\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 036 China Merchants Bank Co.Ltd(600036) )
Event: China Merchants Bank Co.Ltd(600036) announced on May 20 that the board of directors held the 40th meeting of the 11th board of directors on May 19, 2022, deliberated and adopted the proposal on appointing Mr. Wang Liang as president of China Merchants Bank Co.Ltd(600036) and agreed to appoint Mr. Wang Liang as president of China Merchants Bank Co.Ltd(600036) from the date when the qualification of president was approved by Bank Of China Limited(601988) Insurance Regulatory Commission to the th.The 11th board of directors expires.
The new President confirmed that Wang Liang was appointed as the new president and Secretary of the Party committee. His style was professional and steady, which was conducive to the continuation of CMB's strategy and business. President Wang Liang joined China Merchants Bank Co.Ltd(600036) Beijing Branch in 1995 for 27 years. Previously, he was the executive vice president in charge of the company and was very familiar with China Merchants Bank Co.Ltd(600036) development process, strategy, business and management. The management determined that it is conducive to the continuation of CMB's strategy and business, the stability of the team and the maintenance of China Merchants Bank Co.Ltd(600036) 's competitive advantage.
Over the past 40 years, China Merchants Bank has been deeply engaged in retail, and its strategy has maintained strong continuity and stability, which has been deepened continuously. In the future, it will continue to broaden its advantages in the retail field. The first retail transformation of China Merchants Bank in 2004. Established a comprehensive retail product system represented by all-in-one card, sunflower financial products and other products; The second transformation of China Merchants Bank began in 2009 and deepened in 13 years: positioning light Bank + one body and two wings; The digital transformation mode of China Merchants Bank was proposed in March 0, 2018 by tech; In 2021, a 3.0 model of "big wealth management business model + digital operation model + open and integrated organization model" was proposed. Through Wuxi Online Offline Communication Information Technology Co.Ltd(300959) Omni channel integration mode, drive the continuous growth of retail customers.
CMB's fundamentals remain stable. It has built its unique "moat of business model" in retail and wealth management, and its competitiveness to the public is also continuously improving. 1. Wealth management takes the lead in all aspects and will probably become the top enterprise. 2. Retail business can maintain a leading position for a long time. 3. Corporate competitiveness continues to improve, driving wealth and retail business.
Behind CMB's ability to continuously build its unique value lies in its good corporate governance mechanism. CMB has implemented the "president responsibility system under the leadership of the board of directors" for a long time. The board of directors maintained the stability and continuity of China Merchants Bank Co.Ltd(600036) with a highly responsible attitude towards China Merchants Bank Co.Ltd(600036) and made prudent choices and decisions for the new president. The major shareholder of China Merchants Group is one of the most market-oriented and international groups. In the past 40 years, it has selected three excellent presidents for China Merchants Bank, and designed a market-oriented corporate governance structure with president responsibility system and appropriate supervision for China Merchants Bank. The benign interaction between "leadership of the board of directors" and "president responsibility system" makes the management of China Merchants Bank always have the autonomy of daily operation and fully maintain the vitality of marketization; It also makes the long-term strategy stable and continuous, and there has been no obvious deviation and shaking in the past 40 years.
Under the excellent corporate culture, CMB has also created a professional and enterprising middle and senior management and business backbone team, with sufficient follow-up hematopoietic ability, which can bring sustainable impetus to business development. Under the excellent corporate governance structure, CMB has formed an internal market-oriented and external customer-oriented "corporate culture" for a long time; It has trained a large number of pragmatic, diligent, professional and enterprising middle and senior managers and business backbones to form "team personnel".
Investment suggestion: the endogenous driving force of performance is the most sustainable, with continuous key recommendation. The current share price of the company corresponds to 2022e and 2023epb1 22X/1.07X； PE7. 45x / 6.49x (pb0.56x/0.50x, pe4.93x/4.5x for stock banks) China Merchants Bank Co.Ltd(600036) all indicators show its sound and excellent fundamentals. At the same time, it has strong strategic implementation. In the existing system of retail business, its moat can continue to deepen and adapt to the latest development of financial technology. China Merchants Bank has high "scarcity" in banking stocks and is worthy of long-term holding. It is an excellent company that we focus on and continue to recommend.
Risk tip: the economic downturn exceeded expectations and the company's operation was less than expected.
