INDUSTRIAL BANK(601166) 太平洋·2024-05-22 05:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's revenue turned positive year-on-year in Q1 2024, with a net profit decline narrowing, indicating stable operational performance [3] - The asset-liability structure continues to optimize, with total assets and liabilities showing steady growth [3] - The company has a stable asset quality with enhanced risk resistance capabilities, as indicated by the non-performing loan ratio remaining steady [3] Financial Performance Summary - For 2023, the company reported operating revenue and net profit of 210.83 billion and 77.12 billion yuan, respectively, with year-on-year changes of -5.19% and -15.61% [3] - In Q1 2024, operating revenue and net profit were 57.75 billion and 24.34 billion yuan, showing year-on-year changes of +4.22% and -3.10% [3] - The weighted ROE for 2023 and Q1 2024 was 10.64% and 3.37%, with year-on-year declines of 3.21 percentage points and 0.36 percentage points [3] - The company plans to distribute a cash dividend of 10.40 yuan per 10 shares, resulting in a cash dividend rate of 29.64% [3] Asset and Liability Structure - Total assets and liabilities for 2023 were 10,158.3 billion and 9,350.6 billion yuan, reflecting year-on-year increases of 9.62% and 9.89% [3] - As of Q1 2024, total assets and liabilities reached 10,257.3 billion and 9,424.1 billion yuan [3] - The company reported a significant increase in corporate loans, with a year-end increase of 217.15 billion yuan and an average new loan interest rate of 4.10% [3] Asset Quality and Risk Management - The non-performing loan ratio remained at 1.07% as of the end of 2023 and Q1 2024, indicating stable asset quality [3] - The provision coverage ratio improved to 245.51% in Q1 2024, up by 0.30 percentage points from the end of 2023 [3] - The company made a provision for potential risks amounting to 16.06 billion yuan in Q1 2024, strengthening its performance foundation [3] Future Earnings Forecast - Projected operating revenues for 2024, 2025, and 2026 are 212.89 billion, 218.94 billion, and 228.28 billion yuan, respectively [5] - Expected net profits for the same years are 77.96 billion, 79.81 billion, and 83.30 billion yuan [5] - The book value per share (BVPS) is forecasted to be 37.63, 41.15, and 44.71 yuan, with corresponding price-to-book (PB) ratios of 0.47, 0.43, and 0.40 [5]