\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 166 Industrial Bank Co.Ltd(601166) )
Three business cards: Green Bank + wealth Bank + investment bank
Under the strategy of “commercial bank + investment bank”, Industrial Bank Co.Ltd(601166) strives to create “three business cards” of green bank, wealth bank and investment bank, respectively anchoring the three imaginative directions of green finance, wealth management and industrial upgrading, and seeking a breakthrough against the background of China’s slow credit growth. With the improvement of asset quality, the management will be more comfortable in implementing the new strategy.
Corporate business: Green Finance and investment banking go hand in hand
Under the policy guidance of double carbon and supporting small and micro enterprises, Industrial Bank Co.Ltd(601166) green credit (453.94 billion, yoy + 42.11%) and small and micro loans (298.7 billion, yoy + 56.2%) have achieved rapid growth. Investment banking business relies on the “investment banking ecosystem” to build a multi-level green financial service system, improve the application level of diversified financing tools, and strengthen the professional advantages of investment transactions. In China’s economic cycle of guiding residents’ savings into investment, Industrial Bank Co.Ltd(601166) with its three-dimensional guidance, boosted the FPA balance (7.01 trillion, yoy + 15.49%) to a new high.
Retail business: attacking wealth bank
(1) cross drainage of three apps (mobile banking app, “haoxingdong” credit card app and “Qianda shopkeeper” wealth management APP); (2) Although personal housing loans are restricted, credit cards and business loans will become the focus of development; (3) With the endowment advantages of “investment banking and asset management”, private banks have achieved rapid development (aum742.45 billion yuan, yoy + 17.2%); (4) The group’s retail AUM (2.85 trillion yuan) grew steadily (YoY + 8.9%), the construction of “wealth management ecosystem” was accelerated, and the ability of product consignment was strengthened.
Asset quality: asset quality has improved and the ability of risk offset has been enhanced
The asset quality of the company improved and the provision coverage increased. In the business involving real estate, the mortgage loan is sufficient, the corporate financing business is concentrated in the first tier and provincial capital cities, the provision for corporate financing business of real estate is sufficient, and the risk loss offset ability is strong.
Investment advice
Industrial Bank Co.Ltd(601166) strategy focuses on three business cards to promote public green finance, investment banking, inclusive microenterprises and private consumer loans and credit cards. It is estimated that the profit attributable to the parent company from 2022 to 2024 will be 94.954107.694123.098 billion yuan respectively, with a year-on-year increase of 14.85% / 13.42% / 14.30%, and the corresponding EPS will be 4.44/5.05/5.79 yuan respectively. The predicted reasonable valuation center is 827.8 billion, which is covered for the first time and rated as “buy”.
Risk tips
The impact of the epidemic on the macro economy exceeded expectations.
