INDUSTRIAL BANK(SH:601166) Guoxin Securities·2026-01-22 09:28Investment Rating - The investment rating for the company is "Neutral" [4][7]. Core Views - The company's revenue growth has turned positive, with a total revenue of 212.7 billion yuan in 2025, reflecting a year-on-year increase of 0.24%. The net profit attributable to shareholders reached 77.5 billion yuan, up 0.34% year-on-year [1][2]. - The revenue growth improvement is attributed to two main factors: a narrowing decline in net interest margin leading to an increase in net interest income, and a reduction in the decline of non-interest income, with net commission income turning positive [1][2]. - The total assets at the end of the period were 11.09 trillion yuan, with total loans amounting to 5.95 trillion yuan, showing growth of 5.57% and 3.70% respectively compared to the beginning of the year [1]. Financial Performance Summary - The company reported a quarterly revenue growth of 7.3% in Q4, significantly improving from a 1.82% decline in the first three quarters [1]. - The non-performing loan balance was 64.25 billion yuan, with a non-performing loan ratio of 1.08%, remaining stable compared to the previous quarter [2]. - The provision coverage ratio stood at 228.41%, showing a slight increase from the previous quarter [2]. Earnings Forecast and Financial Metrics - 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% [2][3]. - The price-to-earnings (PE) ratio for 2025-2027 is projected to be 5.7x, 5.5x, and 5.2x, while the price-to-book (PB) ratio is expected to be 0.51x, 0.48x, and 0.45x [2][3].