SEHK:1288

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Agricultural Bank of China

Executive Summary

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


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.8%

1288

-0.9%

HK Banks

1.5%

HK Market


1 Year Return

-18.0%

1288

-19.3%

HK Banks

1.4%

HK Market

Return vs Industry: 1288 exceeded the Hong Kong Banks industry which returned -19.4% over the past year.

Return vs Market: 1288 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

1288IndustryMarket
7 Day0.8%-0.9%1.5%
30 Day-9.6%-9.1%-1.7%
90 Day-18.5%-15.8%3.6%
1 Year-12.4%-18.0%-14.3%-19.3%5.4%1.4%
3 Year-14.0%-27.8%-17.6%-29.8%-4.3%-14.6%
5 Year14.8%-14.7%13.5%-14.1%24.7%3.7%

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$2.55) is trading below our estimate of fair value (HK$6.85)

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 (4x) compared to the HK Banks industry average (5.6x).

PE vs Market: 1288 is good value based on its PE Ratio (4x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1288 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1288's PB Ratio (0.4x) is in line with the HK Banks industry average.


Next Steps

Future Growth

How is Agricultural Bank of China forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1288's forecast earnings growth (6.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 1288's earnings (6.9% per year) are forecast to grow slower than the Hong Kong market (22.5% per year).

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

Revenue vs Market: 1288's revenue (8.2% per year) is forecast to grow slower than the Hong Kong market (13.2% per year).

High Growth Revenue: 1288's revenue (8.2% 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 (10.5%).


Next Steps

Past Performance

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

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1288 has a high level of non-cash earnings.

Growing Profit Margin: 1288's current net profit margins (40.5%) are lower than last year (42.5%).


Past Earnings Growth Analysis

Earnings Trend: 1288's earnings have grown by 3.4% 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 (-3.4%) over the past year, making it difficult to compare to the Banks industry average (-6%).


Return on Equity

High ROE: 1288's Return on Equity (9.5%) is considered low.


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


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 (285%).

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 (67%) is appropriate.

Level of Bad Loans: 1288 has an appropriate level of bad loans (1.4%).


Next Steps

Dividend

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

8.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1288's dividend (8.17%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1288's dividend (8.17%) is in the top 25% of dividend payers in the Hong Kong market (6.92%)


Stability and Growth of Payments

Stable Dividend: 1288's dividend payments have been volatile 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 (32.7%), 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 (30.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Qingsong Zhang (55 yo)

0.83

Tenure

CN¥185,000

Compensation

Mr. Qingsong Zhang has been the President of Agricultural Bank of China Ltd since November 11, 2019 and its Executive Vice Chairman of the Board since December 13, 2019. Mr. Zhang served as President of Ex ...


CEO Compensation Analysis

Compensation vs Market: Qingsong's total compensation ($USD27.33K) is below average for companies of similar size in the Hong Kong market ($USD808.43K).

Compensation vs Earnings: Insufficient data to compare Qingsong's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Mubing Zhou
Executive Chairman of the Board4.25yrsCN¥741.00kno data
Qingsong Zhang
President & Executive Vice Chairman of the Board0.83yrCN¥185.00kno data
Keqiu Zhang
Executive VP & Executive Director1.42yrsCN¥679.00kno data
Zhi Cheng Li
Chief Risk Officer3.58yrsCN¥1.20mno data
Dongsheng Zhan
Executive Vice President1.42yrsCN¥622.00kno data
Yong Cui
Executive Vice President1.33yrsCN¥514.00kno data
Xuguang Zhang
Executive Vice President0.75yrCN¥57.00kno data
Mingde Yao
General Manager of the Finance & Accounting Departmentno datano datano data
Han Xu
Executive Vice President0.17yrno datano data
Lee Wah Woo
Assistant Company Secretaryno datano datano data
Siu Kuen Lai
Assistant to the Company Secretary3.17yrsno datano data

1.4yrs

Average Tenure

55.5yo

Average Age

Experienced Management: 1288's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mubing Zhou
Executive Chairman of the Board4.25yrsCN¥741.00kno data
Qingsong Zhang
President & Executive Vice Chairman of the Board0.83yrCN¥185.00kno data
Keqiu Zhang
Executive VP & Executive Director1.42yrsCN¥679.00kno data
Jingdong Wang
Chairman of the Board of Supervisors1.83yrsno datano data
Xing Xiao
Independent Non-Executive Director5.5yrsCN¥380.00kno data
Xinxin Wang
Independent Non-Executive Director4.33yrsCN¥367.00kno data
Zhenzhong Huang
Independent Non-Executive Director3yrsCN¥367.00kno data
Luming Liao
Non-Executive Director3.08yrsno datano data
Qiyun Li
Member of The Board of Directors2.25yrsno datano data
Shouying Liu
Independent Non-Executive Director1.17yrsCN¥146.00kno data
Wei Li
Non-Executive Director1.33yrsno datano data
Jiangtao Wu
Non-Executive Director1.17yrsno datano data

2.0yrs

Average Tenure

56yo

Average Age

Experienced Board: 1288's board of directors are not considered experienced ( 2 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$1.248t
  • 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
  • Beijing Province
  • 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)UNSP ADR EACH REPR 25 ORD H SHSUSUSDSep 2010
EK7ADB (Deutsche Boerse AG)UNSP ADR EACH REPR 25 ORD H SHSDEEURSep 2010

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 19:25
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.