China Everbright Bank (601818): Performance continues to grow strongly and upgraded to outperform industry rating
Everbright Bank announced 3Q19 results, PPOP / net profit increased by 15 in a single quarter.
3% / 13.
1%, continued to continue the growth trend of democratic forces, at the same time, the 1-3 quarter of 19 recorded 19 ROE.
15%, increase by 0 every year.
Taking into account the strong performance of the two consecutive quarters of growth, we raised the A-share target price of 24.
5% to 5.
59 yuan, raise H-share target price by 10.
4% to 4.
45 construction, raised their respective ratings to outperform the industry.
The reason is as follows: The opening and closing net interest margin of the third quarter of 19 was recorded at 2.
31%, a 6bp increase from the previous quarter.
Net interest margin increased by 33bp each year, and the size of assets increased by 8.
With an initial 4%, net interest income in 3Q19 will increase by 26 per year.
Deposit balance 3 was recorded at the end of the period.
0 trillion, an increase of 0 from the previous month.
1%, an annual increase of 19.
2%, an increase of 15 from the end of last year.
2%, the strong growth of core debt helps the asset side.
In the third quarter of 19, net litigation fee income increased by 13 each year.
1%, mainly from bank card, clearing and settlement, agency and other businesses, but yes, credit card credit card installment income reclassification input index income.
Asset quality indicators continued to improve.
End-of-period adverse rate was recorded at 1.
54%, a decrease of 3bps from the previous month. After adding back write-offs, 3Q19 net bad injection was injected to generate substitution 1.
45%, year-on-month change + 29 / -30bps.
Provision coverage ratio increased by 1 from the previous quarter.
1ppt, continue to maintain at a high level.
Our biggest difference from the market. We expect Everbright Bank’s performance growth to be sustainable or exceed market expectations.
Potential catalysts: Maintain a high level of profit growth and maintain an improvement in asset quality.
Earnings forecasts and 北京夜网 estimates remain unchanged.
The current A-share contradiction corresponds to 0 in 2019/2020.
7 times / 0.
7 times P / B ratio.
The current H share corresponds to 0 in 2019/2020.
5 times / 0.
5x P / B.
As bank performance continues to be strong and investor confidence is restored, we raise our A-share target price24.5% to 5.
59 yuan, corresponding to 0.
9x 2019 P / B ratio and 0.
8 times the 2020 P / B ratio, 24 compared with the previous inclusion.
2% upside; raise H-share target price by 10.
4% to 4.
45 releases correspond to 0.
7x 2019 P / B ratio and 0.
6 times 2020’s P / B ratio, 22 more recently included.
Upgrade A shares and H shares to outperform the industry.
The sustainability of risk-earning growth or asset quality performance was less than expected.