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 Analysis

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

Stable Share Price: 1578 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

1578

0.9%

HK Banks

0.6%

HK Market


1 Year Return

-27.7%

1578

-10.7%

HK Banks

-5.7%

HK Market

Return vs Industry: 1578 underperformed the Hong Kong Banks industry which returned -10.3% over the past year.

Return vs Market: 1578 underperformed the Hong Kong Market which returned -5.1% over the past year.


Shareholder returns

1578IndustryMarket
7 Day1.2%0.9%0.6%
30 Day0%-0.7%-0.8%
90 Day-3.2%-0.4%4.1%
1 Year-24.4%-27.7%-6.0%-10.7%-2.2%-5.7%
3 Year-25.5%-34.9%6.9%-7.8%13.8%2.3%
5 Yearn/a15.0%-11.8%14.8%-4.2%

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

Below Fair Value: 1578 (HK$3.28) is trading below our estimate of fair value (HK$8.43)

Significantly Below Fair Value: 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 (4x) compared to the Banks industry average (5.8x).

PE vs Market: 1578 is good value based on its PE Ratio (4x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

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?

5.8%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Bank of Tianjin has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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

Quality Earnings: 1578 has a high level of non-cash earnings.

Growing Profit Margin: 1578's current net profit margins (48.9%) are higher than last year (48.4%).


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 3.6%.


Return on Equity

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


Return on Assets


Return on Capital Employed


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?

5.97%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%2.3%markettop25%6.3%industryaverage5.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1578's dividend (6.09%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1578's dividend (6.09%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.28%).


Stability and Growth of Payments

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 4 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

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Liguo Sun (56yo)

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 ($USD49.16K) is below average for companies of similar size in the Hong Kong market ($USD563.35K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zongtang Li
Chairman of the Board3yrsCN¥461.00kno data
Liguo Sun
President & Executive Director0yrsCN¥344.00kno data
Furong Zhang
VP, Company Secretary & Executive Director5.2yrsCN¥431.00k0.0079% CN¥1.6m
Kian Chun
IR Manager0yrsno datano data
Wai Fung Ngai
Joint Company Secretary4.4yrsno datano data

4.4yrs

Average Tenure

57.5yo

Average Age

Experienced Management: 1578's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zongtang Li
Chairman of the Board3yrsCN¥461.00kno data
Liguo Sun
President & Executive Director0yrsCN¥344.00kno data
Furong Zhang
VP, Company Secretary & Executive Director5.2yrsCN¥431.00k0.0079% CN¥1.6m
Jia He
Independent Non-Executive Director1.7yrsCN¥120.00kno data
Alistair Marshall Bulloch
Non-Executive Director10.7yrsno datano data
Qingjun Jin
Independent Non-Executive Director3.2yrsCN¥207.00kno data
Yee Kwan Law
Independent Non-Executive Director4.3yrsCN¥207.00kno data
Wei Zhao
Non-Executive Director5.2yrsno datano data
Xia Feng
Chairwoman of the Board of Supervisors2.1yrsno datano data
Heping Feng
Independent Non-Executive Director5.2yrsCN¥207.00kno data

3.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 1578's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$19.911b
  • 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 Operations segments. The Corporate Banking segment offers deposit taking, corporate loan, trade financing, and other types of corporate intermediary services to corporations, government agencies, and financial institutions. The Personal Banking segment provides deposit products, personal loans, cards, personal wealth management services, and other types of personal intermediary services to individual customers. The Treasury Operations segment is involved in debt instruments investment activities; and offers money market, foreign exchange, precious metal, and derivatives transactions services. As at December 31, 2018, Bank of Tianjin Co., Ltd. had a total of 14 tier-one branches. The company was formerly known as Tianjin City Cooperative Bank Co., Ltd. and changed its name to Bank of Tianjin Co., Ltd. in February 2007. Bank of Tianjin Co., Ltd. was founded in 1996 and is headquartered in Tianjin, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 13:11
End of Day Share Price2020/02/21 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.