Executive Summary
Guangzhou Rural Commercial Bank Co., Ltd. More Details
Rewards
Risk Analysis
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-6.2%
1551
-1.7%
HK Banks
1.5%
HK Market
1 Year Return
-19.2%
1551
-19.4%
HK Banks
0.7%
HK Market
Return vs Industry: 1551 matched the Hong Kong Banks industry which returned -19.6% over the past year.
Return vs Market: 1551 underperformed the Hong Kong Market which returned 0.5% over the past year.
Shareholder returns
| 1551 | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.2% | -1.7% | 1.5% |
| 30 Day | 0.9% | -9.5% | -3.1% |
| 90 Day | -8.9% | -16.2% | 2.9% |
| 1 Year | -14.0%-19.2% | -14.4%-19.4% | 4.8%0.7% |
| 3 Year | -26.4%-37.3% | -18.5%-30.6% | -5.6%-15.8% |
| 5 Year | n/a | 13.8%-14.0% | 24.5%3.4% |
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
3 weeks ago | Simply Wall St
Could The Guangzhou Rural Commercial Bank Co., Ltd. (HKG:1551) Ownership Structure Tell Us Something Useful?1 month ago | Simply Wall St
Is Guangzhou Rural Commercial Bank Co., Ltd. (HKG:1551) The Right Choice For A Smart Dividend Investor?3 months ago | Simply Wall St
Should You Worry About Guangzhou Rural Commercial Bank Co., Ltd.'s (HKG:1551) CEO Pay?Valuation
Is Guangzhou Rural Commercial Bank undervalued compared to its fair value and its price relative to the market?
47.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 1551 (HK$3.19) is trading below our estimate of fair value (HK$6.12)
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 (4.3x) compared to the HK Banks industry average (5.5x).
PE vs Market: 1551 is good value based on its PE Ratio (4.3x) compared to the Hong Kong market (11.1x).
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 (0.5x) is in line with the HK Banks industry average.
Next Steps
Future Growth
How is Guangzhou Rural Commercial Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
7.9%
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.
Next Steps
- Examine whether Guangzhou Rural Commercial Bank is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Guangzhou Rural Commercial Bank competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Banks industry.
Past Performance
How has Guangzhou Rural Commercial Bank performed over the past 5 years?
8.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1551 has high quality earnings.
Growing Profit Margin: 1551's current net profit margins (39.7%) are lower than last year (45.6%).
Past Earnings Growth Analysis
Earnings Trend: 1551's earnings have grown by 8.1% 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 (-6.6%) over the past year, making it difficult to compare to the Banks industry average (-6%).
Return on Equity
High ROE: 1551's Return on Equity (10%) is considered low.
Next Steps
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 (12.9x) is moderate.
Allowance for Bad Loans: 1551 has a sufficient allowance for bad loans (184%).
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 (55%).
Low Risk Deposits: 1551's Loans to Deposits ratio (69%) is appropriate.
Level of Bad Loans: 1551 has an appropriate level of bad loans (1.8%).
Next Steps
Dividend
What is Guangzhou Rural Commercial Bank current dividend yield, its reliability and sustainability?
7.18%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1551's dividend (7.18%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).
High Dividend: 1551's dividend (7.18%) is in the top 25% of dividend payers in the Hong Kong market (6.87%)
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 2 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.9%), 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?
3.8yrs
Average management tenure
CEO
Xuefei Yi (53 yo)
7.17yrs
Tenure
CN¥1,372,000
Compensation
Xuefei Yi has over 20 years of 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 G ...
CEO Compensation Analysis
Compensation vs Market: Xuefei's total compensation ($USD202.85K) is below average for companies of similar size in the Hong Kong market ($USD512.80K).
Compensation vs Earnings: Xuefei's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairman & President | 7.17yrs | CN¥1.37m | 0.0051% CN¥ 1.6m | |
| VP & CFO | no data | CN¥1.30m | no data | |
| Chief Information Officer | 1.58yrs | CN¥2.45m | no data | |
| Business Director | 6.92yrs | CN¥3.02m | no data | |
| Business Director | 5.58yrs | CN¥3.02m | no data | |
| Stationed Chief of the Discipline Inspection Team | 0.92yr | CN¥195.65k | no data | |
| GM of Office of Board of Directors | 3.83yrs | CN¥1.77m | no data | |
| Vice President | no data | no data | no data | |
| GM of Compliance & Legal Affairs Department and Employee Representative Supervisor | 1.75yrs | no data | 0.0046% CN¥ 1.4m | |
| Chief Risk Officer & Head of Finance Function | 3.83yrs | CN¥1.54m | no data | |
| Head of Financial Department | no data | no data | no data | |
| President of Kouzhen Branch | no data | no data | no data |
3.8yrs
Average Tenure
49yo
Average Age
Experienced Management: 1551's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairman & President | 7.17yrs | CN¥1.37m | 0.0051% CN¥ 1.6m | |
| GM of Compliance & Legal Affairs Department and Employee Representative Supervisor | 1.75yrs | no data | 0.0046% CN¥ 1.4m | |
| Independent Non-Executive Director | 6.33yrs | CN¥231.00k | no data | |
| External Supervisor | 4yrs | CN¥125.00k | 0.012% CN¥ 3.8m | |
| Chairman of the Supervisory Board | 1.75yrs | no data | no data | |
| Non-Executive Director | 10.75yrs | CN¥63.00k | no data | |
| Non-Executive Director | 10.75yrs | CN¥122.00k | 0.012% CN¥ 3.8m | |
| Non-Executive Director | 6.33yrs | CN¥75.00k | no data | |
| Independent Non-Executive Director | 6.33yrs | CN¥261.00k | no data | |
| Independent Non-Executive Director | 6.33yrs | CN¥219.00k | no data | |
| Non-Executive Director | 4yrs | CN¥63.00k | no data | |
| Independent Non-Executive Director | 6.33yrs | CN¥393.00k | no data |
6.3yrs
Average Tenure
57yo
Average Age
Experienced Board: 1551's board of directors are considered experienced (6.3 years average tenure).
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: 1951
- Industry: Regional Banks
- Sector: Banks
- Market Cap: HK$31.288b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1551 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Jun 2017 |
| 2GN | DB (Deutsche Boerse AG) | Yes | Foreign Shares-Foreign Listed | DE | EUR | Jun 2017 |
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 personal depos ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/17 19:25 |
| End of Day Share Price | 2020/09/17 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.