Executive Summary
Agricultural Bank of China Limited provides corporate and retail banking products and services. More Details
Rewards
Risk Analysis
No risks detected for 1288 from our risk checks.
Snowflake Analysis
Flawless balance sheet 6 star dividend payer.
Similar Companies
Share Price & News
How has Agricultural Bank of China's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1288 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 1288's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-0.3%
1288
-0.4%
HK Banks
-3.2%
HK Market
1 Year Return
-2.3%
1288
3.4%
HK Banks
23.4%
HK Market
Return vs Industry: 1288 underperformed the Hong Kong Banks industry which returned 2.9% over the past year.
Return vs Market: 1288 underperformed the Hong Kong Market which returned 24% over the past year.
Shareholder returns
| 1288 | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.3% | -0.4% | -3.2% |
| 30 Day | -2.6% | -3.8% | -2.2% |
| 90 Day | 6.3% | 2.9% | -8.9% |
| 1 Year | 4.4%-2.3% | 9.7%3.4% | 28.1%23.4% |
| 3 Year | -19.6%-29.0% | -13.9%-26.0% | 0.4%-10.1% |
| 5 Year | 52.1%13.1% | 50.9%15.0% | 58.6%31.8% |
Long-Term Price Volatility Vs. Market
How volatile is Agricultural Bank of China's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
How Much Did Agricultural Bank of China's(HKG:1288) Shareholders Earn From Share Price Movements Over The Last Three Years?2 months ago | Simply Wall St
Does Agricultural Bank of China Limited (HKG:1288) Have A Place In Your Dividend Portfolio?5 months ago | Simply Wall St
Is Agricultural Bank of China Limited's (HKG:1288) 7.8% Dividend Worth Your Time?Valuation
Is Agricultural Bank of China 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: 1288 (HK$3.03) is trading below our estimate of fair value (HK$10.2)
Significantly Below Fair Value: 1288 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1288 is good value based on its PE Ratio (4.3x) compared to the Hong Kong Banks industry average (6.6x).
PE vs Market: 1288 is good value based on its PE Ratio (4.3x) compared to the Hong Kong market (11.7x).
Price to Earnings Growth Ratio
PEG Ratio: 1288 is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: 1288's PB Ratio (0.4x) is in line with the HK Banks industry average.
Future Growth
How is Agricultural Bank of China forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
5.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1288's forecast earnings growth (5.5% per year) is above the savings rate (1.5%).
Earnings vs Market: 1288's earnings (5.5% per year) are forecast to grow slower than the Hong Kong market (16.9% per year).
High Growth Earnings: 1288's earnings are forecast to grow, but not significantly.
Revenue vs Market: 1288's revenue (10.5% per year) is forecast to grow slower than the Hong Kong market (12.4% per year).
High Growth Revenue: 1288's revenue (10.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1288's Return on Equity is forecast to be low in 3 years time (10.7%).
Past Performance
How has Agricultural Bank of China performed over the past 5 years?
3.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1288 has high quality earnings.
Growing Profit Margin: 1288's current net profit margins (41.9%) are lower than last year (41.9%).
Past Earnings Growth Analysis
Earnings Trend: 1288's earnings have grown by 3.2% per year over the past 5 years.
Accelerating Growth: 1288's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 1288 had negative earnings growth (-1.1%) over the past year, making it difficult to compare to the Banks industry average (-4.7%).
Return on Equity
High ROE: 1288's Return on Equity (9.6%) is considered low.
Financial Health
How is Agricultural Bank of China'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: 1288's Assets to Equity ratio (12.6x) is moderate.
Allowance for Bad Loans: 1288 has a sufficient allowance for bad loans (265%).
Low Risk Liabilities: 88% of 1288's liabilities are made up of primarily low risk sources of funding.
Loan Level: 1288 has an appropriate level of Loans to Assets ratio (54%).
Low Risk Deposits: 1288's Loans to Deposits ratio (66%) is appropriate.
Level of Bad Loans: 1288 has an appropriate level of bad loans (1.5%).
Dividend
What is Agricultural Bank of China current dividend yield, its reliability and sustainability?
7.35%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 1288's dividend (7.35%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.93%).
High Dividend: 1288's dividend (7.35%) is in the top 25% of dividend payers in the Hong Kong market (6.02%)
Stability and Growth of Payments
Stable Dividend: 1288's dividends per share have been stable in the past 10 years.
Growing Dividend: 1288's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (31.3%), 1288's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1288's dividends in 3 years are forecast to be well covered by earnings (31.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Qingsong Zhang (55 yo)
1.58yrs
Tenure
CN¥768,900
Compensation
Mr. Qingsong Zhang has been the President of Agricultural Bank of China Ltd since October 25, 2019 and its Executive Vice Chairman of the Board since December 13, 2019. Mr. Zhang served as President of Exp...
CEO Compensation Analysis
Compensation vs Market: Qingsong's total compensation ($USD119.10K) is below average for companies of similar size in the Hong Kong market ($USD854.27K).
Compensation vs Earnings: Qingsong's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: 1288's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
Experienced Board: 1288's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Agricultural Bank of China Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Agricultural Bank of China Limited
- Ticker: 1288
- Exchange: SEHK
- Founded: 1951
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: HK$1.350t
- Shares outstanding: 349.98b
- Website: https://www.abchina.com
Number of Employees
Location
- Agricultural Bank of China Limited
- No. 69, Jianguomen Nei Avenue
- Dongcheng District
- Beijing
- 100005
- China
Listings
Biography
Agricultural Bank of China Limited provides corporate and retail banking products and services. The company operates through Corporate Banking, Personal Banking, and Treasury Operations segments. Its depos...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/13 10:09 |
| End of Day Share Price | 2021/05/13 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.