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.

Risks

  • Guangzhou Rural Commercial Bank is not covered by any analysts.

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

0%

SEHK:1551

0.4%

HK Banks

1.2%

HK Market


1 Year Return

-19.3%

SEHK:1551

-14.4%

HK Banks

-9.5%

HK Market

1551 underperformed the Banks industry which returned -14.4% over the past year.

1551 underperformed the Market in Hong Kong which returned -9.8% over the past year.


Share holder returns

1551IndustryMarket
7 Day0%0.4%1.2%
30 Day-10.2%-8.8%-8.0%
90 Day-18.0%-10.9%-5.9%
1 Year-15.2%-19.3%-9.9%-14.4%-6.2%-9.5%
3 Yearn/a11.5%-4.3%14.5%3.1%
5 Yearn/a18.5%-9.2%8.5%-9.5%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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, and at a substantial discount (> 40%).


Price Based on Earnings

Guangzhou Rural Commercial Bank is good value 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

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

Guangzhou Rural Commercial Bank is overvalued based on assets compared to the HK Banks industry average.


Next Steps

Future Growth

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

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Guangzhou Rural Commercial Bank is high growth as no revenue estimate data is available.

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 compare Guangzhou Rural Commercial Bank's revenue growth to the Hong Kong market average as no estimate data is available.

Guangzhou Rural Commercial Bank's earnings growth is positive but not above the Hong Kong market average.

Guangzhou Rural Commercial Bank's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Guangzhou Rural Commercial Bank will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

5.8%

Historical annual earnings growth


Earnings and Revenue History


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 5.3%).


Return on Equity

Guangzhou Rural Commercial Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Guangzhou Rural Commercial Bank used its assets more efficiently than the HK Banks industry average last year based on Return on Assets.


Return on Capital Employed

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.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Guangzhou Rural Commercial Bank has an acceptable proportion of non-loan assets held.

Guangzhou Rural Commercial Bank has a sufficient allowance for bad loans.

Guangzhou Rural Commercial Bank's liabilities are made up of primarily low risk sources of funding.

Guangzhou Rural Commercial Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Guangzhou Rural Commercial Bank are broadly funded by customer deposits.

Guangzhou Rural Commercial Bank has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

5.74%

Current Dividend Yield


Dividend Yield and Payments Analysis

Guangzhou Rural Commercial Bank's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.3%).

Guangzhou Rural Commercial Bank's dividend is below the markets top 25% of dividend payers in Hong Kong (6.25%).

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

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.


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?

5.2yrs

Average management tenure


CEO

Xuefei Yi (52yo)

6.1yrs

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

Xuefei's remuneration is lower than average for companies of similar size in Hong Kong.

Xuefei's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.2yrs

Average Tenure

48yo

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.


Board Age and Tenure

5.3yrs

Average Tenure

56yo

Average Age

The tenure for the Guangzhou Rural Commercial Bank board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Xuefei Yi (52yo)

    Vice Chairman & President

    • Tenure: 6.1yrs
    • Compensation: CN¥1.15m
  • Jianming Chen (58yo)

    Vice President

    • Tenure: 9.7yrs
  • Zhijun Peng (51yo)

    VP, Chief Risk Officer & Head of Finance Function

    • Tenure: 2.8yrs
  • Linjun Chen (47yo)

    Business Director

    • Tenure: 5.8yrs
  • Qianhong Chen (46yo)

    Business Director

    • Tenure: 5.8yrs
  • Dong Zhang (49yo)

    Vice President

    • Tenure: 2.7yrs
  • Xuan Yang (43yo)

    Business Director

    • Tenure: 4.5yrs
  • Bin Ding

    Head of Financial Department

    • Tenure: 0.0yrs
  • Jiaxiong Lai (44yo)

    GM of Compliance & Legal Affairs Department and Supervisor

    • Tenure: 0.7yrs
  • Huiran Cai

    Chief Information Officer

    • Tenure: 0.5yrs

Board Members

  • Shaobo Liu (59yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥255.00k
  • Xigui Wang (53yo)

    Chairman of the Supervisory Board

    • Tenure: 0.7yrs
  • Zhigang Su (61yo)

    Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: CN¥63.00k
  • Kelin Zhu (57yo)

    Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: CN¥105.00k
  • Xuefei Yi (52yo)

    Vice Chairman & President

    • Tenure: 6.1yrs
    • Compensation: CN¥1.15m
  • Fangjin Li (57yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥93.00k
  • Yongming Zhang (47yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥93.00k
  • Jianbiao Zheng (55yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥202.00k
  • Guanghui Song (58yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥394.00k
  • Jiaxiong Lai (44yo)

    GM of Compliance & Legal Affairs Department and Supervisor

    • Tenure: 0.7yrs

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$38.056b
  • 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 Analysis2019/08/19 13:04
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
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.