Guangzhou Rural Commercial Bank
Guangzhou Rural Commercial Bank Co., Ltd. The last earnings update was 53 days ago. More info.
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1551 Share Price and Events
7 Day Returns
1 Year Returns
1551 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Guangzhou Rural Commercial Bank (1551) | -0.6% | -1.7% | -4.3% | -9.2% | - | - |
| HK Banks | -1.4% | -8.3% | -6.1% | -18.1% | 28.3% | 8.2% |
| HK Market | -2.5% | -8.6% | -3.6% | -15.9% | 25.4% | 7.8% |
1 Year Return vs Industry and Market
- 1551 outperformed the Banks industry which returned -18.1% over the past year.
- 1551 outperformed the Market in Hong Kong which returned -15.9% over the past year.
1551 Value
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
Guangzhou Rural Commercial Bank
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Guangzhou Rural Commercial Bank.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity = CN¥4.95 * 12.3% |
CN¥0.61 |
| Book Value of Equity per Share | Median Book Value from the past 5 years. | CN¥4.95 |
| Discount Rate (Cost of Equity) | See below | 10.2% |
| 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.
| 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 | 0.59 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.586 (1 + (1- 25%) (223.52%)) |
1.381 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.38 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.381 * 5.96%) |
10.23% |
Discounted Cash Flow Calculation for SEHK:1551 using Excess Returns Model Model
The calculations below outline how an intrinsic value for Guangzhou Rural Commercial Bank 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.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (12.3% – 10.23%) * CN¥4.95) |
CN¥0.10 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= CN¥0.10 / (10.23% - 2%) |
CN¥1.24 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= CN¥4.95 + CN¥1.24 |
CN¥6.18 |
| Calculation | Result | |
|---|---|---|
| Exchange Rate | CNY/HKD
(Reporting currency to currency of SEHK:1551) |
1.135 |
| Value per Share (HKD) |
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥6.18 x 1.135 |
HK$7.02 |
| Value per share (HKD) | From above. | HK$7.02 |
| Current discount | Discount to share price of
HK$4.73
= -1 x (HK$4.73 - HK$7.02) / HK$7.02 |
32.6% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Guangzhou Rural Commercial Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Guangzhou Rural Commercial Bank's share price is below the future cash flow value, but not 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 Guangzhou Rural Commercial Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Guangzhou Rural Commercial Bank's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in CNY | CN¥0.67 |
| SEHK:1551 Share Price ** | SEHK (2019-05-17) in HKD | HK$4.73 |
| SEHK:1551 Share Price converted to CNY reporting currency | Exchange rate (HKD/ CNY) 0.881 | CN¥4.17 |
| Hong Kong Banks Industry PE Ratio | Median Figure of 31 Publicly-Listed Banks Companies | 6.1x |
| Hong Kong Market PE Ratio | Median Figure of 1,476 Publicly-Listed Companies | 11.17x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Guangzhou Rural Commercial Bank.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = SEHK:1551 Share Price ÷ EPS (both in CNY) = 4.17 ÷ 0.67 |
6.26x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Guangzhou Rural Commercial Bank is overvalued based on earnings compared to the HK Banks industry average.
- Guangzhou Rural Commercial Bank is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does
Guangzhou Rural Commercial Bank's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 6.26x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts |
3.7%per year |
| Hong Kong Banks Industry PEG Ratio | Median Figure of 16 Publicly-Listed Banks Companies | 0.87x |
| Hong Kong Market PEG Ratio | Median Figure of 463 Publicly-Listed Companies | 0.79x |
*Line of best fit is calculated by linear regression .
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to calculate PEG ratio for Guangzhou Rural Commercial Bank, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Guangzhou Rural Commercial Bank's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in CNY | CN¥5.39 |
| SEHK:1551 Share Price * | SEHK (2019-05-17) in HKD | HK$4.73 |
| SEHK:1551 Share Price converted to CNY reporting currency | Exchange rate (HKD/ CNY) 0.881 | CN¥4.17 |
| Hong Kong Banks Industry PB Ratio | Median Figure of 31 Publicly-Listed Banks Companies | 0.7x |
| Hong Kong Market PB Ratio | Median Figure of 2,155 Publicly-Listed Companies | 0.97x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = SEHK:1551 Share Price ÷ Book Value per Share (both in CNY) = 4.17 ÷ 5.39 |
0.77x |
* Primary Listing of Guangzhou Rural Commercial Bank.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Guangzhou Rural Commercial Bank is overvalued based on assets compared to the HK Banks industry average.
Value checks
We assess Guangzhou Rural Commercial Bank's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check) Guangzhou Rural Commercial Bank has a total score of 2/6, 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.
1551 Future Performance
- No analysts cover Guangzhou Rural Commercial Bank, future earnings growth has been estimated based on fundamentals.
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!
Earnings growth vs Low Risk Savings
- Guangzhou Rural Commercial Bank's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
- Guangzhou Rural Commercial Bank's earnings growth is positive but not above the Hong Kong market average.
- Unable to compare Guangzhou Rural Commercial Bank's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| SEHK:1551 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts | 3.7% |
| Hong Kong Banks Industry Earnings Growth Rate | Market Cap Weighted Average | 5.9% |
| Hong Kong Banks Industry Revenue Growth Rate | Market Cap Weighted Average | 8.9% |
| Hong Kong Market Earnings Growth Rate | Market Cap Weighted Average | 11.4% |
| Hong Kong Market Revenue Growth Rate | Market Cap Weighted Average | 10.7% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (4 months ago) | See Below |
| Future Estimates | Average of up to 0 Analyst Estimates (S&P Global) | See Below |
| Date (Data in CNY Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 14,837 | -97,286 | 6,526 |
| 2018-09-30 | 14,474 | -61,805 | 6,467 |
| 2018-06-30 | 14,120 | 42,987 | 6,408 |
| 2018-03-31 | 13,409 | 18,148 | 6,059 |
| 2017-12-31 | 12,691 | -76,001 | 5,709 |
| 2016-12-31 | 11,944 | -26,616 | 5,026 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (4 months ago) | See Below |
| Future Estimates | Average of up to 0 Analyst Estimates (S&P Global) | See Below |
All data from Guangzhou Rural Commercial Bank Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CNY Millions) | EPS * |
|---|---|
| 2018-12-31 | 0.67 |
| 2018-09-30 | 0.66 |
| 2018-06-30 | 0.65 |
| 2018-03-31 | 0.62 |
| 2017-12-31 | 0.63 |
| 2016-12-31 | 0.62 |
*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.
- Unable to establish if Guangzhou Rural Commercial Bank will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Guangzhou Rural Commercial Bank's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Guangzhou Rural Commercial Bank has a total score of 1/6, 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.
1551 Past Performance
How has Guangzhou Rural Commercial Bank 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
Past Earnings growth analysis
- Guangzhou Rural Commercial Bank's year on year earnings growth rate has been positive over the past 5 years.
- Guangzhou Rural Commercial Bank's 1-year earnings growth exceeds its 5-year average (14.3% vs 5.8%)
- Guangzhou Rural Commercial Bank's earnings growth has exceeded the HK Banks industry average in the past year (14.3% vs 4.9%).
Earnings and Revenue History
All data from Guangzhou Rural Commercial Bank Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CNY Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 14,836.75 | 6,526.34 | 4,745.86 | |
| 2018-09-30 | 14,474.31 | 6,467.31 | 4,619.27 | |
| 2018-06-30 | 14,119.79 | 6,408.29 | 5,491.70 | |
| 2018-03-31 | 13,409.25 | 6,058.51 | 5,246.56 | |
| 2017-12-31 | 12,690.81 | 5,708.72 | 4,002.41 | |
| 2016-12-31 | 11,943.69 | 5,025.59 | 4,962.56 | |
| 2015-12-31 | 12,062.38 | 5,001.02 | 4,600.46 | |
| 2014-12-31 | 12,371.10 | 5,374.69 | 4,267.44 | |
| 2013-12-31 | 11,157.07 | 4,827.92 | 3,852.46 | |
| 2012-12-31 | 9,314.26 | 4,059.15 | 3,153.63 |
*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.
- Guangzhou Rural Commercial Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Guangzhou Rural Commercial Bank used its assets more efficiently than the HK Banks industry average last year based on Return on Assets.
- Unable to establish if Guangzhou Rural Commercial Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
Past performance checks
We assess Guangzhou Rural Commercial Bank's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Guangzhou Rural Commercial Bank 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.
1551 Health
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.
Balance sheet
Assets
Liabilities and shares
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.
All data from Guangzhou Rural Commercial Bank Company Filings, last reported 4 months ago.
| Date (Data in CNY Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 55,581.07 | 91,384.70 | 244,792.01 |
| 2018-09-30 | 55,581.07 | 91,384.70 | 244,792.01 |
| 2018-06-30 | 51,005.59 | 126,275.59 | 249,203.74 |
| 2018-03-31 | 51,005.59 | 126,275.59 | 249,203.74 |
| 2017-12-31 | 48,477.72 | 139,008.60 | 146,626.23 |
| 2016-12-31 | 37,839.70 | 152,903.49 | 163,717.62 |
| 2015-12-31 | 35,696.13 | 39,869.91 | 167,140.27 |
| 2014-12-31 | 32,586.77 | 28,765.13 | 123,478.10 |
| 2013-12-31 | 27,766.23 | 4,371.28 | 65,497.71 |
| 2012-12-31 | 24,389.23 | 19,653.26 | 94,437.87 |
BANK ANALYSIS
This company is a bank or financial institution, which is analysed accordingly below.
- Guangzhou Rural Commercial Bank has an acceptable proportion of non-loan assets held.
- Guangzhou Rural Commercial Bank's liabilities are made up of primarily low risk sources of funding.
- Loans at Guangzhou Rural Commercial Bank are broadly funded by customer deposits.
- Guangzhou Rural Commercial Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
- Guangzhou Rural Commercial Bank has a sufficient allowance for bad loans.
- Guangzhou Rural Commercial Bank has an acceptable level of bad loans (less than 2%).
Financial health checks
We assess Guangzhou Rural Commercial Bank's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Guangzhou Rural Commercial Bank has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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.
1551 Dividends
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
HK$2,000 of
Guangzhou Rural Commercial Bank
shares you are expected to receive
HK$96
in your first year as a dividend.
Dividend Amount
- Guangzhou Rural Commercial Bank's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
- Guangzhou Rural Commercial Bank's dividend is below the markets top 25% of dividend payers in Hong Kong (5.72%).
Upcoming dividend payment
Purchase Guangzhou Rural Commercial Bank before the 'Buy Limit' to receive their next dividend payment.
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.
| 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 0 Analyst Estimates (S&P Global) | See Below |
| Hong Kong Banks Industry Average Dividend Yield | Market Cap Weighted Average of 29 Stocks | 5.3% |
| Hong Kong Market Average Dividend Yield | Market Cap Weighted Average of 968 Stocks | 3.6% |
| Hong Kong Minimum Threshold Dividend Yield | 10th Percentile | 1.2% |
| Hong Kong Bottom 25% Dividend Yield | 25th Percentile | 2.1% |
| Hong Kong Top 25% Dividend Yield | 75th Percentile | 5.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in CN¥) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-03-28 | 0.200 | 4.833 |
| 2018-05-31 | 0.200 | 4.627 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- It is too early to tell whether Guangzhou Rural Commercial Bank has stable dividend payments.
- Guangzhou Rural Commercial Bank only just started paying a dividend, it is too early to tell if payments are increasing.
Income/ dividend checks
We assess Guangzhou Rural Commercial Bank's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Guangzhou Rural Commercial Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Guangzhou Rural Commercial Bank has a total score of 2/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
1551 Management
CEO
| COMPENSATION | CN¥1,150,000 |
| AGE | 51 |
| TENURE AS CEO | 5.8 years |
CEO Bio
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 Guangzhou Rural Credit Cooperative Union from March 2006 to October 2006, Deputy Director of Guangzhou Rural Credit Cooperative from October 2006 to December 2009 and Vice President of the Bank from December 2009 to July 2013. Prior to that, he had held a number of positions in China Construction Bank Corporation from March 1996 to March 2006, including Deputy Principal Staff Member, Deputy Section Chief, Assistant to Director and Deputy Director of general office and Deputy Chief of Funds and Finance Department of Guangzhou Branch from March 1996 to January 2000, Vice President of Foshan Branch from January 2000 to December 2001, Vice President of Dongguan Branch from December 2001 to April 2002, Deputy General Manager and General Manager of Financial Planning Department of Guangdong Branch from April 2002 to July 2005 and President of Shantou Branch from July 2005 to March 2006. He graduated from Jiangxi University of Finance and Economics (Jiangxi, China) in July 1993, majoring in commerce and economy, and obtained a master's degree in economics. He graduated from Sun Yat-sen University in December 2010, majoring in executive business administration, and obtained a master's degree in executive business administration. He obtained the qualification of intermediate economist accredited by Guangzhou Branch of China Construction Bank Corporation in July 1996. In addition, he obtained the title of "2015 Guangzhou Financial Senior Management Talent" awarded by Guangzhou Senior Financial Talent Evaluation Leading Team Office in November 2015, "First Prize in Business Flow Optimization and Reorganization of Commercial Banks Tellers" and "Second Prize in Management Accounting System with the Core of Full-cost and Multi-dimensional Profit Accounting for Small and Medium Banks" of the 24th Guangdong Enterprise Management Modernization Innovation Achievements awarded by Guangdong Enterprise Management Modernization Achievement Evaluation Committee in November 2014 and the title of "2013 Guangzhou Tianhe District Outstanding Talent (2013 )" awarded by Organization Department of Guangzhou Tianhe District Party Committee of the Communist Party of China in January 2014.
CEO Compensation
- Xuefei's compensation has been consistent with company performance over the past year, both up more than 20%.
- Xuefei's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure
Average tenure and age of the Guangzhou Rural Commercial Bank management team in years:
- The average tenure for the Guangzhou Rural Commercial Bank management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Jikang Wang
Chairman
CN¥1M
57
Xuefei Yi
Vice Chairman & President
CN¥1M
51
5.8 yrs
Bin Ding
Head of Financial Department
Huiran Cai
Chief Information Officer
0.3 yrs
Jiaxiong Lai
GM of Compliance & Legal Affairs Department and Supervisor
43
Jianming Chen
Vice President
57
9.4 yrs
Zhijun Peng
VP, Chief Risk Officer & Head of Finance Function
50
2.5 yrs
Linjun Chen
Business Director
46
5.6 yrs
Qianhong Chen
Business Director
45
5.6 yrs
Dong Zhang
Vice President
48
2.4 yrs
Board of Directors Tenure
Average tenure and age of the Guangzhou Rural Commercial Bank board of directors in years:
- The tenure for the Guangzhou Rural Commercial Bank board of directors is about average.
Board of Directors
Jikang Wang
Chairman
CN¥1M
57
5.8 yrs
Xuefei Yi
Vice Chairman & President
CN¥1M
51
4.1 yrs
Jiaxiong Lai
GM of Compliance & Legal Affairs Department and Supervisor
43
0.4 yrs
Guanghui Song
Independent Non-Executive Director
CN¥394K
57
5 yrs
Shaobo Liu
Independent Non-Executive Director
CN¥255K
58
5 yrs
Jianbiao Zheng
Independent Non-Executive Director
CN¥202K
54
5 yrs
Xigui Wang
Chairman of the Supervisory Board
52
0.4 yrs
Zhigang Su
Non-Executive Director
CN¥63K
60
9.4 yrs
Jianming Shao
Non-Executive Director
CN¥93K
55
9.4 yrs
Kelin Zhu
Non-Executive Director
CN¥105K
56
9.4 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (HK$) | Value (HK$) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Guangzhou Rural Commercial Bank's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Guangzhou Rural Commercial Bank 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.
1551 News
Simply Wall St News
Does Guangzhou Rural Commercial Bank Co., Ltd. (HKG:1551) Have A Place In Your Portfolio?
(HKG:1551) a good dividend stock? How would you know? A dividend paying company with growing earnings can be rewarding in the long term.. … In this case, Guangzhou Rural Commercial Bank pays a decent-sized 4.9% dividend yield, and has been distributing cash to shareholders for the past two years. … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1
Simply Wall St - – Full articleThree Understated Metrics For Guangzhou Rural Commercial Bank Co., Ltd. (HKG:1551) You Should Know
As a small-cap finance stock with a market capitalisation of HK$48b, the risk and profitability of Guangzhou Rural Commercial Bank Co., Ltd. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Guangzhou Rural Commercial Bank to vulnerabilities. … High liquidity and low leverage could position Guangzhou Rural Commercial Bank favourably at the face of macro headwinds.
Simply Wall St - – Full articleDo Insiders Own Lots Of Shares In Guangzhou Rural Commercial Bank Co., Ltd. (HKG:1551)?
Every investor in Guangzhou Rural Commercial Bank Co., Ltd. … Guangzhou Rural Commercial Bank is a pretty big company. … Check out our latest analysis for Guangzhou Rural Commercial Bank
Simply Wall St - – Full articleSome Guangzhou Rural Commercial Bank Shareholders Are Down 16%
During the unfortunate twelve months during which the Guangzhou Rural Commercial Bank share price fell, it actually saw its earnings per share (EPS) improve by 8.7%. … We don't see any weakness in the Guangzhou Rural Commercial Bank's dividend so the steady payout can't really explain the share price drop. … From what we can see, revenue is pretty flat, so that doesn't really explain the share price drop
Simply Wall St - – Full articleIs Guangzhou Rural Commercial Bank Co., Ltd. (HKG:1551) A Smart Choice For Dividend Investors?
Guangzhou Rural Commercial Bank Co., Ltd. … Let's dig deeper into whether Guangzhou Rural Commercial Bank should have a place in your portfolio. … See our latest analysis for Guangzhou Rural Commercial Bank?
Simply Wall St - – Full articleWhat Makes Guangzhou Rural Commercial Bank Co., Ltd. (HKG:1551) A Hard Investment?
Guangzhou Rural Commercial Bank Co., Ltd.’s (HKG:1551) profitability and risk are largely affected by the underlying economic growth for the region it operates in HK given it is a small-cap stock with a market capitalisation of HK$49b. … High liquidity and low leverage could position Guangzhou Rural Commercial Bank favourably at the face of macro headwinds. … Check out our latest analysis for Guangzhou Rural Commercial Bank
Simply Wall St - – Full articleRisk Factors To Consider Before Investing In Guangzhou Rural Commercial Bank Co Ltd (HKG:1551)
As a small-cap bank with a market capitalisation of HK$50b, Guangzhou Rural Commercial Bank Co Ltd’s (HKG:1551) profit and value are directly affected by economic activity. … Risk associate with repayment is measured by the level of bad debt which is an expense written off Guangzhou Rural Commercial Bank’s bottom line. … Today we will analyse Guangzhou Rural Commercial Bank’s level of bad debt and liabilities in order to understand the risk involved with investing in the bank.
Simply Wall St - – Full articleWhy These Fundamentals Make Guangzhou Rural Commercial Bank Co Ltd’s (HKG:1551) More Attractive
As a small-cap finance stock with a market capitalisation of HK$49.04b, the risk and profitability of Guangzhou Rural Commercial Bank Co Ltd (HKG:1551) are largely tied to the underlying economic growth of the region it operates in HK. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Guangzhou Rural Commercial Bank to vulnerabilities. … Low levels of leverage coupled with sufficient liquidity may place Guangzhou Rural Commercial Bank in a safe position in the face of adverse headwinds.
Simply Wall St - – Full articleReal Risks To Know Before Investing In Guangzhou Rural Commercial Bank Co Ltd (HKG:1551)
Guangzhou Rural Commercial Bank Co Ltd (HKG:1551) is a small-cap bank with a market capitalisation of CN¥50.02b. … Check out our latest analysis for Guangzhou Rural Commercial Bank … Does Guangzhou Rural Commercial Bank Understand Its Own Risks?
Simply Wall St - – Full articleShould You Be Tempted To Sell Guangzhou Rural Commercial Bank Co Ltd (HKG:1551) Because Of Its PE Ratio?
and want to better understand how you can grow your money by investing in Guangzhou Rural Commercial Bank Co Ltd (HKG:1551). … Guangzhou Rural Commercial Bank Co Ltd (HKG:1551) trades with a trailing P/E of 7.4x, which is higher than the industry average of 6.5x. … While 1551 might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions
Simply Wall St - – Full article1551 Company Info
Description
Guangzhou Rural Commercial Bank Co., Ltd. provides banking and related financial products and services. It operates through four segments: Corporate Banking, Retail Banking, Financial Market Business, and Others. The company offers personal deposits, including demand, call, time, and fixed deposits; personal cheques; personal consumption and mortgage loans; credit cards; and personal finance products. It also provides institutional call, agreement, time, and demand deposits; corporate financing and credit, such as house development, project, working capital, commercial property mortgage, and fixed asset project loans; international payment and remittance services; and intermediary, trade, and SME financing services. In addition, the company offers investment banking services; short, medium, and long term loans; and domestic and international settlements, and bill acceptance and discounting services. Further, it provides money market placements, investments and repurchasing, and foreign exchange transaction services; inter-bank placements; debit and credit cards; payment collection and insurance agency, safe locker, advisory, and attestation services; and agency services for issuing/redemption and underwriting of government bonds. Additionally, the company trades in government and financial bonds; engages in bill, fixed-income, wealth management, and institutional banking activities; and provides Internet, telephone, SMS, mobile, WeChat, self-service, and VTM banking services. As of December 31, 2018, it had a total of 631 outlets, including 619 outlets in Guangzhou; 5 branches in Foshan, Qingyuan, Heyuan, Zhaoquing, and Zhuhai, Guangdong province; and 2,170 automated teller machines, as well as 801 self-service inquiry terminals. The company was formerly known as Guangzhou Rural Credit Cooperative Unions and changed its name to Guangzhou Rural Commercial Bank Co., Ltd. The company was founded in 1951 and is headquartered in Guangzhou, the People’s Republic of China.
Details
| Name: | Guangzhou Rural Commercial Bank Co., Ltd. |
| 1551 | |
| Exchange: | SEHK |
| Founded: | 1951 |
| HK$46,393,110,189 | |
| 9,808,268,539 | |
| Website: | http://www.grcbank.com |
| Address: |
Guangzhou Rural Commercial Bank Co., Ltd. No.1 Huaxia Road, Pearl River New Town, Guangzhou, Guangdong Province, 510623, China |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| SEHK | 1551 | Foreign Shares-Foreign Listed | The Stock Exchange of Hong Kong Ltd. | HK | HKD | 20. Jun 2017 | |
| DB | 2GN | Foreign Shares-Foreign Listed | Deutsche Boerse AG | DE | EUR | 20. Jun 2017 |
Number of employees
Current staff
Industry
| Regional Banks | |
| Banks |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/20 13:05 |
| End of day share price update: | 2019/05/17 00:00 |
| Last earnings filing: | 2019/03/28 |
| 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.
