China International Capital (DB:CIM) - Share price, News & Analysis

CIM fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	4/6
Past Performance	3/6
Financial Health	3/6
Dividends	3/6

CIM Stock Overview

China International Capital Corporation Limited provides financial services in Mainland China and internationally.

Rewards

Trading at 61.9% below our estimate of its fair value

Earnings are forecast to grow 21.15% per year

Earnings have grown 32.5% per year over the past 5 years

Risk Analysis

Unstable dividend track record

China International Capital Competitors

CITIC Securities

SHSE:600030

CN¥268.0b

CSC Financial

SEHK:6066

HK$177.9b

Huatai Securities

SHSE:601688

CN¥109.9b

GF Securities

SZSE:000776

CN¥107.0b

Price History & Performance

Summary of all time highs, changes and price drops for China International Capital
Historical stock prices
Current Share Price	HK$1.62
52 Week High	HK$2.50
52 Week Low	HK$1.59
Beta	0.90
1 Month Change	-22.86%
3 Month Change	-28.95%
1 Year Change	-21.36%
3 Year Change	-2.76%
5 Year Change	32.25%
Change since IPO	18.51%

Shareholder Returns

	CIM	DE Capital Markets	DE Market
7D	1.9%	0.4%	1.2%
1Y	-21.4%	-5.5%	-12.2%

Return vs Industry: CIM underperformed the German Capital Markets industry which returned -5.5% over the past year.

Return vs Market: CIM underperformed the German Market which returned -12.2% over the past year.

Price Volatility

Is CIM's price volatile compared to industry and market?
CIM volatility
CIM Average Weekly Movement	8.0%
Capital Markets Industry Average Movement	5.9%
Market Average Movement	6.4%
10% most volatile stocks in DE Market	10.7%
10% least volatile stocks in DE Market	3.5%

Stable Share Price: CIM is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: CIM's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	13,557	Zhaohui Huang	https://www.cicc.com

China International Capital Corporation Limited provides financial services in Mainland China and internationally. The company operates through six segments: Investment Banking; Equities; Fixed Income, Commodities, and Currencies (FICC); Asset Management; Private Equity; and Wealth Management. The Investment Banking segment provides investment banking services, including equity financing, debt, and structured financing and financial advisory services.

China International Capital Fundamentals Summary

How do China International Capital's earnings and revenue compare to its market cap?
CIM fundamental statistics
Market Cap	CN¥130.91b
Earnings (TTM)	CN¥10.21b
Revenue (TTM)	CN¥32.32b

5.6x

P/E Ratio

1.8x

P/S Ratio

Is CIM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CIM income statement (TTM)
Revenue	CN¥32.32b
Cost of Revenue	CN¥2.13b
Gross Profit	CN¥30.19b
Other Expenses	CN¥19.99b
Earnings	CN¥10.21b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.11
Gross Margin	93.41%
Net Profit Margin	31.58%
Debt/Equity Ratio	327.0%

How did CIM perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

14%

Payout Ratio

Valuation

Is China International Capital undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CIM (€1.62) is trading below our estimate of fair value (€4.25)

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

Price To Earnings Ratio

PE vs Industry: CIM is good value based on its PE Ratio (5.6x) compared to the German Capital Markets industry average (14.1x).

PE vs Market: CIM is good value based on its PE Ratio (5.6x) compared to the German market (17.3x).

Price to Earnings Growth Ratio

PEG Ratio: CIM is good value based on its PEG Ratio (0.3x)

Price to Book Ratio

PB vs Industry: CIM is good value based on its PB Ratio (0.6x) compared to the DE Capital Markets industry average (1.2x).

Future Growth

How is China International Capital forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIM's forecast earnings growth (21.1% per year) is above the savings rate (-0.05%).

Earnings vs Market: CIM's earnings (21.1% per year) are forecast to grow faster than the German market (7.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CIM's revenue (19.1% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: CIM's revenue (19.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CIM's Return on Equity is forecast to be low in 3 years time (14%).

Past Performance

How has China International Capital performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

32.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CIM has high quality earnings.

Growing Profit Margin: CIM's current net profit margins (31.6%) are higher than last year (26.4%).

Past Earnings Growth Analysis

Earnings Trend: CIM's earnings have grown significantly by 32.5% per year over the past 5 years.

Accelerating Growth: CIM's earnings growth over the past year (32.5%) is below its 5-year average (32.5% per year).

Earnings vs Industry: CIM earnings growth over the past year (32.5%) underperformed the Capital Markets industry 99.5%.

Return on Equity

High ROE: CIM's Return on Equity (11.8%) is considered low.

Financial Health

How is China International Capital's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CIM's short term assets (CN¥596.7B) exceed its short term liabilities (CN¥391.7B).

Long Term Liabilities: CIM's short term assets (CN¥596.7B) exceed its long term liabilities (CN¥184.4B).

Debt to Equity History and Analysis

Debt Level: CIM has more cash than its total debt.

Reducing Debt: CIM's debt to equity ratio has increased from 175.2% to 327% over the past 5 years.

Debt Coverage: CIM's debt is not well covered by operating cash flow (6.4%).

Interest Coverage: Insufficient data to determine if CIM's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

What is China International Capital current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.51%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CIM's dividend (2.52%) is higher than the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: CIM's dividend (2.52%) is low compared to the top 25% of dividend payers in the German market (4.29%).

Stability and Growth of Payments

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

Growing Dividend: CIM's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14.3%), CIM's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (8.2%), CIM's dividend payments are thoroughly covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Diversified Financials industry.

Management

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

4.6yrs

Average management tenure

CEO

Zhaohui Huang (57 yo)

2.42yrs

Tenure

CN¥7,953,264

Compensation

Mr. Zhaohui Huang serves as Chairman at CICC Capital Management Co., Ltd. He serves as Chief Executive Officer of China International Capital Corporation Ltd. since December 30, 2019 and is its Executive D...

CEO Compensation Analysis

Compensation vs Market: Zhaohui's total compensation ($USD1.17M) is below average for companies of similar size in the German market ($USD4.70M).

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

Leadership Team

Experienced Management: CIM's management team is considered experienced (4.6 years average tenure).

Board Members

Experienced Board: CIM'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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31