INDUSTRIAL BANK(601166) 光大证券·2024-11-01 04:10Investment Rating - The report maintains an "Accumulate" rating for the company [2] Core Views - The company demonstrates strong revenue growth resilience and robust risk compensation ability [2] - The strategic focus is on a "light capital, light asset, high efficiency" transformation, leveraging digitalization as a growth engine [11] - The company aims to enhance its middle business income through wealth management and investment banking efforts [11] Revenue Performance - For the first three quarters of 2024, the company achieved operating revenue of 164.2 billion, a year-on-year increase of 1.8% [3] - The net profit attributable to shareholders was 63 billion, with a year-on-year growth rate of -3% [3] - The annualized weighted average return on equity was 10.9%, down 1.2 percentage points year-on-year [3] Loan and Asset Growth - As of the end of Q3 2024, interest-earning assets and loans grew by 4.7% and 8% year-on-year, respectively [4] - The company added 280.7 billion in loans in the first three quarters, a decrease of 50.4 billion compared to the previous year [4] - The loan structure showed a decrease in retail loans but an increase in corporate and bill loans [4] Non-Interest Income - Non-interest income for the first three quarters was 52.6 billion, with a year-on-year increase of 0.6% [8] - Net fee and commission income decreased by 15.2% to 19.3 billion, while net other non-interest income increased by 12.8% to 33.3 billion [8] Asset Quality - The non-performing loan ratio was 1.08% at the end of Q3, with a slight increase from the previous half-year [9] - The company maintained a stable risk compensation ability, with a provision coverage ratio of 233.5% [10] Capital Adequacy - As of the end of Q3, the core tier one capital adequacy ratio was 9.7%, showing a slight increase from the previous half-year [10] - The company has a capital buffer with 50 billion in convertible bonds pending conversion, which could enhance the CET1 ratio by approximately 0.7 percentage points if fully converted [10] Earnings Forecast and Valuation - The company’s EPS forecast for 2024-2026 is 3.83, 4.02, and 4.15 yuan, respectively [12] - The current stock price corresponds to a PB ratio of 0.51, indicating a relatively high value for investment [11]