\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 939 China Construction Bank Corporation(601939) )
Core view
Performance growth remained stable. In the first quarter of 2022, the operating revenue was RMB 232.2 billion, with a year-on-year increase of 7.3%, and the growth rate was slightly lower than that of last year’s annual report by 1.8 percentage points; Among them, the net interest income was 159.5 billion yuan, a year-on-year increase of 8.4%; In the first quarter, the net profit attributable to the parent company was 87.8 billion yuan, a year-on-year increase of 6.8%, which was lower than that of last year’s annual report, but slightly increased by 0.3 percentage points compared with the two-year average growth rate of last year’s annual report. In the first quarter of 2022, the annualized weighted average roe14 0%, down 0.4 percentage points year-on-year.
The growth rate of assets was slightly lower than the average level of the industry and expanded steadily. At the end of the first quarter of 2022, the total assets increased by 9.0% year-on-year to 32.0 trillion yuan, slightly lower than the overall level of the industry. Among them, deposits increased by 7.9% year-on-year to 23.9 trillion yuan, and loans increased by 12.1% year-on-year to 19.7 trillion yuan. At the end of the first quarter, the core Tier-1 capital adequacy ratio was 13.67%, the Tier-1 capital adequacy ratio was 14.21%, and the capital adequacy ratio was 17.91%, all meeting the regulatory requirements.
The net interest margin remained stable. The average daily net interest margin of the company in the first quarter was 2.15%, a slight increase of 2bps year-on-year. On a month on month basis, the net interest margin in the first quarter of this year was 1 bp lower than that in the fourth quarter of last year. Overall, the average daily net interest margin of the company in a single quarter has remained basically stable since last year.
The net income from handling charges decreased slightly. In the first quarter of 2022, the net fee income was 41.1 billion yuan, a slight decrease over the same period last year, mainly due to supporting the development of the real economy and continuing to take measures to reduce fees and transfer profits to customers, resulting in a year-on-year decrease in the income of some products.
The cost income ratio remained stable. In the first quarter of 2022, the business and management fee was 42.6 billion yuan, a year-on-year increase of 3.9%, the cost income ratio was 18.3%, a slight decrease of 0.6 percentage points year-on-year, and remained basically stable.
The asset quality is stable and improving, and the provision is thickened. According to the five level classification of loan quality, the company’s non-performing loan balance at the end of the first quarter of 2022 was 276.6 billion yuan, an increase of 10.5 billion yuan over the end of the previous year, and the non-performing loan ratio was 1.40%, a decrease of 0.02 percentage points over the end of the previous year. The provision rate increased by 246% compared with the end of the first quarter at the beginning of the year.
Investment suggestion: the overall performance of the company in the first quarter has little change compared with the annual report. We maintain the profit forecast unchanged. It is expected that the net profit attributable to the parent company will be 329.5/3547377 billion yuan from 2022 to 2024, with a year-on-year growth rate of 8.9/7.6/6.3%; Diluted EPS is 1.30/1.40/1.49 yuan; The current share price corresponds to PE of 4.7/4.3/4.1x and Pb of 0.56/0.51/0.47x, maintaining the “buy” rating.
Risk tip: the weakening macroeconomic situation may have an adverse impact on the quality of bank assets
