginning of the year, total loans increased by 1.5% and total deposits increased by 2.9%. The year-end non-performing rate was 1.58%, the provision coverage rate was 146.95%, the allocation loan ratio was 2.32%, and the core tier 1 capital adequacy ratio was 9.54% 6 China Vanke Co.Ltd(000002) 022: the performance of the company resumed growth in the first quarter, and the stock risk continued to be cleared. The company's performance increased by 3.7% year-on-year, significantly improved compared with last year. The contribution of performance growth mainly comes from scale, provision and tax. The loan growth may slow down due to the impact of the epidemic and real estate sales. The stock problem continued to be cleared. After a substantial write off in the second half of last year, the high level of write off this year slowed slightly, and the provision coverage remained stable. The company's valuation is pb0.5% in 202239x, with a dividend yield of 5.13%. With the weakening of the impact of the epidemic and the clearing of stock risks, the investment value may gradually appear.
Key points supporting rating
The stock continued to be cleared and the provision remained stable
In the past few years, Shanghai Pudong Development Bank Co.Ltd(600000) made great efforts to deal with the stock problem, and further strengthened in the second half of last year. From 2017 to 2021, the total write off amount of the company is equivalent to 10% of the total loans in 2017. The non-performing turnover is fast, and the write off / non-performing in 2021 is 106%. Last year, 81.1 billion yuan was written off, and 44.18 billion yuan was written off in the second half of last year, significantly accelerating year-on-year. It is estimated that 10.2 billion yuan was written off in the first quarter of this year, slightly lower than 11.79 billion yuan in the same period last year (estimated), and still at a high level. Last year, the recovery of non-performing loans may have improved. The recovery rate of non-performing loans in 2021 was 10%, 3 percentage points higher than that in 2020. The non-performing rate was 1.58%, down 3 bp from the previous year, and the proportion of concerned loans was 2.17%, unchanged from the previous year.
The provision coverage rate was 146.95%, an increase of 3 percentage points over the end of last year, the loan allocation ratio was 2.32%, an increase of 1bp over the end of last year, and the asset impairment loss in the first quarter decreased by 3.5% year-on-year.
Valuation
The company predicts that eps1 will be in 2022 / 202383 / 1.89 yuan (originally predicted eps2.30 / 2.46 yuan), the current stock price corresponds to 0.39x/0.35x Pb in 2022 / 2023, maintaining the overweight rating.
Main risks of rating
The deterioration of asset quality caused by economic downturn exceeded expectations; Regulatory control exceeded expectations.
