\u3000\u3000 Bank Of Changsha Co.Ltd(601577) (601577)
Data overview
Bank Of Changsha Co.Ltd(601577) in 2021, the net profit attributable to the parent company increased by 18.1% year-on-year, and the operating revenue increased by 15.8% year-on-year; ROE13. 3%； The non-performing rate was 1.20%, and the provision coverage rate was 298%, both unchanged month on month.
Steady profit growth
Bank Of Changsha Co.Ltd(601577) in 2021, the net profit was + 18.1% year-on-year, the two-year compound growth rate was 11.4%, and the compound growth rate increased by 1.2pc month on month; Revenue was + 15.8% year-on-year, with a compound growth rate of 10.7% in the two years, and the growth rate dropped by 1.7pc. Looking forward to the future, retail strategy, network socialization and county deep cultivation will strongly support profit performance.
County Financial Promotion
Bank Of Changsha Co.Ltd(601577) in 2021, the loan increased by 17.3% year-on-year, and the growth rate increased by 2.9pc compared with 2021q3; Deposits increased by 10.9% year-on-year, and the growth rate increased by 6.4pc compared with 2021q3, partly due to the base effect. On January 11, the company announced the establishment of the county finance department, and established relevant departments from the head office to strengthen the promotion of county finance, which will help expand Bank Of Changsha Co.Ltd(601577) 's advantages in rural counties and effectively drive the rapid growth of credit.
Stable asset quality
The non-performing rate of Bank Of Changsha Co.Ltd(601577) 2021q4 was flat at 1.20% month on month, stable at the low level since listing; Bank Of Changsha Co.Ltd(601577) 2021q4 provision coverage was flat at 298% month on month, stable at the highest level since listing. Looking forward to the future, Bank Of Changsha Co.Ltd(601577) asset quality is expected to continue to maintain a stable and positive trend.
Profit forecast and valuation
Bank Of Changsha Co.Ltd(601577) profits grew steadily, county finance was promoted, and asset quality was stable. It is estimated that the net profit attributable to the parent company in Bank Of Changsha Co.Ltd(601577) from 2022 to 2023 will increase by 15.20% / 15.31% year-on-year, corresponding to bps13 66 / 15.33 yuan. Maintain the target price of RMB 11.35, corresponding to 0.83 times Pb in 2022. The current price corresponds to pb13.00 in 2022 66 times, current price space 38%, buy rating.
Risk tip: macroeconomic stall and sharp outbreak of bad.
