\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, with a revenue of 20.867 billion, yoy + 15.78% (+ 9.89pct); Net profit attributable to parent company: 6.304 billion, yoy + 18.09% (+ 13.01pct); Roe was 13.26% (- 50bp); The defect rate is 1.20% (- 1bp); The provision coverage rate is 297.87% (+ 5.19pct).
The annual revenue and profit grew rapidly. In a single quarter, the revenue growth rate in 2021q4 was -19.1pct month on month. It is expected that the growth rate of net profit attributable to the parent company and profit before tax will stabilize and recover mainly due to the decline of asset investment.
In 2021, Bank Of Changsha Co.Ltd(601577) total assets and deposits increased by 13.05% and 10.94% respectively year-on-year. The annual loan growth rate was ahead, and the asset expansion reached 4.29pct. The “off-season” in the fourth quarter highlighted the strong financing demand in the region, which will optimize the asset structure and improve the net interest margin.
The non-performing rate and provision coverage rate improved slightly by 1bp and 5.19pct year on year, unchanged month on month. The asset quality and safety margin continued to improve and remained at a relatively stable level.
Investment advice: steady growth in performance, good credit expansion and stable asset quality. It is estimated that the EPS of 22 / 23 years will be 1.79 yuan and 2.06 yuan respectively. The closing price on January 21, 2022 corresponds to 0.7 times of 21 year Pb, which is covered for the first time and given a “recommended” rating.
Risk tip: the downward pressure on the economy is increasing; Regional credit risk outbreak; Market competition intensifies.
