\u3000\u3000 China Everbright Bank Company Limited Co.Ltd(601818) (601818)
Event: on January 18, China Everbright Bank Company Limited Co.Ltd(601818) released the performance express for 2021, realizing a revenue of 152.753 billion, yoy + 7.14% (- 0.16pct); Net profit attributable to parent company is 43.407 billion, yoy + 14.73% (+ 13.5pct); Roe was 10.63% (- 9bp); The defect rate is 1.25% (- 13bp); The provision coverage rate is 187.02% (+ 4.31pct).
The annual revenue growth has slowed down, and the profit growth is still relatively prosperous. The operating growth rate in 2021 was -2.1pct month on month; Under the low base effect, the growth rate of net profit attributable to the parent company increased by + 13.5pct to 14.73% year-on-year.
Non performing assets decreased, asset quality continued to improve, and provision coverage increased slightly. In 2021, the non-performing rate was – 13bp year-on-year, and the balance of non-performing loans also decreased, indicating that the stock risk was further cleared and the asset quality was substantially improved. The provision coverage rate was + 4.31pct year-on-year, and the asset safety margin continued to be thickened.
In the fourth quarter, the expansion was accelerated, and the investment or growth of non credit assets was significant. In 2021, the growth rate of total assets was + 2.5pct month on month and the growth rate of loans was -0.9pct month on month. It is expected that under the background of relatively weak credit demand in the fourth quarter and higher issuance in the bond market represented by interest rate bonds, the investment of non credit assets will be positive.
Investment suggestion: the performance is basically stable, the non-performing assets are both reduced, the asset quality is further consolidated, the asset expansion is accelerated, or benefit from the accelerated release of non credit assets in the fourth quarter. It is estimated that the EPS of 22 / 23 years will be 0.91 yuan and 1.03 yuan respectively. The closing price on January 21, 2022 corresponds to 0.5 times of 21 year Pb, which is covered for the first time and rated as “prudent recommendation”.
Risk warning: macroeconomic growth rate is down; There is a risk of deterioration of asset quality; Wide credit is less than expected.
