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China Minsheng Banking

SEHK:1988
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1988
SEHK
CN¥253B
Market Cap
  1. Home
  2. HK
  3. Banks
Company description

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. The last earnings update was 84 days ago. More info.


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1988 Share Price and Events
7 Day Returns
-0.9%
SEHK:1988
0.5%
HK Banks
0.6%
HK Market
1 Year Returns
-4.9%
SEHK:1988
-6.6%
HK Banks
-4.5%
HK Market
1988 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Minsheng Banking (1988) -0.9% -6.2% -8.7% -4.9% -20% -16%
HK Banks 0.5% -2.8% -9.1% -6.6% 14.1% -0.1%
HK Market 0.6% 0.4% -7% -4.5% 17.8% 1.1%
1 Year Return vs Industry and Market
  • 1988 outperformed the Banks industry which returned -6.6% over the past year.
  • 1988 matched the Hong Kong Market (-4.5%) over the past year.
Price Volatility
1988
Industry
5yr Volatility vs Market

1988 Value

 Is China Minsheng Banking undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Minsheng Banking to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Minsheng Banking.

SEHK:1988 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 17 analysts.
= Stable Book Value * Return on Equity
= CN¥11.27 * 11.3%
CN¥1.28
Book Value of Equity per Share Weighted future Book Value estimates from 11 analysts. CN¥11.27
Discount Rate (Cost of Equity) See below 13.9%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1988
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.597 (1 + (1- 25%) (535.08%))
2.334
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (2 * 5.96%)
13.92%

Discounted Cash Flow Calculation for SEHK:1988 using Excess Returns Model Model

The calculations below outline how an intrinsic value for China Minsheng Banking is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:1988 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.3% – 13.92%) * CN¥11.27)
CN¥-0.29
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥-0.29 / (13.92% - 2%)
CN¥-2.45
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥11.27 + CN¥-2.45
CN¥8.82
SEHK:1988 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in SEHK:1988 represents 0.905x of SHSE:600016
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.905x
Value per Share
(Listing Adjusted, HKD)
= Value per Share (CNY) x Listing Adjustment Factor
= CN¥ 8.82 x 0.905
HK$7.98
Value per share (HKD) From above. HK$7.98
Current discount Discount to share price of HK$5.43
= -1 x (HK$5.43 - HK$7.98) / HK$7.98
32%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price China Minsheng Banking is available for.
Intrinsic value
32%
Share price is HK$5.43 vs Future cash flow value of HK$7.98
Current Discount Checks
For China Minsheng Banking to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Minsheng Banking's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China Minsheng Banking's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Minsheng Banking's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Minsheng Banking's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1988 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥1.16
SHSE:600016 Share Price ** SHSE (2019-07-22) in CNY CN¥6
Hong Kong Banks Industry PE Ratio Median Figure of 32 Publicly-Listed Banks Companies 6.11x
Hong Kong Market PE Ratio Median Figure of 1,512 Publicly-Listed Companies 10.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Minsheng Banking.

SEHK:1988 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SHSE:600016 Share Price ÷ EPS (both in CNY)

= 6 ÷ 1.16

5.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Minsheng Banking is good value based on earnings compared to the HK Banks industry average.
  • China Minsheng Banking is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Minsheng Banking's expected growth come at a high price?
Raw Data
SEHK:1988 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.19x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
4.7%per year
Hong Kong Banks Industry PEG Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.78x
Hong Kong Market PEG Ratio Median Figure of 481 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:1988 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.19x ÷ 4.7%

1.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Minsheng Banking is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on China Minsheng Banking's assets?
Raw Data
SEHK:1988 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥9.75
SHSE:600016 Share Price * SHSE (2019-07-22) in CNY CN¥6
Hong Kong Banks Industry PB Ratio Median Figure of 32 Publicly-Listed Banks Companies 0.66x
Hong Kong Market PB Ratio Median Figure of 2,198 Publicly-Listed Companies 0.92x
SEHK:1988 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SHSE:600016 Share Price ÷ Book Value per Share (both in CNY)

= 6 ÷ 9.75

0.62x

* Primary Listing of China Minsheng Banking.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Minsheng Banking is good value based on assets compared to the HK Banks industry average.
X
Value checks
We assess China Minsheng Banking's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. China Minsheng Banking has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1988 Future Performance

 How is China Minsheng Banking expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Minsheng Banking expected to grow at an attractive rate?
  • China Minsheng Banking's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • China Minsheng Banking's earnings growth is positive but not above the Hong Kong market average.
  • China Minsheng Banking's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1988 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1988 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 4.7%
SEHK:1988 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 9.9%
Hong Kong Banks Industry Earnings Growth Rate Market Cap Weighted Average 6.5%
Hong Kong Banks Industry Revenue Growth Rate Market Cap Weighted Average 8.3%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1988 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1988 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 216,000 61,000 1
2021-12-31 199,641 57,192 8
2020-12-31 178,590 53,874 11
2019-12-31 172,467 52,071 9
SEHK:1988 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 111,940 -194,370 50,627
2018-12-31 110,495 -395,498 49,777
2018-09-30 113,308 -227,662 51,732
2018-06-30 111,823 -51,318 50,820
2018-03-31 110,435 -335,770 50,033
2017-12-31 109,511 -257,059 49,290
2017-09-30 109,589 -194,426 48,923
2017-06-30 110,098 -67,721 48,708
2017-03-31 110,885 808,331 48,336
2016-12-31 113,776 1,028,855 47,843
2016-09-30 114,014 958,205 46,897
2016-06-30 114,922 876,601 46,556

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Minsheng Banking's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
  • China Minsheng Banking's revenue is expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1988 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from China Minsheng Banking Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1988 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 1.31 1.35 1.25 5.00
2020-12-31 1.23 1.30 1.11 9.00
2019-12-31 1.17 1.20 1.05 9.00
SEHK:1988 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 1.16
2018-12-31 1.14
2018-09-30 1.17
2018-06-30 1.17
2018-03-31 1.14
2017-12-31 1.13
2017-09-30 1.12
2017-06-30 1.11
2017-03-31 1.10
2016-12-31 1.09
2016-09-30 1.06
2016-06-30 1.06

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China Minsheng Banking is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Minsheng Banking's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Minsheng Banking has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1988 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Minsheng Banking's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Minsheng Banking's year on year earnings growth rate has been positive over the past 5 years.
  • China Minsheng Banking's 1-year earnings growth is less than its 5-year average (1.2% vs 3%)
  • China Minsheng Banking's earnings growth has not exceeded the HK Banks industry average in the past year (1.2% vs 5.1%).
Earnings and Revenue History
China Minsheng Banking's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Minsheng Banking Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1988 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 111,940.00 50,627.00 47,377.00
2018-12-31 110,495.00 49,777.00 47,137.00
2018-09-30 113,308.00 51,732.00 46,611.00
2018-06-30 111,823.00 50,820.00 46,289.00
2018-03-31 110,435.00 50,033.00 45,895.00
2017-12-31 109,511.00 49,290.00 45,761.00
2017-09-30 109,589.00 48,923.00 46,976.00
2017-06-30 110,098.00 48,708.00 47,695.00
2017-03-31 110,885.00 48,336.00 47,514.00
2016-12-31 113,776.00 47,843.00 48,086.00
2016-09-30 114,014.00 46,897.00 79,282.00
2016-06-30 114,922.00 46,556.00 45,135.00
2016-03-31 120,114.00 46,440.00 57,742.00
2015-12-31 119,624.00 46,111.00 48,208.00
2015-09-30 118,926.00 46,145.00 14,591.00
2015-06-30 118,317.00 45,754.00 47,136.00
2015-03-31 116,423.00 45,247.00 36,713.00
2014-12-31 114,337.00 44,546.00 45,077.00
2014-09-30 112,381.00 45,742.00 42,090.00
2014-06-30 109,291.00 44,903.00 40,210.00
2014-03-31 105,572.00 43,939.00 38,547.00
2013-12-31 102,897.00 42,278.00 37,958.00
2013-09-30 100,982.00 42,067.00 36,706.00
2013-06-30 99,794.00 41,455.00 36,209.00
2013-03-31 96,977.00 39,406.00 36,363.00
2012-12-31 93,791.00 37,563.00 35,064.00
2012-09-30 89,577.00 35,344.00 33,044.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China Minsheng Banking has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Minsheng Banking used its assets more efficiently than the HK Banks industry average last year based on Return on Assets.
  • Unable to establish if China Minsheng Banking improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess China Minsheng Banking's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Minsheng Banking has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1988 Health

 How is China Minsheng Banking's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of China Minsheng Banking's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Minsheng Banking Company Filings, last reported 3 months ago.

SEHK:1988 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 448,047.00 1,344,889.00 1,372,177.00
2018-12-31 431,001.00 1,388,214.00 553,770.00
2018-09-30 422,444.00 1,270,148.00 1,179,965.00
2018-06-30 407,844.00 1,252,851.00 477,896.00
2018-03-31 395,836.00 1,261,283.00 1,334,188.00
2017-12-31 389,812.00 1,287,159.00 378,131.00
2017-09-30 381,274.00 1,278,700.00 395,102.00
2017-06-30 374,522.00 1,315,310.00 170,362.00
2017-03-31 366,743.00 1,263,918.00 393,296.00
2016-12-31 352,027.00 1,060,217.00 504,669.00
2016-09-30 335,705.00 1,054,924.00 393,051.00
2016-06-30 327,655.00 772,966.00 643,325.00
2016-03-31 319,451.00 556,448.00 947,518.00
2015-12-31 309,783.00 475,098.00 935,399.00
2015-09-30 300,735.00 378,435.00 953,520.00
2015-06-30 288,313.00 438,013.00 935,226.00
2015-03-31 261,778.00 468,579.00 944,081.00
2014-12-31 247,756.00 407,768.00 991,079.00
2014-09-30 240,803.00 316,135.00 994,013.00
2014-06-30 229,299.00 331,672.00 888,097.00
2014-03-31 217,881.00 283,199.00 775,735.00
2013-12-31 204,287.00 269,457.00 812,589.00
2013-09-30 196,226.00 251,229.00 1,013,815.00
2013-06-30 191,207.00 338,433.00 1,124,657.00
2013-03-31 183,668.00 299,861.00 1,125,247.00
2012-12-31 168,544.00 323,185.00 1,086,701.00
2012-09-30 159,600.00 282,572.00 765,772.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • China Minsheng Banking has an acceptable proportion of non-loan assets held.
  • China Minsheng Banking's liabilities are made up of primarily low risk sources of funding.
  • Loans at China Minsheng Banking are broadly funded by customer deposits.
  • China Minsheng Banking's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • China Minsheng Banking has a sufficient allowance for bad loans.
  • China Minsheng Banking has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess China Minsheng Banking's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Minsheng Banking has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1988 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.75%
Current annual income from China Minsheng Banking dividends. Estimated to be 4.9% next year.
If you bought HK$2,000 of China Minsheng Banking shares you are expected to receive HK$115 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China Minsheng Banking's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • China Minsheng Banking's dividend is above the markets top 25% of dividend payers in Hong Kong (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1988 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Hong Kong Banks Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 5.4%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1988 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.33 8.00
2020-12-31 0.29 12.00
2019-12-31 0.27 9.00
SEHK:1988 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-06-28 0.345 5.632
2018-10-30 0.000 0.000
2018-08-30 0.000 0.000
2018-03-29 0.175 2.835
2017-09-15 0.238 3.349
2017-06-29 0.233 3.347
2016-09-19 0.229 3.140
2016-06-07 0.196 2.556
2015-06-18 0.154 2.068
2014-12-24 0.132 1.581
2014-06-17 0.179 3.258
2013-10-30 0.219 4.056
2013-08-28 0.219 3.337
2013-04-25 0.208 3.230
2012-10-30 0.208 3.645
2012-08-23 0.208 5.201
2012-06-18 0.208 5.019
2011-05-31 0.069 1.657
2010-04-20 0.029 0.771
2009-04-23 0.046 1.085

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of China Minsheng Banking's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).
X
Income/ dividend checks
We assess China Minsheng Banking's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Minsheng Banking afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Minsheng Banking has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1988 Management

 What is the CEO of China Minsheng Banking's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Wanchun Zheng
COMPENSATION CN¥0
AGE 55
TENURE AS CEO 3.7 years
CEO Bio

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 served as Senior Executive Vice President at Industrial and Commercial Bank of China Limited from September 2013 to October 2015. Mr. Zheng has served as President of China Great Wall Asset Management Corporation from February 2011 to September 2013. He served as President and the General Manager of Industrial and Commercial Bank of China Hainan Branch from November 1998 to October 1999 and General Manager of Banking Department, Deputy General Manager of Industrial and Commercial Credit Department of the Head Office of Industrial and Commercial Bank of China from October 1999 to June 2000; he served as Deputy General Manager and General Manager of the Debt Management Department. He served as Vice President of China Huarong Asset Management Corporation from December 2004 to February 2011, an assistant president of China Huarong Asset Management Co., Ltd. from September 2003 to December 2004, the general manager of operational management department of China Huarong Asset Management Co., Ltd. from April 2002 to September 2003, the general manager of creditor’s rights management department of China Huarong Asset Management Co., Ltd. from June 2000 to April 2002. Mr. Zheng served as Chairman of Huarong Securities and Chairman of Rongde Asset (Sino-German Joint Venture). Since January 2009, he served as Vice President of China Huarong Asset Management Corporation and concurrently as Chairman of Huarong Securities and Chairman of Huarong Futures. Mr. Zheng graduated from Renmin University of China and obtained Master's degree and Doctorate degree in Economics and is a senior economist.

CEO Compensation
  • Insufficient data for Wanchun to compare compensation growth.
  • Wanchun's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the China Minsheng Banking management team in years:

5.3
Average Tenure
56
Average Age
  • The average tenure for the China Minsheng Banking management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Qi Hong

TITLE
Chairman of the Board
AGE
62

Wanchun Zheng

TITLE
President & Executive Director
AGE
55
TENURE
3.7 yrs

Dan Bai

TITLE
CFO & Board Secretary
AGE
56
TENURE
7.3 yrs

Bin Li

TITLE
Executive Vice President
AGE
52
TENURE
6.9 yrs

Yunshan Lin

TITLE
Executive Vice President
AGE
49
TENURE
6.9 yrs

Jie Shi

TITLE
Executive Vice President
AGE
54
TENURE
6.9 yrs

Qinghua Hu

TITLE
Executive VP & Chief Risk Officer
AGE
56
TENURE
2.4 yrs

Ouyang Yong

TITLE
Assistant President
AGE
56
TENURE
1.3 yrs

Qiong Chen

TITLE
Executive Vice President
AGE
56
TENURE
1.1 yrs

Hongri Huang

TITLE
President of Nanning Branch
Board of Directors Tenure

Average tenure and age of the China Minsheng Banking board of directors in years:

3.7
Average Tenure
59
Average Age
  • The tenure for the China Minsheng Banking board of directors is about average.
Board of Directors

Wanchun Zheng

TITLE
President & Executive Director
AGE
55
TENURE
3.7 yrs

Zhiqiang Lu

TITLE
Vice Chairman of the Board
AGE
68
TENURE
13 yrs

Qi Hong

TITLE
Chairman of the Board
AGE
62
TENURE
4.9 yrs

Yonghao Liu

TITLE
Vice Chairman of the Board
AGE
68
TENURE
10.3 yrs

Hong Wei Zhang

TITLE
Vice Chairman of the Board
AGE
65
TENURE
19.3 yrs

Hancheng Li

TITLE
Independent Non-Executive Director
AGE
56
TENURE
2.8 yrs

Zhichun Xie

TITLE
Independent Non-Executive Director
AGE
61
TENURE
2.8 yrs

Xuefeng Peng

TITLE
Independent Non-Executive Director
AGE
57
TENURE
2.4 yrs

Ningyu Liu

TITLE
Independent Non-Executive Director
AGE
50
TENURE
2.4 yrs

Juntong Zhang

TITLE
Chairman of the Supervisory Board
AGE
45
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
03. Oct 18 Buy BlackRock, Inc. Company 28. Sep 18 28. Sep 18 2,053,500 HK$5.81 HK$11,939,257
X
Management checks
We assess China Minsheng Banking's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Minsheng Banking has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1988 News

Simply Wall St News

1988 Company Info

Description

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. The company operates through four segments: Corporate Banking, Personal Banking, Treasury, and Others. Its deposit products include saving accounts, deposit certificates, contracted deposits, agreement deposits, call deposits, corporate term deposits, and corporate current deposits. The company also offers personal housing mortgage, individual automobile purchase, household composite consumption, medium and long term, and short-term working capital loans; micro-credit products for individuals; trust, trade-related products, and foreign currency services; and debit and credit cards. In addition, it provides foreign exchange trading, derivatives transactions, money market transactions, and precious metal trading services, as well as Internet, mobile, and telephone banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; and comprehensive credit granting, forex settlement and sale, financial product investment, and trust financing services. Additionally, it provides convenient finance, investment banking, and asset management services, as well as non-financial services in the education, business travel, traveler, art, luxury life, health, club, and isports areas. The company has approximately 132 branches, 1,144 business outlets, 1,347 community sub-branches, 157 small business sub-branches, and 3,410 self-service banks. China Minsheng Banking Corp., Ltd. was founded in 1996 and is headquartered in Beijing, the People's Republic of China.

Details
Name: China Minsheng Banking Corp., Ltd.
1988
Exchange: SEHK
Founded: 1996
CN¥287,356,547,377
43,782,418,502
Website: http://www.cmbc.com.cn
Address: China Minsheng Banking Corp., Ltd.
No. 2 Fuxingmennei Avenue,
Xicheng District,
Beijing,
100031,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SHSE 600016 Domestic Shares Shanghai Stock Exchange CN CNY 19. Dec 2000
XSSC 600016 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 19. Dec 2000
OTCPK CMAK.Y UNSPONSORD ADR Pink Sheets LLC US USD 07. Apr 2010
SEHK 1988 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 26. Nov 2009
OTCPK CGMB.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 26. Nov 2009
DB GHFH Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 26. Nov 2009
SHSC 1988 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 26. Nov 2009
SZSC 1988 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 26. Nov 2009
Number of employees
Current staff
Staff numbers
58,338
China Minsheng Banking employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 12:51
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.