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Guangzhou Rural Commercial Bank

SEHK:1551
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1551
SEHK
HK$46B
Market Cap
  1. Home
  2. HK
  3. Banks
Company description

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
-0.6%
SEHK:1551
-1.4%
HK Banks
-2.5%
HK Market
1 Year Returns
-9.2%
SEHK:1551
-18.1%
HK Banks
-15.9%
HK Market
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.
Price Volatility
Industry
5yr Volatility vs Market

1551 Value

 Is Guangzhou Rural Commercial Bank 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 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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Guangzhou Rural Commercial Bank.

SEHK:1551 Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for SEHK:1551
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.

SEHK:1551 Value of Excess Returns
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
SEHK:1551 Discount to Share Price
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
Amount off the current price Guangzhou Rural Commercial Bank is available for.
Intrinsic value
33%
Share price is HK$4.73 vs Future cash flow value of HK$7.02
Current Discount Checks
For Guangzhou Rural Commercial Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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?
Raw Data
SEHK:1551 PE (Price to Earnings) Ratio Data Sources
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.

SEHK:1551 PE (Price to Earnings) Ratio Calculation
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?
Raw Data
SEHK:1551 PEG (Price to Earnings to Growth) Ratio Data Sources
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?
Raw Data
SEHK:1551 PB (Price to Book) Ratio Data Sources
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
SEHK:1551 PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess Guangzhou Rural Commercial Bank'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. 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

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

  • 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!
Annual Growth Rate
3.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Guangzhou Rural Commercial Bank expected to grow at an attractive rate?
  • 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
Raw Data
SEHK:1551 Future Growth Rates Data Sources
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
Raw Data
SEHK:1551 Analysts Growth Expectations Data Sources
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 numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1551 Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Guangzhou Rural Commercial Bank's earnings are expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Guangzhou Rural Commercial Bank is high growth as no revenue estimate data is available.
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:1551 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.

SEHK:1551 Past Financials Data
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.
X
Future performance checks
We assess Guangzhou Rural Commercial Bank'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.
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
Below we compare Guangzhou Rural Commercial Bank'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.
  • 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
Guangzhou Rural Commercial Bank'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 Guangzhou Rural Commercial Bank Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1551 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 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.
X
Past performance checks
We assess Guangzhou Rural Commercial Bank'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.
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

 How is Guangzhou Rural Commercial Bank'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 Guangzhou Rural Commercial Bank'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 Guangzhou Rural Commercial Bank Company Filings, last reported 4 months ago.

SEHK:1551 Past Debt and Equity Data
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.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • 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%).
X
Financial health checks
We assess Guangzhou Rural Commercial Bank'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. Guangzhou Rural Commercial Bank 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.

1551 Dividends

 What is Guangzhou Rural Commercial Bank'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
4.8%
Current annual income from Guangzhou Rural Commercial Bank dividends.
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
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?
  • 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.

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:1551 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 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.

SEHK:1551 Past Annualized Dividends Data
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.
Current Payout to shareholders
What portion of Guangzhou Rural Commercial Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Guangzhou Rural Commercial Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - 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 Guangzhou Rural Commercial Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. 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

 What is the CEO of Guangzhou Rural Commercial Bank'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.
CEO
Xuefei Yi
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:

5.6
Average Tenure
49
Average Age
  • 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

TITLE
Chairman
COMPENSATION
CN¥1M
AGE
57

Xuefei Yi

TITLE
Vice Chairman & President
COMPENSATION
CN¥1M
AGE
51
TENURE
5.8 yrs

Bin Ding

TITLE
Head of Financial Department

Huiran Cai

TITLE
Chief Information Officer
TENURE
0.3 yrs

Jiaxiong Lai

TITLE
GM of Compliance & Legal Affairs Department and Supervisor
AGE
43

Jianming Chen

TITLE
Vice President
AGE
57
TENURE
9.4 yrs

Zhijun Peng

TITLE
VP, Chief Risk Officer & Head of Finance Function
AGE
50
TENURE
2.5 yrs

Linjun Chen

TITLE
Business Director
AGE
46
TENURE
5.6 yrs

Qianhong Chen

TITLE
Business Director
AGE
45
TENURE
5.6 yrs

Dong Zhang

TITLE
Vice President
AGE
48
TENURE
2.4 yrs
Board of Directors Tenure

Average tenure and age of the Guangzhou Rural Commercial Bank board of directors in years:

5
Average Tenure
55.5
Average Age
  • The tenure for the Guangzhou Rural Commercial Bank board of directors is about average.
Board of Directors

Jikang Wang

TITLE
Chairman
COMPENSATION
CN¥1M
AGE
57
TENURE
5.8 yrs

Xuefei Yi

TITLE
Vice Chairman & President
COMPENSATION
CN¥1M
AGE
51
TENURE
4.1 yrs

Jiaxiong Lai

TITLE
GM of Compliance & Legal Affairs Department and Supervisor
AGE
43
TENURE
0.4 yrs

Guanghui Song

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥394K
AGE
57
TENURE
5 yrs

Shaobo Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥255K
AGE
58
TENURE
5 yrs

Jianbiao Zheng

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥202K
AGE
54
TENURE
5 yrs

Xigui Wang

TITLE
Chairman of the Supervisory Board
AGE
52
TENURE
0.4 yrs

Zhigang Su

TITLE
Non-Executive Director
COMPENSATION
CN¥63K
AGE
60
TENURE
9.4 yrs

Jianming Shao

TITLE
Non-Executive Director
COMPENSATION
CN¥93K
AGE
55
TENURE
9.4 yrs

Kelin Zhu

TITLE
Non-Executive Director
COMPENSATION
CN¥105K
AGE
56
TENURE
9.4 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$) Value (HK$)
X
Management checks
We assess Guangzhou Rural Commercial Bank'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. 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 -

Three 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 -

Do 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 -

Some 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 -

Is 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 -

What 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 -

Risk 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 -

Why 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 -

Real 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 -

Should 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 -

1551 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
Staff numbers
0
Guangzhou Rural Commercial Bank employees.
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.