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 Analysis

Flawless balance sheet and good value.


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

Stable Share Price: 2016 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.1%

2016

2.4%

HK Banks

5.3%

HK Market


1 Year Return

-18.1%

2016

-16.2%

HK Banks

-20.4%

HK Market

Return vs Industry: 2016 exceeded the Hong Kong Banks industry which returned -17.9% over the past year.

Return vs Market: 2016 exceeded the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

2016IndustryMarket
7 Day4.1%2.4%5.3%
30 Day-3.0%-2.9%-8.5%
90 Day-13.9%-10.7%-14.7%
1 Year-18.1%-18.1%-11.7%-16.2%-17.6%-20.4%
3 Year-8.8%-17.1%2.3%-11.8%-2.5%-12.3%
5 Yearn/a5.8%-18.9%-5.7%-20.9%

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 compared to its fair value and its price relative to the market?

41.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2016 (HK$3.59) is trading below our estimate of fair value (HK$5.95)

Significantly Below Fair Value: 2016 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2016 is good value based on its PE Ratio (5.1x) compared to the Banks industry average (5.3x).

PE vs Market: 2016 is good value based on its PE Ratio (5.1x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2016's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2016 is overvalued based on its PB Ratio (0.6x) compared to the HK Banks industry average (0.5x).


Next Steps

Future Growth

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

4.9%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Zheshang Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2016 has a high level of non-cash earnings.

Growing Profit Margin: 2016's current net profit margins (46.9%) are higher than last year (43.5%).


Past Earnings Growth Analysis

Earnings Trend: 2016's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: 2016's earnings growth over the past year (14.6%) is below its 5-year average (15.4% per year).

Earnings vs Industry: 2016 earnings growth over the past year (14.6%) exceeded the Banks industry 5.8%.


Return on Equity

High ROE: 2016's Return on Equity (10.3%) is considered low.


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

Inventory Level: 2016 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2016's debt is covered by short term assets (assets are 1.6x debt).


Financial Institutions Analysis

Asset Level: 2016's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 2016 has a sufficient allowance for bad loans.

Low Risk Liabilities: 2016's liabilities are made up of primarily low risk sources of funding.

Loan Level: 2016 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 2016's loans are broadly funded by customer deposits.

Level of Bad Loans: 2016 has an appropriate level of bad loans (1.38%)


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2016's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2016's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2016's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2016's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2016 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2016's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Renyan Xu (54yo)

1.83s

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

Compensation vs Market: Renyan's total compensation ($USD781.96K) is about average for companies of similar size in the Hong Kong market ($USD1.10M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Renkang Shen
Chairman of the Board5.17yrsCN¥1.15m0.00014% CN¥126.3k
Renyan Xu
President & Executive Director1.83yrsCN¥5.55m0.00053% CN¥478.1k
Feng Jing
GM of Planning & Finance Department and CFO2.25yrsCN¥834.70k0.00010% CN¥90.2k
Shizheng Song
GM of Financial Technology Department & Chief Information Officer2.25yrsCN¥916.80k0.00012% CN¥108.3k
Luyun Zhang
Executive Director5.17yrsCN¥1.08m0.00013% CN¥117.3k
Guishan Liu
Assistant to President & Chief Risk Officer1.5yrsCN¥1.11m0.00012% CN¥108.3k
Long Liu
VP, Head of Board Directors Office & Company Secretary4.83yrsCN¥5.09m0.00049% CN¥442.0k
Haiqiang Chen
President of Hangzhou Branchno dataCN¥1.10m0.00014% CN¥126.3k

2.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 2016's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Renkang Shen
Chairman of the Board5.17yrsCN¥1.15m0.00014% CN¥126.3k
Renyan Xu
President & Executive Director1.83yrsCN¥5.55m0.00053% CN¥478.1k
Luyun Zhang
Executive Director5.17yrsCN¥1.08m0.00013% CN¥117.3k
Qinhong Gao
Non-Executive Director15.92yrsno datano data
Zhifang Zhou
Independent Non-Executive Director1.5yrsCN¥75.00kno data
Benli Tong
Independent Non-Executive Director5.17yrsCN¥300.00kno data
Tiangao Hu
Non-Executive Director15.92yrsno datano data
Deming Dai
Independent Non-Executive Director5.17yrsCN¥300.00kno data
Jianqiang Yu
Chairman of Board of Supervisors5.17yrsno data0.00052% CN¥469.1k
Jianming Zheng
Vice Chairman of Board of Supervisors5.17yrsno datano data

5.2yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 2016's board of directors are considered experienced (5 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 been diluted in the past year, with total shares outstanding growing by 9%.


Top Shareholders

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$90.214b
  • Shares outstanding: 21.27b
  • 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
2016SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares Foreign ListedHKHKDMar 2016
A19FFBDB (Deutsche Boerse AG)5.45%-IDX/LKD SUB BDS PERP USD200000DEUSDAug 2019
601916SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYNov 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 Banking segment offers a range of financial products and services, including corporate loans and advances, trade finance, deposit products and other types of corporate intermediary services, etc. The Retail Banking segment provides personal loans and advances, deposit products, bank cards business, and other types of personal intermediary services. The Treasury Business segment conducts money market and repurchase transactions, debt instruments investments, financial derivatives business for proprietary trading or on behalf of customers, and financial products and services. China Zheshang Bank Co., Ltd. serves individuals, corporations, government agencies, and financial institutions. As of December 31, 2018, the company had 242 branch outlets in 16 provinces (municipalities) and Hong Kong in China. China Zheshang Bank Co., Ltd. was founded in 2004 and is headquartered in Hangzhou, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 16:55
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
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.