\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 169 Bank Of Beijing Co.Ltd(601169) )
Matters:
Bank Of Beijing Co.Ltd(601169) released the annual report of 2021 and the first quarterly report of 2022. The company achieved revenue of 66.28 billion yuan and 17.62 billion yuan in 21 and 22q1 respectively, with a corresponding year-on-year growth rate of 3.1% and 2.1%; The net profit attributable to the parent company was 22.23 billion yuan and 7.35 billion yuan in 21 and 22q1 respectively, with a corresponding year-on-year growth rate of 3.5% and 6.6%. 21 years roe10 29%, decreased by 0.36 PCT compared with 20 years, and 22q1 annualized roe13 32%, a decrease of 0.16pct compared with the same period of 21 years. At the end of 21, the total assets were 3.06 trillion yuan, an increase of 5.5% over the end of 20 years. At the end of 22q1, the total assets were 3.14 trillion yuan, an increase of 3.6% over the beginning of the year. The profit distribution plan of the company in 2021 is: cash dividend of 3.05 yuan (including tax) for every 10 shares, with a dividend rate of 30.03%.
Ping An View:
The profit growth margin improved, and the middle income of wealth performed strongly. The corresponding year-on-year growth rates of the company's net profit attributable to the parent company in 21 years and 22q1 were 3.5% and 6.6% respectively, and the profit growth margin improved. The company's 22q1 revenue increased by 2.1% (vs + 3.1%, 21a) year-on-year respectively, maintaining a low level. Specifically, the low growth of interest income is the main drag factor. The net interest income of the company in 22q1 changed by 0.7% (vs-0.4%, 21a) year-on-year, which is still at a low growth level. We believe that the main reason is that the interest margin continues to narrow. In terms of non interest income, the growth rate of the company's intermediate income narrowed and turned from negative to positive in 22q1. The net income of handling fees and commissions in 22q1 increased by 36.2% (vs-6.3%, 21a) year-on-year, far ahead of the industry. We think it is mainly due to the incremental contribution of the wealth management business sector under the promotion of retail transformation. From the annual report of 21 years, the income of the whole wealth management business performed well (YoY + 81.7%, 21a).
The loan structure continued to be optimized, and the asset side dragged down the interest margin. We calculated the company's 22q1 single quarter annualized net interest margin of 1.72% (vs 1.76%, 21q4) according to the balance at the end of the initial period, and the interest margin has not yet stepped out of the downward trend month on month. From the perspective of the annual report of 21 years, the asset side pricing level is still the main drag factor on the interest margin. The company's interest bearing asset yield of 21 years is 4.07% (vs4.08%, 21h), of which the loan yield is 21bp lower than that of 20 years, to 4.55%, but it still maintains a high profitability compared with its peers. The cost of debt side increased slightly. The cost ratio of interest paying debt in 21 years was 2.27% (vs2.25%, 21h), of which the cost ratio of deposit was 1.97%, a decrease of 11bp compared with the beginning of 21 years. It generally maintained a stable and good trend, and the bargaining power of deposit was excellent compared with the same industry.
From the perspective of scale growth, on the asset side, the total asset scale of the company in 22q1 increased by 3.6% (vs + 5.5%, 21a) year-on-year, decreased by 1.9pct month on month, and the growth margin slowed down. The loan growth rate was 10.3% (vs + 6.7%, 21a), and the loan growth rate was faster than the growth rate of total assets for two consecutive quarters. At the end of 21q4, the scale of corporate / retail loans changed by - 7.84% / 7.81% compared with 21h1, and the proportion of retail loans increased 2pct to 35% compared with 21h1. Among them, the increment of business loans and consumer loans accounted for 72.1% of the increment of individual loans. The overall structure of loans and assets was optimized satisfactorily, and the retail transformation achieved remarkable results. On the liability side, the year-on-year growth rate of total deposits in 22q1 was 7.6% (vs + 3.8%, 21a), and the storage capacity increased steadily. The proportion of deposits in liabilities increased from 62.4% at the end of 21 to 65.9% at the end of 22q1, giving full play to the role of deposits as a "ballast" on the liability side.
The generation of non-performing assets decreased significantly, and the quality of capital was stable and improved. The non-performing rate of 22q1 of the company was 1.44%, which was the same as that at the end of 21. We estimate that the company's single quarter annualized NPL generation rate of 22q1 is 0.81%, with a year-on-year decrease of 27bp, with an obvious decline. The overall asset quality is stable and improving dynamically. We believe that it is related to the accelerated clearing of the company's stock risk. The provision coverage rate of 22q1 was 212% (vs210%, 21q4), up 2pct month on month, and the loan allocation ratio was 3.04%, up 1bp from the beginning of the year, further strengthening the risk offset capacity.
Investment suggestion: Retail transformation is advancing steadily, and digital leadership is worth looking forward to. In 2021, the company proposed to lead the development path of "five transformations" with digital transformation, aiming to make Bank Of Beijing Co.Ltd(601169) build a leading digital bank in China, continue to increase investment in retail transformation, and the proportion of retail continues to increase. With the accelerated clearing of the historical stock risk burden, the superimposed company promotes the release of retail transformation dividends and the gradual implementation of digital transformation. It is expected that the company's future operating performance will continue to improve. Looking forward to 22 years, considering the disturbance of the economic downturn on the quality of bank assets, we slightly lowered the company's profit forecast for 22 and 23 years, and added a new 24-year profit forecast. It is expected that the company's EPS for 22-24 years will be 1.14/1.25/1.36 yuan respectively (the original forecast value of 22 / 23 is 1.19/1.31 yuan respectively), and the corresponding profit growth rate will be 8.5% / 9.5% / 9.0% respectively (the original forecast value of 22 / 23 is 8.5% / 9.9% respectively). At present, the company's share price corresponds to 0.42x/0.39x/0.36x Pb in 22-24 years, with sufficient valuation safety margin. Considering the stable performance of the company's asset quality and the broad prospects of retail transformation and digitization, the company maintains the "recommended" rating.
Risk tips: 1) the economic downturn leads to higher than expected pressure on the quality of industrial assets. 2) The decline in interest rates led to a narrower than expected industry interest margin. 3) The increase of cash flow pressure of real estate enterprises leads to the rise of credit risk.
