\u3000\u3000 China Everbright Bank Company Limited Co.Ltd(601818) (601818)
Data overview
China Everbright Bank Company Limited Co.Ltd(601818) in 2021, the net profit attributable to the parent company increased by 14.7% year-on-year, and the operating revenue increased by 7.1% year-on-year. ROE10. 6%； The defective rate was 1.25%, with a chain comparison of -9bp; The provision coverage rate was 187%, month on month + 1pc.
Profit growth fell
China Everbright Bank Company Limited Co.Ltd(601818) in 2021, the net profit increased by 14.7% year-on-year, the growth rate was – 3.7pc month on month, the operating revenue increased by 7.1% year on year, and the growth rate was – 2.1pc month on month, partly due to the high base effect. The two-year compound growth rate of net profit in 2019-2021 is still + 2.1pc to 7.8% month on month (the data caliber is changed due to the acquisition of cloud payment in 21q3. However, since the impact of cloud payment on profit is less than 0.1%, the restatement impact is not considered). Looking forward to the future, with the development of wealth management strategy, it is expected that the profit is expected to maintain rapid growth.
Scale expansion and acceleration
China Everbright Bank Company Limited Co.Ltd(601818) at the end of 2021, the total assets increased by 10.0% year-on-year, about 2.5pc higher than 2021q3, and the scale expansion accelerated, which strongly supported the profitability.
Double reduction of defects
China Everbright Bank Company Limited Co.Ltd(601818) 2021q4 NPL decreased both month on month, NPL balance was – 5.8% month on month, and NPL rate was -9bp to 1.25% month on month, falling back to the best level since 2014. In terms of provision level, the provision coverage rate of 2021q4 increased from + 1pc to 187% month on month, and the risk offset ability continued to improve.
Profit forecast and valuation
It is estimated that China Everbright Bank Company Limited Co.Ltd(601818) 2022-2023 net profit attributable to parent company will increase by 12.20% / 12.09% year-on-year, corresponding to bps7.5% 58 / 8.26 yuan shares. The current price corresponds to 0.45/0.41 times of Pb valuation. Maintain the target price of RMB 5.60, corresponding to pb0.5 in 2022 74x, the current price corresponds to pb0.00 in 2022 45x, 64% of the current price space.
Risk tip: macroeconomic stall and significant exposure of adverse.
