SEHK:1398

Stock Analysis Report

Industrial and Commercial Bank of China

Executive Summary

Industrial and Commercial Bank of China Limited provides various banking products and services primarily in China and internationally.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Industrial and Commercial 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

0.9%

1398

0.9%

HK Banks

0.3%

HK Market


1 Year Return

4.0%

1398

-3.4%

HK Banks

1.3%

HK Market

Return vs Industry: 1398 exceeded the Hong Kong Banks industry which returned -3.4% over the past year.

Return vs Market: 1398 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

1398IndustryMarket
7 Day0.9%0.9%0.3%
30 Day4.6%2.7%0.5%
90 Day-1.3%-2.3%-4.6%
1 Year9.2%4.0%1.7%-3.4%4.9%1.3%
3 Year35.7%16.5%16.6%0.4%15.3%3.7%
5 Year40.6%7.6%29.6%-0.6%20.0%-0.006%

Price Volatility Vs. Market

How volatile is Industrial and Commercial Bank of China's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Industrial and Commercial 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: 1398 (HK$5.5) is trading below our estimate of fair value (HK$15.14)

Significantly Below Fair Value: 1398 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1398 is poor value based on its PE Ratio (5.9x) compared to the Banks industry average (5.9x).

PE vs Market: 1398 is good value based on its PE Ratio (5.9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1398 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 1398 is overvalued based on its PB Ratio (0.8x) compared to the HK Banks industry average (0.5x).


Next Steps

Future Growth

How is Industrial and Commercial Bank of China forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1398's forecast earnings growth (5.6% per year) is above the savings rate (2%).

Earnings vs Market: 1398's earnings (5.6% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 1398's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1398's revenue (7.1% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 1398's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1398's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has Industrial and Commercial Bank of China performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1398's earnings have grown by 1.6% per year over the past 5 years.

Accelerating Growth: 1398's earnings growth over the past year (4%) exceeds its 5-year average (1.6% per year).

Earnings vs Industry: 1398 earnings growth over the past year (4%) underperformed the Banks industry 5.2%.


Return on Equity

High ROE: 1398's Return on Equity (12.6%) is considered low.


Return on Assets

ROA vs Industry: 1398 has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 1398's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Industrial and Commercial 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: 1398 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1398's debt is covered by short term assets (assets are 3.7x debt).


Financial Institutions Analysis

Asset Level: 1398's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 1398 has a sufficient allowance for bad loans.

Low Risk Liabilities: 1398's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1398 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1398's loans are broadly funded by customer deposits.

Level of Bad Loans: 1398 has an appropriate level of bad loans (1.48%)


Next Steps

Dividend

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

5.05%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%2.3%markettop25%6.2%industryaverage5.4%forecastin3Years5.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1398's dividend (5.05%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1398's dividend (5.05%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 1398's dividends per share have been stable in the past 10 years.

Growing Dividend: 1398's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.7%), 1398's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1398's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Shu Gu (52yo)

3yrs

Tenure

CN¥672,900

Compensation

Mr. Shu Gu has been the President and Executive Director of Industrial and Commercial Bank of China Limited since October 2016 and December 29, 2016 respectively. He serves as President of Industrial and C ...


CEO Compensation Analysis

Compensation vs. Market: Shu's total compensation ($USD95.08K) is about average for companies of similar size in the Hong Kong market ($USD807.54K).

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


Management Age and Tenure

3.3yrs

Average Tenure

56yo

Average Age

Experienced Management: 1398's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 1398's board of directors are not considered experienced ( 2.7 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.


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Ownership Breakdown


Management Team

  • Wenwu Zhang (57yo)

    General Manager of Finance & Accounting Department

    • Tenure: 0yrs
    • Compensation: CN¥50.00k
  • Shu Gu (52yo)

    Vice Chairman & President

    • Tenure: 3yrs
    • Compensation: CN¥672.90k
  • Hao Hu (57yo)

    Senior EVP & Executive Director

    • Tenure: 0.4yrs
    • Compensation: CN¥618.30k
  • Xueqing Guan (55yo)

    Board Secretary

    • Tenure: 3.3yrs
    • Compensation: CN¥1.15m
  • Li Huang (55yo)

    Chief Responsible Officer of Internal Audit Bureau & Employee Supervisor

    • Tenure: 3.3yrs
  • Bairong Wang (56yo)

    Chief Risk Officer

    • Tenure: 3.3yrs
    • Compensation: CN¥1.14m
  • Bresson Xu

    Corporate Strategy & Investor Relations

    • Tenure: 0yrs
  • Chen Siqing (59yo)

    Chairman of the Board

    • Tenure: 0.4yrs

Board Members

  • Anthony Francis Neoh (73yo)

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: CN¥445.00k
  • Silas Yang (64yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: CN¥440.00k
  • Si Shen (66yo)

    Independent Non Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥413.30k
  • Sheila Bair (65yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥365.00k
  • Shu Gu (52yo)

    Vice Chairman & President

    • Tenure: 3yrs
    • Compensation: CN¥672.90k
  • Hao Hu (57yo)

    Senior EVP & Executive Director

    • Tenure: 0.4yrs
    • Compensation: CN¥618.30k
  • Nout Elisabeth Maria Wellink (76yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: CN¥25.00k
  • Fuqing Zheng (56yo)

    Non-Executive Director

    • Tenure: 4.7yrs
  • Li Huang (55yo)

    Chief Responsible Officer of Internal Audit Bureau & Employee Supervisor

    • Tenure: 3.3yrs
  • Chen Siqing (59yo)

    Chairman of the Board

    • Tenure: 0.4yrs

Company Information

Industrial and Commercial Bank of China Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Industrial and Commercial Bank of China Limited
  • Ticker: 1398
  • Exchange: SEHK
  • Founded: 1984
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$2.210t
  • Shares outstanding: 356.41b
  • Website: https://www.icbc-ltd.com

Number of Employees


Location

  • Industrial and Commercial Bank of China Limited
  • No. 55 Fuxingmennei Avenue
  • Xicheng District
  • Beijing
  • 100140
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
601398SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYOct 2006
1398SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 2006
ICKDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEUROct 2006
IDCB.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDOct 2006
1398SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2006
601398XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYOct 2006
1398SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2006
ICKWBAG (Wiener Boerse AG)YesForeign Shares-Foreign ListedATEUROct 2006
IDCB.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Industrial and Commercial Bank of China Limited provides various banking products and services primarily in China and internationally. It operates through Corporate Banking, Personal Banking, and Treasury  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:41
End of Day Share Price2019/10/23 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.