SEHK:2016

Stock Analysis Report

China Zheshang Bank

Executive Summary

China Zheshang Bank Co., Ltd. provides a range of banking products and services in Mainland China.

Snowflake

Fundamentals

Flawless balance sheet and slightly overvalued.

Risks

  • China Zheshang Bank is not covered by any analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

SEHK:2016

1.0%

HK Banks

0.7%

HK Market


1 Year Return

-4.0%

SEHK:2016

-9.0%

HK Banks

-5.3%

HK Market

2016 outperformed the Banks industry which returned -9% over the past year.

2016 outperformed the Market in Hong Kong which returned -5.3% over the past year.


Share holder returns

2016IndustryMarket
7 Day-1.1%1.0%0.7%
30 Day8.6%5.0%4.9%
90 Day2.9%-7.3%-3.7%
1 Year-4.0%-4.0%-4.2%-9.0%-1.8%-5.3%
3 Year17.4%6.7%12.2%-3.6%16.4%4.6%
5 Yearn/a28.6%-1.4%18.0%-1.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.26x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

China Zheshang Bank's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

China Zheshang Bank's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

China Zheshang Bank is good value based on earnings compared to the HK Banks industry average.

China Zheshang Bank is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for China Zheshang Bank, we can't assess if its growth is good value.


Price Based on Value of Assets

China Zheshang Bank is overvalued based on assets compared to the HK Banks industry average.


Next Steps

Future Growth

How is China Zheshang Bank expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if China Zheshang Bank is high growth as no revenue estimate data is available.

China Zheshang Bank's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

Unable to compare China Zheshang Bank's revenue growth to the Hong Kong market average as no estimate data is available.

China Zheshang Bank's earnings growth is positive but not above the Hong Kong market average.

China Zheshang Bank's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if China Zheshang Bank will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has China Zheshang Bank performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Zheshang Bank's year on year earnings growth rate has been positive over the past 5 years.

China Zheshang Bank's 1-year earnings growth is less than its 5-year average (6.4% vs 17.1%)

China Zheshang Bank's earnings growth has exceeded the HK Banks industry average in the past year (6.4% vs 5.2%).


Return on Equity

China Zheshang Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Zheshang Bank used its assets less efficiently than the HK Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if China Zheshang Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is China Zheshang Bank'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

Information is not available.

Information is not available.


Financial Institutions Analysis

China Zheshang Bank has an acceptable proportion of non-loan assets held.

China Zheshang Bank has a sufficient allowance for bad loans.

China Zheshang Bank's liabilities are made up of primarily low risk sources of funding.

China Zheshang Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at China Zheshang Bank are broadly funded by customer deposits.

China Zheshang Bank has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is China Zheshang Bank's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate China Zheshang Bank's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate China Zheshang Bank's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as China Zheshang Bank has not reported any payouts.

Unable to verify if China Zheshang Bank's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as China Zheshang Bank has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Renyan Xu (54yo)

1.3yrs

Tenure

CN¥5,551,000

Compensation

Mr. Renyan Xu has been president of China Zheshang Bank Co., Ltd since June 27, 2018 and has been its Executive Director since May 2004. Mr. Xu served as Vice President of China Zheshang Bank Co., Ltd sinc ...


CEO Compensation Analysis

Renyan's remuneration is about average for companies of similar size in Hong Kong.

Renyan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.7yrs

Average Tenure

54.5yo

Average Age

The average tenure for the China Zheshang Bank management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.6yrs

Average Tenure

56.5yo

Average Age

The tenure for the China Zheshang Bank board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCN¥121,585,11621 Dec 18
Fortis Insurance Company (Asia) Limited, Asset Management Arm
EntityCompany
Shares28,015,000
Max PriceCN¥4.34
BuyCN¥93,959,94410 Oct 18
Fortis Insurance Company (Asia) Limited, Asset Management Arm
EntityCompany
Shares21,600,000
Max PriceCN¥4.35

Ownership Breakdown


Management Team

  • Luyun Zhang (58yo)

    Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥1.08m
  • Renkang Shen (56yo)

    Chairman of the Board

    • Tenure: 4.6yrs
    • Compensation: CN¥1.15m
  • Renyan Xu (54yo)

    President & Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥5.55m
  • Long Liu (54yo)

    VP, Head of Board Directors Office & Company Secretary

    • Tenure: 4.3yrs
  • Guishan Liu (56yo)

    Assistant to President & Chief Risk Officer

    • Tenure: 0.9yrs
  • Feng Jing (40yo)

    GM of Planning & Finance Department and CFO

    • Tenure: 1.7yrs
  • Haiqiang Chen (45yo)

    President of Hangzhou Branch

    • Tenure: 0yrs
  • Shizheng Song (55yo)

    GM of Financial Technology Department & Chief Information Officer

    • Tenure: 1.7yrs

Board Members

  • Luyun Zhang (58yo)

    Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥1.08m
  • Qinhong Gao (56yo)

    Non-Executive Director

    • Tenure: 15.3yrs
  • Zhifang Zhou (63yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: CN¥75.00k
  • Benli Tong (69yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥300.00k
  • Tiangao Hu (54yo)

    Non-Executive Director

    • Tenure: 15.3yrs
  • Renkang Shen (56yo)

    Chairman of the Board

    • Tenure: 4.6yrs
    • Compensation: CN¥1.15m
  • Renyan Xu (54yo)

    President & Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥5.55m
  • Deming Dai (57yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥300.00k
  • Jianqiang Yu (57yo)

    Chairman of Board of Supervisors

    • Tenure: 4.6yrs
  • Jianming Zheng (46yo)

    Vice Chairman of Board of Supervisors

    • Tenure: 4.6yrs

Company Information

China Zheshang Bank Co., Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Zheshang Bank Co., Ltd
  • Ticker: 2016
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$81.801b
  • Shares outstanding: 18.72b
  • Website: https://www.czbank.com

Number of Employees


Location

  • China Zheshang Bank Co., Ltd
  • No. 288, Qingchun Road
  • Hangzhou
  • Zhejiang Province
  • 310006
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2016SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares Foreign ListedHKHKDMar 2016
2016SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares Foreign ListedHKHKDMar 2016
A19FFBDB (Deutsche Boerse AG)5.45%-IDX/LKD SUB BDS PERP USD200000DEUSDAug 2019

Biography

China Zheshang Bank Co., Ltd. provides a range of banking products and services in Mainland China. It operates through Corporate Banking, Retail Banking, and Treasury Business segments. The Corporate Banki ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 12:52
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
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.