\u3000\u3000 Industrial Bank Co.Ltd(601166) (601166)
Events
On February 21, Industrial Bank Co.Ltd(601166) announced that some subsidiaries, branches and department heads of the head office (including their spouses and children) voluntarily purchased 16932900 shares of the company's shares from the secondary market with their own funds from January 13 to February 18, with a transaction price range of RMB 20.36 to 23.08 per share.
Brief comment
1. Important employees of the company take the initiative to buy stocks, which shows the strong confidence of employees in the future development and long-term value of the company, and plays an important role in boosting the valuation. Unlike executive shareholding, this time Industrial Bank Co.Ltd(601166) is the initiative of important employees of some subordinate lines to buy the company's shares, which can increase the willingness of market investors to invest in the long-term value of Industrial Bank Co.Ltd(601166) compared with executive shareholding. This time, employees actively bought a total of 16932900 shares of the company's shares, accounting for 0.09% of the circulating share capital of a shares. Based on the average price of 21.82 yuan / share from January 13 to February 18, the total market value reached about 369 million yuan. Heads of departments of all lines, including the head office, branches and branches, are important personnel in close contact with business. They take the initiative to buy stocks, send a strong positive signal to the market, and show the company's great confidence in the company's future performance and long-term development.
2. In 2021, the performance Express reported that the revenue and profit were both accelerated, and the asset quality continued to improve; Convertible bonds will be raised efficiently and actively. If they are successfully converted into shares, they will effectively consolidate the capital; Have confidence in the sustainability of excellent performance. Industrial Bank Co.Ltd(601166) in 2021, the revenue and net profit attributable to the parent company increased by 8.9% and 24.1% respectively year-on-year, 0.8pct and 0.7pct higher than the growth rate of 9m21 respectively; The non-performing loans decreased double quarter on quarter, and the provision coverage increased to 269% quarter on quarter. Among them, the growth rate of net profit attributable to the parent is second only to Ping An Bank Co.Ltd(000001) among the five joint-stock banks that have disclosed the performance express, which is also higher than the average value of all listed banks that have disclosed the performance express, and the performance is outstanding. As a national bank with operating ability and management premium, we believe that Industrial Bank Co.Ltd(601166) excellent performance is sustainable, and the active purchase of company shares by important employees is a strong proof. At the same time, 50 billion convertible bonds have been effectively implemented for only half a year. According to the static calculation of 3q21, it will improve the core tier 1 capital adequacy ratio by 0.82pct to 10.36%, which will help consolidate the capital base and support future credit supply. From the perspective of raising, the proportion of major shareholder Fujian Provincial Department of finance is up to 17.3%, while the public and institutions subscribe enthusiastically, and the winning rate is less than 0.1%, reflecting the affirmation of major shareholders and market investors on the investment value of their convertible bonds.
3. Profit forecast and investment suggestions: Industrial Bank Co.Ltd(601166) continues to adhere to the strategic layout of "commercial bank + investment bank" and proposes to create three business cards of green bank, fortune bank and investment bank, which will become Industrial Bank Co.Ltd(601166) 's unique competitive advantage and lay the foundation for the company's future development and long-term value. We believe that the current Industrial Bank Co.Ltd(601166) valuation has not reflected the core competitiveness and long-term development potential contained in the strategy of commercial banks + investment banks. We give Industrial Bank Co.Ltd(601166) a target valuation of 1.08x22 Pb, corresponding to the target price of 35 yuan / share. The current stock price corresponds to 0.71 times of 2022 Pb, with an upward space of 54%. We expect that the net profit attributable to the parent company in Industrial Bank Co.Ltd(601166) 2022 and 2023 will increase by 22.0% and 22.1% year-on-year, maintaining the buy rating and the first portfolio.
Risk tip: the macro-economy has fallen sharply, causing bank non-performing risk.
