\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 998 China Citic Bank Corporation Limited(601998) )
Highlights of the quarterly report: 1. The revenue grew steadily and the net profit maintained double-digit growth. In the first quarter, the revenue increased by 4.1% year-on-year, PPOP increased by 2.8% year-on-year, and the provision provision was relatively stable. The year-on-year growth rate of net profit maintained a double-digit growth, with a year-on-year increase of 10.9%. 2. The scale of deposits and loans grew steadily and the structure remained stable. In the first quarter, loans increased by 2.0% month on month, and the proportion of loans remained stable at 61.1%. Among them, corporate loans increased by 3.7% month on month, and the proportion in total loans increased 8pct to 48.9%; The deposit scale increased by + 3.9% month on month, accounting for an increase of 1PCT to 66.5% in the fourth quarter, of which the resident deposit increased by 23.8% year on year and the proportion increased by 0.53pct to 21.11% month on month. 3. The number of non-performing products has maintained a double decline for six consecutive quarters. In the first quarter, the balance of non-performing loans was 67.06 billion yuan, and the non-performing rate decreased 4bp to 1.35% month on month. It maintained a double decline for six consecutive quarters, and the provision coverage increased by 4.1 percentage points month on month to 184.1%.
Insufficient quarterly reports: the net interest margin narrowed by 5bp, dragging down the net interest income by - 0.7% month on month. It is mainly due to the drag of asset side income, which is expected to be mainly due to the impact of loan repricing. The company's Q1 repricing loans account for 56%. In terms of structure, the proportion of loans in interest bearing assets remained stable on the whole. The good start of the first quarter led to the increase in the proportion of corporate loans, and the structure also led to a certain decline in the comprehensive yield of loans.
Investment suggestion: 2022e, 2023epb0 44X/0.40X； PE4. 10x / 3.74x (pb0.56x/0.51x; pe4.88x / 4.41x of stock banks), China Citic Bank Corporation Limited(601998) has a good foundation of corporate strategic customers and institutional customers, and has a distinctive retail customer base. In the next three years, it will focus on strong nuclear development and deepen the collaborative integration of the group. It is suggested to pay attention to the future strategic transformation of the company.
Note: according to the first quarterly report of the company, we adjusted the assumptions such as loan yield, deposit interest rate and credit cost. After adjustment, the operating revenue 2022e / 2023e was 218.92/235.41 billion yuan respectively (the original value was 220818/242402 billion yuan), and the net profit 2022e / 2023e was 61.42/67.07 billion yuan respectively (the original value was 59.988/64.720 billion yuan).
Risk tip: the economic downturn exceeded expectations and the company's operation was less than expected.
