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ICBC (SEHK:1398) Valuation: Assessing the Bank After Its Thai Renewable Energy Financing Push

Simply Wall St · 2d ago

Industrial and Commercial Bank of China (SEHK:1398) is in focus after its ICBC Thai leasing arm deepened cooperation with solar specialist Sungrow, rolling out a new energy financing lease policy to support Thailand’s net zero ambitions.

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

Despite the recent pullback, with a 30 day share price return of minus 4.82 percent from HK$6.12, momentum is still broadly constructive given the 26.19 percent year to date share price return and 38.11 percent one year total shareholder return.

If this kind of renewables focused growth story interests you, it could be worth exploring high growth tech and AI stocks as a way to spot other innovation driven names shaping the next stage of the market.

With ICBC delivering steady earnings growth, trading below analyst targets and at a hefty intrinsic discount, investors now face a key question: is this Chinese banking giant undervalued, or is the market already pricing in its future growth?

Most Popular Narrative Narrative: 15.7% Undervalued

With Industrial and Commercial Bank of China last closing at HK$6.12, the most followed narrative points to a higher fair value anchored near HK$7.26. This frames the stock as modestly mispriced rather than a deep value outlier.

Market leadership and scale, combined with a solid capital adequacy ratio (19.54%) and robust risk control measures, have preserved asset quality (NPL ratio at 1.33%, provision coverage at 217.71%). This has enabled reliable earnings and the ability to maintain above sector average dividend yields, which may be underappreciated in the current valuation.

Read the complete narrative.

Want to see what kind of growth, margin trajectory and future earnings multiple are needed to justify that uplifted fair value, and how ambitious those assumptions really are? Read on to uncover the full valuation playbook behind this call.

Result: Fair Value of $7.26 (UNDERVALUED)

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

However, persistent pressure on net interest margins and policy driven lending mandates could constrain profitability and challenge the current undervaluation thesis.

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 would rather dig into the numbers yourself, you can build a custom view in just minutes, Do it your way.

A good starting point is our analysis highlighting 5 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.