SEHK:1988

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China Minsheng Banking

Executive Summary

China Minsheng Banking Corp., Ltd. provides various financial products and services to individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the People's Republic of China.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has China Minsheng Banking's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1988 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

1988

0.3%

HK Banks

0.8%

HK Market


1 Year Return

-2.6%

1988

-10.6%

HK Banks

5.5%

HK Market

Return vs Industry: 1988 exceeded the Hong Kong Banks industry which returned -10.6% over the past year.

Return vs Market: 1988 underperformed the Hong Kong Market which returned 5.5% over the past year.


Shareholder returns

1988IndustryMarket
7 Day-0.4%0.3%0.8%
30 Day-5.2%-8.4%-2.4%
90 Day-11.0%-9.9%7.6%
1 Year5.5%-2.6%-5.0%-10.6%9.8%5.5%
3 Year-7.4%-22.8%-9.9%-23.2%2.1%-8.9%
5 Year-8.7%-29.7%3.5%-21.8%12.7%-6.2%

Price Volatility Vs. Market

How volatile is China Minsheng Banking's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Minsheng Banking 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: 1988 (HK$4.93) is trading below our estimate of fair value (HK$11.61)

Significantly Below Fair Value: 1988 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1988 is good value based on its PE Ratio (4.5x) compared to the HK Banks industry average (5x).

PE vs Market: 1988 is good value based on its PE Ratio (4.5x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 1988 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 1988's PB Ratio (0.5x) is in line with the HK Banks industry average.


Next Steps

Future Growth

How is China Minsheng Banking forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1988's forecast earnings growth (5.8% per year) is above the savings rate (1.6%).

Earnings vs Market: 1988's earnings (5.8% per year) are forecast to grow slower than the Hong Kong market (19% per year).

High Growth Earnings: 1988's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1988's revenue (13% per year) is forecast to grow faster than the Hong Kong market (11.6% per year).

High Growth Revenue: 1988's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1988's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has China Minsheng Banking performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1988 has a high level of non-cash earnings.

Growing Profit Margin: 1988's current net profit margins (46.7%) are higher than last year (46.3%).


Past Earnings Growth Analysis

Earnings Trend: 1988's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: 1988's earnings growth over the past year (6.9%) exceeds its 5-year average (3.4% per year).

Earnings vs Industry: 1988 earnings growth over the past year (6.9%) exceeded the Banks industry 4.8%.


Return on Equity

High ROE: 1988's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is China Minsheng Banking'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: 1988's Assets to Equity ratio (12.7x) is moderate.

Allowance for Bad Loans: 1988 has a sufficient allowance for bad loans (156%).

Low Risk Liabilities: 77% of 1988's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1988 has an appropriate level of Loans to Assets ratio (54%).

Low Risk Deposits: 1988's Loans to Deposits ratio (76%) is appropriate.

Level of Bad Loans: 1988 has an appropriate level of bad loans (1.5%).


Next Steps

Dividend

What is China Minsheng Banking current dividend yield, its reliability and sustainability?

6.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1988's dividend (6.61%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1988's dividend (6.61%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.82%).


Stability and Growth of Payments

Stable Dividend: 1988's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1988's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.9%), 1988's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1988's dividends in 3 years are forecast to be well covered by earnings (27.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average management tenure


CEO

Wanchun Zheng (56 yo)

4.75yrs

Tenure

CN¥4,286,000

Compensation

Mr. Wanchun Zheng has been the President of China Minsheng Banking Corp. Ltd. since November 19, 2015 and has been its Executive Director since February 01, 2016. Mr. Zheng serves as Deputy Secretary at Ch ...


CEO Compensation Analysis

Compensation vs Market: Wanchun's total compensation ($USD615.67K) is below average for companies of similar size in the Hong Kong market ($USD886.71K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wanchun Zheng
Deputy Secretary4.75yrsCN¥4.29mno data
Dan Bai
CFO & Board Secretary8.33yrsCN¥3.51mno data
Bin Li
Executive Vice President8yrsCN¥3.43mno data
Yunshan Lin
Executive Vice President8yrsCN¥3.43mno data
Jie Shi
Executive Vice President8yrsCN¥3.43mno data
Yuebo Zhang
Chief Audit Officer17.08yrsCN¥2.94mno data
Qinghua Hu
Executive VP & Chief Risk Officer3.5yrsCN¥3.42mno data
Ouyang Yong
Assistant President2.33yrsCN¥2.91mno data
Yingxin Gao
Executive Chairman of the Board0.083yrno datano data
Hongri Huang
President of Nanning Branchno datano datano data
Wai-Yee Wong
Company Secretary3.5yrsno datano data

6.4yrs

Average Tenure

56.5yo

Average Age

Experienced Management: 1988's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wanchun Zheng
Deputy Secretary4.75yrsCN¥4.29mno data
Yingxin Gao
Executive Chairman of the Board0.083yrno datano data
Suning Tian
Independent Non-Executive Director2.17yrsCN¥880.00kno data
Hong Wei Zhang
Vice Chairman of the Board20.33yrsCN¥905.00kno data
Zhichun Xie
Independent Non-Executive Director3.83yrsCN¥865.00kno data
Yuzhu Shi
Non-Executive Director3.5yrsCN¥780.00k0.19%
CN¥ 506.0m
Yonghao Liu
Vice Chairman of the Board11.42yrsCN¥905.00kno data
Zhiqiang Lu
Vice Chairman of the Board14.08yrsCN¥910.00kno data
Xuefeng Peng
Independent Non-Executive Director3.5yrsCN¥865.00kno data
Dong Guo
Vice Chairman of the Supervisory Board4.42yrsno datano data
Ningyu Liu
Independent Non-Executive Director3.5yrsCN¥1.06mno data
Juntong Zhang
Chairman of the Supervisory Board3.5yrsno datano data

3.7yrs

Average Tenure

58yo

Average Age

Experienced Board: 1988's board of directors are considered experienced (3.7 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Minsheng Banking Corp., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Minsheng Banking Corp., Ltd.
  • Ticker: 1988
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CN¥235.432b
  • Listing Market Cap: CN¥262.112b
  • Shares outstanding: 43.78b
  • Website: https://www.cmbc.com.cn

Number of Employees


Location

  • China Minsheng Banking Corp., Ltd.
  • No. 2 Fuxingmennei Avenue
  • Xicheng District
  • Beijing
  • Beijing Province
  • 100031
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
600016SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYDec 2000
600016XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYDec 2000
1988SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDNov 2009
CGMB.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDNov 2009
GHFHDB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURNov 2009
1988SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDNov 2009
1988SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDNov 2009
CMAK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2010

Biography

China Minsheng Banking Corp., Ltd. provides various financial products and services to individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 12:47
End of Day Share Price2020/08/10 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.