SEHK:1963

Stock Analysis Report

Bank of Chongqing

Executive Summary

Bank of Chongqing Co., Ltd. provides various banking and related financial services in the People’s Republic of China.


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

-0.9%

1963

-3.2%

HK Banks

-3.3%

HK Market


1 Year Return

-17.3%

1963

-14.7%

HK Banks

-9.6%

HK Market

Return vs Industry: 1963 underperformed the Hong Kong Banks industry which returned -14.7% over the past year.

Return vs Market: 1963 underperformed the Hong Kong Market which returned -9.6% over the past year.


Shareholder returns

1963IndustryMarket
7 Day-0.9%-3.2%-3.3%
30 Day-3.2%-3.4%-3.8%
90 Day-6.1%-4.2%-0.2%
1 Year-14.2%-17.3%-10.2%-14.7%-6.3%-9.6%
3 Year-29.3%-37.2%5.9%-8.7%11.2%-0.05%
5 Year-14.6%-31.4%14.9%-11.8%12.7%-6.0%

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

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$4.29) is trading below our estimate of fair value (HK$18.17)

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 (5.6x).

PE vs Market: 1963 is good value based on its PE Ratio (3.2x) compared to the Hong Kong market (9.8x).


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 (11.8% 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 (9.8% 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 3.6%.


Return on Equity

High ROE: 1963's Return on Equity (11.1%) is considered low.


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?

3.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1963's dividend (3.98%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.34%).

High Dividend: 1963's dividend (3.98%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.42%).


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 ($USD62.09K) is below average for companies of similar size in the Hong Kong market ($USD538.21K).

Compensation vs Earnings: Hailing's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jun Lin
Chairman of the Board1.9yrsCN¥356.23kno data
Hailing Ran
President & Executive Director0yrsCN¥436.00k0.0014% CN¥193.6k
Jianhua Liu
VP, Chief Anti-Money Laundering & Executive Director3.5yrsCN¥367.00k0.0054% CN¥717.0k
Wah Sing Wong
Chief Risk Officer3.8yrsCN¥268.00kno data
Kun Yang
Head of Financial Department0yrsno datano data
Wing Tsz Ho
Joint Company Secretary6.3yrsno datano data
Yanxi Peng
VP & Secretary to the Board1.5yrsno datano 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

NamePositionTenureCompensationOwnership
Jun Lin
Chairman of the Board1.9yrsCN¥356.23kno data
Hailing Ran
President & Executive Director0yrsCN¥436.00k0.0014% CN¥193.6k
Jianhua Liu
VP, Chief Anti-Money Laundering & Executive Director3.5yrsCN¥367.00k0.0054% CN¥717.0k
Wah Sing Wong
Chief Risk Officer3.8yrsCN¥268.00kno data
Hon-Hing Wong
Vice Chairman of the Board12.6yrsCN¥112.00kno data
Xiaotao Yang
Chairperson of Board of Supervisors4.9yrsno datano data
Jingyu Jin
Independent Non-Executive Director5.8yrsCN¥183.00kno data
Yong Deng
Non-Executive Director7yrsCN¥95.00kno data
He Li
Independent Non-Executive Director6.4yrsCN¥196.00kno data
Pengguo Wang
Independent Non-Executive Director5.8yrsCN¥190.00kno 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$13.353b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1963SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares Foreign ListedHKHKDNov 2013
CQNDB (Deutsche Boerse AG)YesForeign Shares Foreign ListedDEEURNov 2013
1963SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares Foreign ListedHKHKDNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:30
End of Day Share Price2020/02/27 00:00
Earnings2019/09/30
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.