Minsheng Bank (600016): Profit growth improves asset quality

4 Apr by admin

Minsheng Bank (600016): Profit growth improves asset quality

Minsheng Bank (600016): Profit growth improves asset quality

This report reads: 19H1 results meet expectations.

The profit growth rate improved as scheduled, the interest rate spread rose against the trend, and the asset quality was stable and better.

Maintain target price of 8.

13 yuan, corresponding to 19 years 0.

80 times PB, holding level.

Investment points: Investment recommendation: Interim report is in line with expectations, maintaining the forecast for the growth rate of net profit in 19/20/21 to 7.

18% / 6.

32% / 6.

24%, EPS1.

22/1.

30/1.

38 yuan, BVPS 10.

15/11.

26/12.

43 yuan, the current price corresponds to 4.

76/4.

48/4.

21 times PE, 0.

57/0.

52/0.

47 times PB.

Maintain target price of 8.

13 yuan, corresponding to 19 years 0.

80 times PB, maintaining the overweight rating.

Performance overview: 19H1 returns to parent net profit quarter +6.

8%, revenue +17.

0%, ROE (annualization) 14.

9%.

Defective rate 1.

75%, unchanged from the previous month; provision coverage ratio was 142%, which was +4 from the previous month.

Five.

New understanding: Provisions dragged down are expected to continue to improve profit growth and improve as scheduled.

In 19H1, the growth rate of net profit attributable to mothers was 6.

8%, an increase of 1 over 19Q1.

1 item.

As judged in the previous report, the main driving factor came from the marginal decline of the drag on provision, which was attributed to the decline in the pressure of adverse generation after the historical burden was cleared.

The interest rate rises against the trend.

19Q2 net interest margin (beginning and end of 北京夜生活网 the period) + 6bp, attributable to the decline in the cost rate of the debt side faster than the asset side: ① active resistance costs downward in a loose currency environment; ② optimization of resistance structure, deposit + 4%, and actively refused -2%. Asset quality is steadily improving.
Performance: 19Q2 bad rate was flat at 1.

75%, attention rate, overdue rate decreased by 4bp and 22bp, respectively, and the bad generation rate gradually decreased by 12bp.

Proximity decreased by 2pc to 95% from the initial stage, and asset quality was further solidified.

Provision coverage increased by 4 from the previous quarter.

5pc, it is expected that there is still room for future growth.

Risk warning: economic stall, bad outbreak.