\u3000\u3 China Vanke Co.Ltd(000002) 948 Bank Of Qingdao Co.Ltd(002948) )
Quarterly highlights: 1. Net profit increased by + 21.9% year-on-year. The asset quality was stable, the provision released profits, and the net profit maintained a high growth rate of 21.9% year-on-year. 2. Net interest income in the first quarter was + 2.5% month on month compared with the fourth quarter, with both volume and price rising. In the first quarter, the scale of interest bearing assets of the company increased by 0.4% month on month; The single quarter annualized net interest margin rose slightly 1bp to 1.51% month on month, mainly due to the positive contribution of debt side costs. It is expected that the upper limit of deposit pricing fell last year, and the repricing will slow down the cost of deposits to a certain extent ( Bank Of Qingdao Co.Ltd(002948) q1 deposit repricing accounts for 61%). In the future, with the end of the epidemic, the demand on the asset side will pick up, the structural adjustment on the asset side will continue to advance, and the yield is expected to stabilize; The reduction of the upper limit of deposit pricing on the liability side continues to slow down the cost of deposits, and the interest rate spread is expected to stabilize and recover. 3. The first quarter had a good start, with a high increase in credit, driving structural optimization and vigorous investment in corporate loans. In the first quarter, the scale of new loans was 11.47 billion, of which the public investment was strong. Corporate loans (including bills) increased by 11.453 billion in a single quarter, an increase of 6.8% month on month, and the scale of retail loans was flat month on month. The proportion of total loans increased by 2.1 percentage points to the historical optimal level of 50.3%. 4. Stable asset quality. The non-performing rate in the first quarter decreased 1bp to 1.33% month on month, and remained stable on the whole. The annualized net generation rate of non-performing products in a single quarter was 1.31%, down 22bp month on month. The proportion of concerned loans decreased to 0.91% month on month, and the potential pressure will drop in the future. The company’s provision coverage rate was 195.35%, up 0.86 percentage points month on month. 5. The a + H allotment was completed, and the core tier 1 capital adequacy ratio increased significantly. 1q22 core tier 1 capital adequacy ratio, tier 1 capital adequacy ratio and capital adequacy ratio were 9.30%, 11.77% and 16.305% respectively, with a chain comparison of + 92bp, + 73bp and + 47bp.
Insufficient quarterly reports: 1. The growth rate of revenue narrowed. The revenue in the first quarter was – 5.7% year-on-year, mainly due to the decline of interest rate in the loan market, superimposed on the factors of lower yield in the bond market, and the net interest income decreased compared with the same period last year under the narrowing of net interest margin; Affected by exchange rate fluctuations, net non interest income also decreased. At the same time, expenses increased year-on-year, and PPOP narrowed to – 12.0%. 2. Net non interest income was – 8.2% year-on-year, dragged down by the narrower growth rate of medium income and other non interest income. 1. Net handling fee income increased by 1.2% year-on-year, narrowed compared with the growth rate of 15.8% in the fourth quarter, and the year-on-year growth rate of net other non interest income turned negative to – 17.3%, significantly narrowed compared with the growth rate of the whole year of 21 years (year-on-year increase of + 119% in 2021), mainly due to the downward expansion of exchange gains and losses under exchange rate fluctuations.
Investment suggestion: the current share price of the company corresponds to 2022e and 2023epb0 60X/0.54X； PE4. 84x / 4.24x (City Commercial Bank pb0.74x / 0.65x, pe6.02x / 5.29x). Based in Qingdao and rooted in Shandong, the company has a high-quality and diversified shareholder structure. Senior executives are selected through market-oriented employment, and have deep industry awareness and market-oriented management concept. With the steady progress of the company’s “interface bank” strategy, the asset liability structure is continuously optimized, and the performance has a good foundation for development. The company’s share allotment landed, and the previous share price repression factors were removed. It is suggested to maintain positive attention.
Note: according to the company’s first quarterly report, we slightly adjusted the company’s credit cost and other assumptions, and the operating revenue was adjusted to 2022e / 2023e119 3.8 billion yuan / 13.727 billion yuan (the original value was 12.291 billion yuan / 14.145 billion yuan), and the net profit was adjusted to 2022e / 2023e34 million yuan RMB 0.4 billion / RMB 3.879 billion (original value: RMB 3.377 billion / RMB 3.854 billion).
Risk tip: the macro economy is facing downward pressure, the company’s deposit competition is facing pressure, and the operating performance is less than expected.
