China Everbright Bank (601818): Performance continues to grow strongly and upgraded to outperform industry rating

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.

49bp.

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.

2%.

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.

9% upside.

Upgrade A shares and H shares to outperform the industry.

  The sustainability of risk-earning growth or asset quality performance was less than expected.