China Everbright Bank (601818): China’s asset structure remains stable and net profit remains at high growth
On the evening of October 30, 2019, Everbright Bank disclosed the 2019 third quarter report. Our comments are as follows: Investment recommendations and risk tips: In the first three quarters of 2019, the company’s revenue and PPOP growth rate have slowed down, and the net profit attributable to mothers remains high.increase.
At present, the company’s asset structure is stable and the interest margin is stable.
In the past two years, the company’s asset structure has also been adjusted following the regulatory trend. However, due to the stable operation of the previous period, we expect the company’s asset structure adjustment to take the lead in the industry.
We believe that the company has always upheld a stable operation, overlapping the advantages of the group, and has obvious comparative advantages in comparable companies.
We expect the company’s attributable net profit growth rate to be 13 in 2019/2020.
05% and 11.
07%, EPS are 0.
78 yuan / share, the current sustainable corresponding PE for 2019/2020 is 6 respectively.
45X / 5.
79X and PB are 0.
75X / 0.
The company has been assessing about 0 in the past two years.
8 times PB, we think that the negative effect of the company’s capital structure adjustment can be expected to repair it to 0.
9 times or more, we press 0 for 2019.
The 9x PB estimated reasonable value is about 5.
41 yuan / share, according to the current AH premium ratio, the corresponding H share reasonable value is 4.
35 HKD / share, maintain BUY rating.
Risk reminders: 1. The economic downturn has caused worse-than-expected asset quality; 2. The competition for deposits has intensified, and the economic demand at the transfer asset side has weakened, and interest margins may decline.
Core point of view: The revenue growth rate has improved and dropped, and the growth rate of net profit attributable to mothers has been fast and stable. In Q1 and Q3 2019, the company’s revenue, PPOP, and net profit or growth attributable to mothers are respectively 23
19% (2019H1: 26.
12% (2019H1: 32.
11% (2019H1: 13.
11%), revenue and PPOP growth have slowed down, and net profit attributable to mothers has remained stable.
Judging from the contribution of Q3’s return to the net profit growth rate, the positive contribution factors are mainly the interest-generating total asset growth rate and net interest margin, and the negative contribution factors are mainly other income and expenditure.
The balance sheet structure is stable, the interest rate is stable. The company disclosed 都市夜网 that the company’s net interest margin was 2 in the first three quarters of 19 years.
28%, the earlier 19H1 rose by 1bps, more than 48bps.
We estimate that the yield on interest-earning assets rose 2bps to 4 from the previous quarter.
73%, the debt cost ratio rose 2bps to 2.
From the perspective of the asset-liability structure: (1) the interest-earning asset side, compared with the end of the first half of the year, the company’s deposit and interbank assets at the end of the third quarter decreased by 0.
7 points to 7.
7%, the proportion of investment assets rose by 0.
4 points to 29.
9%, the proportion of loan assets rose by 0.
5pct to 58.
2%, relatively high-yielding loans and investment assets support the company’s return on assets.
(2) Compared with the first half of the year, the interest-bearing 杭州桑拿网 debt end of the company’s deposits decreased by zero at the end of the third quarter.
1pct to 70.
1%, the proportion of interbank liabilities rose by 0.
8 points to 14.
8%, the proportion of bonds issued decreased by 1.
0 points to 9.
On the whole, the company’s current asset and liability structure is stable and the interest rate spread is stable. It is expected that the subsequent interest rate trend will mainly focus on changes in market interest rates.
The NPL ratio declined, and the provision coverage ratio rebounded. At the end of the third quarter of 2019, the NPL ratio was 1.
54%, down from the previous month.
03pct; provision coverage 179.
10%, an increase of 1 from the previous quarter.
We estimate that the company’s net annualized NPL ratio in the first three quarters was approximately 1.
67%, an increase of about 0 compared with the same period last year.