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Postal Savings Bank of China

SEHK:1658
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1658
SEHK
HK$382B
Market Cap
  1. Home
  2. HK
  3. Banks
Company description

Postal Savings Bank of China Co., Ltd. provides various banking products and services for retail and corporate customers in the People’s Republic of China. The last earnings update was 24 days ago. More info.


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1658 Share Price and Events
7 Day Returns
3.7%
SEHK:1658
2.4%
HK Banks
0.5%
HK Market
1 Year Returns
-8.5%
SEHK:1658
-11.3%
HK Banks
-6.1%
HK Market
1658 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Postal Savings Bank of China (1658) 3.7% -1.9% 12.6% -8.5% - -
HK Banks 2.4% 0% 6.4% -11.3% 27.4% 23.5%
HK Market 0.5% 1.1% 11.2% -6.1% 25.9% 19.4%
1 Year Return vs Industry and Market
  • 1658 outperformed the Banks industry which returned -11.3% over the past year.
  • 1658 underperformed the Market in Hong Kong which returned -6.1% over the past year.
Price Volatility
1658
Industry
5yr Volatility vs Market

Value

 Is Postal Savings Bank of China undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Postal Savings Bank of China to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Postal Savings Bank of China.

SEHK:1658 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 10 analysts.
= Stable Book Value * Return on Equity
= CN¥6.43 * 12.6%
CN¥0.81
Book Value of Equity per Share Weighted future Book Value estimates from 9 analysts. CN¥6.43
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1658
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.593 (1 + (1- 25%) (78.7%))
0.962
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.962 * 5.96%)
7.73%

Discounted Cash Flow Calculation for SEHK:1658 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Postal Savings Bank of China is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:1658 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.6% – 7.73%) * CN¥6.43)
CN¥0.32
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥0.32 / (7.73% - 2%)
CN¥5.50
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥6.43 + CN¥5.50
CN¥11.93
SEHK:1658 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1658)
1.169
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥11.93 x 1.169
HK$13.95
Value per share (HKD) From above. HK$13.95
Current discount Discount to share price of HK$4.72
= -1 x (HK$4.72 - HK$13.95) / HK$13.95
66.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Postal Savings Bank of China is available for.
Intrinsic value
>50%
Share price is HK$4.72 vs Future cash flow value of HK$13.95
Current Discount Checks
For Postal Savings Bank of China to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Postal Savings Bank of China's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Postal Savings Bank of China's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Postal Savings Bank of China's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Postal Savings Bank of China's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1658 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.62
SEHK:1658 Share Price ** SEHK (2019-04-18) in HKD HK$4.72
SEHK:1658 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.855 CN¥4.04
Hong Kong Banks Industry PE Ratio Median Figure of 31 Publicly-Listed Banks Companies 6.22x
Hong Kong Market PE Ratio Median Figure of 1,474 Publicly-Listed Companies 12x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Postal Savings Bank of China.

SEHK:1658 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1658 Share Price ÷ EPS (both in CNY)

= 4.04 ÷ 0.62

6.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Postal Savings Bank of China is overvalued based on earnings compared to the HK Banks industry average.
  • Postal Savings Bank of China is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Postal Savings Bank of China's expected growth come at a high price?
Raw Data
SEHK:1658 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
11.7%per year
Hong Kong Banks Industry PEG Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.85x
Hong Kong Market PEG Ratio Median Figure of 462 Publicly-Listed Companies 0.86x

*Line of best fit is calculated by linear regression .

SEHK:1658 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.55x ÷ 11.7%

0.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Postal Savings Bank of China is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Postal Savings Bank of China's assets?
Raw Data
SEHK:1658 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥5.26
SEHK:1658 Share Price * SEHK (2019-04-18) in HKD HK$4.72
SEHK:1658 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.855 CN¥4.04
Hong Kong Banks Industry PB Ratio Median Figure of 31 Publicly-Listed Banks Companies 0.75x
Hong Kong Market PB Ratio Median Figure of 2,149 Publicly-Listed Companies 1.03x
SEHK:1658 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1658 Share Price ÷ Book Value per Share (both in CNY)

= 4.04 ÷ 5.26

0.77x

* Primary Listing of Postal Savings Bank of China.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Postal Savings Bank of China is overvalued based on assets compared to the HK Banks industry average.
X
Value checks
We assess Postal Savings Bank of China's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Postal Savings Bank of China has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Postal Savings Bank of China expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Postal Savings Bank of China expected to grow at an attractive rate?
  • Postal Savings Bank of China's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Postal Savings Bank of China's earnings growth is expected to exceed the Hong Kong market average.
  • Postal Savings Bank of China's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1658 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1658 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 11.7%
SEHK:1658 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 15.6%
Hong Kong Banks Industry Earnings Growth Rate Market Cap Weighted Average 6.3%
Hong Kong Banks Industry Revenue Growth Rate Market Cap Weighted Average 14.3%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 11.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1658 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1658 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 336,500 72,153 5
2020-12-31 307,454 62,970 11
2019-12-31 283,808 57,475 13
SEHK:1658 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 205,831 -311,627 49,920
2018-09-30 213,438 -305,738 53,924
2018-06-30 211,557 -445,254 51,215
2018-03-31 204,447 -1,066,920 50,392
2017-12-31 198,127 -942,463 47,683
2017-09-30 185,997 -1,255,674 45,655
2017-06-30 179,985 -1,211,123 43,172
2017-03-31 175,194 -1,116,889 41,105
2016-12-31 172,700 -951,176 39,801
2016-09-30 172,637 38,564
2016-06-30 169,482 184,034 37,134
2016-03-31 167,760 377,333 36,095

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Postal Savings Bank of China's earnings are expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).
  • Postal Savings Bank of China's revenue is expected to grow by 15.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1658 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Postal Savings Bank of China Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1658 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.89 0.99 0.79 5.00
2020-12-31 0.76 0.85 0.68 10.00
2019-12-31 0.69 0.77 0.65 12.00
SEHK:1658 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.62
2018-09-30 0.64
2018-06-30 0.63
2018-03-31 0.62
2017-12-31 0.59
2017-09-30 0.57
2017-06-30 0.55
2017-03-31 0.55
2016-12-31 0.55
2016-09-30 0.55
2016-06-30 0.59
2016-03-31 0.60

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Postal Savings Bank of China is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Postal Savings Bank of China's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Postal Savings Bank of China has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Postal Savings Bank of China performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Postal Savings Bank of China's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Postal Savings Bank of China's year on year earnings growth rate has been positive over the past 5 years.
  • Postal Savings Bank of China's 1-year earnings growth is less than its 5-year average (4.7% vs 12.1%)
  • Postal Savings Bank of China's earnings growth has not exceeded the HK Banks industry average in the past year (4.7% vs 5.2%).
Earnings and Revenue History
Postal Savings Bank of China's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Postal Savings Bank of China Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1658 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 205,831.00 49,920.00 49,559.00
2018-09-30 213,438.00 53,924.00 46,420.00
2018-06-30 211,557.00 51,215.00 49,340.00
2018-03-31 204,447.00 50,392.00 46,420.00
2017-12-31 198,127.00 47,683.00 46,420.00
2017-09-30 185,997.00 45,655.00 41,329.00
2017-06-30 179,985.00 43,172.00 43,409.00
2017-03-31 175,194.00 41,105.00 41,329.00
2016-12-31 172,700.00 39,801.00 41,329.00
2016-09-30 172,637.15 38,564.43 -41,911.31
2016-06-30 169,482.00 37,134.00 39,991.00
2016-03-31 167,760.00 36,095.00 29,624.00
2015-12-31 164,998.00 34,859.00 39,010.00
2014-12-31 153,463.00 32,567.00 33,733.00
2013-12-31 136,560.00 29,668.00 28,245.00
2012-12-31 120,966.00 28,371.00 82,409.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Postal Savings Bank of China has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Postal Savings Bank of China used its assets less efficiently than the HK Banks industry average last year based on Return on Assets.
  • Unable to establish if Postal Savings Bank of China improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Postal Savings Bank of China's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Postal Savings Bank of China has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Postal Savings Bank of China's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Postal Savings Bank of China's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Postal Savings Bank of China Company Filings, last reported 3 months ago.

SEHK:1658 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 475,313.00 257,381.00 868,474.00
2018-09-30 469,936.00 294,309.00 2,424,019.00
2018-06-30 453,498.00 298,208.00 1,001,246.00
2018-03-31 449,102.00 126,629.00 2,786,487.00
2017-12-31 431,357.00 270,308.00 939,926.00
2017-09-30 426,244.00 216,622.00 2,113,975.00
2017-06-30 364,782.00 168,479.00 769,217.00
2017-03-31 360,143.00 104,596.00 2,061,072.00
2016-12-31 346,888.00 205,294.00 618,011.00
2016-09-30
2016-06-30 283,674.00 348,661.00 896,678.00
2016-03-31 273,804.00 376,278.00 1,054,265.00
2015-12-31 270,831.00 491,688.00 764,719.00
2014-12-31 187,909.00 134,714.00 1,638,615.00
2013-12-31 141,047.00 88,282.00 1,712,096.00
2012-12-31 114,869.00 19,505.00 1,545,647.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Postal Savings Bank of China has an acceptable proportion of non-loan assets held.
  • Postal Savings Bank of China's liabilities are made up of primarily low risk sources of funding.
  • Loans at Postal Savings Bank of China are broadly funded by customer deposits.
  • Postal Savings Bank of China's level of assets compared to its equity is very high (i.e. bank has borrowed heavily to fund lending).
  • Postal Savings Bank of China has a sufficient allowance for bad loans.
  • Postal Savings Bank of China has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Postal Savings Bank of China's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Postal Savings Bank of China has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Postal Savings Bank of China's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.8%
Current annual income from Postal Savings Bank of China dividends. Estimated to be 4.66% next year.
If you bought HK$2,000 of Postal Savings Bank of China shares you are expected to receive HK$96 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Postal Savings Bank of China's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.94%).
  • Postal Savings Bank of China's dividend is below the markets top 25% of dividend payers in Hong Kong (5.34%).
Upcoming dividend payment

Purchase Postal Savings Bank of China before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1658 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Hong Kong Banks Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 5%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 965 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 1.9%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1658 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.21 4.00
2020-12-31 0.19 12.00
2019-12-31 0.18 10.00
SEHK:1658 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-26 0.194 4.923
2018-03-27 0.147 3.570
2017-03-24 0.074 1.872

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Postal Savings Bank of China has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Postal Savings Bank of China only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Postal Savings Bank of China's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).
X
Income/ dividend checks
We assess Postal Savings Bank of China's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Postal Savings Bank of China afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Postal Savings Bank of China has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Postal Savings Bank of China's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Xuewen Zhang
COMPENSATION CN¥634,500
AGE 56
TENURE AS CEO 0.3 years
CEO Bio

Mr. Xuewen Zhang has been Chairman and President at Postal Savings Bank of China Co., Ltd. since January 4, 2019. He had been Vice President of Postal Savings Bank of China Co., Ltd. since December 2012 and serves as its Director since December 2012. Mr. Zhang served as a Deputy Director of the internal trade division II of the trade finance department of the MOF from September 1995 to July 1998 and Deputy Director of the grain division of the economy and Trade Department of the MOF from July 1998 to June 2000. He served as a Deputy Director and the Director of the grain division of the economic development department of the MOF from June 2000 to July 2004 and Deputy Director General of the economic development department of the MOF from July 2004 to December 2012. Mr. Zhang serves as a Deputy Chairman of the Rural Social Insurance Commission of China Social Insurance Association and Deputy Chairman of the Banking Accounting Society of China. He was qualified as a senior economist granted by the Professional and Technical Positions Qualification Evaluation Commission of the MOF in January 2014. Mr. Zhang obtained a bachelor’s degree in economics from Zhongnan University of Finance and Economics in July 1986, a Doctor’s Degree in economics from Dongbei University of Finance and Economics in June 2012.

CEO Compensation
  • Xuewen's compensation has been consistent with company performance over the past year.
  • Xuewen's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Postal Savings Bank of China management team in years:

2.3
Average Tenure
52
Average Age
  • The tenure for the Postal Savings Bank of China management team is about average.
Management Team

Xuewen Zhang

TITLE
Chairman & President
COMPENSATION
CN¥635K
AGE
56
TENURE
0.3 yrs

Xueming Xu

TITLE
Vice President
COMPENSATION
CN¥608K
AGE
51

Jiawen Qu

TITLE
Vice President
COMPENSATION
CN¥610K
AGE
55

Hong Yao

TITLE
VP & Executive Director
COMPENSATION
CN¥610K
AGE
52
TENURE
12.1 yrs

Chunye Du

TITLE
Secretary to the Board of Directors & Joint Company Secretary
COMPENSATION
CN¥537K
AGE
41
TENURE
2.3 yrs

Hucheng Liu

TITLE
Secretary to the Party Discipline Committee
COMPENSATION
CN¥584K
AGE
52
TENURE
2.3 yrs

Maurice Ngai

TITLE
Joint Company Secretary
AGE
56
TENURE
3.1 yrs
Board of Directors Tenure

Average tenure and age of the Postal Savings Bank of China board of directors in years:

2.9
Average Tenure
54.5
Average Age
  • The average tenure for the Postal Savings Bank of China board of directors is less than 3 years, this suggests a new board.
Board of Directors

Hong Yao

TITLE
VP & Executive Director
COMPENSATION
CN¥610K
AGE
52
TENURE
2.9 yrs

Weihua Ma

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥450K
AGE
70
TENURE
5.3 yrs

Xuewen Zhang

TITLE
Chairman & President
COMPENSATION
CN¥635K
AGE
56
TENURE
0.3 yrs

Peizhong Gan

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥300K
AGE
61
TENURE
2.9 yrs

Yuejun Chen

TITLE
Chairman of the Board of Supervisors
AGE
53
TENURE
6.3 yrs

Wenbo Han

TITLE
Non-Executive Director
COMPENSATION
CN¥530K
AGE
52
TENURE
2.1 yrs

Jian Tang

TITLE
Non-Executive Director
COMPENSATION
CN¥579K
AGE
58
TENURE
6.3 yrs

David Chin

TITLE
Non-Executive Director
COMPENSATION
CN¥464K
AGE
50
TENURE
2.9 yrs

Zhonghua Bi

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥300K
AGE
66
TENURE
5.3 yrs

Tingmei Fu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥300K
AGE
51
TENURE
2.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
08. Apr 19 Sell UBS Asset Management Company 02. Apr 19 02. Apr 19 -3,973,000 HK$4.49 HK$-17,838,759
22. Mar 19 Sell UBS Asset Management Company 19. Mar 19 19. Mar 19 -17,426,000 HK$4.80 HK$-83,684,929
07. Mar 19 Sell UBS Asset Management Company 04. Mar 19 04. Mar 19 -33,853,000 HK$4.70 HK$-159,193,646
11. Feb 19 Sell UBS Asset Management Company 01. Feb 19 01. Feb 19 -3,000,000 HK$4.36 HK$-13,093,206
30. Nov 18 Buy CSIC Investment One Limited Company 19. Oct 18 19. Oct 18 4,080,000 HK$4.63 HK$18,907,135
25. Jun 18 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 20. Jun 18 20. Jun 18 374,000 HK$5.31 HK$1,985,191
X
Management checks
We assess Postal Savings Bank of China's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Postal Savings Bank of China has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Do Analysts See Postal Savings Bank of China Co., Ltd. (HKG:1658) Performing In The Year Ahead?

As Postal Savings Bank of China Co., Ltd. … (HKG:1658) announced its earnings release on 31 December 2018, … the past 5-year average growth rate of 12%.

Simply Wall St -

Postal Savings Bank of China Co., Ltd. (HKG:1658): What Are The Future Prospects?

In December 2018, Postal Savings Bank of China Co., Ltd. … (HKG:1658) announced its most recent earnings update, whicha

Simply Wall St -

How Does Postal Savings Bank of China Co., Ltd. (HKG:1658) Fare As A Dividend Stock?

Postal Savings Bank of China Co., Ltd. … Let's take a look at Postal Savings Bank of China in more detail. … See our latest analysis for Postal Savings Bank of China

Simply Wall St -

Is Postal Savings Bank of China Co., Ltd.'s (HKG:1658) Future Growth Already Accounted For In Today's Price?

See our latest analysis for Postal Savings Bank of China? … What can we expect from Postal Savings Bank of China in the future. … According to the analysts covering the company, the following few years should bring about good growth prospects for Postal Savings Bank of China

Simply Wall St -

What You Should Know About Postal Savings Bank of China Co., Ltd.’s (HKG:1658) Liquidity

As these large financial institutions revert back to health after the Global Financial Crisis, we are seeing an increase in market confidence, and understanding of, these “too-big-to-fail” banking stocks. … The recovery brought about a new set of reforms, Basel III, which was created to improve regulation, supervision and risk management in the financial services industry. … We should we cautious when it comes to investing in financial stocks due to the various risks large banks tend to face.

Simply Wall St -

Is Now An Opportune Moment To Examine Postal Savings Bank of China Co., Ltd. (HKG:1658)?

Postal Savings Bank of China Co., Ltd. … A question to answer is whether Postal Savings Bank of China's current trading price of HK$4.14 reflective of the actual value of the? … Let’s take a look at Postal Savings Bank of China’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Is Postal Savings Bank of China Co., Ltd. (HKG:1658) Over-Exposed To Risk?

As a HK$357b market capitalisation bank, Postal Savings Bank of China Co., Ltd. … Growth stimulates demand for loans and impacts a borrower’s ability to repay which directly affects the level of risk Postal Savings Bank of China takes on. … The level of risky assets a bank holds on its accounts affects the attractiveness of the company as an investment.

Simply Wall St -

Does Postal Savings Bank of China Co Ltd (HKG:1658) Have A Place In Your Portfolio?

Postal Savings Bank of China Co Ltd (HKG:1658) has recently paid dividends to shareholders, and currently yields 3.6%. … Let's take a look at Postal Savings Bank of China in more detail. … See our latest analysis for Postal Savings Bank of China

Simply Wall St -

Looking At Postal Savings Bank of China Co Ltd (HKG:1658) From All Angles

Postal Savings Bank of China Co Ltd (HKG:1658) is a company with exceptional fundamental characteristics. … is a company that has been able to sustain great financial health, trading at an attractive share price. … report on Postal Savings Bank of China here

Simply Wall St -

Is Postal Savings Bank of China Co Ltd (HKG:1658) Highly Illiquid?

Postal Savings Bank of China Co Ltd (HKG:1658) is a large-cap stock operating in the financial services sector with a market capitalisation of HK$373.6b. … These reforms target bank level regulation and aims to improve the banking sector’s ability to absorb shocks arising from economic stress which could expose financial institutions to vulnerabilities. … View our latest analysis for Postal Savings Bank of China

Simply Wall St -

Company Info

Description

Postal Savings Bank of China Co., Ltd. provides various banking products and services for retail and corporate customers in the People’s Republic of China. Its Personal Banking segment offers personal deposits; residential mortgage, and other personal consumer loans, personal business and micro loans, credit cards, overdrafts; debit and various bank cards; payment and collection agency services, and various settlement services; wealth management services; and life, property, health, and accident insurance products. This segment is also involved in the distribution of fund products, government savings bonds, asset management plans of securities companies, and precious metals. The company’s Corporate Banking segment provides time and demand deposits; working capital, fixed asset, trade finance, and corporate loans; settlement and cash management services; trade finance and international settlement services; underwriting, distribution, and debt advisory services for debt financing instruments, including short-term commercial papers, medium-term notes, private placement notes, asset-backed securities and debt financing plans; structured financing, M&A loans, and capital market and financial advisory services; and custody services. The Treasury segment trades in financial products comprising money market, fixed income, and foreign exchange products, as well as derivatives and precious metals; invests in debt securities and negotiable certificates of deposit, as well as wealth management products; and issues debt securities. This segment is also involved in the interbank financing and asset management businesses. The company also provides online, mobile, self-service, telephone, television, and micro-banking services. As of December 31, 2017, it had 39,798 outlets. The company was founded in 2007 and is headquartered in Beijing, the People’s Republic of China. Postal Savings Bank of China Co., Ltd. operates as a subsidiary of China Post Group Corporation.

Details
Name: Postal Savings Bank of China Co., Ltd.
1658
Exchange: SEHK
Founded: 2007
HK$382,464,309,280
81,030,574,000
Website: http://www.psbc.com
Address: Postal Savings Bank of China Co., Ltd.
No. 3 Financial Street,
Xicheng District,
Beijing,
100808,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1658 Foreign Shares - Foreigh Listaed The Stock Exchange of Hong Kong Ltd. HK HKD 28. Sep 2016
SHSC 1658 Foreign Shares - Foreigh Listaed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 28. Sep 2016
SZSC 1658 Foreign Shares - Foreigh Listaed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 28. Sep 2016
OTCPK PSTV.Y ADR Pink Sheets LLC US USD 22. Dec 2016
Number of employees
Current staff
Staff numbers
170,809
Postal Savings Bank of China employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 13:00
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/03/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.