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Agricultural Bank of China

SEHK:1288
Snowflake Description

Very undervalued with flawless balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1288
SEHK
HK$1,504B
Market Cap
  1. Home
  2. HK
  3. Banks
Company description

Agricultural Bank of China Limited provides corporate and retail banking products and services in the Mainland China and internationally. The last earnings update was 27 days ago. More info.


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1288 Share Price and Events
7 Day Returns
-1.6%
SEHK:1288
-2.1%
HK Banks
-1.3%
HK Market
1 Year Returns
-16.3%
SEHK:1288
-11.6%
HK Banks
-5.7%
HK Market
1288 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Agricultural Bank of China (1288) -1.6% -1.1% -2.7% -16.3% 27.7% 10.8%
HK Banks -2.1% 1.9% 3.6% -11.6% 28.2% 22.9%
HK Market -1.3% 3.2% 9.8% -5.7% 27% 20.8%
1 Year Return vs Industry and Market
  • 1288 underperformed the Banks industry which returned -11.6% over the past year.
  • 1288 underperformed the Market in Hong Kong which returned -5.7% over the past year.
Price Volatility
1288
Industry
5yr Volatility vs Market

Value

 Is Agricultural Bank of China undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Agricultural Bank of China to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Agricultural Bank of China.

SEHK:1288 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 18 analysts.
= Stable Book Value * Return on Equity
= CN¥5.39 * 12.3%
CN¥0.66
Book Value of Equity per Share Weighted future Book Value estimates from 17 analysts. CN¥5.39
Discount Rate (Cost of Equity) See below 8.9%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1288
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.595 (1 + (1- 25%) (144.51%))
1.161
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.16
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.161 * 5.96%)
8.92%

Discounted Cash Flow Calculation for SEHK:1288 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Agricultural Bank of China is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:1288 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.3% – 8.92%) * CN¥5.39)
CN¥0.18
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥0.18 / (8.92% - 2%)
CN¥2.64
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥5.39 + CN¥2.64
CN¥8.03
SEHK:1288 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1288)
1.167
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥8.03 x 1.167
HK$9.36
Value per share (HKD) From above. HK$9.36
Current discount Discount to share price of HK$3.60
= -1 x (HK$3.60 - HK$9.36) / HK$9.36
61.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Agricultural Bank of China is available for.
Intrinsic value
>50%
Share price is HK$3.6 vs Future cash flow value of HK$9.36
Current Discount Checks
For Agricultural Bank of China to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Agricultural Bank of China's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Agricultural Bank of China's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Agricultural Bank of China's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Agricultural Bank of China's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1288 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.59
SEHK:1288 Share Price ** SEHK (2019-04-25) in HKD HK$3.6
SEHK:1288 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.857 CN¥3.09
Hong Kong Banks Industry PE Ratio Median Figure of 31 Publicly-Listed Banks Companies 6.17x
Hong Kong Market PE Ratio Median Figure of 1,476 Publicly-Listed Companies 12.09x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Agricultural Bank of China.

SEHK:1288 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1288 Share Price ÷ EPS (both in CNY)

= 3.09 ÷ 0.59

5.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Agricultural Bank of China is good value based on earnings compared to the HK Banks industry average.
  • Agricultural Bank of China is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Agricultural Bank of China's expected growth come at a high price?
Raw Data
SEHK:1288 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
6.7%per year
Hong Kong Banks Industry PEG Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.89x
Hong Kong Market PEG Ratio Median Figure of 465 Publicly-Listed Companies 0.86x

*Line of best fit is calculated by linear regression .

SEHK:1288 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.25x ÷ 6.7%

0.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Agricultural Bank of China is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Agricultural Bank of China's assets?
Raw Data
SEHK:1288 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥4.54
SEHK:1288 Share Price * SEHK (2019-04-25) in HKD HK$3.6
SEHK:1288 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.857 CN¥3.09
Hong Kong Banks Industry PB Ratio Median Figure of 31 Publicly-Listed Banks Companies 0.75x
Hong Kong Market PB Ratio Median Figure of 2,150 Publicly-Listed Companies 1.02x
SEHK:1288 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1288 Share Price ÷ Book Value per Share (both in CNY)

= 3.09 ÷ 4.54

0.68x

* Primary Listing of Agricultural Bank of China.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Agricultural Bank of China is good value based on assets compared to the HK Banks industry average.
X
Value checks
We assess Agricultural Bank of China's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Agricultural Bank of China has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Agricultural Bank of China expected to grow at an attractive rate?
  • Agricultural Bank of China's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Agricultural Bank of China's earnings growth is positive but not above the Hong Kong market average.
  • Agricultural Bank of China's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1288 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1288 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 6.7%
SEHK:1288 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 16.3%
Hong Kong Banks Industry Earnings Growth Rate Market Cap Weighted Average 6.2%
Hong Kong Banks Industry Revenue Growth Rate Market Cap Weighted Average 13.5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.9%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 11.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1288 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1288 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 758,189 240,528 5
2020-12-31 697,779 412,676 230,932 15
2019-12-31 639,503 671,147 212,497 16
SEHK:1288 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 465,910 -987,663 198,183
2018-09-30 461,248 -1,012,902 199,963
2018-06-30 452,756 -896,811 195,558
2018-03-31 441,967 -753,611 191,388
2017-12-31 444,833 -341,547 188,362
2017-09-30 435,540 -580,923 185,181
2017-06-30 432,536 -852,156 182,786
2017-03-31 427,580 43,227 180,363
2016-12-31 423,683 -717,811 179,341
2016-09-30 432,576 -201,897 179,142
2016-06-30 445,471 -60,448 179,015
2016-03-31 456,997 -554,847 178,754

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Agricultural Bank of China's earnings are expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
  • Agricultural Bank of China's revenue is expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1288 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Agricultural Bank of China Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1288 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.84 0.84 0.84 1.00
2022-12-31 0.80 0.80 0.80 1.00
2021-12-31 0.69 0.73 0.63 9.00
2020-12-31 0.65 0.70 0.59 18.00
2019-12-31 0.60 0.62 0.57 16.00
SEHK:1288 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.59
2018-09-30 0.60
2018-06-30 0.59
2018-03-31 0.59
2017-12-31 0.58
2017-09-30 0.57
2017-06-30 0.56
2017-03-31 0.55
2016-12-31 0.55
2016-09-30 0.55
2016-06-30 0.55
2016-03-31 0.54

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Agricultural Bank of China is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Agricultural Bank of China's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Agricultural Bank of China has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Agricultural Bank of China's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Agricultural Bank of China's year on year earnings growth rate has been positive over the past 5 years.
  • Agricultural Bank of China's 1-year earnings growth exceeds its 5-year average (5.2% vs 2.5%)
  • Agricultural Bank of China's earnings growth has exceeded the HK Banks industry average in the past year (5.2% vs 4.7%).
Earnings and Revenue History
Agricultural Bank of China's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Agricultural Bank of China Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1288 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 465,910.00 198,183.00 204,595.00
2018-09-30 461,248.00 199,963.00 199,617.00
2018-06-30 452,756.00 195,558.00 199,617.00
2018-03-31 441,967.00 191,388.00 200,289.00
2017-12-31 444,833.00 188,362.00 199,617.00
2017-09-30 435,540.00 185,181.00 186,465.00
2017-06-30 432,536.00 182,786.00 186,465.00
2017-03-31 427,580.00 180,363.00 224,874.00
2016-12-31 423,683.00 179,341.00 186,465.00
2016-09-30 432,576.00 179,142.00 185,033.00
2016-06-30 445,471.00 179,015.00 99,633.00
2016-03-31 456,997.00 178,754.00 185,033.00
2015-12-31 456,690.00 178,182.00 185,033.00
2015-09-30 458,232.00 180,232.00 182,285.00
2015-06-30 454,200.00 179,744.00 267,685.00
2015-03-31 453,403.00 180,147.00 182,285.00
2014-12-31 456,182.00 179,461.00 182,285.00
2014-09-30 442,115.00 180,766.00 166,755.00
2014-06-30 438,191.00 177,995.00 88,646.00
2014-03-31 428,730.00 172,734.00 166,755.00
2013-12-31 412,795.00 166,315.00 166,755.00
2013-09-30 407,821.00 162,999.00 153,125.00
2013-06-30 396,186.00 156,947.00 231,234.00
2013-03-31 381,378.00 148,651.00 153,125.00
2012-12-31 370,752.00 145,094.00 153,125.00
2012-09-30 361,450.00 141,253.00 92,386.00
2012-06-30 346,743.00 135,759.00 92,386.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Agricultural Bank of China has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Agricultural Bank of China used its assets more efficiently than the HK Banks industry average last year based on Return on Assets.
  • Unable to establish if Agricultural Bank of China improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Agricultural Bank of China's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Agricultural Bank of China has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Agricultural Bank of China's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Agricultural Bank of China's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Agricultural Bank of China Company Filings, last reported 3 months ago.

SEHK:1288 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,674,787.00 1,862,464.00 1,704,355.00
2018-09-30 1,634,868.00 1,730,718.00 2,238,823.00
2018-06-30 1,569,711.00 1,523,602.00 1,334,120.00
2018-03-31 1,463,627.00 1,519,130.00 4,353,826.00
2017-12-31 1,429,397.00 1,578,189.00 1,856,487.00
2017-09-30 1,409,360.00 1,303,559.00 2,348,367.00
2017-06-30 1,358,441.00 1,309,898.00 1,776,672.00
2017-03-31 1,366,045.00 1,340,570.00 2,624,928.00
2016-12-31 1,321,591.00 1,207,878.00 2,043,545.00
2016-09-30 1,313,025.00 943,842.00 2,080,653.00
2016-06-30 1,258,802.00 874,891.00 1,852,869.00
2016-03-31 1,263,095.00 808,770.00 2,395,386.00
2015-12-31 1,211,885.00 860,096.00 2,252,224.00
2015-09-30 1,175,127.00 750,435.00 2,438,760.00
2015-06-30 1,122,042.00 723,873.00 2,095,231.00
2015-03-31 1,125,520.00 709,176.00 2,665,397.00
2014-12-31 1,032,619.00 768,472.00 1,839,536.00
2014-09-30 958,693.00 708,453.00 2,283,663.00
2014-06-30 907,737.00 636,152.00 2,145,942.00
2014-03-31 905,149.00 457,607.00 2,537,459.00
2013-12-31 844,537.00 475,150.00 1,728,800.00
2013-09-30 828,772.00 465,937.00 2,262,842.00
2013-06-30 791,231.00 471,239.00 1,794,614.00
2013-03-31 800,319.00 437,838.00 2,739,766.00
2012-12-31 751,354.00 355,571.00 1,693,529.00
2012-09-30 727,045.00 266,525.00 2,444,303.00
2012-06-30 691,826.00 278,483.00 1,839,554.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Agricultural Bank of China has an acceptable proportion of non-loan assets held.
  • Agricultural Bank of China's liabilities are made up of primarily low risk sources of funding.
  • Loans at Agricultural Bank of China are broadly funded by customer deposits.
  • Agricultural Bank of China's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Agricultural Bank of China has a sufficient allowance for bad loans.
  • Agricultural Bank of China has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Agricultural Bank of China's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Agricultural Bank of China has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.64%
Current annual income from Agricultural Bank of China dividends. Estimated to be 6.48% next year.
If you bought HK$2,000 of Agricultural Bank of China shares you are expected to receive HK$113 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Agricultural Bank of China's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.97%).
  • Agricultural Bank of China's dividend is above the markets top 25% of dividend payers in Hong Kong (5.39%).
Upcoming dividend payment

Purchase Agricultural Bank of China before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1288 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
Hong Kong Banks Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 5%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1288 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.30 2.00
2022-12-31 0.24 2.00
2021-12-31 0.21 9.00
2020-12-31 0.20 21.00
2019-12-31 0.18 18.00
SEHK:1288 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-29 0.174 5.541
2018-05-11 0.178 5.610
2017-06-28 0.170 5.220
2016-06-29 0.167 5.746
2015-07-02 0.182 7.359
2014-03-25 0.177 5.964
2013-05-03 0.157 5.707
2012-06-08 0.132 4.790
2011-04-27 0.054 1.841
2011-03-29 0.054 1.423
2010-08-27 0.077 2.266

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Agricultural Bank of China has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Agricultural Bank of China only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Agricultural Bank of China's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Agricultural Bank of China's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Agricultural Bank of China afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Agricultural Bank of China has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
  • Agricultural Bank of China has no CEO, or we have no data on them.
Management Team Tenure

Average tenure and age of the Agricultural Bank of China management team in years:

1.8
Average Tenure
55
Average Age
  • The average tenure for the Agricultural Bank of China management team is less than 2 years, this suggests a new team.
Management Team

Mubing Zhou

TITLE
President & Chairman of the Board
COMPENSATION
CN¥704K
AGE
61
TENURE
0.5 yrs

Wei Wang

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥646K
AGE
55
TENURE
5.3 yrs

Keqiu Zhang

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥646K
AGE
54
TENURE
1.8 yrs

Zhicheng Li

TITLE
Chief Risk Officer
COMPENSATION
CN¥1M
AGE
55
TENURE
2.2 yrs

Wanfu Zhou

TITLE
Company Secretary & Secretary to the Board of Directors
COMPENSATION
CN¥930K
AGE
53
TENURE
1 yrs

Mingde Yao

TITLE
General Manager of the Finance & Accounting Department

Chris Ho

TITLE
Assistant to the Company Secretary
TENURE
3.9 yrs

Cecilia Woo

TITLE
Assistant Company Secretary

Siu Kuen Lai

TITLE
Assistant to the Company Secretary
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the Agricultural Bank of China board of directors in years:

3.3
Average Tenure
55.5
Average Age
  • The tenure for the Agricultural Bank of China board of directors is about average.
Board of Directors

Mubing Zhou

TITLE
President & Chairman of the Board
COMPENSATION
CN¥704K
AGE
61
TENURE
2.8 yrs

Wei Wang

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥646K
AGE
55
TENURE
1.2 yrs

Keqiu Zhang

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥646K
AGE
54
TENURE
0.3 yrs

Tiejun Wen

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥410K
AGE
66
TENURE
7.9 yrs

Francis Yuen

TITLE
Independent Non-Executive director
COMPENSATION
CN¥380K
AGE
66
TENURE
6.1 yrs

Xing Xiao

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥380K
AGE
47
TENURE
4.1 yrs

Jingdong Wang

TITLE
Chairman of the Board of Supervisors
AGE
56
TENURE
0.4 yrs

Wang Li

TITLE
External Supervisor
AGE
53
TENURE
3.8 yrs

Chengxu Liu

TITLE
Employee Representative Supervisor
AGE
56
TENURE
2.8 yrs

Jianbo Chen

TITLE
Non-Executive Director
AGE
55
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
16. Nov 18 Buy BlackRock, Inc. Company 13. Nov 18 13. Nov 18 4,688,980 HK$3.49 HK$16,353,751
14. Nov 18 Sell BlackRock, Inc. Company 09. Nov 18 09. Nov 18 -17,733,000 HK$3.54 HK$-62,824,525
27. Oct 18 Sell Capital Research and Management Company Company 25. Oct 18 25. Oct 18 -407,265,861 HK$3.36 HK$-1,369,635,339
24. Oct 18 Sell Capital Research and Management Company Company 22. Oct 18 22. Oct 18 -193,755,000 HK$3.58 HK$-693,293,652
X
Management checks
We assess Agricultural Bank of China's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Agricultural Bank of China has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Agricultural Bank of China Limited (HKG:1288): Immense Growth Potential?

As Agricultural Bank of China Limited (HKG:1288) announced its earnings release on 31 December 2018, … analyst consensus outlook appear cautiously optimistic, … the past 5-year average growth rate of 2.5%.

Simply Wall St -

Financial Metrics For Agricultural Bank of China Limited (HKG:1288)

Agricultural Bank of China Limited (HKG:1288) is a large-cap stock operating in the financial services sector with a market cap of HK$1.5t. … As major financial institutions return to health after the Global Financial Crisis, we are seeing an increase in market confidence, and understanding of, these “too-big-to-fail” banking stocks. … Following the crisis, a set of reforms termed Basel III was enforced to bolster risk management, regulation, and supervision in the financial services industry.

Simply Wall St -

How Much Of Agricultural Bank of China Limited (HKG:1288) Do Institutions Own?

A look at the shareholders of Agricultural Bank of China Limited (HKG:1288) can tell us which group is most powerful. … With a market capitalization of HK$1.5t, Agricultural Bank of China is rather large. … Check out our latest analysis for Agricultural Bank of China

Simply Wall St -

Can You Imagine How Agricultural Bank of China's Shareholders Feel About The 42% Share Price Increase?

For example, Agricultural Bank of China Limited (HKG:1288) shareholders have seen the share price rise 42% over three years, well in excess of the market return (33%, not including dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During three years of share price growth, Agricultural Bank of China achieved compound earnings per share growth of 2.9% per year.

Simply Wall St -

Risk Factors To Consider Before Investing In Agricultural Bank of China Limited (HKG:1288)

Large banks such as Agricultural Bank of China Limited (HKG:1288), with a market capitalisation of HK$1.5t, have benefited from improving credit quality as a result of post-GFC recovery, leading to a strong growth environment. … Economic growth fuels demand for loans and affects a borrower’s ability to repay which directly impacts the level of risk Agricultural Bank of China takes on. … The level of risky assets a bank holds on its accounts affects the attractiveness of the company as an investment.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Agricultural Bank of China Limited (HKG:1288)

We'll look at Agricultural Bank of China Limited's (HKG:1288) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Agricultural Bank of China's P/E ratio is 5.15. … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

What Is Agricultural Bank of China Limited's (HKG:1288) Share Price Doing?

Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Agricultural Bank of China's current trading price of HK$3.39 reflective of the actual value of the? … Let’s take a look at Agricultural Bank of China’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Three Understated Metrics For Agricultural Bank of China Limited (HKG:1288) You Should Know

Agricultural Bank of China Limited (HKG:1288) is a large-cap stock operating in the financial services sector with a market cap of HK$1.4t. … As major financial institutions return to health after the Global Financial Crisis, we are seeing an increase in market confidence, and understanding of, these “too-big-to-fail” banking stocks. … Following the crisis, a set of reforms termed Basel III was enforced to bolster risk management, regulation, and supervision in the financial services industry.

Simply Wall St -

Should Agricultural Bank of China Limited (HKG:1288) Be Part Of Your Dividend Portfolio?

Historically, Agricultural Bank of China Limited (HKG:1288) has paid a dividend to shareholders. … Let's take a look at Agricultural Bank of China in more detail. … View our latest analysis for Agricultural Bank of China

Simply Wall St -

Is Agricultural Bank of China Limited (HKG:1288) Over-Exposed To Risk?

Large banks such as Agricultural Bank of China Limited (HKG:1288), with a market capitalisation of HK$1.5t, have benefited from improving credit quality as a result of post-GFC recovery, leading to a strong growth environment. … Economic growth fuels demand for loans and affects a borrower’s ability to repay which directly impacts the level of risk Agricultural Bank of China takes on. … It is relevant to understand a bank’s level of risky assets on its accounts as it affects the attractiveness of its stock as an investment.

Simply Wall St -

Company Info

Description

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, and Treasury Operations segments. Its deposit products include demand, call, foreign currency time, foreign currency call, time or demand optional, foreign exchange demand, foreign exchange call, savings, foreign exchange time, agreed-term, and negotiated deposits; and loans comprise housing, consumer, business, fixed asset, working capital, real estate, entrusted syndicated, and small enterprise loans, as well as trade finances, guarantees and commitments, and loans with custody of export rebates accounts. The company also provides credit card, debit card, payment and settlement, private banking, cash management, investment banking, custody, financial market, and financial institution services, as well as trading and wealth management services. In addition, it offers agro-related personal and corporate banking products and services; personal and online, telephone, mobile, self-service, and SMS banking services; financial leasing services; and life, health, and accident insurance, as well as reinsurance products. As of December 31, 2017, the company had 23,661 branches in China; and 13 overseas branches and 4 overseas representative offices. Agricultural Bank of China Limited was founded in 1951 and is based in Beijing, the People’s Republic of China.

Details
Name: Agricultural Bank of China Limited
1288
Exchange: SEHK
Founded: 1951
HK$1,503,638,619,280
349,983,033,873
Website: http://www.abchina.com
Address: Agricultural Bank of China Limited
No. 69, Jianguomen Nei Avenue,
Dongcheng District,
Beijing,
100005,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1288 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 16. Jul 2010
OTCPK ACGB.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 16. Jul 2010
DB EK7 Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 16. Jul 2010
SHSC 1288 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 16. Jul 2010
SZSC 1288 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 16. Jul 2010
WBAG EK7 Foreign Shares-Foreign Listed Wiener Boerse AG AT EUR 16. Jul 2010
OTCPK ACGB.Y ADR Pink Sheets LLC US USD 28. Sep 2010
SHSE 601288 Domestic Shares Shanghai Stock Exchange CN CNY 15. Jul 2010
XSSC 601288 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 15. Jul 2010
Number of employees
Current staff
Staff numbers
473,691
Agricultural Bank of China employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 13:41
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/03/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.