2 1 Shi Ji Jing Ji Bao Dao·2025-10-23 07:47Core Viewpoint - Agricultural Bank of China (ABC) experienced a dramatic trading day on October 23, with its stock price reaching a historical high before a significant drop, ending the day down 1.24% after a 14-day rally that saw a cumulative increase of over 20% since September 25 [2][3]. Group 1: Stock Performance - ABC's stock price has increased by 56.35% year-to-date, outperforming other major state-owned banks such as ICBC (18.05%), CCB (11.49%), and BOC (4.08%) [3]. - The total market capitalization of ABC has risen to 2.71 trillion yuan, surpassing ICBC's 2.59 trillion yuan, making it the highest market cap company in A-shares [3]. - As of October 23, ABC's price-to-book (P/B) ratio reached 1.04, marking a significant recovery from a long period of being below 1, and is one of only two banks in the A-share market with a P/B ratio above 1 [3][4]. Group 2: Market Analysis - Analysts suggest that the recent price drop is a normal phase of adjustment after a rapid increase, with expectations for ABC's stock to stabilize in the future [2][5]. - The strong performance of ABC is attributed to its stable operations and lower exposure to real estate market fluctuations, leading to better performance compared to other banks [5]. - The recovery of ABC's P/B ratio above 1 is seen as a milestone that could positively influence the entire banking sector [6]. Group 3: Financial Performance - For the first half of 2025, ABC reported operating revenue of 369.94 billion yuan, a year-on-year increase of 0.85%, and a net profit attributable to shareholders of 139.51 billion yuan, up 2.7%, leading the growth among state-owned banks [6]. - As of June 30, 2025, ABC's non-performing loan (NPL) ratio was 1.28%, a decrease of 0.02 percentage points from the beginning of the year, with a provision coverage ratio of 295%, the highest among comparable peers [6].