Report guide
The growth rate of performance has rebounded, the strategic transformation has advanced, and the bad has continued to decline.
Main points of investment
Performance overview
The net profit growth rate of 22Q1 Pudong Development Bank is 3.7%, which is + 12.8% higher than that in 2021. The growth rate of revenue is 1.0%, which is 13.1% higher than that of 3.7pcbot ROE (annualized) in 2021, and 0.96% compared with the same period of last year. The growth rate of ROA is 0.96%, which is higher than that of the same period last year. At the end of 22Q1, the defect rate of Pudong Development Bank was 1.58%, down 3bp from the beginning of the year, and the provision coverage rate was 147%, thickening 3pc than at the beginning of the year.
Performance growth rebounded
On the revenue side, 22Q1 Pudong Development Bank's revenue increased by 1.0% year-on-year, an increase of 3.7pc over 2021, mainly due to a rebound in net interest income and middle income growth: ① 22Q1 Pudong Development Bank's net interest income increased by 2.5% year-on-year and increased 4.4pc compared with 2021, mainly due to the drag and reduction of interest spreads. The year-on-year decline in interest spreads (beginning and end) narrowed from 21Q4's 12bp to 22Q1's 2bp. The income of ② 22Q1 Pudong Development Bank increased by 2.5% compared with the same period last year, which is higher than that of 2021, which is presumed to benefit from the fading of the pressure of net worth transformation and the development of wealth management business of Pudong Bank. On the profit side, 22Q1 Pudong Development Bank's homing net profit increased by 3.7% compared with the same period last year, with an increase in 12.8pc compared with 2021, mainly due to the decline of the drag on profits caused by asset impairment losses. the growth rate of asset impairment losses per quarter increased from 7.4% year-on-year to 3.5% year-on-year in 22Q1.
Promotion of strategic transformation
① layout emerging asset business: 22Q1 Pudong Development Bank green credit increased by 12% compared with the beginning of the year, the growth rate is faster than the total loan 10pcdex22Q1 the number of new technology enterprise customers accounted for 37% of the 21-year increase, driving the increase of new loans accounted for 47% of the 21-year increase. With the transformation and upgrading of ② wealth management, the company is committed to building the smartest wealth management bank: Pudong Development Bank has increased its investment in information technology, which increased by 17% in 2021 compared with the same period last year; by building online platforms such as Pudong Hui to reach home, rely on Pudong salary, and cloud finance to improve the efficiency of the platform in attracting, living and staying guests, the number of monthly active users of 22Q1 mobile bank has increased by 14% compared with the beginning of the year.
Bad continuous double drop
The amount of defects at the end of 22Q1 is-0.4% higher than that at the beginning of the year, and the defect rate is 1.58% higher than that at the beginning of the year-3bp, continuing the trend of double decline since 2020. In terms of forward-looking indicators, the final attention rate of 22Q1 is unchanged at 2.17% compared with the beginning of the year. The late overdue rate of 21Q4 is lower than that of 21Q2. The generation rate of real bad TTM of 21A is higher than that of 21H1 by 3bp to 1.46%, which is still at a lower level since 2015. The provision increased slightly, and the 22Q1 final provision coverage increased by 3pc to 147% compared with the beginning of the year. Looking ahead, as the stock risk continues to clear, asset quality is expected to continue to improve.
Profit forecast and valuation
The performance growth rate of Pudong Development Bank has rebounded, the strategic transformation has been promoted, and the bad has continued to decline. It is estimated that the homing net profit of Pudong Development Bank will increase by 5.3% from 2022 to 2024 compared with the same period last year, 7.5% for BPS 7.5% and 7.8% for Pudong Bank, corresponding to 23.29 yuan for Pudong 20.32 Universe 21.75 Universe.
Maintain the target price of 19.15 yuan, corresponding to 0.94 times PB in 2022. The current price corresponds to 2022 PB0.40 times, and the current price space is 138%.
Risk hint: macroeconomic stall, a sharp outbreak of bad.