\u3000\u3000 Bank Of Changsha Co.Ltd(601577) (601577)
Event:
On January 19, Bank Of Changsha Co.Ltd(601577) released the performance express for 2021. In 2021, it realized an operating revenue of 20.867 billion yuan, a year-on-year increase of 15.8%, and a net profit attributable to the parent company of 6.304 billion yuan, a year-on-year increase of 18.1%. The weighted average return on net assets was 13.26%, a year-on-year decrease of 0.50PCT.
Comments:
Revenue growth slowed and profit growth remained relatively high. The year-on-year growth rates of Bank Of Changsha Co.Ltd(601577) operating revenue and net profit attributable to parent company in 2021 were 15.8% and 18.1% respectively, and the year-on-year growth rates decreased by 3.90 and 0.54 PCT respectively compared with the first three quarters of 21 years. The year-on-year growth rates of single quarter revenue and net profit attributable to parent company in 21q4 were 5.4% and 16.0% respectively, and the quarter on quarter changes were – 19.14 and 2.64 PCT respectively. The year-on-year growth rate of the company’s performance is lower than that in the first three quarters of 2021, which is expected to be mainly affected by the slowdown of table expansion and expenditure growth (21q4 single quarter operating expenditure QoQ + 8.8%).
The credit supply was “prosperous in both supply and demand”, and the deposit loan ratio was improved to provide a stable source of funds for the “good start” at the beginning of 22. At the end of 2021, the year-on-year growth rates of total assets and loans were 13.1% and 17.3% respectively, with changes of -1.91 and 2.92 PCT respectively compared with the end of 21q3. When the overall credit supply of the banking industry was weak, Bank Of Changsha Co.Ltd(601577) credit showed “booming supply and demand”, and the proportion of loan balance in total assets increased by 1.44 PCT to 46.4% compared with the end of 21q3; The year-on-year growth rate of deposits at the end of 2021 was 10.9%, an increase of 6.40pct compared with that at the end of 21q3. The significant improvement of the deposit side pushed the deposit and loan down by 0.89pct to 73.0% compared with that at the end of 21q3. The matching degree between the source of funds and the use of funds in the deposit and loan sector was improved, which helped to further consolidate the safety space of liquidity supervision indicators at the end of 2021 and provide stable capital reserves for the “good start” of credit supply at the beginning of 2022.
The non-performing loan ratio and provision coverage were flat month on month. At the end of 2021, Bank Of Changsha Co.Ltd(601577) non-performing loan ratio and provision coverage ratio were 1.20% and 297.9% respectively, which were basically the same month on month. The overall asset quality operation of the company remained stable, and the non-performing loan ratio has continued to improve since 2018.
Earnings forecast, valuation and rating. In recent years, Bank Of Changsha Co.Ltd(601577) has maintained a high credit growth rate, the financial business has strongly boosted the middle income, and the asset quality has been continuously consolidated. County market expansion is expected to further open the company’s profit space. Maintain Bank Of Changsha Co.Ltd(601577) EPS of 1.53/1.73/1.95 yuan from 2021 to 2023 respectively, and the Pb valuation corresponding to the current stock price is 0.75/0.66/0.59 times respectively, maintaining the “buy” rating.
Risk tip: the credit is not as good as expected, and the downward pressure on the economy is increasing.
