SEHK:1288

Stock Analysis Report

Agricultural Bank of China

Executive Summary

Agricultural Bank of China Limited provides corporate and retail banking products and services in the Mainland China and internationally.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.


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


Market Performance


7 Day Return

-0.3%

1288

0.8%

HK Banks

0.3%

HK Market


1 Year Return

-11.5%

1288

-5.5%

HK Banks

-1.5%

HK Market

Return vs Industry: 1288 underperformed the Hong Kong Banks industry which returned -5.5% over the past year.

Return vs Market: 1288 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

1288IndustryMarket
7 Day-0.3%0.8%0.3%
30 Day1.9%2.2%0.5%
90 Day-1.9%-2.7%-4.4%
1 Year-6.1%-11.5%-0.5%-5.5%2.1%-1.5%
3 Year13.0%-3.9%15.8%-0.2%14.7%3.2%
5 Year20.8%-9.4%31.5%0.8%21.5%1.2%

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

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$3.17) is trading below our estimate of fair value (HK$8.25)

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 (4.9x) compared to the Banks industry average (5.9x).

PE vs Market: 1288 is good value based on its PE Ratio (4.9x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 1288 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 1288 is overvalued based on its PB Ratio (0.6x) compared to the HK Banks industry average (0.5x).


Next Steps

Future Growth

How is Agricultural Bank of China forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1288's forecast earnings growth (6.7% per year) is above the savings rate (2%).

Earnings vs Market: 1288's earnings (6.7% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 1288's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1288's revenue (8.5% per year) is forecast to grow slower than the Hong Kong market (10.4% per year).

High Growth Revenue: 1288's revenue (8.5% 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 (11.8%).


Next Steps

Past Performance

How has Agricultural Bank of China performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1288's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: 1288's earnings growth over the past year (5.4%) exceeds its 5-year average (2.6% per year).

Earnings vs Industry: 1288 earnings growth over the past year (5.4%) exceeded the Banks industry 5.2%.


Return on Equity

High ROE: 1288's Return on Equity (12%) is considered low.


Return on Assets

ROA vs Industry: 1288 has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 1288's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

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

Inventory Level: 1288 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1288's debt is covered by short term assets (assets are 2.378010x debt).


Financial Institutions Analysis

Asset Level: 1288's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 1288 has a sufficient allowance for bad loans.

Low Risk Liabilities: 1288's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1288 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1288's loans are broadly funded by customer deposits.

Level of Bad Loans: 1288 has an appropriate level of bad loans (1.43%)


Next Steps

Dividend

What is Agricultural Bank of China's current dividend yield, its reliability and sustainability?

6.07%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%2.3%markettop25%6.3%industryaverage5.5%forecastin3Years7.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1288's dividend (6.07%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1288's dividend (6.07%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 1288 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1288's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.9%), 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 (30.8% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Mubing Zhou (62yo)

1yrs

Tenure

CN¥704,000

Compensation

Mr. Mubing Zhou has been an Executive Chairman of Agricultural Bank of China Limited since July 05, 2016 and serves as its President since October 2018. He served as Vice Mayor of Chongqing Municipal Gover ...


CEO Compensation Analysis

Compensation vs. Market: Mubing has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

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


Management Age and Tenure

1.9yrs

Average Tenure

55yo

Average Age

Experienced Management: 1288's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

Experienced Board: 1288's board of directors are not considered experienced ( 2.8 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.


Recent Insider Transactions

SellCN¥222,323,52404 Jun 19
BlackRock, Inc.
EntityCompany
Shares66,562,000
Max PriceCN¥3.34
BuyCN¥16,353,75116 Nov 18
BlackRock, Inc.
EntityCompany
Shares4,688,980
Max PriceCN¥3.49
SellCN¥62,824,52514 Nov 18
BlackRock, Inc.
EntityCompany
Shares17,733,000
Max PriceCN¥3.54
SellCN¥1,369,635,33927 Oct 18
Capital Research and Management Company
EntityCompany
Shares407,265,861
Max PriceCN¥3.36

Ownership Breakdown


Management Team

  • Cecilia Woo

    Assistant Company Secretary

    • Tenure: 0yrs
  • Mubing Zhou (62yo)

    Chairman of the Board & President

    • Tenure: 1yrs
    • Compensation: CN¥704.00k
  • Chris Ho

    Assistant to the Company Secretary

    • Tenure: 4.4yrs
  • Wei Wang (56yo)

    Executive VP & Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥646.00k
  • Keqiu Zhang (55yo)

    Executive VP & Executive Director

    • Tenure: 0.5yrs
    • Compensation: CN¥646.00k
  • Zhicheng Li (56yo)

    Chief Risk Officer

    • Tenure: 2.7yrs
    • Compensation: CN¥1.16m
  • Mingde Yao

    General Manager of the Finance & Accounting Department

    • Tenure: 0yrs
  • Wanfu Zhou (54yo)

    Company Secretary & Secretary to the Board of Directors

    • Tenure: 1.5yrs
    • Compensation: CN¥929.74k
  • Dongsheng Zhan (54yo)

    Executive Vice President

    • Tenure: 0.5yrs
  • Yong Cui (50yo)

    Executive Vice President

    • Tenure: 0.4yrs

Board Members

  • Mubing Zhou (62yo)

    Chairman of the Board & President

    • Tenure: 1yrs
    • Compensation: CN¥704.00k
  • Wei Wang (56yo)

    Executive VP & Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥646.00k
  • Jingdong Wang (57yo)

    Chairman of the Board of Supervisors

    • Tenure: 0.9yrs
  • Jianbo Chen (56yo)

    Non-Executive Director

    • Tenure: 4.8yrs
  • Jiandong Xu (56yo)

    Non-Executive Director

    • Tenure: 4.7yrs
  • Xing Xiao (48yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥380.00k
  • Keqiu Zhang (55yo)

    Executive VP & Executive Director

    • Tenure: 0.5yrs
    • Compensation: CN¥646.00k
  • Xinxin Wang (67yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥360.00k
  • Zhenzhong Huang (55yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: CN¥360.00k
  • Luming Liao (56yo)

    Non-Executive Director

    • Tenure: 2.2yrs

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$1.360t
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
601288SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJul 2010
601288XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJul 2010
1288SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJul 2010
EK7DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJul 2010
ACGB.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJul 2010
1288SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJul 2010
1288SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJul 2010
EK7WBAG (Wiener Boerse AG)YesForeign Shares-Foreign ListedATEURJul 2010
ACGB.YOTCPK (Pink Sheets LLC)ADRUSUSDSep 2010

Biography

Agricultural Bank of China Limited provides corporate and retail banking products and services in the Mainland China and internationally. The company operates through Corporate Banking, Personal Banking, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:48
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.