SEHK:1578

Stock Analysis Report

Executive Summary

Bank of Tianjin Co., Ltd. provides banking products and services primarily in Tianjin municipality, the People’s Republic of China.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Share Price & News

How has Bank of Tianjin's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

1578

4.0%

HK Banks

3.3%

HK Market


1 Year Return

-8.7%

1578

-3.0%

HK Banks

1.6%

HK Market

Return vs Industry: 1578 underperformed the Hong Kong Banks industry which returned -3% over the past year.

Return vs Market: 1578 underperformed the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

1578IndustryMarket
7 Day0%4.0%3.3%
30 Day-1.3%1.5%-0.009%
90 Day-8.3%-3.3%-5.1%
1 Year-4.6%-8.7%2.2%-3.0%5.3%1.6%
3 Year-35.1%-43.3%17.9%1.6%16.1%4.4%
5 Yearn/a30.9%0.3%20.4%0.3%

Price Volatility Vs. Market

How volatile is Bank of Tianjin's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bank of Tianjin 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: 1578 (HK$3.66) is trading below our estimate of fair value (HK$8.34)

Significantly Undervalued: 1578 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1578 is good value based on its PE Ratio (4.5x) compared to the Banks industry average (5.9x).

PE vs Market: 1578 is good value based on its PE Ratio (4.5x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1578's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1578 is good value based on its PB Ratio (0.4x) compared to the HK Banks industry average (0.5x).


Next Steps

Future Growth

How is Bank of Tianjin forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1578's forecast earnings growth (8.1% per year) is above the savings rate (2%).

Earnings vs Market: 1578's earnings (8.1% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 1578's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1578's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1578'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 1578's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Bank of Tianjin performed over the past 5 years?

-4.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1578's earnings have declined by -4% per year over the past 5 years.

Accelerating Growth: 1578's earnings growth over the past year (7.6%) exceeds its 5-year average (-4% per year).

Earnings vs Industry: 1578 earnings growth over the past year (7.6%) exceeded the Banks industry 5.2%.


Return on Equity

High ROE: 1578's Return on Equity (9.1%) is considered low.


Return on Assets

ROA vs Industry: 1578's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 1578's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Bank of Tianjin'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: 1578 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1578's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: 1578's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 1578 has a sufficient allowance for bad loans.

Low Risk Liabilities: 1578's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1578 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1578's loans are broadly funded by customer deposits.

Level of Bad Loans: 1578 has an appropriate level of bad loans (1.72%)


Next Steps

Dividend

What is Bank of Tianjin's current dividend yield, its reliability and sustainability?

5.45%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%2.3%markettop25%6.3%industryaverage5.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1578's dividend (5.45%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1578's dividend (5.45%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: Whilst dividend payments have been stable, 1578 has been paying a dividend for less than 10 years.

Growing Dividend: 1578's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.5%), 1578'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 Bank of Tianjin's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Liguo Sun (56yo)

0yrs

Tenure

CN¥344,000

Compensation

Mr. Liguo Sun has been the President of Bank of Tianjin Co., Ltd. since December 21, 2016. Mr. Sun served as Vice President of China Bohai Bank Co., Ltd. since December 2009 until June 18, 2015. Mr. Sun se ...


CEO Compensation Analysis

Compensation vs. Market: Liguo's total compensation ($USD48.61K) is too low to compare against companies of similar size in the Hong Kong market ($USD494.14K).

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


Management Age and Tenure

4.2yrs

Average Tenure

57yo

Average Age

Experienced Management: 1578's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 1578's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyCN¥1,012,102,39906 Dec 18
HNA Capital Holding Co., Ltd., Asset Management Arm
EntityCompany
Shares106,993,500
Max PriceCN¥9.46

Ownership Breakdown


Management Team

  • Maurice Ngai (57yo)

    Joint Company Secretary

    • Tenure: 4.1yrs
  • Liguo Sun (56yo)

    President & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥344.00k
  • Furong Zhang (58yo)

    VP, Company Secretary & Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥431.00k
  • Jianfa Liang (54yo)

    VP, CFO & Executive Director

    • Tenure: 1.4yrs
    • Compensation: CN¥666.38k
  • Zongtang Li (60yo)

    Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: CN¥461.00k
  • Kian Chun

    IR Manager

    • Tenure: 0yrs

Board Members

  • Jia He (65yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥120.00k
  • Alistair Marshall Bulloch (62yo)

    Non-Executive Director

    • Tenure: 10.3yrs
  • Qingjun Jin (62yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥207.00k
  • Quinn Law (66yo)

    Independent Non-Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥207.00k
  • Liguo Sun (56yo)

    President & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥344.00k
  • Xia Feng (47yo)

    Chairwoman of the Board of Supervisors

    • Tenure: 1.8yrs
  • Furong Zhang (58yo)

    VP, Company Secretary & Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥431.00k
  • Heping Feng (59yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥207.00k
  • Jianfa Liang (54yo)

    VP, CFO & Executive Director

    • Tenure: 1.4yrs
    • Compensation: CN¥666.38k
  • Zongtang Li (60yo)

    Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: CN¥461.00k

Company Information

Bank of Tianjin Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank of Tianjin Co., Ltd.
  • Ticker: 1578
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: HK$22.218b
  • Shares outstanding: 6.07b
  • Website: https://www.bankoftianjin.com

Number of Employees


Location

  • Bank of Tianjin Co., Ltd.
  • No. 15 Youyi Road
  • Hexi District
  • Tianjin
  • 300201
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1578SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMar 2016

Biography

Bank of Tianjin Co., Ltd. provides banking products and services primarily in Tianjin municipality, the People’s Republic of China. It operates through Corporate Banking, Personal Banking, and Treasury Ope ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:52
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.