INDUSTRIAL BANK(SH:601166) Guoxin Securities·2025-08-29 05:03Investment 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, showing a slight year-on-year increase of 0.2%, reversing the negative growth seen 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 [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, with total loans amounting to 5.90 trillion yuan, up 2.9% [1]. Financial Performance Summary - The company reported a stable asset quality with a non-performing loan ratio of 1.08%, unchanged from March and up 1 basis point from the beginning of the year. The attention rate decreased by 5 basis points to 1.66% [2]. - The company achieved a net fee income growth of 2.6% year-on-year, with retail wealth management income increasing by 13.45% [2]. - The provision coverage ratio was 229%, down 9 percentage points from the beginning of the year, while credit impairment provisions for loans increased by 10.8% year-on-year [3][7]. Earnings Forecast and Financial Indicators - The forecast for net profit attributable to shareholders for 2025-2027 is 77.6 billion, 80.3 billion, 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) ratio for 2025-2027 is projected to be 6.6x, 6.3x, and 6.0x, while the price-to-book (PB) ratio is expected to be 0.59x, 0.55x, and 0.52x [3][4].