INDUSTRIAL BANK(601166) HTSC·2025-03-28 03:34Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 25.72 [8] Core Views - The company's net profit, revenue, and PPOP for 2024 are expected to grow by 0.1%, 0.7%, and 1.4% year-on-year, respectively, showing a recovery in profit growth and improvement in debt costs [1][3] - The company plans to distribute a dividend of RMB 1.06 per share for 2024, with a dividend payout ratio of 30.17%, indicating a continuous increase in dividend rates and a strong dividend yield of 4.93% [1][8] Summary by Sections Profitability and Revenue Growth - The company's net profit for 2024 is projected at RMB 77.205 billion, with a slight increase of 0.12% compared to 2023 [33] - Revenue for 2024 is expected to be RMB 212.226 billion, reflecting a growth of 0.66% year-on-year [33] Asset and Deposit Growth - By the end of 2024, total assets, loans, and deposits are expected to grow by 3.4%, 5.0%, and 7.9% year-on-year, respectively [2] - The company has focused on optimizing its loan structure, resulting in a decrease in bill assets and a significant increase in corporate deposits [2] Cost and Efficiency Improvements - The net interest margin for 2024 is projected at 1.82%, with a decrease in the cost of interest-bearing liabilities and deposit costs compared to 2023 [3] - The cost-to-income ratio is expected to improve to 29.5%, indicating enhanced operational efficiency [3] Asset Quality and Risk Management - The non-performing loan (NPL) ratio is expected to remain stable at 1.07% for 2024, with an improved provision coverage ratio of 238% [4] - Credit card risk is showing signs of improvement, with a decrease in both the NPL and overdue rates [4] Valuation Metrics - The report forecasts a price-to-book (PB) ratio of 0.60 for 2025, with a target PB of 0.65, reflecting a premium valuation due to the company's clear development strategy [5][27] - The estimated earnings per share (EPS) for 2025 is projected at RMB 3.74, with a corresponding price-to-earnings (PE) ratio of 5.75 [33]