INDUSTRIAL BANK(SH:601166) Guohai Securities·2025-09-01 08:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's revenue decreased by 2.29% year-on-year in H1 2025, while the net profit attributable to shareholders increased by 0.21%, indicating a narrowing revenue decline and a return to profit growth. The company's lightweight banking construction has shown effectiveness, and there are positive signals regarding asset quality, leading to the maintained "Buy" rating [5] - Non-interest income has performed well, with net fee and commission income increasing by 2.59% year-on-year in H1 2025. The company ranked second in the market for underwriting non-financial corporate debt financing tools, and retail wealth management intermediary business income grew by 13.45% year-on-year [5] - The company has adjusted its loan structure, increasing lending to manufacturing and other public sectors while reducing credit card and consumer loan scales. The non-performing loan ratio for personal loans decreased by 13 basis points compared to the end of 2024 [5] - Positive signals regarding asset quality have emerged, with the non-performing loan ratio remaining stable at 1.08% as of the end of Q2 2025. New non-performing loans in corporate real estate and credit cards decreased by 46% and 7.5% year-on-year, respectively [5] - The report forecasts revenue for 2025-2027 to be 213.2 billion, 223.1 billion, and 234 billion yuan, with year-on-year growth rates of 0.45%, 4.66%, and 4.90%. The net profit attributable to shareholders is projected to be 77.8 billion, 81.5 billion, and 85.5 billion yuan, with growth rates of 0.79%, 4.72%, and 4.89% respectively [5][7] Summary by Sections Recent Performance - As of August 29, 2025, the company's stock price is 22.41 yuan, with a market capitalization of approximately 474.26 billion yuan. The stock has performed -1.3% over the past month, 3.6% over three months, and 40.5% over the past year [3][4] Financial Projections - The report provides detailed financial projections, including expected revenue and net profit growth, as well as earnings per share (EPS) estimates for the next three years [7][15]