DB:4BQ

Stock Analysis Report

Bank of Qingdao

Executive Summary

Bank of Qingdao Co., Ltd. provides various banking products and services in the People’s Republic of China.

Rewards

PE ratio (13x) is below the German market (20.6x)

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Profit margins (30.1%) are lower than last year (44.6%)



Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 4BQ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

4BQ

-1.3%

DE Banks

0.3%

DE Market


1 Year Return

4.0%

4BQ

-15.8%

DE Banks

13.8%

DE Market

Return vs Industry: 4BQ exceeded the German Banks industry which returned -4.5% over the past year.

Return vs Market: 4BQ underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

4BQIndustryMarket
7 Day-0.8%-1.3%0.3%
30 Day-3.7%-1.3%1.3%
90 Day-15.7%-2.5%5.2%
1 Year8.1%4.0%-13.1%-15.8%17.4%13.8%
3 Year14.2%1.6%-25.3%-29.0%15.9%5.7%
5 Yearn/a-8.2%-28.5%27.9%10.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

13.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 4BQ (€0.66) is trading above our estimate of fair value (€0.38)

Significantly Below Fair Value: 4BQ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 4BQ is good value based on its PE Ratio (13x) compared to the Banks industry average (17x).

PE vs Market: 4BQ is good value based on its PE Ratio (13x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 4BQ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 4BQ is overvalued based on its PB Ratio (1.1x) compared to the DE Banks industry average (0.9x).


Next Steps

Future Growth

How is Bank of Qingdao forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.7%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Bank of Qingdao has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Bank of Qingdao performed over the past 5 years?

0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4BQ has a high level of non-cash earnings.

Growing Profit Margin: 4BQ's current net profit margins (30.1%) are lower than last year (44.6%).


Past Earnings Growth Analysis

Earnings Trend: 4BQ's earnings have grown by 0.6% per year over the past 5 years.

Accelerating Growth: 4BQ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4BQ had negative earnings growth (-17.2%) over the past year, making it difficult to compare to the Banks industry average (3.9%).


Return on Equity

High ROE: 4BQ's Return on Equity (7.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bank of Qingdao'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: 4BQ has a low level of unsold assets or inventory.

Debt Coverage by Assets: 4BQ's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

Asset Level: 4BQ's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 4BQ has a sufficient allowance for bad loans.

Low Risk Liabilities: 4BQ's liabilities are made up of primarily low risk sources of funding.

Loan Level: 4BQ has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 4BQ's loans are broadly funded by customer deposits.

Level of Bad Loans: 4BQ has an appropriate level of bad loans (1.67%)


Next Steps

Dividend

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

3.82%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.3%markettop25%3.6%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 4BQ's dividend (3.95%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 4BQ's dividend (3.95%) is in the top 25% of dividend payers in the German market (3.53%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 4BQ has been paying a dividend for less than 10 years.

Growing Dividend: 4BQ has only been paying a dividend for 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.1%), 4BQ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Bank of Qingdao's salary, the management and board of directors tenure and is there insider trading?

9.4yrs

Average management tenure


CEO

Lin Wang (56yo)

0yrs

Tenure

CN¥2,286,000

Compensation

Mr. Wang Lin has been President and Executive Director of Bank of Qingdao Co., Ltd. since March 31, 2012 and September 16, 2011, respectively. Mr. Wang has over 30 years of experience in banking operations ...


CEO Compensation Analysis

Compensation vs Market: Lin's total compensation ($USD331.80K) is below average for companies of similar size in the German market ($USD2.07M).

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


Management Age and Tenure

9.4yrs

Average Tenure

55.5yo

Average Age

Experienced Management: 4BQ's management team is seasoned and experienced (9.4 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 4BQ's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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.


Management Team

  • Shaoquan Guo (57yo)

    Executive Chairman of the Board

    • Tenure: 10yrs
    • Compensation: CN¥2.46m
  • Lin Wang (56yo)

    President & Executive Director

    • Compensation: CN¥2.29m
  • Fengjiang Yang (55yo)

    VP & Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥1.72m
  • Lan Lu (55yo)

    Secretary to the Board & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥1.65m
  • Bo Wang

    Head of the Planning & Finance Department

    • Wing Sze Yu

      Joint Company Secretary

      • Tenure: 1.3yrs

    Board Members

    • Kelvin Wong (59yo)

      Independent Non-Executive Director

      • Tenure: 4.8yrs
      • Compensation: CN¥182.00k
    • Yunjie Zhou (53yo)

      Non-Executive Director

      • Tenure: 4.8yrs
      • Compensation: CN¥124.00k
    • Shaoquan Guo (57yo)

      Executive Chairman of the Board

      • Tenure: 10yrs
      • Compensation: CN¥2.46m
    • Lin Wang (56yo)

      President & Executive Director

      • Compensation: CN¥2.29m
    • Fengjiang Yang (55yo)

      VP & Executive Director

      • Tenure: 7.8yrs
      • Compensation: CN¥1.72m
    • Hua Chen (52yo)

      Independent Non-Executive Director

      • Tenure: 4.8yrs
      • Compensation: CN¥188.00k
    • Lan Lu (55yo)

      Secretary to the Board & Executive Director

      • Tenure: 3.3yrs
      • Compensation: CN¥1.65m
    • Qing Chen (60yo)

      Chief Supervisor

      • Tenure: 3.1yrs
    • Shuping Dai (59yo)

      Independent Non-Executive Director

      • Tenure: 3.3yrs
      • Compensation: CN¥188.00k
    • Qiaoling Fang (43yo)

      Independent Non-Executive Director

      • Tenure: 1.7yrs
      • Compensation: CN¥85.00k

    Company Information

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


    Key Information

    • Name: Bank of Qingdao Co., Ltd.
    • Ticker: 4BQ
    • Exchange: DB
    • Founded: 1996
    • Industry: Regional Banks
    • Sector: Banks
    • Market Cap: HK$27.528b
    • Listing Market Cap: HK$3.212b
    • Shares outstanding: 4.51b
    • Website: https://www.qdccb.com

    Number of Employees


    Location

    • Bank of Qingdao Co., Ltd.
    • No. 6 Qinling Road
    • Laoshan District
    • Qingdao
    • Shandong Province
    • 266061
    • China

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    3866SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2015
    4BQDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2015
    3866SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2015
    2948SZSE (Shenzhen Stock Exchange)Domestic SharesCNCNYJan 2019
    2948XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)Domestic SharesCNCNYJan 2019

    Biography

    Bank of Qingdao Co., Ltd. provides various banking products and services in the People’s Republic of China. It operates through three segments: Retail Banking, Corporate Banking, and Financial Market Business. The company accepts deposits; provides short, mid, and long-term loans; conducts domestic and international settlements, as well as acceptance, discounting, and inter-bank discounting of notes; issues financial bonds; and operates as an agent in issuing, cashing-in, and underwriting government and financial bonds. It also trades in government bonds, notes of central banks, financial and corporate bonds, mid-term notes, short-term financing coupons, and other bonds issued and circulated in the national interbank bond market; participates in interbank lending and borrowing, and interbank deposit businesses; and performs foreign exchange trading as an agent. In addition, the company engages in the foreign exchange settlement and sales businesses; provides bank cards, and letters of credit and guarantee; and offers receipt and payment, and insurance business agency services, as well as other agency services, including funds and sales of precious metals. Further, it is involved in the bond settlement agency business and the fixed deposits business of commercial banks for cash management of central treasury; and provision of safe deposit box and wealth management services. As of December 31, 2018, the company operated 1 off-bank self-service bank; 101 in-bank self-service banks; and 472 self-service devices, including 89 self-service ATMs, 260 self-service cash deposit and teller machines, and 123 self-service terminals that provide various services, such as withdrawals, deposits, transfers, account enquiries, and payments. The company was formerly known as Qingdao City Commercial Bank Co., Ltd. and changed its name to Bank of Qingdao Co., Ltd. in 2008. Bank of Qingdao Co., Ltd. was founded in 1996 and is headquartered in Qingdao, 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 Analysis2020/01/26 22:26
    End of Day Share Price2020/01/24 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.