SEHK:1216

Stock Analysis Report

Executive Summary

Zhongyuan Bank Co., Ltd. provides corporate and personal deposits, loans and advances, settlement, financial market, and other banking services in Henan province, China.

Snowflake

Fundamentals

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1216's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.5%

1216

0.7%

HK Banks

-0.02%

HK Market


1 Year Return

-48.7%

1216

-2.4%

HK Banks

0.6%

HK Market

Return vs Industry: 1216 underperformed the Hong Kong Banks industry which returned -2.4% over the past year.

Return vs Market: 1216 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

1216IndustryMarket
7 Day3.5%0.7%-0.02%
30 Day-0.8%3.5%1.4%
90 Day-32.2%9.1%3.8%
1 Year-47.8%-48.7%2.7%-2.4%4.2%0.6%
3 Yearn/a23.1%6.0%20.4%8.3%
5 Yearn/a31.4%0.7%18.9%-0.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Zhongyuan Bank undervalued compared to its fair value and its price relative to the market?

37.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1216 (HK$1.18) is trading below our estimate of fair value (HK$1.88)

Significantly Below Fair Value: 1216 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1216 is poor value based on its PE Ratio (7.4x) compared to the Banks industry average (5.7x).

PE vs Market: 1216 is good value based on its PE Ratio (7.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1216's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1216 is good value based on its PB Ratio (0.5x) compared to the HK Banks industry average (0.5x).


Next Steps

Future Growth

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

6.6%

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 Zhongyuan 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 Zhongyuan Bank performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1216 has high quality earnings.

Growing Profit Margin: 1216's current net profit margins (27%) are lower than last year (31.5%).


Past Earnings Growth Analysis

Earnings Trend: 1216's earnings have declined by -1.7% per year over the past 5 years.

Accelerating Growth: 1216's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1216 had negative earnings growth (-20.4%) over the past year, making it difficult to compare to the Banks industry average (3.6%).


Return on Equity

High ROE: 1216's Return on Equity (4.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zhongyuan 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

Inventory Level: 1216 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1216's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: 1216's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 1216 has a sufficient allowance for bad loans.

Low Risk Liabilities: 1216's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1216 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1216's loans are broadly funded by customer deposits.

Level of Bad Loans: 1216 has a high level of bad loans (2.3%)


Next Steps

Dividend

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

3.30%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%2.3%markettop25%6.3%industryaverage5.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1216's dividend (3.3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1216's dividend (3.3%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: 1216 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1216 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.4%), 1216'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

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

3.0yrs

Average management tenure


CEO

Jiong Wang (51yo)

1.7yrs

Tenure

CN¥4,533,000

Compensation

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 operatio ...


CEO Compensation Analysis

Compensation vs Market: Jiong's total compensation ($USD645.11K) is about average for companies of similar size in the Hong Kong market ($USD513.16K).

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


Management Age and Tenure

3.0yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 1216's management team is considered experienced (3 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 1216's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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

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


Management Team

  • Sharon Leung

    Joint Company Secretary

    • Tenure: 0yrs
  • Rongxing Dou (56yo)

    Executive Chairperson

    • Tenure: 0yrs
    • Compensation: CN¥2.31m
  • Jiong Wang (51yo)

    President & Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥4.53m
  • Ke Zhang (42yo)

    Joint Company Secretary

    • Tenure: 4.9yrs
  • Yulin Li (53yo)

    Executive VP & Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥3.41m
  • Weihua Zhao (42yo)

    VP & Chief Risk Officer

    • Tenure: 0yrs
  • Jie Wei (56yo)

    Executive Vice Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: CN¥2.30m
  • Yi Zhang (46yo)

    General Manager of the Planning & Financing Department

    • Tenure: 4.2yrs
  • Yixian Zhang (52yo)

    GM of Audit Department & Employee Representative Supervisor

    • Tenure: 1.7yrs

Board Members

  • Kenny Chan (55yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥408.00k
  • Rongxing Dou (56yo)

    Executive Chairperson

    • Tenure: 0yrs
    • Compensation: CN¥2.31m
  • Jiong Wang (51yo)

    President & Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥4.53m
  • Jingtao Hao (48yo)

    Chairman of the Board of Supervisors

    • Tenure: 0.7yrs
    • Compensation: CN¥4.12m
  • Hong Pang (64yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥413.00k
  • Hongchang Li (71yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: CN¥447.00k
  • Tingyu Jia (77yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥447.00k
  • Yulin Li (53yo)

    Executive VP & Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥3.41m
  • Jie Wei (56yo)

    Executive Vice Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: CN¥2.30m
  • Yixian Zhang (52yo)

    GM of Audit Department & Employee Representative Supervisor

    • Tenure: 1.7yrs

Company Information

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


Key Information

  • Name: Zhongyuan Bank Co., Ltd.
  • Ticker: 1216
  • Exchange: SEHK
  • Founded: 2014
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: HK$23.488b
  • Shares outstanding: 20.08b
  • Website: https://www.zybank.com.cn

Number of Employees


Location

  • Zhongyuan Bank Co., Ltd.
  • Zhongke Golden Tower
  • No. 23 Shangwu Waihuan Road
  • Zhengzhou
  • Henan Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1216SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJul 2017

Biography

Zhongyuan Bank Co., Ltd. provides corporate and personal deposits, loans and advances, settlement, financial market, and other banking services in Henan province, China. It operates through Corporate Banki ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 13:08
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
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.