\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 398 Industrial And Commercial Bank Of China Limited(601398) )
Matters:
Since 2015, Industrial And Commercial Bank Of China Limited(601398) has taken the opportunity of eCos project construction to build a distributed open ecological banking system with international leading level. We believe that Industrial And Commercial Bank Of China Limited(601398) while continuing to carry out its own financial science and technology innovation, it has created a digital transformation path in line with the actual operation and future development of the banking industry, and promoted the output to the same industry, which is conducive to driving the overall digital transformation process of the banking industry. We keep the profit forecast unchanged. It is estimated that the net profit of the company from 2021 to 2023 will be 349.2/3667382.5 billion yuan, with a corresponding increase of 10.5% / 5.0% / 4.3%, EPS of 0.95/1.00/1.05 yuan. The dynamic PE corresponding to the current stock price is 4.6x/4.4x/4.2x, and the dynamic Pb corresponding to 0.54x/0.50x/0.46x, maintaining the “buy” rating.
Comments:
Deepen digital transformation and lead the development trend of banking industry
Under the background of the new round of scientific and technological revolution and the in-depth development of industrial reform, deepening the digital transformation is the inevitable choice for the banking industry to practice the innovation driven development strategy Industrial And Commercial Bank Of China Limited(601398) for a long time, it has attached importance to promoting business and management by means of science and technology. In recent years, it has actively injected digital transformation into high-quality development momentum and played a comprehensive leading role in the digital transformation of the industry.
(1) deepening digital transformation is the inevitable trend of high-quality development of banking industry
As China enters the stage of high-quality development, customers’ demand for financial services is increasingly diversified, and the traditional development model of Chinese commercial banks is challenged. (1) With the rapid growth of cloud computing and vid-19 technology, the traditional mode of thinking and artificial data represented by the financial industry has been greatly impacted by the rapid growth of cloud computing and vid-19 technology. (2) Bank Of China Limited(601988) the interest rate marketization and other reforms of the banking industry accelerated, and the profitability of the banking industry also showed an obvious downward trend. (3) The epidemic has had a great impact on the real economy and further affected the profitability of the banking industry. Over the past decade, the roe and ROA of Chinese listed banks have shown an obvious downward trend.
(2) Industrial And Commercial Bank Of China Limited(601398) early layout and remarkable achievements in digital transformation
Facing these problems, the banking industry urgently needs to speed up the digital transformation and adjust the traditional development mode by using financial technology. Industrial And Commercial Bank Of China Limited(601398) consistently adheres to the digital development and is at the forefront of the same industry. Since 2015, taking the opportunity of eCos project construction, ICBC has built the fifth generation fully distributed open banking ecosystem with international leading level, realizing the transformation from a single core banking system to a decore open ecosystem. As the “head goose” of Bank Of China Limited(601988) industry, Industrial And Commercial Bank Of China Limited(601398) while continuing to carry out its own financial science and technology innovation, it has created a digital transformation path that is more in line with the actual operation and future development of the banking industry, and promoted and exported to the same industry, which is conducive to driving the overall digital transformation process of the banking industry.
Take the lead in proposing “five-dimensional layout”; The new journey of digital transformation has broad prospects
Industrial And Commercial Bank Of China Limited(601398) took the lead in proposing the five-dimensional layout of “digital ecology, digital assets, digital technology, digital infrastructure and digital gene”, and comprehensively launched the future oriented digital brand “digital ICBC”.
(1) deepen the construction of “digital ICBC” around the five-dimensional layout
First, actively promote the construction of digital ecology and constantly enhance the inclusiveness and applicability of financial services. Second, strengthen the application capacity of data assets. At present, Industrial And Commercial Bank Of China Limited(601398) has built a big data service platform with the largest capacity and the most complete functions in the industry, so as to promote the intelligent transformation of services, products and operations. Third, enhance the driving capacity of digital technology innovation Industrial And Commercial Bank Of China Limited(601398) has independently developed and built the largest enterprise level cloud computing platform in the global banking industry, and implemented the downshift of the largest host business in the global banking industry, realizing the downshift of more than 1 billion debit card accounts to the open platform. Fourth, optimize the layout of digital infrastructure Industrial And Commercial Bank Of China Limited(601398) actively gave play to the leading advantages in the industry and undertook to build a network security situation awareness and information sharing platform for the financial industry. Fifth, strengthen the cultivation of digital genes. Infiltrate digital gene into operation and management, build a high-level digital talent team, and promote the integration of science and technology and business.
(2) digital transformation is in line with the new development pattern of “double cycle”
Industrial And Commercial Bank Of China Limited(601398) build a “digital industrial and commercial bank” (d-icbc) that adapts to the modern economic system and serves a new development pattern with China’s big cycle as the main body and China’s international double cycle promoting each other. (1) With the help of digital technology, continuously improve the ability to serve small and micro enterprises and help China’s big cycle Industrial And Commercial Bank Of China Limited(601398) upgrade the digital Pratt & Whitney products and operation system according to the business model and transaction characteristics of small and Micro customers. At the same time, comprehensive use of multidimensional data such as tax, power and settlement to provide credit loan support for the operation of small and micro enterprises. In 2021, ICBC’s inclusive loan balance reached a new high of more than 1 trillion yuan, with a year-on-year increase of more than 50%, most of which were issued online. (2) Boost national strategic development and promote China’s international double cycle Industrial And Commercial Bank Of China Limited(601398) build and improve the digital supply chain for national strategic sectors such as specialization and innovation, and provide financial services for industrial chain scenarios. One belt, one road, and one another, we must continue to deepen trade finance and cross-border finance. Create “ICBC global payment” series products, develop “global matchmaking” cross-border matchmaking platform, and help Chinese enterprises go global.
Build a digital community at the GBC end, and the synergy is gradually emerging
Industrial And Commercial Bank Of China Limited(601398) through the coordinated efforts of government (g), industry (b) and consumption (c), build a digital community and deepen the development of the strategy of “the first personal financial bank”. First, innovate the new model of digital government service at the g-end, carry out government data cooperation with 29 provinces and cities across the country, and help the government service “all in one network”. Second, deeply participate in industrial digitization at the b-end, launch the cloud service ecosystem of “Finance + industry” around the hot areas of people’s livelihood such as education and medical treatment, export more than 2000 types of financial products and services, and rank first in the total category of services and the number of products covered in the same industry. Third, focus on building a new service model of ICBC on cloud at the C-end, continue to promote the upgrading of mobile banking, and provide more than 10 million kinds of intelligent service solutions for individual customers. The 2021 interim report shows that Industrial And Commercial Bank Of China Limited(601398) personal mobile banking has more than 443 million customers, maintaining the leading position in the same industry.
Practice self-reliance and self-improvement in science and technology and form core competitiveness
Industrial And Commercial Bank Of China Limited(601398) relying on the “five-dimensional layout”, practice self-reliance and self-improvement in science and technology, and form the core competitiveness of high-level development. First, build a leading core technology platform in the industry and improve the security guarantee ability of digital infrastructure and the driving ability of digital technology innovation. Since 2015, relying on the eCos project, ICBC has independently developed two core technology platforms of “cloud computing + distributed” to fully carry the bank’s core business. Second, accelerate the construction of new digital infrastructure Industrial And Commercial Bank Of China Limited(601398) build a world-class national green data center, with a peak of 868 million transactions per day, reducing carbon dioxide emissions by nearly 6000 tons per year, and won the “national green data center” in 2021. Third, comprehensively promote the layout of new technologies Industrial And Commercial Bank Of China Limited(601398) taking blockchain as the breakthrough of independent innovation of core technology, it has built a series of new technology platforms such as ICBC Turing, ICBC Xi chain and ICBC Nebula around cutting-edge technologies such as big data and cloud computing. Among them, ICBC seal chain has made more than 150 breakthroughs in security prevention and control, performance and capacity, and was selected as one of the top 50 global blockchains by Forbes in 2021.
Investment suggestions:
We believe that Industrial And Commercial Bank Of China Limited(601398) while continuing to carry out its own financial science and technology innovation, it has created a digital transformation path in line with the actual operation and future development of the banking industry, and promoted the output to the same industry, which is conducive to driving the overall digital transformation process of the banking industry. We keep the profit forecast unchanged. It is estimated that the net profit of the company from 2021 to 2023 will be 349.2/3667382.5 billion yuan, with a corresponding increase of 10.5% / 5.0% / 4.3%, EPS of 0.95/1.00/1.05 yuan. The dynamic PE corresponding to the current stock price is 4.6x/4.4x/4.2x, and the dynamic Pb corresponding to 0.54x/0.50x/0.46x, maintaining the “buy” rating.
Risk tips:
The continued weakening of the macroeconomic situation may have an adverse impact on the quality of bank assets..
