Guiyang Bank (601997): Rapid Credit Expansion Leads High ROE
Event: On April 15, Guiyang Bank released the 2018 annual report, and the company achieved operating income of 126 in 2018.500 million yuan, +1 a year.3%; net profit attributable to mother 51.400 million, ten years +13.4%. Performance growth forecast, scale factor is the main reason for performance growth.Guiyang Bank realized net profit attributable to mothers in 201851.400 million, ten years +13.4%, a decrease of 3% over the first three quarters.Eight averages, a decrease of 10 from 2017.6 units.Among them, the contribution of █ net income to performance growth4.The contribution rate of 5%, scale factor and interest rate factor are 40.2%, -35.6%, scale expansion is the main reason for performance growth.The positive contribution of management expenses, asset impairment losses and income tax to performance indicates the transfer of cost control ability of Guiyang Bank. Optimized asset structure and increased loan growth.At the end of 2018, the total assets of Guiyang Bank were 50.33 million yuan, +8 in ten years.5% (2018Q3: 13.6%).Among them, the loan balance was US $ 1,642 million, +35 per year.7% (2018Q3: 36.1%), the proportion continued to increase (2018: 32.6%; 2018Q3: 31.4%); financial investment is 25.8 million yuan, ten years +1.5% (2018Q3: 3.6%), the proportion still exceeds 50%; the industry assets for two years -47.6%, accounting for 4.5% interest rate 1.7%.Guiyang Bank’s new loans were more targeted at enterprises. The growth rate of corporate loans increased and accounted for a large proportion. At the end of 2018, corporate loans increased by +37.2% to 1306 million (2018H: 25.7%), accounting for 76.7%. Net interest margin rebounded month-on-month, and profitability was supplemented.The net interest margin of Guiyang Bank is 2.25%, an increase of 2 BP from the first half of the year, and the interest-earning asset return rate increased from 4.88% rose to 4.90%, of which the loan interest rate increased significantly by 26 BP, and the interest-bearing debt cost rate increased by 1 BP to 2.66%.The average ROE in 2018 was 18.88%, an increase of 0 from the third quarter.With 05 shareholders, the bank’s ROE always ranks first among listed banks, and its profitability is significantly higher than its peers. The non-performing ratio fell month-on-month, and the loan rate overdue for more than 90 days dropped significantly.NPL ratio at the end of 20181.35%, a 北京spa会所 drop of 11 blood pressure in the third quarter, an increase of 1 blood pressure compared to 2017.The balance of non-performing loans was 23.1 ‰, +37 a year.1% (2018Q3: 48.4%).Pay attention to the loan ratio from 2 at the end of the third quarter.77% return 2.59%, concerned about the slowdown in loan growth (2018: 10).1%; 2018Q3: 20.7%).Loans overdue for more than 90 days are up to +11.6% to 18.7 trillion, accounting for 1 in total loans.10% (2018H: 1.26%), asset quality further improved. Investment suggestion: Guiyang Bank’s loan growth rate will increase, profitability will increase, and performance will increase rapidly.It is estimated that the net profit attributable to mothers will be 10 in 19/20.2% / 11.1%, corresponding to BVPS15.03/17.31 yuan, the current price is 0.91/0.79 times PB.Target price for 2019 is 15.8 yuan, 苏州夜网论坛 corresponding to 1.05 times PB, 15% of the current price space, given an “overweight” rating. Risk reminders: the risk of macroeconomic downturn; the policy risk of strict supervision; credit risk; market risk.