SEHK:2596Banks
Yibin City Commercial Bank (SEHK:2596) Stock Commands Premium On 40.6% Margin
Yibin City Commercial Bank stock came into this earnings day priced for perfection. The shares closed at HK$2.64 with a P/E of 17.6x, well above the Hong Kong banks peer group, even though the latest 90 day return sat flat. That sets a high bar for any new numbers.
The headline from this half year report is margin and profit quality. Net profit margin over the past year was 40.6% and earnings are flagged as high quality, which helps explain why investors have been willing to pay up. The...