INDUSTRIAL BANK(SH:601166) ZHESHANG SECURITIES·2025-03-31 01:05Investment Rating - The investment rating for the company is "Buy" [6] Core Views - The company is positioned as a value bank with a focus on enhancing customer value, which is expected to reduce medium to long-term uncertainties. The combination of high dividends and low valuation is anticipated to drive value recovery [1][5] - The company is implementing refined operations to enhance profitability from its existing customer base, which includes 110 million retail customers and 1.5 million corporate clients. This is expected to narrow the profitability gap with leading banks [2] - There is an improvement in asset quality, with a downward trend in non-performing loans (NPLs) expected to continue, indicating a positive shift in risk management [3] - The dividend payout ratio is projected to increase, reinforcing the dividend logic and driving valuation recovery. The dividend payout ratio for 2024 is expected to be 30.2%, up from 29.6% in 2023, with a corresponding dividend yield of 4.92% [4] Financial Forecasts - The company forecasts a slight increase in net profit for 2025-2027, with expected growth rates of 0.42%, 4.45%, and 5.46% respectively. The book value per share (BPS) is projected to be 39.35, 41.98, and 44.77 yuan for the same years [5] - The company's revenue is expected to show fluctuations, with a projected revenue of 212.23 billion yuan for 2024, followed by a decrease to 204.67 billion yuan in 2025, and then a recovery in subsequent years [6][11]