INDUSTRIAL BANK(SH:601166) Wanlian Securities·2024-08-26 12:28Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% compared to the market in the next six months [9]. Core Insights - The company reported a revenue growth of 1.8% year-on-year for the first half of 2024, with a net profit growth of 0.9%. The second quarter saw a revenue decline of 0.6% but a net profit increase of 6.5%, primarily due to a decrease in provisioning [2]. - Total assets grew by 4.6% year-on-year, with loans increasing by 8.7%. The risk-weighted assets rose by 5.5%, while the core Tier 1 capital adequacy ratio decreased by 28 basis points to 9.48% [2]. - Asset quality indicators showed minor changes, with a non-performing loan (NPL) ratio of 1.08%, up 1 basis point from the previous quarter. The coverage ratio for provisions was 237.82%, down by 7.7 percentage points [2]. - The cost of deposits improved significantly, with net interest margin, yield on earning assets, and cost of interest-bearing liabilities decreasing by 9, 21, and 10 basis points respectively [2]. - The company forecasts net profits of 794.8 billion, 815.62 billion, and 836.95 billion for 2024, 2025, and 2026, with corresponding year-on-year growth rates of 3.07%, 2.62%, and 2.62% [2][3]. Summary by Sections Financial Performance - Revenue for 2024 is projected at 210,831 million, with a growth rate of -1.90% [3]. - Net profit for 2024 is estimated at 79,480 million, reflecting a growth rate of 3.07% [3]. - Earnings per share are expected to be 3.71 in 2024, with a price-to-earnings ratio of 4.53 [3]. Asset and Liability Management - Total loans are projected to reach 5,733,982 million by the end of 2024, with total assets expected to be 10,593,829 million [3]. - Deposits are forecasted to grow to 5,425,747 million in 2024 [3].