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ICBC (SEHK:1398) Valuation After 2025 Interim Dividend Plan Clarifies Capital Returns and Payout Schedule

Simply Wall St · 2d ago

Industrial and Commercial Bank of China (SEHK:1398) just firmed up its 2025 interim profit distribution plan, locking in a cash dividend that clarifies near term yield, ex dividend timing and payout logistics for investors.

See our latest analysis for Industrial and Commercial Bank of China.

The dividend clarity comes on the back of a strong run, with Industrial and Commercial Bank of China’s share price up 30.5% year to date and supported by a 44.9% one year total shareholder return. This suggests momentum is still firmly constructive.

If this kind of income backed story has your attention, it could be worth scanning other fast growing stocks with high insider ownership that might be quietly setting up their next leg higher.

But with the stock already boasting double digit returns and trading at a discount to analyst targets, is Industrial and Commercial Bank of China still undervalued, or is the market already pricing in the next leg of growth?

Most Popular Narrative Narrative: 11.4% Undervalued

With the most followed narrative putting fair value above the HK$6.33 last close, the gap between modeled worth and market pricing remains notable.

Strong participation and leadership in the Belt and Road Initiative (with ICBC as a major financier and RMB clearing bank in 12 countries) and expanding cross border RMB business (up 6% YoY) position ICBC to capitalize on rising international trade and investment, supporting sustainable top line revenue growth and global market share.

Read the complete narrative.

Curious how steady, rather than explosive, growth in revenue, earnings and margins can still argue for a higher future earnings multiple and upside? Read on.

Result: Fair Value of $7.14 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent net interest margin pressure and policy driven lending mandates could still weigh on profitability and undermine the case for a higher valuation multiple.

Find out about the key risks to this Industrial and Commercial Bank of China narrative.

Build Your Own Industrial and Commercial Bank of China Narrative

If you see the story differently, or want to dig into the data yourself, you can spin up a personalized view in just minutes using Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Industrial and Commercial Bank of China.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.