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 with acceptable track record.


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

9.9%

2016

-4.1%

HK Banks

-4.2%

HK Market


1 Year Return

2.1%

2016

-5.6%

HK Banks

-2.6%

HK Market

Return vs Industry: 2016 exceeded the Hong Kong Banks industry which returned -5.6% over the past year.

Return vs Market: 2016 exceeded the Hong Kong Market which returned -2.6% over the past year.


Shareholder returns

2016IndustryMarket
7 Day9.9%-4.1%-4.2%
30 Day6.7%0.05%-1.4%
90 Day16.1%6.8%3.5%
1 Year2.1%2.1%-0.6%-5.6%0.9%-2.6%
3 Year26.8%15.2%22.5%5.5%19.6%7.6%
5 Yearn/a30.3%-0.1%18.6%-1.0%

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?

5.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2016 (HK$4.46) is trading above our estimate of fair value (HK$4.05)

Significantly Below Fair Value: 2016 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2016 is poor value based on its PE Ratio (5.9x) compared to the Banks industry average (5.8x).

PE vs Market: 2016 is good value based on its PE Ratio (5.9x) compared to the Hong Kong market (10.1x).


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 (0.8x) 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?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2016's forecast earnings growth (3.8% per year) is above the savings rate (2%).

Earnings vs Market: 2016's earnings (3.8% per year) are forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Earnings: 2016's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 2016's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 2016's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2016's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

16.4%

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 (45.4%) are higher than last year (44%).


Past Earnings Growth Analysis

Earnings Trend: 2016's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: 2016's earnings growth over the past year (14.2%) is below its 5-year average (16.4% per year).

Earnings vs Industry: 2016 earnings growth over the past year (14.2%) exceeded the Banks industry 3.6%.


Return on Equity

High ROE: 2016's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


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 not covered by short term assets (assets are 0.9x 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

company0%marketbottom25%2.3%markettop25%6.4%industryaverage5.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

1.8yrs

Average management tenure


CEO

Renyan Xu (54yo)

1.4yrs

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 ($USD792.11K) is about average for companies of similar size in the Hong Kong market ($USD815.37K).

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


Management Age and Tenure

1.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 2016's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 2016's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥121,585,05307 Nov 19
Fortis Insurance Company (Asia) Limited, Asset Management Arm
EntityCompany
Shares28,015,000
Max PriceCN¥4.34

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Luyun Zhang (58yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥1.08m
  • Renkang Shen (56yo)

    Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: CN¥1.15m
  • Renyan Xu (54yo)

    President & Executive Director

    • Tenure: 1.4yrs
    • Compensation: CN¥5.55m
  • Long Liu (54yo)

    VP, Head of Board Directors Office & Company Secretary

    • Tenure: 4.4yrs
  • Guishan Liu (56yo)

    Assistant to President & Chief Risk Officer

    • Tenure: 1.1yrs
  • Feng Jing (40yo)

    GM of Planning & Finance Department and CFO

    • Tenure: 1.8yrs
  • Haiqiang Chen (45yo)

    President of Hangzhou Branch

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

    GM of Financial Technology Department & Chief Information Officer

    • Tenure: 1.8yrs

Board Members

  • Luyun Zhang (58yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥1.08m
  • Qinhong Gao (56yo)

    Non-Executive Director

    • Tenure: 15.5yrs
  • Zhifang Zhou (63yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: CN¥75.00k
  • Benli Tong (69yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥300.00k
  • Tiangao Hu (54yo)

    Non-Executive Director

    • Tenure: 15.5yrs
  • Renkang Shen (56yo)

    Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: CN¥1.15m
  • Renyan Xu (54yo)

    President & Executive Director

    • Tenure: 1.4yrs
    • Compensation: CN¥5.55m
  • Deming Dai (57yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥300.00k
  • Jianqiang Yu (57yo)

    Chairman of Board of Supervisors

    • Tenure: 4.8yrs
  • Jianming Zheng (46yo)

    Vice Chairman of Board of Supervisors

    • Tenure: 4.8yrs

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$83.485b
  • 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
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 Analysis2019/11/16 12:58
End of Day Share Price2019/11/15 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.