Investment points: Xiamen Bank's Q1 growth rate in 2022 and 23 continues to be strong, and asset quality remains stable, and we maintain a "better than the market" rating.
Revenue and profit growth remained strong. Xiamen Bank's annual revenue increased by 10.90% compared with the same period last year, and its net profit increased by 15.56% compared with the same period last year. The growth rate of Q1 revenue in 23 years was 5.02% compared with the same period last year, and the growth rate of home net profit was 14.98%, which continued to be strong.
Promote the transformation of large-scale retail, customer management has achieved good results. Xiamen Bank deepens the promotion of hierarchical and classified operation of customers and enriches online customer service channels. At the end of 22, the number of effective retail customers increased by 18% compared with the same period last year, and the balance of retail deposits increased by 33% over the same period last year. The shelves of wealth management products continue to be rich, a number of new net worth products have been launched, the proportion of non-cash financial products has continued to increase, and the scale of personal financial assets under management has increased by about 10.5 billion yuan compared with 2021.
The quality of assets remains sound. The failure rate of Q1 in Xiamen Bank in 23 years was 0.86%, which was the same as that at the end of 22 and Q3 in 22 years. In terms of provision coverage, Xiamen Bank's 22-year provision coverage rate is 387.93%, an increase of 2.91 percentage points over 22-year Q3, while the 23-year Q1 provision coverage rate is 373.27%, which is still high.
Investment advice. We predict that the EPS from 2023 to 2025 will be 1.08,1.20,1.33 yuan, and the growth rate of net profit will be 13.46%, 11.38% and 11.02%. According to the DDM model, we get the reasonable value of 7.75yuan, and according to the comparable valuation method, we value the 2023E PB of the company at 0.75times (0.62times of the comparable company), and the corresponding reasonable value is 6.97yuan. Therefore, the reasonable value range is 6.97-7.75 yuan (corresponding to 2023 PE 6.45-7.18 times, peer companies corresponding to PE 4.73 times), maintaining the "better than the big market" rating.
Risk hints: the solvency of enterprises has declined, asset quality has deteriorated significantly, and major changes have taken place in financial regulatory policies.