Core Viewpoint - The article highlights the investment appeal of Industrial Bank due to its high dividend yield and low valuation, indicating significant potential for valuation recovery in the current market environment [1][4]. Group 1: Investment Appeal - Industrial Bank has a static dividend yield of 4.88%, ranking in the top half among state-owned and joint-stock banks, while its price-to-book (PB) ratio is 0.63, placing it in the lower half, showcasing a combination of high dividends and low valuation [1][4]. - The bank's major shareholders and institutional investors have shown confidence by increasing their stakes, indicating a positive outlook for the bank's future [2][6]. Group 2: Dividend Performance - Industrial Bank plans to distribute a cash dividend of 1.06 yuan per share for 2024, totaling 224.33 billion yuan, and has consistently increased its dividend payout ratio over the past fifteen years, reaching 30.73% last year [7]. - The bank's dividend performance is notably strong compared to its peers, with a significant focus on maintaining this trend and potentially implementing mid-term dividends [7]. Group 3: Valuation Recovery - The overall banking sector is undergoing a systematic valuation recovery, with a shift in investor focus towards stocks with low valuations and high dividend yields [4][8]. - Industrial Bank's PB ratio has improved from 0.48 at the beginning of 2024 to 0.63, reflecting a broader recovery trend in the banking sector [7]. Group 4: Financial Resilience - The bank's financial performance has shown resilience, with a net profit of 431.41 billion yuan in the first half of the year, marking a year-on-year growth of 0.21% [11]. - The bank has effectively managed its cost of liabilities, with a significant reduction in interest rates on deposits, contributing to improved net interest margins [12]. Group 5: Risk Management - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio of 1.08%, indicating effective risk management practices [15][16]. - The bank has implemented measures to mitigate risks in key areas such as real estate and local government financing, resulting in a decrease in new non-performing loans in these sectors [16].