Executive Summary
Bank of Chongqing Co., Ltd. provides various banking and related financial services in the People’s Republic of China.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and undervalued.
Similar Companies
Share Price & News
How has Bank of Chongqing's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1963 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.9%
1963
2.0%
HK Banks
1.7%
HK Market
1 Year Return
-12.3%
1963
-8.8%
HK Banks
-2.9%
HK Market
Return vs Industry: 1963 underperformed the Hong Kong Banks industry which returned -8.8% over the past year.
Return vs Market: 1963 underperformed the Hong Kong Market which returned -2.9% over the past year.
Shareholder returns
| 1963 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 2.0% | 1.7% |
| 30 Day | -7.5% | -4.7% | -4.8% |
| 90 Day | -6.9% | -0.9% | 3.4% |
| 1 Year | -9.0%-12.3% | -4.0%-8.8% | 0.7%-2.9% |
| 3 Year | -29.3%-37.2% | 8.4%-6.6% | 15.3%3.6% |
| 5 Year | -15.3%-31.9% | 15.5%-11.4% | 15.9%-3.5% |
Price Volatility Vs. Market
How volatile is Bank of Chongqing's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
What Kind Of Shareholders Own Bank of Chongqing Co., Ltd. (HKG:1963)?3 weeks ago | Simply Wall St
Does Bank of Chongqing Co., Ltd.'s (HKG:1963) CEO Salary Compare Well With Others?1 month ago | Simply Wall St
Investors Who Bought Bank of Chongqing (HKG:1963) Shares Three Years Ago Are Now Down 31%Valuation
Is Bank of Chongqing 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: 1963 (HK$4.33) is trading below our estimate of fair value (HK$18.12)
Significantly Below Fair Value: 1963 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1963 is good value based on its PE Ratio (3.2x) compared to the Banks industry average (5.7x).
PE vs Market: 1963 is good value based on its PE Ratio (3.2x) compared to the Hong Kong market (10.1x).
Price to Earnings Growth Ratio
PEG Ratio: 1963 is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: 1963 is good value based on its PB Ratio (0.4x) compared to the HK Banks industry average (0.5x).
Next Steps
Future Growth
How is Bank of Chongqing forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
1.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1963's forecast earnings growth (1.2% per year) is below the savings rate (1.6%).
Earnings vs Market: 1963's earnings (1.2% per year) are forecast to grow slower than the Hong Kong market (11.7% per year).
High Growth Earnings: 1963's earnings are forecast to grow, but not significantly.
Revenue vs Market: 1963's revenue (13.1% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).
High Growth Revenue: 1963's revenue (13.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1963's Return on Equity is forecast to be low in 3 years time (11.6%).
Next Steps
Past Performance
How has Bank of Chongqing performed over the past 5 years?
5.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1963 has a high level of non-cash earnings.
Growing Profit Margin: 1963's current net profit margins (48.9%) are lower than last year (52.3%).
Past Earnings Growth Analysis
Earnings Trend: 1963's earnings have grown by 5.4% per year over the past 5 years.
Accelerating Growth: 1963's earnings growth over the past year (2.4%) is below its 5-year average (5.4% per year).
Earnings vs Industry: 1963 earnings growth over the past year (2.4%) underperformed the Banks industry 3.7%.
Return on Equity
High ROE: 1963's Return on Equity (11.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Bank of Chongqing'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: 1963 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 1963's debt is not covered by short term assets (assets are 0.9x debt).
Financial Institutions Analysis
Asset Level: 1963's level of assets compared to its equity is moderate.
Allowance for Bad Loans: 1963 has a sufficient allowance for bad loans.
Low Risk Liabilities: 1963's liabilities are made up of primarily low risk sources of funding.
Loan Level: 1963 has an acceptable proportion of non-loan assets held.
Low Risk Deposits: 1963's loans are broadly funded by customer deposits.
Level of Bad Loans: 1963 has an appropriate level of bad loans (1.32%)
Next Steps
Dividend
What is Bank of Chongqing's current dividend yield, its reliability and sustainability?
3.95%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 1963's dividend (3.95%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 1963's dividend (3.95%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).
Stability and Growth of Payments
Stable Dividend: 1963 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 1963 has only been paying a dividend for 6 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (12.6%), 1963's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1963's dividends in 3 years are forecast to be well covered by earnings (19.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Hailing Ran (56yo)
CN¥436,000
Compensation
Mr. Hailing Ran has been the President of Bank of Chongqing Co., Ltd. since April 09, 2013. Mr. Ran has been an Executive Director of Bank of Chongqing Co., Ltd. since March 2003. He served as the Acting C ...
CEO Compensation Analysis
Compensation vs Market: Hailing's total compensation ($USD62.41K) is below average for companies of similar size in the Hong Kong market ($USD540.41K).
Compensation vs Earnings: Hailing's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | 1.9yrs | CN¥356.23k | no data | |
| President & Executive Director | 0yrs | CN¥436.00k | 0.0014% CN¥195.0k | |
| VP, Chief Anti-Money Laundering & Executive Director | 3.5yrs | CN¥367.00k | 0.0054% CN¥722.1k | |
| Chief Risk Officer | 3.8yrs | CN¥268.00k | no data | |
| Head of Financial Department | 0yrs | no data | no data | |
| Joint Company Secretary | 6.3yrs | no data | no data | |
| VP & Secretary to the Board | 1.5yrs | no data | no data |
3.4yrs
Average Tenure
54.5yo
Average Age
Experienced Management: 1963's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | 1.9yrs | CN¥356.23k | no data | |
| President & Executive Director | 0yrs | CN¥436.00k | 0.0014% CN¥195.0k | |
| VP, Chief Anti-Money Laundering & Executive Director | 3.5yrs | CN¥367.00k | 0.0054% CN¥722.1k | |
| Chief Risk Officer | 3.8yrs | CN¥268.00k | no data | |
| Vice Chairman of the Board | 12.6yrs | CN¥112.00k | no data | |
| Chairperson of Board of Supervisors | 4.9yrs | no data | no data | |
| Independent Non-Executive Director | 5.8yrs | CN¥183.00k | no data | |
| Non-Executive Director | 7yrs | CN¥95.00k | no data | |
| Independent Non-Executive Director | 6.4yrs | CN¥196.00k | no data | |
| Independent Non-Executive Director | 5.8yrs | CN¥190.00k | no data |
5.8yrs
Average Tenure
56yo
Average Age
Experienced Board: 1963's board of directors are considered experienced (5.8 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
Bank of Chongqing Co., Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Bank of Chongqing Co., Ltd.
- Ticker: 1963
- Exchange: SEHK
- Founded: 1996
- Industry: Regional Banks
- Sector: Banks
- Market Cap: HK$13.446b
- Shares outstanding: 3.13b
- Website: https://www.cqcbank.com
Number of Employees
Location
- Bank of Chongqing Co., Ltd.
- No. 6 Yongpingmen Street
- Jiangbei District
- Chongqing
- 400024
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1963 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares Foreign Listed | HK | HKD | Nov 2013 |
| CQN | DB (Deutsche Boerse AG) | Yes | Foreign Shares Foreign Listed | DE | EUR | Nov 2013 |
| 1963 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Foreign Shares Foreign Listed | HK | HKD | Nov 2013 |
Biography
Bank of Chongqing Co., Ltd. provides various banking and related financial services in the People’s Republic of China. It operates through three segments: Corporate Banking, Retail Banking, and Treasury. It offers various deposit products and loans; inter-bank lending and borrowing, bonds investment, re-purchasing, and foreign currency transactions; and telephone, mobile, and online and direct banking services. As of December 31, 2018, the company operated 142 sub-units, including a business department, a small enterprise loan center, 4 primary branches, and 58 offsite self-service banking centers covering 38 districts and counties of Chongqing, as well as 3 provinces in western China. It also operated 58 offsite self-service banking centers, 136 onsite self-service banking centers, and 547 self-service terminals, including 171 ATMs and 376 self-service deposit and withdrawal machines that offers withdrawal, account inquiry, bill payment, passcode changing, and fund transfer services. Bank of Chongqing Co., Ltd. primarily serves corporate and individual customers. The company was formerly known as Commercial Bank of Chongqing Co., Ltd. and changed its name to Bank of Chongqing Co., Ltd. in August 2007. Bank of Chongqing Co., Ltd. was founded in 1996 and is headquartered in Chongqing, the People’s Republic of China.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 13:10 |
| End of Day Share Price | 2020/02/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.