农行“13连涨”，意味着什么？

Core Viewpoint - Agricultural Bank of China's A-share stock price reached a historical high of 7.89 yuan per share, marking a 13-day consecutive rise, and its price-to-book (P/B) ratio returned to 1 for the first time in over seven years [1][3][6]. Stock Performance - As of October 21, Agricultural Bank's A-share price closed at 7.88 yuan, with a single-day increase of 1.68%, and a year-to-date increase of 54.2% [3][4]. - The total market capitalization of Agricultural Bank reached 2.68 trillion yuan, surpassing Industrial and Commercial Bank of China, which has a market cap of 2.53 trillion yuan, making it the highest-valued listed company in A-shares [1][3]. Market Comparison - The banking sector overall saw a year-to-date increase of 11.50%, with several banks like Qingdao Bank and Shanghai Pudong Development Bank also experiencing significant stock price increases of over 20% [3][5]. - Despite the overall positive trend, some banks, including Huaxia Bank, saw declines, with Huaxia Bank experiencing the largest drop at 9.95% [3][5]. Valuation Insights - The return of Agricultural Bank's P/B ratio to 1 indicates that the market values the bank's stock at its net asset value, reflecting a neutral expectation regarding its asset quality and profitability [6][7]. - Currently, among the 40 other listed banks, most have P/B ratios below 1, with only a few, such as Chengdu Bank and Hangzhou Bank, above 0.9 [5][6]. Future Outlook - The increase in Agricultural Bank's valuation is attributed to strong performance in revenue and net profit, with the bank's net profit growth leading among major banks [7]. - The bank's resilience against real estate sector impacts and its strong asset quality have enhanced market confidence in its asset value [7]. - There is potential for further valuation increases across the banking sector, supported by stable earnings and improving asset quality, alongside expectations of continued macroeconomic policy support [7].