WBAG:EK7

Stock Analysis Report

Agricultural Bank of China

Executive Summary

Agricultural Bank of China Limited provides corporate and retail banking products and services in the Mainland China and internationally.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has Agricultural Bank of China's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EK7 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.7%

EK7

-2.1%

AT Banks

3.9%

AT Market


1 Year Return

-15.8%

EK7

-37.4%

AT Banks

-31.5%

AT Market

Return vs Industry: EK7 exceeded the Austrian Banks industry which returned -37.4% over the past year.

Return vs Market: EK7 exceeded the Austrian Market which returned -31.5% over the past year.


Shareholder returns

EK7IndustryMarket
7 Day-2.7%-2.1%3.9%
30 Day-3.8%-33.8%-24.3%
90 Day-10.1%-39.2%-33.5%
1 Year-10.7%-15.8%-34.9%-37.4%-29.1%-31.5%
3 Yearn/a-26.2%-32.0%-16.8%-24.3%
5 Yearn/a1.2%-8.5%0.7%-13.4%

Price Volatility Vs. Market

How volatile is Agricultural Bank of China's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Agricultural Bank of China undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EK7 (€0.36) is trading below our estimate of fair value (€1.28)

Significantly Below Fair Value: EK7 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EK7 is good value based on its PE Ratio (4.6x) compared to the Banks industry average (5.4x).

PE vs Market: EK7 is good value based on its PE Ratio (4.6x) compared to the Austrian market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: EK7 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: EK7 is overvalued based on its PB Ratio (0.5x) compared to the AT Banks industry average (0.4x).


Next Steps

Future Growth

How is Agricultural Bank of China forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EK7's forecast earnings growth (5.2% per year) is above the savings rate (-0.1%).

Earnings vs Market: EK7's earnings (5.2% per year) are forecast to grow slower than the Austrian market (10.1% per year).

High Growth Earnings: EK7's earnings are forecast to grow, but not significantly.

Revenue vs Market: EK7's revenue (7.4% per year) is forecast to grow faster than the Austrian market (2.1% per year).

High Growth Revenue: EK7's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EK7's Return on Equity is forecast to be low in 3 years time (11.6%).


Next Steps

Past Performance

How has Agricultural Bank of China performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EK7 has high quality earnings.

Growing Profit Margin: EK7's current net profit margins (43.1%) are lower than last year (43.3%).


Past Earnings Growth Analysis

Earnings Trend: EK7's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: EK7's earnings growth over the past year (3.6%) exceeds its 5-year average (3% per year).

Earnings vs Industry: EK7 earnings growth over the past year (3.6%) exceeded the Banks industry -4%.


Return on Equity

High ROE: EK7's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Agricultural Bank of China's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: EK7 has a low level of unsold assets or inventory.

Debt Coverage by Assets: EK7's debt is covered by short term assets (assets are 3.4x debt).


Financial Institutions Analysis

Asset Level: EK7's level of assets compared to its equity is moderate.

Allowance for Bad Loans: EK7 has a sufficient allowance for bad loans.

Low Risk Liabilities: EK7's liabilities are made up of primarily low risk sources of funding.

Loan Level: EK7 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: EK7's loans are broadly funded by customer deposits.

Level of Bad Loans: EK7 has an appropriate level of bad loans (1.41%)


Next Steps

Dividend

What is Agricultural Bank of China's current dividend yield, its reliability and sustainability?

6.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EK7's dividend (6.33%) is higher than the bottom 25% of dividend payers in the Austrian market (1.96%).

High Dividend: EK7's dividend (6.33%) is in the top 25% of dividend payers in the Austrian market (6.31%)


Stability and Growth of Payments

Stable Dividend: EK7's dividend payments have been volatile in the past 10 years.

Growing Dividend: EK7's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.4%), EK7's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EK7's dividends in 3 years are forecast to be well covered by earnings (18.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Qingsong Zhang (54yo)

0.25

Tenure

Mr. Qingsong Zhang has been the President of Agricultural Bank of China Ltd since November 11, 2019 and its Executive Vice Chairman of the Board since December 13, 2019. Mr. Zhang served as President of Ex ...


Leadership Team

NamePositionTenureCompensationOwnership
Mubing Zhou
Executive Chairman of the Board3.67yrsCN¥704.00kno data
Keqiu Zhang
Executive VP & Executive Director0.83yrCN¥646.00kno data
Zhi cheng Li
Former Chief Risk Officer & Secretary to the Board3yrsCN¥1.16mno data
Qingsong Zhang
President & Executive Vice Chairman of the Board0.25yrno datano data
Mingde Yao
General Manager of the Finance & Accounting Departmentno datano datano data
Dongsheng Zhan
Executive Vice President0.83yrno datano data
Yong Cui
Executive Vice President0.83yrno datano data
Xuguang Zhang
Executive Vice President0.25yrno datano data
Lee Wah Woo
Assistant Company Secretaryno datano datano data
Siu Kuen Lai
Assistant to the Company Secretary2.67yrsno datano data

0.8yrs

Average Tenure

55yo

Average Age

Experienced Management: EK7's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mubing Zhou
Executive Chairman of the Board3.67yrsCN¥704.00kno data
Keqiu Zhang
Executive VP & Executive Director0.83yrCN¥646.00kno data
Qingsong Zhang
President & Executive Vice Chairman of the Board0.25yrno datano data
Jingdong Wang
Chairman of the Board of Supervisors1.25yrsno datano data
Jianbo Chen
Non-Executive Director5.17yrsno datano data
Jiandong Xu
Non-Executive Director5yrsno datano data
Xing Xiao
Independent Non-Executive Director5yrsCN¥380.00kno data
Xinxin Wang
Independent Non-Executive Director3.83yrsCN¥360.00kno data
Zhenzhong Huang
Independent Non-Executive Director2.42yrsCN¥360.00kno data
Luming Liao
Non-Executive Director2.58yrsno datano data

3.1yrs

Average Tenure

56yo

Average Age

Experienced Board: EK7's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.


Top Shareholders

Company Information

Agricultural Bank of China Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Agricultural Bank of China Limited
  • Ticker: EK7
  • Exchange: WBAG
  • Founded: 1951
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$1.281t
  • Listing Market Cap: HK$149.084b
  • Shares outstanding: 349.98b
  • Website: https://www.abchina.com

Number of Employees


Location

  • Agricultural Bank of China Limited
  • No. 69, Jianguomen Nei Avenue
  • Dongcheng District
  • Beijing
  • 100005
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
601288SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJul 2010
601288XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJul 2010
1288SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJul 2010
EK7DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJul 2010
ACGB.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJul 2010
1288SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJul 2010
1288SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJul 2010
EK7WBAG (Wiener Boerse AG)YesForeign Shares-Foreign ListedATEURJul 2010
ACGB.YOTCPK (Pink Sheets LLC)ADRUSUSDSep 2010

Biography

Agricultural Bank of China Limited provides corporate and retail banking products and services in the Mainland China and internationally. The company operates through Corporate Banking, Personal Banking, and Treasury Operations segments. Its deposit products include demand, call, foreign currency time, foreign currency call, time or demand optional, foreign exchange demand, foreign exchange call, savings, foreign exchange time, agreed-term, and negotiated deposits; and loans comprise housing, consumer, business, fixed asset, working capital, real estate, and entrusted syndicated loans, as well as trade finances, guarantees and commitments, and loans with custody of export rebates accounts. The company also provides credit card, debit card, payment and settlement, private banking, cash management, investment banking, custody, financial market, and financial institution services, as well as trading and wealth management services. In addition, it offers agro-related personal and corporate banking products and services; personal and online, telephone, mobile, self-service, and SMS banking services; financial leasing services; and life, health, and accident insurance, as well as reinsurance products. As of December 31, 2018, the company had 23,381 branches in China; and 13 overseas branches and 4 overseas representative offices. Agricultural Bank of China Limited was founded in 1951 and is based in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:23
End of Day Share Price2020/03/30 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.