Analysis of Industrial Bank (601166.SH) – A Popular Stock: Earnings Turnaround and High Dividend Appeal Highlight Medium-to-Long-Term Allocation Value

This analysis is based on Industrial Bank’s 2025 annual earnings results released on the evening of January 21, 2026 [1][2][3]. The company achieved operating revenue of RMB 212.741 billion, a year-on-year increase of 0.24%; net profit attributable to shareholders of RMB 77.469 billion, a year-on-year increase of 0.34%; and total assets exceeded the RMB 11 trillion mark [3][4]. Notably, the company’s first interim dividend plan was overwhelmingly approved, with a dividend yield of approximately 5.58%, ranking 2nd among nationwide banks [6]. The combination of earnings bottoming out and high dividend appeal has driven the stock to the popular list. Current valuation is at a historical low (PB ratio around 0.51x), and the institutional target average price of RMB 26.18 represents a 32% upside from the current price [11].

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Industrial Bank released its 2025 annual earnings results on the evening of January 21, 2026, which is the direct catalyst for the stock’s popularity [1][2][3]. In terms of full-year results, the company achieved operating revenue of RMB 212.741 billion, a year-on-year increase of 0.24%; net profit attributable to shareholders of RMB 77.469 billion, a year-on-year increase of 0.34% [1][2]; non-net profit of RMB 77.064 billion, a year-on-year increase of 0.38% [5]; basic earnings per share of RMB 3.46, and weighted average return on equity of 9.15% [5].

In terms of asset scale, as of the end of 2025, the company’s total assets exceeded the

mark, reaching RMB 11.09 trillion, a year-on-year increase of 5.57% [3][4], marking a new milestone in the company’s development. The balance of various loans was RMB 5.95 trillion, a 3.70% increase from the end of the previous year; the balance of various deposits was RMB 5.93 trillion, a 7.18% increase from the end of the previous year [2].

Although revenue in the first three quarters decreased by 1.82% year-on-year, the company recorded single-quarter revenue of approximately RMB 51.507 billion in Q4, a significant year-on-year increase of approximately 7.3%, which drove the full-year cumulative revenue growth from negative to positive [4]. This

has become a highlight of market attention, fully reflecting the company’s operational resilience and positive changes since Q4.

On January 20, 2026, Industrial Bank held its first extraordinary general meeting of 2026, which reviewed and approved the 2025 Interim Profit Distribution Plan [7][8]. The specific dividend plan is to distribute a cash dividend of RMB 5.65 per 10 common shares (pre-tax) to all common shareholders, with an estimated total dividend payout of RMB 11.957 billion, accounting for approximately 30.02% of profits [8].

In terms of dividend yield, the current price corresponds to a 2026 dividend yield of approximately 5.58%, ranking 2nd among nationwide banks, 0.8 percentage points higher than the average level of listed banks [6]. Against the backdrop of continued downward interest rates, such a high dividend yield has significant appeal for investors seeking stable returns.

After the release of the earnings results, multiple securities firms gave positive ratings [6][9][10]. Everbright Securities maintained an “Overweight” rating, Ping An Securities maintained a “Strong Buy” rating, and Sina Finance maintained a “Buy” rating [6]. According to the statistics of institutional ratings in the past 90 days, among 15 institutions, 9 gave a “Buy” rating, 5 gave an “Overweight” rating, and 1 gave a “Neutral” rating [11], with an overall positive bias. The institutional target average price reached RMB 26.18 [11], representing approximately 33% upside from the current stock price of around RMB 19.61.

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From the perspective of capital flow, on January 20 (the day before the earnings results were released), the main force capital had a net inflow of

, accounting for 3.73% of total turnover [7], reflecting the market’s positive expectations for the earnings. However, after the results were released on January 21, the main force capital had a net outflow of , accounting for 2.3% of total turnover, hot money had a net outflow of , accounting for 12.6% of total turnover, while retail capital had a net inflow of , accounting for 14.89% of total turnover [1]. This pattern of “main force out, retail in” indicates that there is a certain divergence in the market regarding the positive earnings news.

From the technical trend, the stock price hit a 60-day low of RMB 19.94 at 11:29 on January 21 [12], with a closing price of around RMB 19.61 on the same day, a decrease of 2.39%, and a turnover rate of 0.70% [1]. Looking back at the full year of 2025, Industrial Bank’s stock price rose by more than 15%, significantly outperforming the banking sector [7], but it corrected by nearly 7% in early 2026 due to factors such as market style rotation [7]. The short-term technical performance shows weak characteristics, and it may continue to consolidate to form a bottom.

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From the annual data, Industrial Bank’s revenue and net profit growth rates both turned from negative to positive in 2025, especially its Q4 “turnaround” performance, indicating that the company has emerged from the operational trough of the first three quarters [4]. The provision coverage ratio remained at a high level of 228.41% [2], with overall stable asset quality, laying a foundation for subsequent earnings recovery.

The current stock price corresponds to a price-to-earnings ratio of approximately 5.36x and a price-to-book ratio of approximately 0.48-0.51x [5][10], which is at a relatively low level among joint-stock banks. Ping An Securities pointed out that the company’s long-term profitability is expected to recover [10], and the current low valuation provides a sufficient margin of safety for medium-to-long-term investors.

Against the backdrop of continued downward interest rates and intensified asset shortage, a high dividend yield of 5.58% has significant appeal for conservative investors [6]. As a target ranked 2nd in dividend yield among nationwide banks, Industrial Bank is expected to continue to receive allocation demand from funds pursuing stable cash flow.

, the non-performing loan ratio was 1.08%, an increase of 0.01 percentage points from the end of the previous year; the balance of non-performing loans was RMB 64.251 billion, an increase of RMB 2.774 billion from the end of the previous year, showing a trend of “double increase” [2], and subsequent changes need to be closely tracked. remains a common challenge for the banking industry, and there is still a downward risk to the net interest margin [6]. , RMB 41.35 billion of the company’s RMB 50 billion convertible bonds remain unconverted, with a conversion price of RMB 21.19, and the current stock price is approximately 8% lower than the conversion price [9].

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Opportunity Type	Details	Expected Impact
Earnings Turnaround	Revenue growth turned from negative to positive, with strong Q4 performance	The operational inflection point has emerged, and stabilization and recovery are expected to continue in 2026
High Dividend Allocation	Dividend yield of 5.58%, ranking 2nd among banks	Has long-term allocation value in a low-interest rate environment
Valuation Recovery	PB ratio of only 0.51x, with 32% upside potential from target price	Limited downside risk, considerable medium-to-long-term upside potential
Institutional Optimism	14 out of 15 institutions gave Buy/Overweight ratings	Medium-to-long-term capital is expected to continue to flow in

Risk Type	Details	Risk Level
Asset Quality Risk	“Double increase” in non-performing ratio, with a balance increase of RMB 2.774 billion	Medium
Net Interest Margin Pressure	Sustained pressure on net interest margin	Medium
Short-Term Technical Performance	After hitting a 60-day low, it may continue to consolidate to form a bottom	Medium
Market Style Switch	Changes in market preference for dividend assets	Medium

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Price Type	Price	Significance
Current Price	Around RMB 19.61	Near the 60-day low
Institutional Target Average Price	RMB 26.18	Consensus target price of analysts
Convertible Bond Conversion Price	RMB 21.19	The stock price needs to rise by approximately 8% to trigger conversion
Strong Support Level	Around RMB 19.00-19.50	Historical intensive trading area
Strong Resistance Level	Around RMB 20.50-21.00	60-day moving average and previous platform

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The driving factors for Industrial Bank becoming a popular stock are clear:

provides fundamental support, brings high dividend appeal, boosts market confidence, and strengthen the investment logic. The current valuation is at a historical low, with prominent medium-to-long-term allocation value.

From an investment perspective, this stock has

and , and is a target worthy of medium-to-long-term attention in the banking sector. However, investors need to pay attention to fluctuations that may be caused by , , and . It is recommended that investors deploy opportunistically based on their own risk preferences: value investors may consider buying on dips below RMB 19, while trend traders are advised to wait for stabilization signals before entering.

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[1] StockStar - Industrial Bank’s Main Force Capital Net Sold RMB 67.5988 Million on January 21

[2] Tencent News - Industrial Bank’s Net Profit Exceeded RMB 7.74 Billion in the Last Year, Up 0.34% YoY; Non-Performing Loans “Increased Both in Ratio and Balance”

[3] Flush Financials - Turnaround to End the Year! Industrial Bank Crosses the RMB 11 Trillion Asset Scale Threshold

[4] Tencent News - Earnings Stabilized? Industrial Bank Forecasts Double Growth in 2025 Revenue and Net Profit

[5] Eastmoney - Industrial Bank: 2025 Net Profit of RMB 77.469 Billion, Up 0.34% YoY

[6] Sina Finance - Industrial Bank (601166): Revenue Growth Turned Positive, Earnings Bottomed Out and Recovered

[7] StockStar - Industrial Bank (601166) Had Main Force Capital Net Inflow of RMB 68.8836 Million on January 20

[8] Sina Finance - Industrial Bank (601166): Double Growth in Revenue and Profit, Earnings Bottomed Out and Recovered

[9] Toutiao - Everbright Securities: Industrial Bank’s Revenue and Profit Improved Simultaneously, Maintained “Overweight” Rating

[10] Flush Financials - Ping An Securities: Industrial Bank’s Long-Term Profitability is Expected to Recover, Maintained “Strong Buy” Rating

[11] StockStar - Industrial Bank (601166) Had Main Force Capital Net Sold RMB 67.5988 Million on January 21

[12] StockStar - [Volatility Alert] Industrial Bank (601166) Hit a 60-Day Low on January 21