\u3000\u3000 Bank Of Ningbo Co.Ltd(002142) (002142)
Summary of express: 1. The company’s high profit and high growth attributes continued: Bank Of Ningbo Co.Ltd(002142) revenue increased by 28.2% year-on-year, and the growth rate remained high. The cumulative revenue in the first to third quarters increased by 28.5% year-on-year, of which the net interest income increased by 18% year-on-year; The growth rate of handling fees and other non interest income increased by 6% and 111% respectively year-on-year. It is expected that the growth of various factors will remain stable in the fourth quarter. Net profit rose to 29.7% year-on-year, matching the high growth of revenue; The compound growth rate of profit in the two years was 19.3%. 2. The scale maintained a high growth, and the year-on-year growth rate of the negative end was close to 24%. Total assets increased by 23.9% year-on-year, total loans increased by 25.4% year-on-year, credit growth was higher than that of total assets, and the overall financing demand was strong. Total liabilities increased by 23.7% year-on-year, and total deposits increased by 13.8% year-on-year. The growth rate of total liabilities was higher than that of deposits, and the asset scale increased at a high level. The company increased its dependence on active liabilities. 3. Bank Of Ningbo Co.Ltd(002142) the asset quality is very solid and stable, with a high margin of safety. Non performing dimension – the stock of non-performing goods is further lower at a low level. The non-performing rate continued to decline 1bp to a low level of 0.77% month on month. The non-performing rate was at a low level before the last non-performing cycle in 2012, and the asset quality statement was clean. Provision dimension – the reason why the company maintains consistent prudence, the provision is not reduced, and the safety margin is very high. The coverage of provision for non-performing assets continued to rise by 6.7 points to 522.01% month on month; The loan allocation ratio increased month on month, unchanged at 4.03%. Assuming that the provision coverage remains the same as that in the third quarter, the cumulative net profit of the company can grow by 32.5% year-on-year.
Investment advice: Bank Of Ningbo Co.Ltd(002142) is a high-quality bank we continue to recommend, and the market-oriented mechanism makes its growth most sustainable. Bank Of Ningbo Co.Ltd(002142) with excellent asset quality and periodic test, high profitability, sustained growth, flexible market mechanism and excellent management, the company is the representative of high-quality banks with scarcity. Company 2022e, 2023e Pb 1.57x/1.37x; PE 10.62x/8.96x (City Commercial Bank Pb 0.72x/0.64x; PE 6.22x / 5.52x). Bank Of Ningbo Co.Ltd(002142) deepen the construction of diversified profit center. Wealth management is a new runway. In the future, the company can continue to maintain rapid growth. We maintain key recommendations.
Note: according to the performance express, we fine tune the profit forecast and predict that the net profit attributable to the parent company from 2022 to 2023 will be 23.4 billion and 27.6 billion (the previous values were 22.6 billion and 26.7 billion).
Risk tip: the economic downturn exceeded expectations and the company’s operation was less than expected
