China Merchants Bank (SHSE:600036) - Share price, News & Analysis

600036 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	5/6
Financial Health	6/6
Dividends	6/6

600036 Stock Overview

China Merchants Bank Co., Ltd., together with its subsidiaries, provides various banking products and services.

Rewards

Trading at 63.6% below our estimate of its fair value

Earnings are forecast to grow 13.93% per year

Earnings grew by 20.4% over the past year

Pays a high and reliable dividend of 3.92%

Risk Analysis

No risks detected for 600036 from our risk checks.

China Merchants Bank Competitors

Industrial Bank

SHSE:601166

CN¥404.7b

Ping An Bank

SZSE:000001

CN¥279.4b

Shanghai Pudong Development Bank

SHSE:600000

CN¥231.3b

China Everbright Bank

SHSE:601818

CN¥156.3b

Price History & Performance

Summary of all time highs, changes and price drops for China Merchants Bank
Historical stock prices
Current Share Price	CN¥38.78
52 Week High	CN¥58.92
52 Week Low	CN¥35.26
Beta	0.97
1 Month Change	-0.13%
3 Month Change	-22.47%
1 Year Change	-33.71%
3 Year Change	13.23%
5 Year Change	72.97%
Change since IPO	824.38%

Shareholder Returns

	600036	CN Banks	CN Market
7D	0.7%	-1.1%	-1.0%
1Y	-33.7%	-25.5%	-18.0%

Return vs Industry: 600036 underperformed the CN Banks industry which returned -25.5% over the past year.

Return vs Market: 600036 underperformed the CN Market which returned -18% over the past year.

Price Volatility

Is 600036's price volatile compared to industry and market?
600036 volatility
600036 Average Weekly Movement	6.7%
Banks Industry Average Movement	4.8%
Market Average Movement	7.4%
10% most volatile stocks in CN Market	10.3%
10% least volatile stocks in CN Market	5.4%

Stable Share Price: 600036 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 600036's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	103,669	n/a	https://www.cmbchina.com

China Merchants Bank Co., Ltd., together with its subsidiaries, provides various banking products and services. It operates through Wholesale Finance Business, Retail Finance Business, and Other Business segments. The company offers current, demand, time, call, savings, notice, and renminbi accounts.

China Merchants Bank Fundamentals Summary

How do China Merchants Bank's earnings and revenue compare to its market cap?
600036 fundamental statistics
Market Cap	CN¥988.67b
Earnings (TTM)	CN¥120.32b
Revenue (TTM)	CN¥271.54b

8.1x

P/E Ratio

1.1x

P/B Ratio

Is 600036 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
600036 income statement (TTM)
Revenue	CN¥271.54b
Cost of Revenue	CN¥0
Gross Profit	CN¥271.54b
Other Expenses	CN¥151.22b
Earnings	CN¥120.32b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.77
Gross Margin	100.00%
Net Profit Margin	44.31%
Debt/Equity Ratio	95.1%

How did 600036 perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

32%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 600036 (CN¥38.78) is trading below our estimate of fair value (CN¥106.68)

Significantly Below Fair Value: 600036 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 600036 is poor value based on its Price-To-Earnings Ratio (8.1x) compared to the CN Banks industry average (6.5x).

PE vs Market: 600036 is good value based on its Price-To-Earnings Ratio (8.1x) compared to the CN market (30x).

Price to Earnings Growth Ratio

PEG Ratio: 600036 is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: 600036 is overvalued based on its Price-To-Book Ratio (1.1x) compared to the CN Banks industry average (0.6x).

Future Growth

How is China Merchants Bank forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600036's forecast earnings growth (13.9% per year) is above the savings rate (3.3%).

Earnings vs Market: 600036's earnings (13.9% per year) are forecast to grow slower than the CN market (23.6% per year).

High Growth Earnings: 600036's earnings are forecast to grow, but not significantly.

Revenue vs Market: 600036's revenue (11.2% per year) is forecast to grow slower than the CN market (17.2% per year).

High Growth Revenue: 600036's revenue (11.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 600036's Return on Equity is forecast to be low in 3 years time (18.1%).

Past Performance

How has China Merchants Bank performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 600036 has high quality earnings.

Growing Profit Margin: 600036's current net profit margins (44.3%) are higher than last year (42.8%).

Past Earnings Growth Analysis

Earnings Trend: 600036's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: 600036's earnings growth over the past year (20.4%) exceeds its 5-year average (11.8% per year).

Earnings vs Industry: 600036 earnings growth over the past year (20.4%) exceeded the Banks industry 20.4%.

Return on Equity

High ROE: 600036's Return on Equity (13.9%) is considered low.

Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: 600036's Assets to Equity ratio (10.5x) is moderate.

Allowance for Bad Loans: 600036 has a sufficient allowance for bad loans (483%).

Low Risk Liabilities: 87% of 600036's liabilities are made up of primarily low risk sources of funding.

Loan Level: 600036 has an appropriate level of Loans to Assets ratio (59%).

Low Risk Deposits: 600036's Loans to Deposits ratio (75%) is appropriate.

Level of Bad Loans: 600036 has an appropriate level of bad loans (0.9%).

Dividend

What is China Merchants Bank current dividend yield, its reliability and sustainability?

Dividend Score

6/6

Dividend Score 6/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.92%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 600036's dividend (3.92%) is higher than the bottom 25% of dividend payers in the CN market (0.55%).

High Dividend: 600036's dividend (3.92%) is in the top 25% of dividend payers in the CN market (2.12%)

Stability and Growth of Payments

Stable Dividend: 600036's dividends per share have been stable in the past 10 years.

Growing Dividend: 600036's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.9%), 600036's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: 600036's dividends in 3 years are forecast to be well covered by earnings (31.8% payout ratio).

Discover strong dividend paying companies

Management

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

3.1yrs

Average management tenure

CEO

China Merchants Bank has no CEO, or we have no data on them.

Leadership Team

Experienced Management: 600036's management team is considered experienced (3.1 years average tenure).

Board Members

Experienced Board: 600036's board of directors are considered experienced (3.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31