Morningstar

Industrial Bank Co Ltd Class A 601166

Morningstar Rating
Unlock
Stock XSHG Rating as of
¥19.27 +0.93 (5.07%)
View Full Chart
As of Delayed Price Closed

Company Report

View Archive

Industrial Bank Earnings: Lower Costs Fuel Earnings Growth; Fair Value Estimate Up 5%

Iris Tan,

We increased our fair value estimate for Industrial Bank, or CIB, to CNY 19 per share from CNY 18.10 following better-than-expected interim profit that showed well-contained costs. While our estimates price CIB at 0.5 times 2024 price/book and 6% dividend yield, which is undemanding on a regional basis, we note that most China banks are trading in this range, and we believe the bank is fairly valued. CIB’s share price has underperformed major joint-stock bank peers year to date as investors remain concerned about its credit quality, in light of relatively greater property exposure and debt investments. We believe the credit risk is factored in, but upward rerating requires an improved credit quality outlook.

Read Full Report

Price vs Fair Value

View History
601166 is trading within a range we consider fairly valued.
Price
¥18.34
Fair Value
¥71.00
Uncertainty
High
1-Star Price
¥89.22
5-Star Price
¥95.60
Economic Moat
Qzbv
Capital Allocation
Vhqdjqhv

Bulls Say, Bears Say

Bulls

CIB’s strength in its interbank and wealth-management businesses bodes well for fee income growth.

Bears

Given its higher-than-peer revenue contribution from financial investments, CIB’s earnings growth could be volatile and high returns are not maintainable.

Show More

Trading Information

Previous Close Price
¥18.34
Day Range
¥18.52–19.41
52-Week Range
¥13.95–19.41
Bid/Ask
¥19.27 / ¥19.28
Market Cap
¥400.32 Bil
Volume/Avg
241.4 Mil / 56.4 Mil

Key Statistics

Price/Earnings (Normalized)
5.73
Price/Sales
2.05
Dividend Yield (Trailing)
5.67%
Dividend Yield (Forward)
5.67%
Total Yield
5.67%

Company Profile

Industrial Bank was founded in 1988 and started as a regional bank in Fujian province. It has grown to become the second-largest joint-stock bank in China with more than CNY 10 trillion in assets as of December 2023. The bank offers a full range of commercial banking services. Its specialty is bank-bank cooperation. It also operates a proprietary “Yinyin platform” that offers complete financial service solutions to other financial institutions such as payments and settlements, wealth management, and technology output services.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Large Value
Total Number of Employees
66,886
Website
https://www.cib.com.cn

Competitors

Valuation

View More
Metric
601166
000001
600036
Price/Earnings (Normalized)
 5.736.926.39
Price/Book Value
 0.520.540.94
Price/Sales
 2.051.542.80
Price/Cash Flow
 7.353.099.94
Price/Earnings
601166
000001
600036

Financial Strength

Metric
601166
000001
600036
Quick Ratio
 ———
Current Ratio
 ———
Interest Coverage
 ———
Quick Ratio
No chart available

Profitability

Metric
601166
000001
600036
Return on Assets (Normalized)
 0.76%0.84%1.29%
Return on Equity (Normalized)
 10.88%11.76%15.67%
Return on Invested Capital (Normalized)
 ———
Return on Assets
601166
000001
600036

Banks - Regional Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
BNP Paribas ADR
BNPQY
YtygvkcSlqfy$79.9 Bil
 Intesa Sanpaolo ADR
ISNPY
BwqhmnbzqQvb$77.2 Bil
 PNC Financial Services Group Inc
PNC
NwfqkspfbWcrmrh$72.8 Bil
 U.S. Bancorp
USB
SczptrcvQqd$71.0 Bil
 Itau Unibanco Holding SA ADR
ITUB
GlwxrwzHlmn$61.8 Bil
 Truist Financial Corp
TFC
JynklgqjKmqfv$56.9 Bil
 Mizuho Financial Group Inc ADR
MFG
TgftlvvwgWbzgp$49.2 Bil
 Lloyds Banking Group PLC ADR
LYG
VppsclzsjTyvyrd$49.0 Bil
 NatWest Group PLC ADR
NWG
DqjnxsjhgHdsb$38.5 Bil
 Deutsche Bank AG
DB
XplgRljs$33.9 Bil

Sponsor Center