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.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with solid track record.
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
Stable Share Price: 1658 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.8%
1658
3.0%
HK Banks
4.1%
HK Market
1 Year Return
12.8%
1658
-8.7%
HK Banks
-5.2%
HK Market
Return vs Industry: 1658 exceeded the Hong Kong Banks industry which returned -8.7% over the past year.
Return vs Market: 1658 exceeded the Hong Kong Market which returned -5.2% over the past year.
Shareholder returns
| 1658 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.8% | 3.0% | 4.1% |
| 30 Day | 12.8% | 1.3% | 3.5% |
| 90 Day | -2.0% | -5.9% | -5.3% |
| 1 Year | 18.2%12.8% | -4.7%-8.7% | -2.0%-5.2% |
| 3 Year | 22.9%5.9% | 0.5%-13.7% | -0.4%-10.6% |
| 5 Year | n/a | -6.4%-28.4% | -9.0%-23.3% |
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
2 weeks ago | Simply Wall St
I Built A List Of Growing Companies And Postal Savings Bank of China (HKG:1658) Made The Cut2 months ago | Simply Wall St
Should You Or Shouldn't You: A Dividend Analysis on Postal Savings Bank of China Co., Ltd. (HKG:1658)4 months ago | Simply Wall St
I Built A List Of Growing Companies And Postal Savings Bank of China (HKG:1658) Made The CutValuation
Is Postal Savings Bank of China undervalued compared to its fair value and its price relative to the market?
44.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 1658 (HK$4.84) is trading below our estimate of fair value (HK$8.75)
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 (6.1x) compared to the Banks industry average (5.3x).
PE vs Market: 1658 is good value based on its PE Ratio (6.1x) compared to the Hong Kong market (9.4x).
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 (0.6x) compared to the HK Banks industry average (0.4x).
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 18 analysts?
10.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1658's forecast earnings growth (10.9% per year) is above the savings rate (1.6%).
Earnings vs Market: 1658's earnings (10.9% per year) are forecast to grow slower than the Hong Kong market (16.9% per year).
High Growth Earnings: 1658's earnings are forecast to grow, but not significantly.
Revenue vs Market: 1658's revenue (9.6% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).
High Growth Revenue: 1658's revenue (9.6% 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 (12.3%).
Next Steps
Past Performance
How has Postal Savings Bank of China performed over the past 5 years?
12.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1658 has high quality earnings.
Growing Profit Margin: 1658's current net profit margins (26.7%) are higher than last year (25%).
Past Earnings Growth Analysis
Earnings Trend: 1658's earnings have grown by 12.6% per year over the past 5 years.
Accelerating Growth: 1658's earnings growth over the past year (15.5%) exceeds its 5-year average (12.6% per year).
Earnings vs Industry: 1658 earnings growth over the past year (15.5%) exceeded the Banks industry 4.7%.
Return on Equity
High ROE: 1658's Return on Equity (9.6%) is considered low.
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
Financial Institutions Analysis
Asset Level: 1658's Assets to Equity ratio (16.6x) is moderate.
Allowance for Bad Loans: 1658 has a sufficient allowance for bad loans (386%).
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 (47%).
Low Risk Deposits: 1658's Loans to Deposits ratio (52%) is appropriate.
Level of Bad Loans: 1658 has an appropriate level of bad loans (0.9%).
Next Steps
Dividend
What is Postal Savings Bank of China's current dividend yield, its reliability and sustainability?
4.73%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1658's dividend (4.73%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.44%).
High Dividend: 1658's dividend (4.73%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.14%).
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 3 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29%), 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 (33% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Xinshuang Guo (56yo)
0.33
Tenure
Mr. Xinshuang Guo serves as Executive Director at Postal Savings Bank of China Co., Ltd. since April 23, 2020. He serves as President of Postal Savings Bank of China Co., Ltd. since February 14, 2020. Mr. ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & Executive Director | 0.33yr | no data | no data | |
| Vice President | 7.42yrs | CN¥560.40k | no data | |
| Vice President | 7.42yrs | CN¥560.40k | no data | |
| Vice President | 7.42yrs | CN¥560.40k | no data | |
| VP & Executive Director | 7.42yrs | CN¥584.00k | no data | |
| VP & Executive Director | 3.83yrs | CN¥561.00k | no data | |
| Chief Risk Officer | 0.33yr | no data | no data | |
| Secretary of the Board of Directors & Joint Company Secretary | 3.25yrs | CN¥502.10k | no data | |
| Secretary to the Party Discipline Committee | 3.42yrs | CN¥536.00k | no data | |
| Chief Information Officer | 0.42yr | no data | no data |
3.4yrs
Average Tenure
53yo
Average Age
Experienced Management: 1658's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & Executive Director | 0.33yr | no data | no data | |
| VP & Executive Director | 7.42yrs | CN¥584.00k | no data | |
| VP & Executive Director | 3.83yrs | CN¥561.00k | no data | |
| Independent Non-Executive Director | 0.67yr | CN¥31.00k | no data | |
| Independent Non-Executive Director | 3.83yrs | CN¥300.00k | no data | |
| Independent Non-Executive Director | 0.67yr | CN¥53.00k | no data | |
| Chairman of the Board | 1.08yrs | no data | no data | |
| Chairman of the Board of Supervisors | 7.42yrs | no data | no data | |
| External Supervisor | 4.08yrs | no data | no data | |
| Non-Executive Director | 3.08yrs | no data | no data |
3.5yrs
Average Tenure
53.5yo
Average Age
Experienced Board: 1658's board of directors are considered experienced (3.5 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.3%.
Top Shareholders
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$471.916b
- Shares outstanding: 86.98b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1658 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Foreign Shares - Foreigh Listaed | HK | HKD | Sep 2016 |
| 1658 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares - Foreigh Listaed | HK | HKD | Sep 2016 |
| 1658 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Foreign Shares - Foreigh Listaed | HK | HKD | Sep 2016 |
| PSTV.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Dec 2016 | |
| 601658 | SHSE (Shanghai Stock Exchange) | Domestic Shares | CN | CNY | Dec 2019 |
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 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 life, property, health, and accident insurance products. 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. The company’s Corporate Banking segment provides time, demand, call, and negotiated deposits; working capital, fixed asset, trade finance, stock pledge, land reserve, syndicated, real estate development, property mortgage, and consignment loans; cash management services; negotiable instruments; trade finance and international settlement services; and financial markets services. Its 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, equity instruments, and bond securities, as well as investment banking products. This segment is also involved in the interbank financing, asset management, and custody businesses. The company also provides online, mobile, and self-service banking services. As of December 31, 2019, it had 39,638 outlets, including 7,918 directly operated outlets and 31,720 agency 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. Is a subsidiary of China Post Group Corporation.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/04 13:38 |
| End of Day Share Price | 2020/06/04 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.