\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 998 China Citic Bank Corporation Limited(601998) )
The performance was better than expected and the asset quality was stable
Summary of quarterly report: 601 the net profit attributable to the parent company in the first quarter of 19982022 was 17.35 billion yuan, a year-on-year increase of 10.9%. Year on year provision, scale and non interest contribution performance. Net interest income decreased by 1.2% year-on-year, net handling fee income and other non interest income increased by 4.1% and 42% year-on-year respectively, and operating income and profit before provision increased by 4.1% and 2.8% year-on-year respectively. Total assets increased by 2.38% over the beginning of the year, and loans and deposits increased by 2% and 3.9% respectively.
The performance was better than expected and the asset quality was stable. 1. Quarterly performance growth was better than expected, non interest contribution, profitability and capital level increased year-on-year. The most outstanding performance of the annual report is: under the market pressure, the handling fee has maintained a positive growth, other non interest income has also achieved rapid growth, and the overall non interest income has increased rapidly; The quality of assets continued to improve, the non-performing assets decreased, and the provision was stable. According to the quarterly report, the net interest margin is synchronized with the industry, or it may still decline.
The company's valuation is low, the dividend is high, the valuation excessively reflects pessimistic expectations, the company's stock problems are continuously resolved, the transformation is continuously promoted, the business is improved, and the medium and long-term value is highlighted.
Profitability and capital level are improved, and there may be buffer demand for capital.
Roae was 13.57%, with a year-on-year increase of 0.28 percentage points and roaa of 0.5% 87%, an increase of 4bp year-on-year. Core tier 1, capital adequacy ratio and tier 1 capital adequacy ratio were 8.66% / 10.59% / 13.05% respectively, with a year-on-year increase of 7bp / 63bp / 32BP. The second group of systemically important banks of the company has an additional requirement of 0.5 percentage points, and there may be buffer demand for core Tier-1 capital.
The single quarter net interest margin may still narrow in the first quarter.
It was announced that the net interest margin in the first quarter was 2.02%, a year-on-year decrease of 11bp and 3bp compared with last year. It is estimated that the net interest margin of a single quarter also decreased in the first quarter compared with the fourth quarter of last year, the return on assets and debt interest payment rate decreased, and the return on assets decreased more.
Bad debts have both decreased, the generation has slowed down, and the provision is stable.
The non-performing rate was 1.35%, down 4bp from last year, and the balance of non-performing loans decreased by 0.59%. It is estimated that the non-performing rate in the fourth quarter is 1.06%, which is improved compared with last year. The provision for incremental total assets decreased, and the provision for stock credit was basically stable. The asset impairment loss decreased by 6.8% year-on-year, and the loan provision coverage rate was 184.09%, an increase of 4 percentage points over last year. The provision for loan impairment loss may be better than all asset impairment losses.
We maintain the company's EPS of 1.24/1.36 yuan in 2022 / 2023. At present, the corresponding price to book ratio of the stock price is 0.43x/0.39x, and the dividend rate is 6.0%, maintaining the overweight rating.
Main risks of rating
The economy fell sharply, and the deterioration of asset quality exceeded expectations.
