SEHK:1658

Stock Analysis Report

Postal Savings Bank of China

Executive Summary

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.

Snowflake

Fundamentals

Excellent balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.8%

1658

0.8%

HK Banks

0.3%

HK Market


1 Year Return

6.6%

1658

-5.5%

HK Banks

-1.5%

HK Market

Return vs Industry: 1658 exceeded the Hong Kong Banks industry which returned -5.5% over the past year.

Return vs Market: 1658 exceeded the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

1658IndustryMarket
7 Day4.8%0.8%0.3%
30 Day5.3%2.2%0.5%
90 Day9.2%-2.7%-4.4%
1 Year11.9%6.6%-0.5%-5.5%2.1%-1.5%
3 Year20.3%8.7%15.8%-0.2%14.7%3.2%
5 Yearn/a31.5%0.8%21.5%1.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Postal Savings Bank of China 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: 1658 (HK$5) is trading below our estimate of fair value (HK$10.14)

Significantly Below Fair Value: 1658 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1658 is poor value based on its PE Ratio (6.7x) compared to the Banks industry average (5.9x).

PE vs Market: 1658 is good value based on its PE Ratio (6.7x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 1658 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1658 is overvalued based on its PB Ratio (0.8x) compared to the HK Banks industry average (0.5x).


Next Steps

Future Growth

How is Postal Savings Bank of China forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1658's forecast earnings growth (10.7% per year) is above the savings rate (2%).

Earnings vs Market: 1658's earnings (10.7% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 1658's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1658's revenue (10.6% per year) is forecast to grow faster than the Hong Kong market (10.4% per year).

High Growth Revenue: 1658's revenue (10.6% 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 (12.7%).


Next Steps

Past Performance

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

12.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1658's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: 1658's earnings growth over the past year (6.7%) is below its 5-year average (12.5% per year).

Earnings vs Industry: 1658 earnings growth over the past year (6.7%) exceeded the Banks industry 5.2%.


Return on Equity

High ROE: 1658's Return on Equity (11.6%) is considered low.


Return on Assets

ROA vs Industry: 1658'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 1658's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Postal Savings Bank of China'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: 1658 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1658's debt is covered by short term assets (assets are 6.974230x debt).


Financial Institutions Analysis

Asset Level: 1658's level of assets compared to its equity is very high.

Allowance for Bad Loans: 1658 has a sufficient allowance for bad loans.

Low Risk Liabilities: 1658's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1658 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1658's loans are broadly funded by customer deposits.

Level of Bad Loans: 1658 has an appropriate level of bad loans (0.82%)


Next Steps

Dividend

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

4.29%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.3%markettop25%6.3%industryaverage5.5%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1658's dividend (4.29%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1658's dividend (4.29%) 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, 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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.7%), 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 (28.7% payout ratio).


Next Steps

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?

2.8yrs

Average management tenure


CEO

Postal Savings Bank of China has no CEO, or we have no data on them.


Management Age and Tenure

2.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 1658's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 1658's board of directors are considered experienced (4.6 years average tenure).


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

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Ownership Breakdown


Management Team

  • Maurice Ngai (57yo)

    Joint Company Secretary

    • Tenure: 3.6yrs
  • Xueming Xu (52yo)

    Vice President

    • Tenure: 0yrs
    • Compensation: CN¥608.30k
  • Jiawen Qu (56yo)

    Vice President

    • Tenure: 0yrs
    • Compensation: CN¥609.90k
  • Zhibao Shao (57yo)

    Vice President for Retailing Sector

    • Tenure: 0yrs
    • Compensation: CN¥614.20k
  • Xuewen Zhang (57yo)

    Executive Director

    • Tenure: 6.8yrs
    • Compensation: CN¥634.50k
  • Hong Yao (53yo)

    VP & Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥609.50k
  • Chunye Du (42yo)

    Secretary to the Board of Directors & Joint Company Secretary

    • Tenure: 2.8yrs
    • Compensation: CN¥536.60k
  • Hucheng Liu (53yo)

    Secretary to the Party Discipline Committee

    • Tenure: 2.8yrs
    • Compensation: CN¥584.00k

Board Members

  • Weihua Ma (71yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: CN¥450.00k
  • Tingmei Fu (52yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥300.00k
  • Zhonghua Bi (67yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: CN¥300.00k
  • Peizhong Gan (62yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥300.00k
  • Jinliang Zhang (50yo)

    Chairman

    • Tenure: 0.4yrs
  • Xuewen Zhang (57yo)

    Executive Director

    • Tenure: 6.8yrs
    • Compensation: CN¥634.50k
  • Hong Yao (53yo)

    VP & Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥609.50k
  • Jian Tang (59yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: CN¥579.00k
  • Yuejun Chen (54yo)

    Chairman of the Board of Supervisors

    • Tenure: 6.8yrs
  • Wenbo Han (53yo)

    Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥530.00k

Company Information

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


Key Information

  • Name: Postal Savings Bank of China Co., Ltd.
  • Ticker: 1658
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$397.860b
  • Shares outstanding: 81.03b
  • Website: https://www.psbc.com

Number of Employees


Location

  • Postal Savings Bank of China Co., Ltd.
  • No. 3 Financial Street
  • Xicheng District
  • Beijing
  • 100808
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1658SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares - Foreigh ListaedHKHKDSep 2016
1658SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares - Foreigh ListaedHKHKDSep 2016
1658SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares - Foreigh ListaedHKHKDSep 2016
PSTV.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2016

Biography

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 depo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:58
End of Day Share Price2019/10/21 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.