INDUSTRIAL BANK(SH:601166) Haitong Securities·2024-09-11 11:50Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][6]. Core Views - The company reported a year-on-year revenue growth of 1.80% and a net profit growth of 0.86% for the first half of 2024. The second quarter of 2024 showed a revenue decline of 0.62% but a net profit increase of 6.54% [6][20]. - Asset quality remains stable with a slight increase in the non-performing loan ratio to 1.08%. The company has effectively managed risks associated with real estate projects and personal loans [6][20]. - The company continues to maintain its competitive edge in key products such as bond underwriting and merger financing, with significant growth in these areas [6][20]. Summary by Sections Financial Performance - For the first half of 2024, the company achieved a revenue of 222,374 million yuan and a net profit of 91,377 million yuan, with projected growth rates for EPS of 3.68, 4.20, and 4.69 yuan for 2024-2026 [7][20]. - The cost-to-income ratio improved to 25.41%, a decrease of 1.35 percentage points year-on-year [6][20]. Asset Quality - The overall asset quality is stable, with the non-performing loan ratio at 1.08%. The company has taken proactive measures to assess risks in real estate and personal loans [6][20]. Product and Sales Performance - The company has maintained its leading position in bond underwriting, with a total of 4,143.88 billion yuan in non-financial corporate debt financing tools underwritten, ranking second in the market [6][20]. - Wealth management product sales increased by 18.91% year-on-year, indicating a strong retail performance [6][20]. Investment Recommendations - The estimated reasonable value of the company's stock ranges from 20.14 to 23.85 yuan, with a corresponding PE ratio of 5.47 to 6.48 for 2024 [6][20].