DB:CQN

Stock Analysis Report

Bank of Chongqing

Executive Summary

Bank of Chongqing Co., Ltd. provides various banking and related financial services in the People’s Republic of China.

Snowflake

Fundamentals

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.0%

CQN

3.8%

DE Banks

2.8%

DE Market


1 Year Return

n/a

CQN

-30.2%

DE Banks

2.9%

DE Market

Return vs Industry: Insufficient data to determine how CQN performed against the German Banks industry.

Return vs Market: Insufficient data to determine how CQN performed against the German Market.


Share holder returns

CQNIndustryMarket
7 Day3.0%3.8%2.8%
30 Day-4.9%-6.4%-0.2%
90 Day-4.2%-12.0%0.9%
1 Yearn/a-28.0%-30.2%6.2%2.9%
3 Yearn/a-2.9%-7.8%18.2%8.0%
5 Yearn/a-9.9%-31.5%43.1%23.6%

Price Volatility Vs. Market

How volatile is Bank of Chongqing'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 Chongqing undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: CQN (€0.48) is trading below our estimate of fair value (€2.2)

Significantly Undervalued: CQN is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: CQN is good value based on its PE Ratio (3.4x) compared to the Banks industry average (15.7x).

PE vs Market: CQN is good value based on its PE Ratio (3.4x) compared to the German market (19.7x).


Price Based on Expected Growth

Low PEG Ratio: CQN is poor value based on its PEG Ratio (1.3x)


Price Based on Value of Assets

PB vs Industry: CQN is good value based on its PB Ratio (0.4x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is Bank of Chongqing expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CQN's forecast earnings growth (2.7% per year) is above the savings rate (0.2%).

Earnings vs Market: CQN's earnings (2.7% per year) are forecast to grow slower than the German market (12.8% per year).

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

Revenue vs Market: CQN's revenue (12% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: CQN's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: CQN's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

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

6.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CQN's earnings have grown by 6.1% per year over the past 5 years.

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

Earnings vs Industry: CQN had negative earnings growth (-3.7%) over the past year, making it difficult to compare to the Banks industry average (-11.7%).


Return on Equity

High ROE: CQN's Return on Equity (10.9%) is considered low.


Return on Assets

ROA vs Industry: CQN has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate CQN's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Bank of Chongqing'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: CQN has a low level of unsold assets or inventory.

Debt Coverage by Assets: CQN's debt is covered by short term assets (assets are 1.165020x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: CQN has an appropriate level of bad loans (1.34%)


Next Steps

Dividend

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

5.39%

Expected Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%1.5%markettop25%3.9%industryaverage3.6%forecastin3Years5.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CQN's dividend (3.89%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: CQN's dividend (3.89%) is in the top 25% of dividend payers in the German market (3.86%)

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

Growing Dividend: CQN 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 (13.3%), CQN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CQN's dividends in 3 years are forecast to be well covered by earnings (17.8% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Hailing Ran (56yo)

0yrs

Tenure

CN¥436,000

Compensation

Mr. Hailing Ran has been the President of Bank of Chongqing Co., Ltd. since April 09, 2013. Mr. Ran has been an Executive Director of Bank of Chongqing Co., Ltd. since March 2003. He served as the Acting C ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Hailing's total compensation is reasonable compared to companies of similar size in the German market.

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


Management Age and Tenure

3.1yrs

Average Tenure

54.5yo

Average Age

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


Board Age and Tenure

5.5yrs

Average Tenure

56yo

Average Age

Experienced Board: CQN's board of directors are considered experienced (5.5 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


Management Team

  • Wendy Ho (49yo)

    Joint Company Secretary

    • Tenure: 6yrs
  • Yanxi Peng (43yo)

    VP & Secretary to the Board

    • Tenure: 1.2yrs
  • Hailing Ran (56yo)

    President & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥436.00k
  • Jianhua Liu (54yo)

    VP, Chief Anti-Money Laundering & Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥367.00k
  • Wah Sing Wong (58yo)

    Chief Risk Officer

    • Tenure: 3.4yrs
    • Compensation: CN¥268.00k
  • Jun Lin (55yo)

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: CN¥356.23k
  • Li Cong

    Head of Finance Department

    • Tenure: 0yrs

Board Members

  • Derek Wong (67yo)

    Vice Chairman of the Board

    • Tenure: 12.3yrs
    • Compensation: CN¥112.00k
  • Xiaotao Yang (56yo)

    Chairperson of Board of Supervisors

    • Tenure: 4.6yrs
  • Jingyu Jin (53yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: CN¥183.00k
  • Yong Deng (59yo)

    Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: CN¥95.00k
  • Hailing Ran (56yo)

    President & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥436.00k
  • He Li (66yo)

    Independent Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: CN¥196.00k
  • Jianhua Liu (54yo)

    VP, Chief Anti-Money Laundering & Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥367.00k
  • Pengguo Wang (48yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: CN¥190.00k
  • Wah Sing Wong (58yo)

    Chief Risk Officer

    • Tenure: 3.4yrs
    • Compensation: CN¥268.00k
  • Jun Lin (55yo)

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: CN¥356.23k

Company Information

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


Key Information

  • Name: Bank of Chongqing Co., Ltd.
  • Ticker: CQN
  • Exchange: DB
  • Founded: 1996
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: HK$13.697b
  • Listing Market Cap: HK$1.580b
  • Shares outstanding: 3.13b
  • Website: https://www.cqcbank.com

Number of Employees


Location

  • Bank of Chongqing Co., Ltd.
  • No. 6 Yongpingmen Street
  • Jiangbei District
  • Chongqing
  • 400024
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1963SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares Foreign ListedHKHKDNov 2013
CQNDB (Deutsche Boerse AG)YesForeign Shares Foreign ListedDEEURNov 2013
1963SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares Foreign ListedHKHKDNov 2013

Biography

Bank of Chongqing Co., Ltd. provides various banking and related financial services in the People’s Republic of China. It operates through three segments: Corporate Banking, Retail Banking, and Treasury. I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 23:28
End of Day Share Price2019/10/11 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.

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