CHINA EVERBRIGHT BANK(6818.HK):2023 EARNINGS GROWTH BELOW EXPECTATION
CHINA EVERBRIGHT BANK(6818.HK):2023 EARNINGS GROWTH BELOW EXPECTATION
China Everbright Bank's (CEB) attributable net profit decreased 9% YoY in in 2023, lower than our expectation. Its net interest income growth remained sluggish in 4Q23, which was mainly due to mixed effects of weak growth in interest-earning assets and decrease in NIM. Its net fee and commission income dropped 11.4% YoY in 2023 after decreasing 2.1% YoY in 2022. As of end December 2023, its loans/deposits increased 6.1%/4.5% from end 2022. CEB's asset quality was unchanged in 2023 compared with 2022. Looking ahead, we expect CEB to report positive growth in net profit in 2024 as the bank will continue to provide financial support to the real economy. Valuation remains cheap. Maintain BUY rating.
中國光大銀行（CEB）的應占淨利潤在2023年同比下降9％，低於我們的預期。其淨利息收入增長在23年第四季度仍然緩慢，這主要是由於利息收入資產增長疲軟和NIM下降的混合影響。其淨費用和佣金收入在2022年同比下降2.1％之後，在2023年同比下降了11.4％。截至2023年12月底，其貸款/存款比2022年底增長了6.1％/4.5％。與2022年相比，CEB的資產質量在2023年沒有變化。展望未來，我們預計CEB將在2024年報告淨利潤正增長，因爲該銀行將繼續爲實體經濟提供財政支持。估值仍然便宜。維持買入評級。
Key Factors for Rating
評級的關鍵因素
Asset quality remained solid 2023. Its NPL ratio reached 1.25% at end December 2023, unchanged from 1.25% at end December 2022. Meanwhile, its allowance to NPLs reached 187.3% at end December 2023, against 187.9% at end December 2022. We expect its NPL ratio to stay at 1.25% in 2024.
2023 年資產質量保持穩定。其不良貸款率在2023年12月底達到1.25％，與2022年12月底的1.25％持平。同時，截至2023年12月底，其不良貸款補貼達到187.3％，而2022年12月底爲187.9％。我們預計其不良貸款率將在2024年保持在1.25％。
Net interest income dropped in 2023. Its net interest income decreased 5.4% YoY in 2023, which might be mainly due to decrease in net interest margin (NIM) and in line with overall banking sector trend. We noted its NIM dropped 27bps in 2023. We expect its NIM to drop another 11bps in 2024.
淨利息收入在 2023 年有所下降。其淨利息收入在2023年同比下降5.4％，這可能主要是由於淨利率（NIM）的下降以及銀行業的整體趨勢一致。我們注意到其淨資產淨值在2023年下降了27個點子。我們預計其淨資產收益率將在2024年再下降11個點子。
Net fee and commission income decreased in 2023. Its net fee and commission income decreased 11.4% YoY in 2023 amid weak investment sentiments. As a result, the proportion of net fee and commission income in total operating income dropped to 16.3% in 2023 from 17.6% in 2022.
2023 年，淨費用和佣金收入有所下降。由於投資情緒疲軟，其淨費用和佣金收入在2023年同比下降了11.4％。結果，淨費用和佣金收入佔總營業收入的比例從2022年的17.6％降至2023年的16.3％。
Key Risks to Rating
評級的主要風險
The bank might be under strong pressure to provide more support to the real economy, if Chinese economy slows down significantly.
如果中國經濟大幅放緩，該銀行可能會面臨向實體經濟提供更多支持的巨大壓力。
Valuation
估價
Its H shares are now trading at 0.29x 2024E P/B, which remains quite cheap. We expect its ROAE to reach 8.3% in 2024, lower than sector's average level. Its 2023E dividend yield will be around 7.4%. Given lower than expected 2023 results, we revised our target price from HK$3.46 to HK$3.2, based on about 0.35x 2024E P/B. Maintain BUY rating.
其H股現在的市盈率爲2024年的0.29倍，仍然相當便宜。我們預計其投資回報率將在2024年達到8.3％，低於該行業的平均水平。其2023年度的股息收益率將約爲7.4％。鑑於2023年業績低於預期，我們將目標價格從3.46港元上調至3.2港元，以2024年市盈率約0.35倍爲基礎，維持買入評級。
譯文內容由第三人軟體翻譯。