DB:6SY

Stock Analysis Report

Shengjing Bank

Executive Summary

Shengjing Bank Co., Ltd. provides banking products and services to individual and corporate customers in Mainland China.

Rewards

Trading at 31.5% below its fair value

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6SY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.2%

6SY

11.0%

DE Banks

0.1%

DE Market


1 Year Return

100.5%

6SY

4.4%

DE Banks

14.1%

DE Market

Return vs Industry: 6SY exceeded the German Banks industry which returned 4.4% over the past year.

Return vs Market: 6SY exceeded the German Market which returned 14.1% over the past year.


Shareholder returns

6SYIndustryMarket
7 Day-1.2%11.0%0.1%
30 Day10.7%19.0%0.2%
90 Day30.7%26.1%3.3%
1 Year107.1%100.5%7.8%4.4%17.6%14.1%
3 Year-0.9%-12.2%-2.7%-7.5%14.8%4.8%
5 Year21.2%-0.8%-4.8%-28.2%22.2%5.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

31.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6SY (€0.83) is trading below our estimate of fair value (€1.21)

Significantly Below Fair Value: 6SY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6SY is good value based on its PE Ratio (6.8x) compared to the Banks industry average (18.2x).

PE vs Market: 6SY is good value based on its PE Ratio (6.8x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6SY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6SY is good value based on its PB Ratio (0.6x) compared to the DE Banks industry average (0.9x).


Next Steps

Future Growth

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

7.6%

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 Shengjing 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 Shengjing Bank performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6SY has a high level of non-cash earnings.

Growing Profit Margin: 6SY's current net profit margins (53.1%) are lower than last year (64.3%).


Past Earnings Growth Analysis

Earnings Trend: 6SY's earnings have grown by 1.3% per year over the past 5 years.

Accelerating Growth: 6SY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6SY had negative earnings growth (-21.3%) over the past year, making it difficult to compare to the Banks industry average (-7%).


Return on Equity

High ROE: 6SY's Return on Equity (9.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shengjing 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: 6SY has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6SY's debt is covered by short term assets (assets are 1.4x debt).


Financial Institutions Analysis

Asset Level: 6SY's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 6SY has a sufficient allowance for bad loans.

Low Risk Liabilities: 6SY's liabilities are made up of primarily low risk sources of funding.

Loan Level: 6SY has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 6SY's loans are broadly funded by customer deposits.

Level of Bad Loans: 6SY has an appropriate level of bad loans (1.69%)


Next Steps

Dividend

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

1.87%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.3%markettop25%3.6%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 6SY's dividend (1.87%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 6SY's dividend (1.87%) is low compared to the top 25% of dividend payers in the German market (3.57%).


Stability and Growth of Payments

Stable Dividend: 6SY has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6SY has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.8%), 6SY's dividend payments are thoroughly 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

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

6.5yrs

Average management tenure


CEO

Ruiyan Xiao (52yo)

0.08yrs

Tenure

0

Mr. Ruiyan Xiao serves as President and Executive Director at Shengjing Bank Co. Ltd. since January 17, 2020. He has extensive experience in the finance sector. Mr. Xiao was the President of Beijing Zhongg ...


Leadership Team

NamePositionTenureCompensationOwnership
Huofa Qiu
Chairman of the Board0.8yrsCN¥43.00kno data
Yigong Wang
Chief Risk Officer6.5yrsCN¥3.49mno data
Gang Wu
VP & Executive Director5.8yrsCN¥3.50m0.0017% CN¥124.1k
Ruiyan Xiao
President & Executive Director0.08yrsno datano data
Zhiyan Liu
CFO and GM of Planning & Accounting Management Department5.7yrsCN¥463.00kno data
Yi Zhang
Chief Information Officer & GM of Information Technology Department6.5yrsno datano data
Guang Hu
Chief Internal Auditor9.4yrsCN¥577.00kno data
Zhi Zhou
Secretary of the Board5yrsno datano data

6.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 6SY's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Huofa Qiu
Chairman of the Board0.8yrsCN¥43.00kno data
Yigong Wang
Chief Risk Officer6.5yrsCN¥3.49mno data
Gang Wu
VP & Executive Director5.8yrsCN¥3.50m0.0017% CN¥124.1k
Ruiyan Xiao
President & Executive Director0.08yrsno datano data
Tiancai Xing
Independent Non-Executive Director2yrsCN¥254.00kno data
Weiqing Zhao
Non-Executive Director5.8yrsCN¥43.00kno data
Yuguo Li
Non-Executive Director6.6yrsCN¥19.00kno data
Jianwei Li
Non-Executive Director13.7yrsCN¥38.00kno data
Jinyi Li
Independent Non-Executive Director2yrsCN¥254.00kno data
Liya Yang
Chairman of the Board of Supervisors1.5yrsno datano data

3.9yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 6SY's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 6SY 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

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


Key Information

  • Name: Shengjing Bank Co., Ltd.
  • Ticker: 6SY
  • Exchange: DB
  • Founded: 1997
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: HK$62.808b
  • Listing Market Cap: HK$7.475b
  • Shares outstanding: 8.80b
  • Website: https://www.shengjingbank.com.cn

Number of Employees


Location

  • Shengjing Bank Co., Ltd.
  • No. 109, Beizhan Road
  • Shenhe District
  • Shenyang
  • Liaoning Province
  • 110013
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2066SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2014
6SYDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2014

Biography

Shengjing Bank Co., Ltd. provides banking products and services to individual and corporate customers in Mainland China. Its Corporate Banking segment offers corporate loans and advances, trade financing and deposit taking services, agency services, and remittance and settlement services to corporations, government agencies, and financial institutions. The company’s Retail Banking segment provides financial products and services to retail customers, including personal loans and deposit taking services, bank cards, personal wealth management services, remittance and settlement services, and collection and payment agency services. Its Treasury Business segment is involved in inter-bank money market transactions, repurchases transactions, and investment activities, as well as trading in debt securities. The company also provides online and mobile banking services. As of December 31, 2018, it operated 205 operating institutions, including 1 head office, 3 branch-level specialized institutions, 18 branches, 8 small and micro sub-branches, and 175 sub-branches; and 2,934 self-service facilities, such as 325 ATMs, 313 cash recycling systems, 115 inquiry and payment machines, 249 card activating machines, 41 VTMs, 30 online banking machines, 30 mobile banking machines, 47 smart queuing machines, 212 smart counters, 30 high-speed cash recycling systems, 22 interactive tables, and 1,520 smart self-service terminals. The company was formerly known as Shenyang Commercial Bank Co., Ltd. and changed its name to Shengjing Bank Co., Ltd. in February 2007. Shengjing Bank Co., Ltd. was founded in 1997 and is headquartered in Shenyang, 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 Analysis2020/02/18 22:45
End of Day Share Price2020/02/18 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.