Postal Savings Bank of China SEHK:1658 Stock Report
Last Price
HK$6.11
Market Cap
HK$568.4b
7D
3.9%
1Y
16.8%
Updated
29 Jun, 2022
Data
Company Financials +
1658 fundamental analysis
Snowflake Score
Valuation
4/6
Future Growth
2/6
Past Performance
5/6
Financial Health
6/6
Dividends
3/6
1658 Stock Overview
Postal Savings Bank of China Co., Ltd., together with its subsidiaries, provides various banking products and services for retail and corporate customers in the People’s Republic of China.
Postal Savings Bank of China Co., Ltd., together with its subsidiaries, provides various banking products and services for retail and corporate customers in the People’s Republic of China. Its Personal Banking segment offers savings products, such as demand, time, personal call, time/demand optional, and foreign currency deposits; passbooks; certificate of deposits; micro, personal pledged, and personal business loans; debit and credit cards; wealth management products and funds; and insurance agency services. This segment is also involved in distribution of fund products, electronic bonds, and precious metals; and provides payment and collection agency, various settlement, domestic remittance and exchange, cross-border remittance, personal exchange settlement and sale, and foreign currency exchange services.
Postal Savings Bank of China Fundamentals Summary
How do Postal Savings Bank of China's earnings and revenue compare to its market cap?
Is 1658 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 1658?
Other financial metrics that can be useful for relative valuation.
The above table shows the n/a ratio for 1658. This is calculated by dividing 1658's market cap by their current
preferred multiple.
What is 1658's n/a Ratio?
n/a Ratio
0x
n/a
n/a
Market Cap
CN¥485.79b
1658 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Price-To-Earnings vs Industry: 1658 is expensive based on its Price-To-Earnings Ratio (6.5x) compared to the Hong Kong Banks industry average (5.6x)
Price to Earnings Ratio vs Fair Ratio
What is 1658's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
1658 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
6.5x
Fair PE Ratio
6.3x
Price-To-Earnings vs Fair Ratio: 1658 is expensive based on its Price-To-Earnings Ratio (6.5x) compared to the estimated Fair Price-To-Earnings Ratio (6.3x).
Share Price vs Fair Value
What is the Fair Price of 1658 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 1658 (HK$6.11) is trading below our estimate of fair value (HK$19.48)
Significantly Below Fair Value: 1658 is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: 1658 is good value based on its PEG Ratio (0.5x)
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Future Growth
How is Postal Savings Bank of China forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Future Growth Score
2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
13.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1658's forecast earnings growth (13.6% per year) is above the savings rate (1.5%).
Earnings vs Market: 1658's earnings (13.6% per year) are forecast to grow slower than the Hong Kong market (17.2% per year).
High Growth Earnings: 1658's earnings are forecast to grow, but not significantly.
Revenue vs Market: 1658's revenue (10.5% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).
High Growth Revenue: 1658's revenue (10.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1658's Return on Equity is forecast to be low in 3 years time (13.1%).
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Past Performance
How has Postal Savings Bank of China performed over the past 5 years?
Past Performance Score
5/6
Past Performance Score 5/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
10.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1658 has high quality earnings.
Growing Profit Margin: 1658's current net profit margins (26.6%) are higher than last year (26.1%).
Past Earnings Growth Analysis
Earnings Trend: 1658's earnings have grown by 10.3% per year over the past 5 years.
Accelerating Growth: 1658's earnings growth over the past year (19%) exceeds its 5-year average (10.3% per year).
Earnings vs Industry: 1658 earnings growth over the past year (19%) exceeded the Banks industry 11.4%.
Return on Equity
High ROE: 1658's Return on Equity (9.5%) is considered low.
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Financial Health
How is Postal Savings Bank of China's financial position? (This company is analysed differently as a bank or financial institution)
Financial Health Score
6/6
Financial Health Score 6/6
Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: 1658's Assets to Equity ratio (15.7x) is moderate.
Allowance for Bad Loans: 1658 has a sufficientallowance for bad loans (409%).
Low Risk Liabilities: 97% of 1658's liabilities are made up of primarily low risk sources of funding.
Loan Level: 1658 has an appropriate level of Loans to Assets ratio (50%).
Low Risk Deposits: 1658's Loans to Deposits ratio (55%) is appropriate.
Level of Bad Loans: 1658 has an appropriate level of bad loans (0.8%).
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Dividend
What is Postal Savings Bank of China current dividend yield, its reliability and sustainability?
Dividend Score
3/6
Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
4.74%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 1658's dividend (4.74%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.7%).
High Dividend: 1658's dividend (4.74%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.69%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 1658 has been paying a dividend for less than 10 years.
Growing Dividend: 1658's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (30.8%), 1658's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1658's dividends in 3 years are forecast to be well covered by earnings (30.7% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Jianjun Liu (56 yo)
0.83
Tenure
Mr. Jianjun Liu serves as Vice President and Member of the leading party members' group of China Post Group Co. Ltd. He serves as President and Executive Director at Postal Savings Bank of China Co., Ltd....
Leadership Team
Experienced Management: 1658's management team is considered experienced (2.3 years average tenure).
Board Members
Experienced Board: 1658's board of directors are considered experienced (4.7 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
Postal Savings Bank of China Co., Ltd.'s employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/06/29 00:00
End of Day Share Price
2022/06/29 00:00
Earnings
2022/03/31
Annual Earnings
2021/12/31
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.