INDUSTRIAL BANK(SH:601166) Guoxin Securities·2025-08-29 02:25Investment Rating - The investment rating for the company is "Neutral" [5] Core Views - The company's revenue for the first half of 2025 was 110.46 billion yuan, a year-on-year decrease of 2.3%, but the decline narrowed by 1.3 percentage points compared to the first quarter. The net profit attributable to shareholders was 43.14 billion yuan, a year-on-year increase of 0.2%, marking a turnaround from a 2.2% decline in the first quarter [1][3] - The net interest margin slightly decreased, impacting the growth of net interest income, which fell by 1.5% year-on-year. The net interest margin for the first half was 1.75%, down from 1.80% in the first quarter, with a year-on-year contraction of 11 basis points and 7 basis points respectively [1] - The total assets at the end of the period were 10.61 trillion yuan, a 1.0% increase from the beginning of the year, while total loans reached 5.90 trillion yuan, up 2.9% from the start of the year [1] - The company has seen a stable asset quality with a non-performing loan ratio of 1.08%, unchanged from the end of March, and a decrease in the attention ratio to 1.66%, down 5 basis points from the beginning of the year [2][3] Financial Forecasts - The forecast for net profit attributable to shareholders for 2025-2027 is 77.6 billion yuan, 80.3 billion yuan, and 84.6 billion yuan respectively, with corresponding year-on-year growth rates of 0.5%, 3.5%, and 5.4% [3][4] - The price-to-earnings (PE) ratios for 2025-2027 are projected to be 6.6x, 6.3x, and 6.0x, while the price-to-book (PB) ratios are expected to be 0.59x, 0.55x, and 0.52x [3][4]