INDUSTRIAL BANK(601166) 中泰证券·2024-04-30 02:22Investment Rating - The report maintains an "Accumulate" rating for the company with a market price of 16.43 [2] Core Insights - The company's revenue growth turned positive in Q1 2024, with a year-on-year increase of 4.4%, reflecting improvements across various income segments [5][9] - Net interest income grew by 5.1% year-on-year, with a narrowing decline in net interest margin compared to the previous year [5][17] - The company is expected to maintain stable growth in net interest income under its "commercial bank + investment bank" strategy, with potential for increased non-interest income from direct financing [7][29] Financial Performance Summary - Revenue and Profit Forecasts: - 2022A: Revenue of 221,903 million, Net Profit of 91,377 million - 2023A: Revenue of 210,245 million, Net Profit of 77,116 million - 2024E: Revenue of 214,396 million, Net Profit of 74,771 million - 2025E: Revenue of 214,303 million, Net Profit of 74,757 million - 2026E: Revenue of 214,401 million, Net Profit of 74,751 million [3] - Key Ratios: - Return on Equity (ROE) is projected to decline from 14.52% in 2022 to 8.78% by 2026 [3] - Price-to-Earnings (P/E) ratio is expected to be 4.56X in 2024E and 4.57X in 2025E [7] Asset and Liability Structure - The bank's total credit issuance in 2023 was 4,780.5 billion, with Q1 2024 issuance at 863.3 billion, indicating a focus on corporate loans [6][18] - The proportion of loans in interest-earning assets increased to 54.6% in Q1 2024, with corporate loans contributing significantly to new credit [6][19] Asset Quality - The non-performing loan (NPL) ratio remained stable at 1.07% in Q1 2024, with a slight decrease in the annualized NPL generation rate to 1.06% [29] - The provision coverage ratio improved to 245.51% in Q1 2024, indicating a robust buffer against potential loan losses [29]