SEHK:1551

Stock Analysis Report

Guangzhou Rural Commercial Bank

Executive Summary

Guangzhou Rural Commercial Bank Co., Ltd.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-2.2%

1551

3.9%

HK Banks

3.1%

HK Market


1 Year Return

-27.6%

1551

-3.7%

HK Banks

0.5%

HK Market

Return vs Industry: 1551 underperformed the Hong Kong Banks industry which returned -3.7% over the past year.

Return vs Market: 1551 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

1551IndustryMarket
7 Day-2.2%3.9%3.1%
30 Day-8.4%-0.3%-1.8%
90 Day-16.2%-3.0%-4.8%
1 Year-23.9%-27.6%1.4%-3.7%4.1%0.5%
3 Yearn/a17.8%1.4%15.8%4.2%
5 Yearn/a30.9%0.3%18.9%-0.9%

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

Undervalued: 1551 (HK$3.62) is trading below our estimate of fair value (HK$8.05)

Significantly Undervalued: 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 (4.7x) compared to the Banks industry average (5.8x).

PE vs Market: 1551 is good value based on its PE Ratio (4.7x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low 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 is overvalued based on its PB Ratio (0.6x) compared to the HK Banks industry average (0.5x).


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?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1551's forecast earnings growth (5.7% per year) is above the savings rate (2%).

Earnings vs Market: 1551's earnings (5.7% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 1551's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1551's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1551's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 1551's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

6.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1551's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: 1551's earnings growth over the past year (6.1%) is below its 5-year average (6.8% per year).

Earnings vs Industry: 1551 earnings growth over the past year (6.1%) exceeded the Banks industry 5.2%.


Return on Equity

High ROE: 1551's Return on Equity (10.2%) is considered low.


Return on Assets

ROA vs Industry: 1551 has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 1551's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: 1551 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1551's debt is covered by short term assets (assets are 2.661920x debt).


Financial Institutions Analysis

Asset Level: 1551's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 1551 has a sufficient allowance for bad loans.

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

Loan Level: 1551 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1551's loans are broadly funded by customer deposits.

Level of Bad Loans: 1551 has an appropriate level of bad loans (1.4%)


Next Steps

Dividend

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

6.11%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%2.3%markettop25%6.3%industryaverage5.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1551's dividend (6.11%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1551's dividend (6.11%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: Too early to tell whether 1551's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1551's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.9%), 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

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

5.3yrs

Average management tenure


CEO

Xuefei Yi (52yo)

6.3yrs

Tenure

CN¥1,150,000

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: Insufficient data to establish whether Xuefei's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Management Age and Tenure

5.3yrs

Average Tenure

48yo

Average Age

Experienced Management: 1551's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

56yo

Average Age

Experienced Board: 1551's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Xuefei Yi (52yo)

    Vice Chairman & President

    • Tenure: 6.3yrs
    • Compensation: CN¥1.15m
  • Jianming Chen (58yo)

    Vice President

    • Tenure: 9.8yrs
  • Zhijun Peng (51yo)

    VP, Chief Risk Officer & Head of Finance Function

    • Tenure: 2.9yrs
  • Linjun Chen (47yo)

    Business Director

    • Tenure: 6yrs
  • Qianhong Chen (46yo)

    Business Director

    • Tenure: 6yrs
  • Dong Zhang (49yo)

    Vice President

    • Tenure: 2.8yrs
  • Xuan Yang (43yo)

    Business Director

    • Tenure: 4.7yrs
  • Bin Ding

    Head of Financial Department

    • Tenure: 0yrs
  • Jiaxiong Lai (44yo)

    GM of Compliance & Legal Affairs Department and Supervisor

    • Tenure: 0.8yrs
  • Huiran Cai

    Chief Information Officer

    • Tenure: 0.7yrs

Board Members

  • Shaobo Liu (59yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥255.00k
  • Xigui Wang (53yo)

    Chairman of the Supervisory Board

    • Tenure: 0.8yrs
  • Zhigang Su (61yo)

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: CN¥63.00k
  • Kelin Zhu (57yo)

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: CN¥105.00k
  • Xuefei Yi (52yo)

    Vice Chairman & President

    • Tenure: 6.3yrs
    • Compensation: CN¥1.15m
  • Fangjin Li (57yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥93.00k
  • Yongming Zhang (47yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥93.00k
  • Jianbiao Zheng (55yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥202.00k
  • Guanghui Song (58yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥394.00k
  • Jiaxiong Lai (44yo)

    GM of Compliance & Legal Affairs Department and Supervisor

    • Tenure: 0.8yrs

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$35.506b
  • Shares outstanding: 9.81b
  • Website: https://www.grcbank.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1551SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 2017

Biography

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:56
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.