INDUSTRIAL BANK(601166) 国投证券·2024-04-29 15:30Investment Rating - The investment rating for the company is "Buy - A" with a target price of 22.40 CNY for the next six months [4]. Core Views - The company's performance in Q1 2024 shows a recovery in growth rates, with revenue increasing by 4.22% year-on-year, and pre-provision profit rising by 7.26%, although net profit attributable to shareholders decreased by 3.10% [1][8]. - The growth in performance is primarily supported by the expansion of interest-earning assets and cost reduction, while narrowing net interest margins and increased provisioning pressures have been a drag on performance [1][2]. Summary by Relevant Sections Financial Performance - As of the end of Q1 2024, the total asset scale of the company grew by 4.38% year-on-year, with a quarterly increase of 989 billion CNY, where credit issuance contributed 85.41% of the increment [2]. - The total loan amount increased by 7.91% year-on-year, with nearly 1900 billion CNY in new loans added in the quarter, achieving about 40% of the annual issuance plan [2]. - The company has increased its focus on corporate loans, with a year-on-year growth of 17.96% in corporate loans (excluding bills) [2]. Interest Margin and Income - The net interest margin for Q1 2024 was 1.87%, with a slight decrease of 2 basis points quarter-on-quarter and 10 basis points year-on-year, although the decline has narrowed compared to the previous year [3]. - Non-interest income increased by 2.69% year-on-year, with other non-interest income rising by 16.16%, primarily due to favorable market conditions [3]. Future Outlook - The company is expected to maintain stable growth in asset quality while continuing to reduce costs, leading to a gradual narrowing of the interest margin decline [8]. - Revenue growth is projected at 0.25% for 2024, with profit growth expected at 1.04% [8].