SEHK:1111

Stock Analysis Report

Executive Summary

Chong Hing Bank Limited provides banking and related financial services.

Snowflake

Fundamentals

Flawless balance sheet and fair value.

Risks

  • Chong Hing Bank is not covered by any analysts.

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


Market Performance


7 Day Return

0.5%

SEHK:1111

0.4%

HK Banks

1.2%

HK Market


1 Year Return

-5.7%

SEHK:1111

-14.4%

HK Banks

-9.5%

HK Market

1111 outperformed the Banks industry which returned -14.4% over the past year.

1111 outperformed the Market in Hong Kong which returned -9.8% over the past year.


Share holder returns

1111IndustryMarket
7 Day0.5%0.4%1.2%
30 Day-3.9%-8.8%-8.0%
90 Day-5.9%-10.9%-5.9%
1 Year-1.7%-5.7%-9.9%-14.4%-6.2%-9.5%
3 Year-11.4%-20.5%11.5%-4.3%14.5%3.1%
5 Year-9.6%-27.5%18.5%-9.2%8.5%-9.5%

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 based on future cash flows and its price relative to the stock market?

34%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Chong Hing Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).

Chong Hing Bank's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Chong Hing Bank is overvalued based on earnings compared to the HK Banks industry average.

Chong Hing Bank is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Chong Hing Bank, we can't assess if its growth is good value.


Price Based on Value of Assets

Chong Hing Bank is good value based on assets compared to the HK Banks industry average.


Next Steps

Future Growth

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

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Chong Hing Bank is high growth as no revenue estimate data is available.

Chong Hing Bank's earnings are expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).

Unable to compare Chong Hing Bank's revenue growth to the Hong Kong market average as no estimate data is available.

Chong Hing Bank's earnings growth is positive but not above the Hong Kong market average.

Chong Hing Bank's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Chong Hing Bank will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

-4.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Chong Hing Bank's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Chong Hing Bank's 1-year earnings growth exceeds its 5-year average (13.8% vs -4.4%)

Chong Hing Bank's earnings growth has exceeded the HK Banks industry average in the past year (13.8% vs 5.3%).


Return on Equity

Chong Hing Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Chong Hing Bank used its assets more efficiently than the HK Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Chong Hing Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Chong Hing Bank has an acceptable proportion of non-loan assets held.

Chong Hing Bank has a sufficient allowance for bad loans.

Chong Hing Bank's liabilities are made up of primarily low risk sources of funding.

Chong Hing Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Chong Hing Bank are broadly funded by customer deposits.

Chong Hing Bank has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

4.34%

Current Dividend Yield


Dividend Yield and Payments Analysis

Chong Hing Bank's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.3%).

Chong Hing Bank's dividend is below the markets top 25% of dividend payers in Hong Kong (6.25%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.7x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Jianxin Zong (52yo)

2.3yrs

Tenure

HK$13,874,000

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

Jianxin's remuneration is higher than average for companies of similar size in Hong Kong.

Jianxin's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

54.5yo

Average Age

The tenure for the Chong Hing Bank management team is about average.


Board Age and Tenure

5.5yrs

Average Tenure

59yo

Average Age

The tenure for the Chong Hing Bank board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyHK$999,996,71722 Aug 18
Guangzhou Metro Group Co., Ltd.
EntityCompany
Shares70,126,000
Max PriceHK$14.26

Ownership Breakdown


Management Team

  • Wai Man Lau (60yo)

    Deputy CEO & Executive Director

    • Tenure: 18.0yrs
    • Compensation: HK$7.98m
  • Siu Ming Fung (66yo)

    Chief Risk Officer

    • Tenure: 1.9yrs
  • Edward Chiu (56yo)

    Executive VP & COO

    • Tenure: 2.3yrs
  • Jianxin Zong (52yo)

    CEO & Deputy Chairman

    • Tenure: 2.3yrs
    • Compensation: HK$13.87m
  • Yun Ling Chan (52yo)

    Executive VP & Head of Financial Markets Division

    • Tenure: 4.3yrs
  • Vincent Chan (56yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
  • Barbara Ma (52yo)

    Executive VP & Head of Hong Kong Corporates Division

    • Tenure: 2.4yrs
  • Tat Wo Sin (48yo)

    Executive VP & Head of Mainland Corporates Division

    • Tenure: 0.0yrs
  • Blanche Chan (54yo)

    Executive VP & Head of Human Resources Division

    • Tenure: 0.0yrs
  • Siu Chung (55yo)

    Executive VP & Head of Personal Banking Division

    • Tenure: 1.0yrs

Board Members

  • Alfred Chow (68yo)

    Non-Executive Director

    • Tenure: 16.5yrs
    • Compensation: HK$510.00k
  • Ka Lun Lee (64yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: HK$620.00k
  • Joseph Yu (71yo)

    Independent Non-Executive Director

    • Tenure: 4.0yrs
    • Compensation: HK$600.00k
  • Wai Man Lau (60yo)

    Deputy CEO & Executive Director

    • Tenure: 18.0yrs
    • Compensation: HK$7.98m
  • Erik Cheng (58yo)

    Independent Non-Executive Director

    • Tenure: 14.9yrs
    • Compensation: HK$610.00k
  • Andrew Ma (77yo)

    Independent Non-Executive Director

    • Tenure: 12.0yrs
    • Compensation: HK$570.00k
  • Zhaoxing Zhang (56yo)

    Chairman of the Board

    • Tenure: 5.5yrs
    • Compensation: HK$490.00k
  • Jianxin Zong (52yo)

    CEO & Deputy Chairman

    • Tenure: 2.3yrs
    • Compensation: HK$13.87m
  • Feng Li (50yo)

    Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: HK$440.00k
  • Jing Chen (47yo)

    Non-Executive Director

    • Tenure: 1.0yrs
    • Compensation: HK$160.00k

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$12.721b
  • 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
1111SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 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 Analysis2019/08/19 12:35
End of Day Share Price2019/08/19 00:00
Earnings2018/12/31
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.