SHSE:600016

Stock Analysis Report

China Minsheng Banking

Executive Summary

China Minsheng Banking Corp., Ltd. provides various financial products and services to individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the People's Republic of China.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has China Minsheng Banking's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 600016 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

600016

-1.1%

CN Banks

1.4%

CN Market


1 Year Return

-11.0%

600016

-0.2%

CN Banks

13.6%

CN Market

Return vs Industry: 600016 underperformed the CN Banks industry which returned 1.7% over the past year.

Return vs Market: 600016 underperformed the CN Market which returned 15.7% over the past year.


Shareholder returns

600016IndustryMarket
7 Day-0.8%-1.1%1.4%
30 Day-3.9%-4.1%4.8%
90 Day-5.2%-5.1%12.8%
1 Year-5.9%-11.0%3.1%-0.2%15.5%13.6%
3 Year-14.2%-22.5%14.3%5.1%-3.6%-7.5%
5 Year-9.0%-21.8%60.9%38.9%9.6%2.9%

Price Volatility Vs. Market

How volatile is China Minsheng Banking's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Minsheng Banking 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: 600016 (CN¥5.84) is trading below our estimate of fair value (CN¥12.49)

Significantly Below Fair Value: 600016 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 600016 is good value based on its PE Ratio (4.8x) compared to the Banks industry average (7.8x).

PE vs Market: 600016 is good value based on its PE Ratio (4.8x) compared to the CN market (35.1x).


Price to Earnings Growth Ratio

PEG Ratio: 600016 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 600016 is good value based on its PB Ratio (0.5x) compared to the CN Banks industry average (0.9x).


Next Steps

Future Growth

How is China Minsheng Banking forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600016's forecast earnings growth (4.5% per year) is above the savings rate (3.2%).

Earnings vs Market: 600016's earnings (4.5% per year) are forecast to grow slower than the CN market (22.4% per year).

High Growth Earnings: 600016's earnings are forecast to grow, but not significantly.

Revenue vs Market: 600016's revenue (9.3% per year) is forecast to grow slower than the CN market (16.5% per year).

High Growth Revenue: 600016's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 600016's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has China Minsheng Banking performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600016 has a high level of non-cash earnings.

Growing Profit Margin: 600016's current net profit margins (45.7%) are higher than last year (45.7%).


Past Earnings Growth Analysis

Earnings Trend: 600016's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: 600016's earnings growth over the past year (1.7%) is below its 5-year average (3.1% per year).

Earnings vs Industry: 600016 earnings growth over the past year (1.7%) underperformed the Banks industry 13%.


Return on Equity

High ROE: 600016's Return on Equity (10.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Minsheng Banking'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: 600016 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 600016's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: 600016's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 600016 has a sufficient allowance for bad loans.

Low Risk Liabilities: 600016's liabilities are made up of primarily low risk sources of funding.

Loan Level: 600016 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 600016's loans are broadly funded by customer deposits.

Level of Bad Loans: 600016 has an appropriate level of bad loans (1.6%)


Next Steps

Dividend

What is China Minsheng Banking's current dividend yield, its reliability and sustainability?

5.91%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%0.4%markettop25%1.9%industryaverage3.3%forecastin3Years5.5%

Current dividend yield vs market & industry

Notable Dividend: 600016's dividend (5.91%) is higher than the bottom 25% of dividend payers in the CN market (0.4%).

High Dividend: 600016's dividend (5.91%) is in the top 25% of dividend payers in the CN market (1.83%)


Stability and Growth of Payments

Stable Dividend: 600016's dividend payments have been volatile in the past 10 years.

Growing Dividend: 600016's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.6%), 600016's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 600016's dividends in 3 years are forecast to be well covered by earnings (25.5% payout ratio).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Wanchun Zheng (55yo)

4.3yrs

Tenure

CN¥4,110,300

Compensation

Mr. Wanchun Zheng has been the President of China Minsheng Banking Corp. Ltd. since November 19, 2015 and has been its Executive Director since February 01, 2016. Mr. Zheng served as Senior Executive Vice  ...


CEO Compensation Analysis

Compensation vs Market: Wanchun's total compensation ($USD585.94K) is above average for companies of similar size in the CN market ($USD359.04K).

Compensation vs Earnings: Wanchun's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Qi Hong
Chairman of the Board5.5yrsCN¥4.47mno data
Wanchun Zheng
President & Executive Director4.3yrsCN¥4.11mno data
Dan Bai
CFO & Board Secretary7.8yrsCN¥3.36mno data
Bin Li
Executive Vice President7.5yrsCN¥3.29mno data
Yunshan Lin
Executive Vice President7.5yrsCN¥3.29mno data
Jie Shi
Executive Vice President7.5yrsCN¥3.29mno data
Qinghua Hu
Executive VP & Chief Risk Officer3yrsCN¥3.01mno data
Ouyang Yong
Assistant President1.8yrsCN¥2.01mno data
Qiong Chen
Executive Vice President1.7yrsCN¥1.53mno data
Hongri Huang
President of Nanning Branch0yrsno datano data

5.9yrs

Average Tenure

56yo

Average Age

Experienced Management: 600016's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Qi Hong
Chairman of the Board5.5yrsCN¥4.47mno data
Wanchun Zheng
President & Executive Director4.3yrsCN¥4.11mno data
Suning Tian
Independent Non-Executive Director1.7yrsCN¥410.00kno data
Hong Wei Zhang
Vice Chairman of the Board19.8yrsCN¥930.00kno data
Zhichun Xie
Independent Non-Executive Director3.3yrsCN¥890.00kno data
Yonghao Liu
Vice Chairman of the Board10.9yrsCN¥930.00kno data
Zhiqiang Lu
Vice Chairman of the Board13.6yrsCN¥915.00kno data
Xuefeng Peng
Independent Non-Executive Director3yrsCN¥875.00kno data
Ningyu Liu
Independent Non-Executive Director3yrsCN¥955.00kno data
Juntong Zhang
Chairman of the Supervisory Board0yrsno datano data

4.3yrs

Average Tenure

59yo

Average Age

Experienced Board: 600016's board of directors are considered experienced (4.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Minsheng Banking Corp., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Minsheng Banking Corp., Ltd.
  • Ticker: 600016
  • Exchange: SHSE
  • Founded: 1996
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CN¥247.402b
  • Shares outstanding: 43.78b
  • Website: https://www.cmbc.com.cn

Number of Employees


Location

  • China Minsheng Banking Corp., Ltd.
  • No. 2 Fuxingmennei Avenue
  • Xicheng District
  • Beijing
  • 100031
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
360037SHSE (Shanghai Stock Exchange)4.38% PREF1CNCNYNo data
600016SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYDec 2000
600016XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYDec 2000
1988SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDNov 2009
CGMB.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDNov 2009
GHFHDB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURNov 2009
1988SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDNov 2009
1988SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDNov 2009
CMAK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2010

Biography

China Minsheng Banking Corp., Ltd. provides various financial products and services to individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the People's Republic of China. The company operates through four segments: Corporate Banking, Personal Banking, Treasury, and Others. Its deposit products include saving accounts, deposit certificates, contracted deposits, agreement deposits, call deposits, corporate term deposits, and corporate current deposits. The company also offers personal housing mortgage, individual automobile purchase, household composite consumption, medium and long term, and short-term working capital loans; micro-credit products for individuals; trust, trade-related products, and foreign currency services; and debit and credit cards. In addition, it provides foreign exchange trading, derivatives transactions, money market transactions, and precious metal trading services, as well as Internet, mobile, and telephone banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; and comprehensive credit granting, forex settlement and sale, financial product investment, and trust financing services. Additionally, it provides convenient finance, investment banking, and asset management services, as well as non-financial services in the education, business travel, traveler, art, luxury life, health, club, and isports areas. The company has approximately 132 branches, 1,144 business outlets, 1,347 community sub-branches, 157 small business sub-branches, and 3,410 self-service banks. China Minsheng Banking Corp., Ltd. was founded in 1996 and is headquartered 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 Analysis2020/02/26 15:04
End of Day Share Price2020/02/26 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.