SEHK:1111

Stock Analysis Report

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Executive Summary

Chong Hing Bank Limited provides banking and related financial services.

Rewards

Trading at 61.6% below our estimate of its fair value

Earnings grew by 8.7% over the past year

Pays a reliable dividend of 6.39%

Risk Analysis

No risks detected for 1111 from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1111 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

1111

-0.5%

HK Banks

1.2%

HK Market


1 Year Return

-32.3%

1111

-10.7%

HK Banks

5.4%

HK Market

Return vs Industry: 1111 underperformed the Hong Kong Banks industry which returned -10.7% over the past year.

Return vs Market: 1111 underperformed the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

1111IndustryMarket
7 Day1.0%-0.5%1.2%
30 Day-5.5%-8.5%-2.7%
90 Day-11.9%-11.0%6.9%
1 Year-28.5%-32.3%-5.1%-10.7%9.7%5.4%
3 Year-34.5%-42.5%-8.7%-22.2%3.5%-7.6%
5 Year-49.6%-60.7%2.3%-22.7%12.0%-6.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Chong Hing 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: 1111 (HK$9.07) is trading below our estimate of fair value (HK$23.6)

Significantly Below Fair Value: 1111 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1111's PE Ratio (5x) is in line with the HK Banks industry average.

PE vs Market: 1111 is good value based on its PE Ratio (5x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1111's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1111's PB Ratio (0.4x) is in line with the HK Banks industry average.


Next Steps

Future Growth

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

5.6%

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 Chong Hing 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 Chong Hing Bank performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1111 has high quality earnings.

Growing Profit Margin: 1111's current net profit margins (45%) are lower than last year (45.8%).


Past Earnings Growth Analysis

Earnings Trend: 1111's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: 1111's earnings growth over the past year (8.7%) exceeds its 5-year average (3.3% per year).

Earnings vs Industry: 1111 earnings growth over the past year (8.7%) exceeded the Banks industry 4.8%.


Return on Equity

High ROE: 1111's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is Chong Hing 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


Financial Institutions Analysis

Asset Level: 1111's Assets to Equity ratio (8.6x) is low.

Allowance for Bad Loans: 1111 has a sufficient allowance for bad loans (157%).

Low Risk Liabilities: 92% of 1111's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1111 has an appropriate level of Loans to Assets ratio (56%).

Low Risk Deposits: 1111's Loans to Deposits ratio (68%) is appropriate.

Level of Bad Loans: 1111 has an appropriate level of bad loans (0.3%).


Next Steps

Dividend

What is Chong Hing Bank current dividend yield, its reliability and sustainability?

6.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1111's dividend (6.39%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1111's dividend (6.39%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.86%).


Stability and Growth of Payments

Stable Dividend: 1111's dividends per share have been stable in the past 10 years.

Growing Dividend: 1111's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.3%), 1111's dividend payments are well 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?

2.6yrs

Average management tenure


CEO

Jianxin Zong (53 yo)

3.33yrs

Tenure

HK$14,275,000

Compensation

Mr. Zong Jianxin has been Chief Executive Officer of Chong Hing Bank Limited since April 19, 2017 and served as its Deputy Managing Director since May 20, 2015 until May 18, 2018. Mr. Zong is an Executive ...


CEO Compensation Analysis

Compensation vs Market: Jianxin's total compensation ($USD1.84M) is above average for companies of similar size in the Hong Kong market ($USD495.20K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jianxin Zong
CEO & Deputy Chairman3.33yrsHK$14.28mno data
Wai Man Lau
Deputy CEO & Executive Director19yrsHK$7.43mno data
Kam ki Chan
Chief Financial Officer3.33yrsno datano data
Tak Wah Chiu
Executive VP3.25yrsno datano data
Kwok Leung Wong
Executive VP & Chief Information Officer0.92yrno datano data
Oi Hung Chan
Executive VP & Head of Human Resources Divisionno datano datano data
Yun Ling Chan
Executive VP & Head of Financial Markets Division5.33yrsno datano data
Tat Wo Sin
Executive VPno datano datano data
Siu Kuen Chung
Executive VP & Head of Personal Banking Division2yrsno datano data
Pik Ha LAM
Executive VP & Head of Financial Institutions Divisionno datano datano data
Pak Kin Woo
Executive VP & Chief Risk Officer0.92yrno datano data
Xianqing Tang
Deputy Chief Executive0.75yrno datano data

2.6yrs

Average Tenure

55yo

Average Age

Experienced Management: 1111's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jianxin Zong
CEO & Deputy Chairman3.33yrsHK$14.28mno data
Wai Man Lau
Deputy CEO & Executive Director19yrsHK$7.43mno data
Cheuk Yu Chow
Non-Executive Director17.5yrsHK$510.00kno data
Ka Lun Lee
Independent Non-Executive Director6.5yrsHK$620.00kno data
Lup Fat Yu
Independent Non-Executive Director5yrsHK$600.00kno data
Yuk Wo Cheng
Independent Non-Executive Director15.92yrsHK$610.00kno data
Chiu-Cheung Ma
Independent Non-Executive Director13yrsHK$570.00kno data
Zhaoxing Zhang
Chairman of the Board6.5yrsHK$490.00kno data
Feng Li
Non-Executive Director6.5yrsHK$440.00kno data
Jing Chen
Non-Executive Director2yrsHK$420.00kno data

6.5yrs

Average Tenure

60yo

Average Age

Experienced Board: 1111's board of directors are considered experienced (6.5 years average tenure).


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

Chong Hing Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chong Hing Bank Limited
  • Ticker: 1111
  • Exchange: SEHK
  • Founded: 1948
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$8.821b
  • Shares outstanding: 972.53m
  • Website: https://www.chbank.com

Number of Employees


Location

  • Chong Hing Bank Limited
  • Chong Hing Bank Centre
  • Ground Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LIHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1994
1111SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 1994
CGHB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1994

Biography

Chong Hing Bank Limited provides banking and related financial services. The company offers fixed deposits, current and savings accounts, lending and trade finance facilities, auto financing, consumer fina ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 12:42
End of Day Share Price2020/08/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.