Equity Analysis /
China

CN : China Construction Bank-A - I want to break free

    Michael Chang
    Michael Chang

    Equity Research Analyst, Banks and Insurance

    CGS-CIMB
    30 March 2022
    Published by

    FY21 net profit rose 12.3%, breaking out of the low-mid single-digit growth range since FY14 and the strongest growth since FY11. We like FY21 ROE (first rise in 10 years), 4Q21 NIM (+3bp qoq), 4Q21 NPL ratio (-9bp qoq) and its highest-among-peers FY21 core Tier 1 ratio of 13.6%. Interestingly, 2H21 mortgage mix rose 32bp hoh to 34%, indicating there is little near-term pressure from Dec 2020 rules capping real-estate lending mix. Reiterate Add rating. We lift our FY22F-24F EPS by 1% on lower credit cost assumptions. Our TP remains at Rmb7.1.