\u3000\u3000 China Merchants Bank Co.Ltd(600036) (600036)
Forecast: net profit attributable to parent company in 2021 increased by 23.2% year on year
In 2021, CMB achieved revenue / net profit attributable to parent company of 331.234 billion / 119.922 billion respectively, with a year-on-year increase of 14.03% / 23.2% respectively. Among the revenue, non interest income reached 127.315 billion, a year-on-year increase of 20.73%. The annualized roe was 16.94%, with a year-on-year increase of 1.21 percentage points.
At the end of 2021, the non-performing loan ratio was 0.91%, a decrease of 0.16 percentage points over the end of the previous year. The provision coverage rate reached 441.34%, an increase of 3.66 percentage points over the end of the previous year. The loan provision rate was 4.03%, a decrease of 0.64 percentage points over the end of the previous year.
The overall data slightly exceeded our model forecast, and the revenue growth rate hit a new high since 2016. China Merchants Bank Co.Ltd(600036) as the leader of wealth management, it will gradually reduce its sensitivity to macro growth in the future.
Investment advice
It is estimated that the profit attributable to the parent company from 2022 to 2024 will be 139.650/167.511/193.102 billion yuan respectively, with a year-on-year increase of 16.45% / 19.95% / 15.28%, and the corresponding EPS will be 5.47/6.58/7.59 yuan respectively. A reasonable valuation of RMB 1518.7 billion was given a "buy" rating.
Risk tips
Macroeconomic growth was slower than expected.
