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China Merchants Bank

Market Cap

CN¥1.4t

Last Updated

2021/05/18 09:51 UTC

Data Sources

Company Financials +

Executive Summary

China Merchants Bank Co., Ltd. provides various banking products and services. More Details


Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 600036 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 600036's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.9%

600036

2.4%

CN Banks

3.2%

CN Market


1 Year Return

63.3%

600036

35.2%

CN Banks

26.0%

CN Market

Return vs Industry: 600036 exceeded the CN Banks industry which returned 35.2% over the past year.

Return vs Market: 600036 exceeded the CN Market which returned 26% over the past year.


Shareholder returns

600036IndustryMarket
7 Day3.9%2.4%3.2%
30 Day12.5%8.1%3.6%
90 Day2.6%-1.6%-5.1%
1 Year68.3%63.3%40.9%35.2%27.9%26.0%
3 Year105.1%87.6%48.7%33.7%27.6%21.6%
5 Year279.8%222.9%92.1%62.6%37.2%28.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

19.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 600036 (CN¥55.95) is trading below our estimate of fair value (CN¥69.38)

Significantly Below Fair Value: 600036 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 600036 is poor value based on its PE Ratio (14.1x) compared to the CN Banks industry average (8.2x).

PE vs Market: 600036 is good value based on its PE Ratio (14.1x) compared to the CN market (30.5x).


Price to Earnings Growth Ratio

PEG Ratio: 600036 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 600036 is overvalued based on its PB Ratio (2x) compared to the CN Banks industry average (0.8x).


Future Growth

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

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600036's forecast earnings growth (14.5% per year) is above the savings rate (3.3%).

Earnings vs Market: 600036's earnings (14.5% per year) are forecast to grow slower than the CN market (20.9% per year).

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

Revenue vs Market: 600036's revenue (11.5% per year) is forecast to grow slower than the CN market (16.9% per year).

High Growth Revenue: 600036's revenue (11.5% 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 (16.2%).


Past Performance

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

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600036 has high quality earnings.

Growing Profit Margin: 600036's current net profit margins (42.8%) are lower than last year (44.2%).


Past Earnings Growth Analysis

Earnings Trend: 600036's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: 600036's earnings growth over the past year (6.6%) is below its 5-year average (10.8% per year).

Earnings vs Industry: 600036 earnings growth over the past year (6.6%) exceeded the Banks industry 3.1%.


Return on Equity

High ROE: 600036's Return on Equity (13.4%) 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 Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 600036's Assets to Equity ratio (11.4x) is moderate.

Allowance for Bad Loans: 600036 has a sufficient allowance for bad loans (427%).

Low Risk Liabilities: 83% 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 (77%) is appropriate.

Level of Bad Loans: 600036 has an appropriate level of bad loans (1%).


Dividend

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

2.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 600036's dividend (2.24%) is higher than the bottom 25% of dividend payers in the CN market (0.47%).

High Dividend: 600036's dividend (2.24%) is in the top 25% of dividend payers in the CN market (1.87%)


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

Dividend Coverage: With its reasonably low payout ratio (31.6%), 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 (32.8% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Huiyu Tian (55 yo)

7.67yrs

Tenure

CN¥4,198,000

Compensation

Mr. Huiyu Tian, MPA has been the Chief Executive Officer and President of China Merchants Bank Co., Ltd. since May 2013. Mr. Tian has been an Executive Director at China Merchants Bank Co., Ltd. since Augu...


CEO Compensation Analysis

Compensation vs Market: Huiyu's total compensation ($USD651.97K) is above average for companies of similar size in the CN market ($USD358.00K).

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


Leadership Team

Experienced Management: 600036's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: 600036's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Merchants Bank Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Merchants Bank Co., Ltd.
  • Ticker: 600036
  • Exchange: SHSE
  • Founded: 1987
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CN¥1.406t
  • Shares outstanding: 25.22b
  • Website: https://www.cmbchina.com

Number of Employees


Location

  • China Merchants Bank Co., Ltd.
  • China Merchants Bank Tower
  • 19th Floor
  • Shenzhen
  • Guangdong Province
  • 518040
  • China

Listings


Biography

China Merchants Bank Co., Ltd. provides various banking products and services. It operates through Wholesale Finance Business, Retail Finance Business, and Other Business segments. The company accepts dema...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/18 09:51
End of Day Share Price2021/05/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.