Zhongyuan Bank Co., Ltd.

SEHK:1216 Stock Report

Market Cap: HK$11.0b

Zhongyuan Bank Valuation

Is 1216 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1216 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1216 (HK$0.3) is trading below our estimate of fair value (HK$0.36)

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


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1216?

Key metric: As 1216 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1216. This is calculated by dividing 1216's market cap by their current earnings.
What is 1216's PE Ratio?
PE Ratio4.2x
EarningsCN¥2.45b
Market CapCN¥10.26b

Price to Earnings Ratio vs Peers

How does 1216's PE Ratio compare to its peers?

The above table shows the PE ratio for 1216 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.3x
1578 Bank of Tianjin
2.5xn/aHK$10.3b
2066 Shengjing Bank
17.3xn/aHK$10.6b
2558 Jinshang Bank
3.9xn/aHK$8.4b
9677 Weihai City Commercial Bank
9.3xn/aHK$17.3b
1216 Zhongyuan Bank
4.2xn/aHK$11.0b

Price-To-Earnings vs Peers: 1216 is good value based on its Price-To-Earnings Ratio (4.2x) compared to the peer average (8.3x).


Price to Earnings Ratio vs Industry

How does 1216's PE Ratio compare vs other companies in the HK Banks Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
1216 4.2xIndustry Avg. 5.0xNo. of Companies11PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1216 is good value based on its Price-To-Earnings Ratio (4.2x) compared to the Hong Kong Banks industry average (5x).


Price to Earnings Ratio vs Fair Ratio

What is 1216's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1216 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1216's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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