SEHK:1658

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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 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

1658IndustryMarket
7 Day-1.8%3.0%4.1%
30 Day12.8%1.3%3.5%
90 Day-2.0%-5.9%-5.3%
1 Year18.2%12.8%-4.7%-8.7%-2.0%-5.2%
3 Year22.9%5.9%0.5%-13.7%-0.4%-10.6%
5 Yearn/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

Valuation

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

NamePositionTenureCompensationOwnership
Xinshuang Guo
President & Executive Director0.33yrno datano data
Xueming Xu
Vice President7.42yrsCN¥560.40kno data
Jiawen Qu
Vice President7.42yrsCN¥560.40kno data
Zhibao Shao
Vice President7.42yrsCN¥560.40kno data
Xuewen Zhang
VP & Executive Director7.42yrsCN¥584.00kno data
Hong Yao
VP & Executive Director3.83yrsCN¥561.00kno data
Shidong Liang
Chief Risk Officer0.33yrno datano data
Chunye Du
Secretary of the Board of Directors & Joint Company Secretary3.25yrsCN¥502.10kno data
Hucheng Liu
Secretary to the Party Discipline Committee3.42yrsCN¥536.00kno data
Xinzhuang Niu
Chief Information Officer0.42yrno datano data

3.4yrs

Average Tenure

53yo

Average Age

Experienced Management: 1658's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xinshuang Guo
President & Executive Director0.33yrno datano data
Xuewen Zhang
VP & Executive Director7.42yrsCN¥584.00kno data
Hong Yao
VP & Executive Director3.83yrsCN¥561.00kno data
Shui Ming Chung
Independent Non-Executive Director0.67yrCN¥31.00kno data
Tingmei Fu
Independent Non-Executive Director3.83yrsCN¥300.00kno data
Tiejun Wen
Independent Non-Executive Director0.67yrCN¥53.00kno data
Jinliang Zhang
Chairman of the Board1.08yrsno datano data
Yuejun Chen
Chairman of the Board of Supervisors7.42yrsno datano data
Yu Wu
External Supervisor4.08yrsno datano data
Wenbo Han
Non-Executive Director3.08yrsno datano 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

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
601658SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 13:38
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.