INDUSTRIAL BANK(601166) 太平洋·2024-05-22 01:07Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's 2023 annual report and Q1 2024 report indicate a positive turnaround in revenue, with a year-on-year increase in revenue for Q1 2024, while the decline in net profit is narrowing [1][3] - The company achieved operating revenue and net profit of 210.83 billion and 77.12 billion yuan in 2023, respectively, with year-on-year changes of -5.19% and -15.61%. For Q1 2024, the figures were 57.75 billion and 24.34 billion yuan, with year-on-year changes of +4.22% and -3.10% [3] - The company’s weighted ROE for 2023 and Q1 2024 was 10.64% and 3.37%, showing a year-on-year decrease of 3.21 percentage points and 0.36 percentage points [3] - The non-performing loan ratio remained stable at 1.07% as of the end of Q1 2024, with a provision coverage ratio of 245.51%, an increase of 0.30 percentage points from the end of 2023 [3] Summary by Sections Financial Performance - The company reported total assets and liabilities of 1,015.83 billion and 935.06 billion yuan for 2023, reflecting year-on-year increases of 9.62% and 9.89%. For Q1 2024, total assets and liabilities were 1,025.73 billion and 942.41 billion yuan [3] - The net interest income for Q1 2024 was 37.24 billion yuan, a year-on-year increase of 5.09%, while non-interest income was 20.51 billion yuan, up 2.69% year-on-year [3] Asset Quality - The company’s asset quality remains stable, with a non-performing loan ratio of 1.07% for both 2023 and Q1 2024, and a provision coverage ratio that increased to 245.51% [3] - The company has strengthened its risk resistance capabilities by provisioning 16.06 billion yuan for potential risks in Q1 2024 [3] Future Projections - The company is expected to achieve operating revenues of 212.90 billion, 218.94 billion, and 228.28 billion yuan for 2024, 2025, and 2026, respectively, with net profits projected at 77.96 billion, 79.81 billion, and 83.30 billion yuan [3] - The book value per share (BVPS) is projected to be 37.63, 41.15, and 44.71 yuan for the same years, with corresponding price-to-book (PB) ratios of 0.47, 0.43, and 0.40 [3]