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Guangzhou Rural Commercial Bank

Market Cap

HK$31.9b

Last Updated

2021/05/14 10:13 UTC

Data Sources

Company Financials

Executive Summary

Guangzhou Rural Commercial Bank Co., Ltd. More Details


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Guangzhou Rural Commercial Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1551 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1551's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.0%

1551

-0.4%

HK Banks

-3.2%

HK Market


1 Year Return

-7.1%

1551

3.4%

HK Banks

23.4%

HK Market

Return vs Industry: 1551 underperformed the Hong Kong Banks industry which returned 3.4% over the past year.

Return vs Market: 1551 underperformed the Hong Kong Market which returned 23.4% over the past year.


Shareholder returns

1551IndustryMarket
7 Day-3.0%-0.4%-3.2%
30 Day-0.9%-3.8%-2.2%
90 Day-4.4%2.9%-8.9%
1 Year-1.1%-7.1%9.7%3.4%28.1%23.4%
3 Year-26.6%-37.5%-13.9%-26.0%0.4%-10.1%
5 Yearn/a50.9%15.0%58.6%31.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Guangzhou Rural Commercial Bank 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: 1551 (HK$3.25) is trading below our estimate of fair value (HK$8.06)

Significantly Below Fair Value: 1551 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1551 is good value based on its PE Ratio (6x) compared to the Hong Kong Banks industry average (6.6x).

PE vs Market: 1551 is good value based on its PE Ratio (6x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1551's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1551's PB Ratio (0.4x) is in line with the HK Banks industry average.


Future Growth

How is Guangzhou Rural Commercial Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.7%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Guangzhou Rural Commercial Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Guangzhou Rural Commercial Bank performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1551 has high quality earnings.

Growing Profit Margin: 1551's current net profit margins (33.2%) are lower than last year (45.6%).


Past Earnings Growth Analysis

Earnings Trend: 1551's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: 1551's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1551 had negative earnings growth (-41.2%) over the past year, making it difficult to compare to the Banks industry average (-4.7%).


Return on Equity

High ROE: 1551's Return on Equity (7%) is considered low.


Financial Health

How is Guangzhou Rural Commercial Bank'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: 1551's Assets to Equity ratio (13.5x) is moderate.

Allowance for Bad Loans: 1551 has a sufficient allowance for bad loans (153%).

Low Risk Liabilities: 86% of 1551's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1551 has an appropriate level of Loans to Assets ratio (54%).

Low Risk Deposits: 1551's Loans to Deposits ratio (68%) is appropriate.

Level of Bad Loans: 1551 has an appropriate level of bad loans (1.8%).


Dividend

What is Guangzhou Rural Commercial Bank current dividend yield, its reliability and sustainability?

7.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1551's dividend (7.41%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.95%).

High Dividend: 1551's dividend (7.41%) is in the top 25% of dividend payers in the Hong Kong market (6.04%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1551 has been paying a dividend for less than 10 years.

Growing Dividend: 1551 has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.4%), 1551's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Xuefei Yi (53 yo)

7.83yrs

Tenure

CN¥1,372,000

Compensation

Mr. Xuefei Yi has experience in banking business operation and management. He joined Guangzhou Rural Commercial Bank Co., Ltd. (the "Bank") in March 2006 and had served as Deputy Director of Guangzhou Rura...


CEO Compensation Analysis

Compensation vs Market: Xuefei's total compensation ($USD212.66K) is below average for companies of similar size in the Hong Kong market ($USD677.73K).

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


Leadership Team

Experienced Management: 1551's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: 1551's board of directors are not considered experienced ( 0.2 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Guangzhou Rural Commercial Bank Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Guangzhou Rural Commercial Bank Co., Ltd.
  • Ticker: 1551
  • Exchange: SEHK
  • Founded: 1952
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: HK$31.877b
  • Shares outstanding: 9.81b
  • Website: https://www.grcbank.com

Number of Employees


Location

  • Guangzhou Rural Commercial Bank Co., Ltd.
  • No.1 Huaxia Road
  • Pearl River New Town
  • Guangzhou
  • Guangdong Province
  • 510623
  • China

Listings


Biography

Guangzhou Rural Commercial Bank Co., Ltd. provides banking services. It operates through Corporate Banking, Retail Banking, Financial Market Business, and Others segments. The company offers deposit produc...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/14 10:13
End of Day Share Price2021/05/13 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.