DB:5H6

Stock Analysis Report

Executive Summary

Harbin Bank Co., Ltd. provides various commercial banking products and services primarily in Mainland China.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 5H6's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

5H6

4.4%

DE Banks

9.9%

DE Market


1 Year Return

-40.6%

5H6

-37.7%

DE Banks

-17.5%

DE Market

Return vs Industry: 5H6 underperformed the German Banks industry which returned -37.7% over the past year.

Return vs Market: 5H6 underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

5H6IndustryMarket
7 Day-5.6%4.4%9.9%
30 Day-17.0%-25.5%-16.6%
90 Day-21.5%-27.2%-24.8%
1 Year-40.6%-40.6%-35.7%-37.7%-15.0%-17.5%
3 Year-55.0%-56.3%-43.7%-46.4%-17.4%-24.5%
5 Year-55.2%-61.4%-41.2%-53.2%-16.6%-28.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Harbin Bank 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: 5H6 (€0.12) is trading below our estimate of fair value (€0.41)

Significantly Below Fair Value: 5H6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 5H6 is good value based on its PE Ratio (2.3x) compared to the Banks industry average (15.1x).

PE vs Market: 5H6 is good value based on its PE Ratio (2.3x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 5H6's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 5H6 is good value based on its PB Ratio (0.2x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

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

8.7%

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 Harbin Bank 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 Harbin Bank performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5H6 has high quality earnings.

Growing Profit Margin: 5H6's current net profit margins (45.5%) are lower than last year (47.9%).


Past Earnings Growth Analysis

Earnings Trend: 5H6's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: 5H6's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 5H6 had negative earnings growth (-1.5%) over the past year, making it difficult to compare to the Banks industry average (0.7%).


Return on Equity

High ROE: 5H6's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Harbin 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

Inventory Level: 5H6 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 5H6's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: 5H6's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 5H6 has a sufficient allowance for bad loans.

Low Risk Liabilities: 5H6's liabilities are made up of primarily low risk sources of funding.

Loan Level: 5H6 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 5H6's loans are broadly funded by customer deposits.

Level of Bad Loans: 5H6 has an appropriate level of bad loans (1.82%)


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 5H6's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 5H6's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 5H6's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 5H6's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 5H6 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 5H6's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Tianjun Lyu (52yo)

2.42s

Tenure

CN¥2,906,000

Compensation

Mr. Tianjun Lyu has been the President of the Harbin Bank Co., Ltd. (“Bank”) since October 2017 and its Executive Director since July 6, 2018 and also served as its Vice President since April 2012 and Chie ...


CEO Compensation Analysis

Compensation vs Market: Tianjun's total compensation ($USD409.36K) is below average for companies of similar size in the German market ($USD1.85M).

Compensation vs Earnings: Insufficient data to compare Tianjun's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Zhiwen Guo
Chairman of the Board11.42yrsCN¥4.58mno data
Tianjun Lyu
President & Executive Director2.42yrsCN¥2.91mno data
Feixia Sun
Vice Chairman of the Board1.67yrsCN¥2.35m0.0034% CN¥51.9k
Haibin Wang
Executive Vice President of Finance1.83yrsno datano data
Liyang Chen
General Manager of Finance & Accounting Departmentno datano datano data
Yong Liang
Chief Information Officer1.42yrsno datano data
Ying Wang
Chief Audit Officer1.83yrsCN¥826.00kno data
Jian Li
Chief Capital Operations Officer4.83yrsno datano data
Tiemin Gong
Chief Risk Officer1.58yrsno datano data
Yilei Qi
Chief Credit Approval Officer1.83yrsno datano data

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: 5H6's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Zhiwen Guo
Chairman of the Board11.42yrsCN¥4.58mno data
Tianjun Lyu
President & Executive Director2.42yrsCN¥2.91mno data
Feixia Sun
Vice Chairman of the Board1.67yrsCN¥2.35m0.0034% CN¥51.9k
Xiaodong Peng
Non-Executive Director3.25yrsCN¥147.00kno data
Taoxuan Zhang
Non-Executive Director7.83yrsno datano data
Danyang Chen
Non-Executive Director13.92yrsCN¥147.00kno data
Yongqiang Ma
Independent Non-Executive Director1.67yrsCN¥130.00kno data
Pao-Lin Ma
Non-Executive Director4.58yrsno datano data
Yan Sun
Independent Non-Executive Director1.67yrsCN¥130.00kno data
Xinquan Deng
Chairman of the Board of Supervisors1.83yrsno data0.000010% CN¥150.4

2.5yrs

Average Tenure

50.5yo

Average Age

Experienced Board: 5H6's board of directors are not considered experienced ( 2.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Harbin Bank Co., Ltd.
  • Ticker: 5H6
  • Exchange: DB
  • Founded: 1997
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: HK$12.865b
  • Listing Market Cap: HK$1.504b
  • Shares outstanding: 11.00b
  • Website: https://www.hrbb.com.cn

Number of Employees


Location

  • Harbin Bank Co., Ltd.
  • No. 888 Shangjiang Street
  • Daoli District
  • Harbin
  • Heilongjiang Province
  • 150010
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6138SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMar 2014
5H6DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURMar 2014

Biography

Harbin Bank Co., Ltd. provides various commercial banking products and services primarily in Mainland China. It operates through four segments: Corporate Financial Business, Retail Financial Business, Interbank Financial Business, and Other Business. The company offers demand and time deposit products, personal loans, collateral loans, corporate loans, and agricultural loans, as well as bank card and credit card products. In addition, it provides settlement and clearing services, as well as other products and services relating to trading business; finance leasing services; personal wealth management services; online and phone banking services; and custody, trust, and financial management and consulting services to third parties. As of December 31, 2018, it operated through 368 branch outlets, including 17 branches, 281 sub-branches, 1 branch-level financial service center for small enterprises, and 32 village and township banks and their 36 sub-branches. The company was formerly known as Harbin City Commercial Bank Co., Ltd. and changed its name to Harbin Bank Co., Ltd. in November 2007. Harbin Bank Co., Ltd. was founded in 1997 and is headquartered in Harbin, 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 Analysis2020/03/30 23:32
End of Day Share Price2020/03/30 00:00
Earnings2019/06/30
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.