\u3000\u3000 Bank Of Ningbo Co.Ltd(002142) (002142)
Main points:
Forecast: net profit attributable to parent company in 2021 increased by 29.67% year on year
In 2021, Bank Of Ningbo Co.Ltd(002142) realized revenue / net profit attributable to parent company of 52.721 billion / 19.515 billion respectively, with a year-on-year increase of 28.24% / 29.67% respectively. The annualized roe was 16.58%, with a year-on-year increase of 1.68 percentage points. At the end of 2021, the non-performing loan ratio was 0.77%, a decrease of 0.02 percentage points over the end of the previous year. The provision coverage rate reached 522.01%, an increase of 16.42 percentage points over the end of the previous year. The provision loan ratio was 4.03%, an increase of 0.02 percentage points over the end of the previous year.
The growth rate of revenue and net profit attributable to parent company of Bank Of Ningbo Co.Ltd(002142) slightly exceeded our model prediction. In the increase since 2022, Bank Of Ningbo Co.Ltd(002142) ranked the lowest among A-share banks (- 5.04%), mainly due to the market concern caused by the adjustment of president Luo's work. After years of operation, the mature and stable operation of institutions depends on the market-oriented mechanism rather than individuals. From the micro incentive point of view, for the new president, adhering to the right direction is still the optimal solution, and there is no reason to significantly change the current strategy. We believe that the moat of Bank Of Ningbo Co.Ltd(002142) will not change in the long run; In the short term, small and micro loans + personal loans + wealth management + high-quality risk control are still the gold portfolio. A pullback is a buying opportunity.
Investment advice
It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 19.515/24535/29.947 billion yuan respectively, with a year-on-year increase of 29.67% / 25.72% / 22.06%, and the corresponding EPS will be 3.12/3.92/4.79 yuan respectively. A reasonable valuation of RMB 351.4 billion was given a "buy" rating.
Risk tips
Macroeconomic growth was slower than expected.
