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Zhongyuan Bank

SEHK:1216
Snowflake Description

Mediocre balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1216
SEHK
HK$45B
Market Cap
  1. Home
  2. HK
  3. Banks
Company description

Zhongyuan Bank Co., Ltd. provides banking products and services in Henan province, China. The last earnings update was 21 days ago. More info.


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1216 Share Price and Events
7 Day Returns
-0.4%
SEHK:1216
-1.4%
HK Banks
-2.5%
HK Market
1 Year Returns
-9.3%
SEHK:1216
-18.1%
HK Banks
-15.9%
HK Market
1216 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zhongyuan Bank (1216) -0.4% -0.9% -6.3% -9.3% - -
HK Banks -1.4% -8.3% -6.1% -18.1% 28.3% 8.2%
HK Market -2.5% -8.6% -3.6% -15.9% 25.4% 7.8%
1 Year Return vs Industry and Market
  • 1216 outperformed the Banks industry which returned -18.1% over the past year.
  • 1216 outperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

1216 Value

 Is Zhongyuan Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Zhongyuan Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Zhongyuan Bank.

SEHK:1216 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= CN¥2.23 * 7.9%
CN¥0.18
Book Value of Equity per Share Median Book Value from the past 5 years. CN¥2.23
Discount Rate (Cost of Equity) See below 12.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1216
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.586 (1 + (1- 25%) (339.18%))
1.721
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.72
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.721 * 5.96%)
12.26%

Discounted Cash Flow Calculation for SEHK:1216 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Zhongyuan Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:1216 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (7.9% – 12.26%) * CN¥2.23)
CN¥-0.10
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥-0.10 / (12.26% - 2%)
CN¥-0.95
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥2.23 + CN¥-0.95
CN¥1.27
SEHK:1216 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1216)
1.135
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥1.27 x 1.135
HK$1.45
Value per share (HKD) From above. HK$1.45
Current discount Discount to share price of HK$2.24
= -1 x (HK$2.24 - HK$1.45) / HK$1.45
-54.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Zhongyuan Bank is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Zhongyuan Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zhongyuan Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1216 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥0.10
SEHK:1216 Share Price ** SEHK (2019-05-20) in HKD HK$2.24
SEHK:1216 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥1.97
Hong Kong Banks Industry PE Ratio Median Figure of 31 Publicly-Listed Banks Companies 6.1x
Hong Kong Market PE Ratio Median Figure of 1,476 Publicly-Listed Companies 11.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Zhongyuan Bank.

SEHK:1216 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1216 Share Price ÷ EPS (both in CNY)

= 1.97 ÷ 0.10

19.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zhongyuan Bank is overvalued based on earnings compared to the HK Banks industry average.
  • Zhongyuan Bank is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Zhongyuan Bank's expected growth come at a high price?
Raw Data
SEHK:1216 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.06x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
17.4%per year
Hong Kong Banks Industry PEG Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.87x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Zhongyuan Bank, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Zhongyuan Bank's assets?
Raw Data
SEHK:1216 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥2.25
SEHK:1216 Share Price * SEHK (2019-05-20) in HKD HK$2.24
SEHK:1216 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥1.97
Hong Kong Banks Industry PB Ratio Median Figure of 31 Publicly-Listed Banks Companies 0.7x
Hong Kong Market PB Ratio Median Figure of 2,155 Publicly-Listed Companies 0.97x
SEHK:1216 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1216 Share Price ÷ Book Value per Share (both in CNY)

= 1.97 ÷ 2.25

0.88x

* Primary Listing of Zhongyuan Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zhongyuan Bank is overvalued based on assets compared to the HK Banks industry average.
X
Value checks
We assess Zhongyuan Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Zhongyuan Bank has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1216 Future Performance

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

  • No analysts cover Zhongyuan Bank, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zhongyuan Bank expected to grow at an attractive rate?
  • Zhongyuan Bank's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Zhongyuan Bank's earnings growth is expected to exceed the Hong Kong market average.
  • Unable to compare Zhongyuan Bank's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:1216 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1216 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 17.4%
Hong Kong Banks Industry Earnings Growth Rate Market Cap Weighted Average 5.9%
Hong Kong Banks Industry Revenue Growth Rate Market Cap Weighted Average 8.9%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1216 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1216 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:1216 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 9,253 2,080
2018-12-31 9,932 -41,889 2,415
2018-09-30 11,462 3,612
2018-06-30 11,483 -11,168 3,972
2018-03-31 11,372 3,967
2017-12-31 10,787 -38,315 3,839
2017-09-30 10,076 3,510
2017-06-30 9,991 -1,383 3,549
2017-03-31 9,774 1,079 3,454
2016-12-31 9,557 3,541 3,359

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Zhongyuan Bank's earnings are expected to grow by 17.4% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Zhongyuan Bank is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1216 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Zhongyuan Bank Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1216 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:1216 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 0.10
2018-12-31 0.12
2018-09-30 0.18
2018-06-30 0.20
2018-03-31
2017-12-31 0.21
2017-09-30
2017-06-30 0.21
2017-03-31 0.21
2016-12-31 0.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Zhongyuan Bank will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Zhongyuan Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Zhongyuan Bank has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1216 Past Performance

  How has Zhongyuan Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Zhongyuan Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Zhongyuan Bank's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Zhongyuan Bank's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Zhongyuan Bank's 1-year earnings growth is negative, it can't be compared to the HK Banks industry average.
Earnings and Revenue History
Zhongyuan Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Zhongyuan Bank Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1216 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 9,253.50 2,079.66 6,813.22
2018-12-31 9,932.07 2,414.58 6,813.22
2018-09-30 11,461.63 3,612.43 5,638.86
2018-06-30 11,483.36 3,971.69 6,139.18
2018-03-31 11,372.30 3,966.85 4,484.45
2017-12-31 10,787.38 3,838.70 5,638.86
2017-09-30 10,076.26 3,510.03 1,453.57
2017-06-30 9,991.46 3,549.23 5,215.94
2017-03-31 9,774.22 3,454.15 5,040.24
2016-12-31 9,556.98 3,359.07 4,864.55
2015-12-31 9,163.17 2,991.40 4,390.30
2014-12-22 7,113.67 2,676.33 2,900.99

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Zhongyuan Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Zhongyuan Bank used its assets less efficiently than the HK Banks industry average last year based on Return on Assets.
  • Unable to establish if Zhongyuan Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Zhongyuan Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Zhongyuan Bank has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1216 Health

 How is Zhongyuan Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Zhongyuan Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Zhongyuan Bank Company Filings, last reported 1 month ago.

SEHK:1216 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 55,690.49 134,410.51 146,900.64
2018-12-31 55,677.76 149,010.31 144,261.77
2018-09-30 45,652.78 124,262.62 107,179.56
2018-06-30 45,114.13 108,702.02 112,759.17
2018-03-31 46,090.61 121,978.47 56,231.33
2017-12-31 46,090.61 121,978.47 56,231.33
2017-09-30
2017-06-30 37,084.94 88,191.04 40,703.96
2017-03-31 37,084.94 88,191.04 40,703.96
2016-12-31 35,498.64 99,885.37 46,026.91
2015-12-31 33,418.02 29,568.48 54,472.28
2014-12-22 19,525.59 3,894.82 38,192.50
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Zhongyuan Bank has an acceptable proportion of non-loan assets held.
  • Zhongyuan Bank's liabilities are made up of primarily higher risk sources of funding.
  • Zhongyuan Bank has advanced significantly more loans than the customer deposits it holds (i.e. bank has borrowed additional funds to lend).
  • Zhongyuan Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Zhongyuan Bank has a sufficient allowance for bad loans.
  • Zhongyuan Bank has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Zhongyuan Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Zhongyuan Bank has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1216 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.77%
Current annual income from Zhongyuan Bank dividends.
If you bought HK$2,000 of Zhongyuan Bank shares you are expected to receive HK$35 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Zhongyuan Bank's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • Zhongyuan Bank's dividend is below the markets top 25% of dividend payers in Hong Kong (5.72%).
Upcoming dividend payment

Purchase Zhongyuan Bank before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1216 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Banks Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 5.3%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 968 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1216 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
SEHK:1216 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-26 0.035 1.797
2018-03-28 0.071 3.516

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Zhongyuan Bank has stable dividend payments.
  • Zhongyuan Bank only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Zhongyuan Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x 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.
X
Income/ dividend checks
We assess Zhongyuan Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Zhongyuan Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zhongyuan Bank has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1216 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jiong Wang
COMPENSATION CN¥4,533,000
AGE 50
TENURE AS CEO 1.2 years
CEO Bio

Mr. Jiong Wang has been Executive Director of Zhongyuan Bank Co., Ltd. since December 23, 2014 and has served as its President since March 06, 2018. Mr. Wang is primarily responsible for the daily operation and management and in charge of the strategic development department and the planning and financing department of Zhongyuan Bank Co., Ltd. He joined Zhongyuan Bank Co., Ltd. in December 2014. He has more than 20 years of experience in banking business operations and management. Mr. Wang served as the secretary to the party committee and the president of the Haikou Branch of China CITIC Bank from May 2012 to December 2014 and was in charge of the planning group of the Haikou Branch of China CITIC Bank from November 2011 to May 2012. He successively held several positions in the Zhengzhou Branch of China CITIC Bank from March 2001 to November 2011, including the deputy general manager and the general manager of the planning and financing department, the assistant to the president and the vice president. Mr. Wang’s work experience also includes serving as the deputy manager, the manager and the assistant to the general manager of the business department, the assistant to the general manager and the deputy general manager of the financial accounting department of the Zhengzhou Branch of China Guangfa Bank from December 1995 to March 2001. He worked at the Zhengzhou Railway Branch of China Construction Bank from August 1993 to November 1995 and at the human resources department of Zhengzhou College of Industry from July 1990 and August 1993. Mr. Wang was recognized as the “Annual Henan Economic Leading Person” jointly by the Henan Province Development and Reform Commission and other nine governmental departments in February 2017. Mr. Wang is a senior accountant accredited by the Review Committee of Senior Professional and Technical Positions of Accounting Professions of Henan Province in April 2000. Mr. Wang received a bachelor’s degree in applied physics from Wuhan University in July 1990, a secondary bachelor’s degree in ideological and political education from Xi’an Jiaotong University in July 1994 and a doctor’s degree in economics from Zhongnan University of Economics and Law in June 2009.

CEO Compensation
  • Jiong's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jiong's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Zhongyuan Bank management team in years:

2.5
Average Tenure
50.5
Average Age
  • The tenure for the Zhongyuan Bank management team is about average.
Management Team

Rongxing Dou

TITLE
Executive Chairperson
COMPENSATION
CN¥2M
AGE
55

Jiong Wang

TITLE
President & Executive Director
COMPENSATION
CN¥5M
AGE
50
TENURE
1.2 yrs

Jie Wei

TITLE
Executive Vice Chairman of the Board
COMPENSATION
CN¥2M
AGE
55

Yulin Li

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥3M
AGE
52

Yi Zhang

TITLE
General Manager of the Planning & Financing Department
AGE
45
TENURE
3.7 yrs

Weihua Zhao

TITLE
VP & Chief Risk Officer
AGE
41

Ke Zhang

TITLE
Joint Company Secretary
AGE
41
TENURE
4.4 yrs

Sharon Leung

TITLE
Joint Company Secretary

Yixian Zhang

TITLE
GM of Audit Department & Employee Representative Supervisor
AGE
51
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the Zhongyuan Bank board of directors in years:

2
Average Tenure
54.5
Average Age
  • The average tenure for the Zhongyuan Bank board of directors is less than 3 years, this suggests a new board.
Board of Directors

Rongxing Dou

TITLE
Executive Chairperson
COMPENSATION
CN¥2M
AGE
55

Jiong Wang

TITLE
President & Executive Director
COMPENSATION
CN¥5M
AGE
50
TENURE
4.4 yrs

Jie Wei

TITLE
Executive Vice Chairman of the Board
COMPENSATION
CN¥2M
AGE
55
TENURE
0.8 yrs

Yulin Li

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥3M
AGE
52
TENURE
1.2 yrs

Yixian Zhang

TITLE
GM of Audit Department & Employee Representative Supervisor
AGE
51
TENURE
1.2 yrs

Jingtao Hao

TITLE
Chairman of the Board of Supervisors
COMPENSATION
CN¥4M
AGE
47
TENURE
0.2 yrs

Hong Pang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥413K
AGE
63
TENURE
4.3 yrs

Hongchang Li

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥447K
AGE
70
TENURE
5.3 yrs

Tingyu Jia

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥447K
AGE
76
TENURE
2.8 yrs

Kenny Chan

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥408K
AGE
54
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess Zhongyuan Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Zhongyuan Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1216 News

Simply Wall St News

Should You Be Concerned About Zhongyuan Bank Co., Ltd.’s (HKG:1216) Liquidity?

As a small-cap bank stock with a market capitalisation of HK$46b, Zhongyuan Bank Co., Ltd.’s (HKG:1216) risk and profitability are largely determined by the underlying economic growth of the HK regions in which it operates. … The Basel III reforms are aimed at banking regulations to improve financial institutions’ ability to absorb shocks caused by economic stress which could expose banks like Zhongyuan Bank to vulnerabilities. … Since its financial standing can unexpectedly decline in the case of an adverse macro event such as political instability, it is important to understand how prudent the bank is at managing its risk levels.

Simply Wall St -

Real Risks To Know Before Investing In Zhongyuan Bank Co., Ltd. (HKG:1216)

Today we’re going to assess the level of bad debt and liabilities Zhongyuan Bank currently has in order to properly analyse the risk involved with investing in Zhongyuan Bank. … Check out our latest analysis for Zhongyuan Bank … Does Zhongyuan Bank Understand Its Own Risks?

Simply Wall St -

Is Zhongyuan Bank Co., Ltd. (HKG:1216) A Smart Pick For Income Investors?

Let's take a look at Zhongyuan Bank in more detail. … Check out our latest analysis for Zhongyuan Bank … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

Should You Be Tempted To Sell Zhongyuan Bank Co., Ltd. (HKG:1216) Because Of Its P/E Ratio?

We'll look at Zhongyuan Bank Co., Ltd.'s (HKG:1216) P/E ratio and reflect on what it tells us about the company's share price. … Zhongyuan Bank has a price to earnings ratio of 11.54, based on the last twelve months. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

Can These Factors Give You An Edge In Zhongyuan Bank Co., Ltd. (HKG:1216)?

As a small-cap bank stock with a market capitalisation of HK$49b, Zhongyuan Bank Co., Ltd.’s (HKG:1216) risk and profitability are largely determined by the underlying economic growth of the HK regions in which it operates. … These reforms target bank level regulation and aims to improve the banking sector’s ability to absorb shocks arising from economic stress which could expose financial institutions to vulnerabilities. … Since its financial standing can unexpectedly decline in the case of an adverse macro event such as political instability, it is important to understand how prudent the bank is at managing its risk levels.

Simply Wall St -

Is Zhongyuan Bank Co., Ltd. (HKG:1216) Over-Exposed To Risk?

Credit risk is one of the biggest risk Zhongyuan Bank Co., Ltd. … This is because bad debt is written off as an expense and impacts Zhongyuan Bank’s bottom line and shareholders’ value. … I will take you through some useful measures of bad debt and liabilities in order to properly analyse Zhongyuan Bank’s risk level before you invest in the stock.

Simply Wall St -

Zooming in on HKG:1216's 3.5% Dividend Yield

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Let's take a look at Zhongyuan Bank in more detail. … Check out our latest analysis for Zhongyuan Bank

Simply Wall St -

Is Zhongyuan Bank Co Ltd's (HKG:1216) PE Ratio A Signal To Sell For Investors?

This analysis is intended to introduce important early concepts to people who are starting to invest. … While this might not seem positive, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … View our latest analysis for Zhongyuan Bank

Simply Wall St -

Why Zhongyuan Bank Co Ltd (HKG:1216) Delivered An Inferior ROE Compared To The Industry

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Zhongyuan Bank Co Ltd (HKG:1216) performed in line with its regional banks industry on the basis of its ROE – producing a return of 9.0% relative to the peer average of 11.8% over the past 12 months. … See our latest analysis for Zhongyuan Bank

Simply Wall St -

Don't Trust HKG:1216's 3.48% Yield

Recently, Zhongyuan Bank Co Ltd (HKG:1216) has returned an average of 4.00% per year to shareholders in terms of dividend yield. … Does Zhongyuan Bank tick all the boxes of a great dividend stock? … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

Simply Wall St -

1216 Company Info

Description

Zhongyuan Bank Co., Ltd. provides banking products and services in Henan province, China. Its Retail Banking segment offers a range of financial products and services, including personal loans, deposits, bank cards, personal wealth management services, and remittance services. Its Financial Markets Business segment offers inter-bank money market transactions, repurchase transactions, investments, trading in debt securities, and issuance of debts services. The company’s Corporate Banking segment provides corporate loans and advances, trade financing and deposit taking, agency, consulting and advisory, remittance and settlement, and guarantee services. This segment provides services to corporations, government agencies, and financial institutions. As of December 31, 2017, the company had 18 branches, 3 direct sub-branches, and 460 total outlets, including 309 county-level branches and 151 township-level sub-branches covering 93 counties. Zhongyuan Bank Co., Ltd. was founded in 1948 and is headquartered in Zhengzhou, China.

Details
Name: Zhongyuan Bank Co., Ltd.
1216
Exchange: SEHK
Founded: 1948
HK$44,968,000,000
20,075,000,000
Website: http://www.zybank.com.cn
Address: Zhongyuan Bank Co., Ltd.
Zhongke Golden Tower,
No. 23 Shangwu Waihuan Road,
Zhengzhou,
Henan Province, China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1216 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 19. Jul 2017
Number of employees
Current staff
Staff numbers
13,575
Zhongyuan Bank employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 13:06
End of day share price update: 2019/05/20 00:00
Last estimates confirmation: 2018/03/28
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.