SEHK:2066

Stock Analysis Report

Executive Summary

Shengjing Bank Co., Ltd. provides banking products and services to individual and corporate customers in Mainland China.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

2066

0.9%

HK Banks

0.3%

HK Market


1 Year Return

62.8%

2066

-3.4%

HK Banks

1.3%

HK Market

Return vs Industry: 2066 exceeded the Hong Kong Banks industry which returned -3.4% over the past year.

Return vs Market: 2066 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

2066IndustryMarket
7 Day0%0.9%0.3%
30 Day0%2.7%0.5%
90 Day0%-2.3%-4.6%
1 Year68.1%62.8%1.7%-3.4%4.9%1.3%
3 Year-20.0%-28.8%16.6%0.4%15.3%3.7%
5 Yearn/a29.6%-0.6%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Shengjing Bank 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: 2066 (HK$5.6) is trading below our estimate of fair value (HK$14.41)

Significantly Below Fair Value: 2066 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2066 is good value based on its PE Ratio (5.4x) compared to the Banks industry average (5.9x).

PE vs Market: 2066 is good value based on its PE Ratio (5.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2066's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2066 is good value based on its PB Ratio (0.5x) compared to the HK Banks industry average (0.5x).


Next Steps

Future Growth

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

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2066's forecast earnings growth (7.5% per year) is above the savings rate (2%).

Earnings vs Market: 2066's earnings (7.5% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 2066's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 2066's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 2066'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 2066's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Shengjing Bank performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2066's earnings have grown by 1.3% per year over the past 5 years.

Accelerating Growth: 2066's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2066 had negative earnings growth (-21.3%) over the past year, making it difficult to compare to the Banks industry average (5.2%).


Return on Equity

High ROE: 2066's Return on Equity (9.2%) is considered low.


Return on Assets

ROA vs Industry: 2066's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 2066's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Shengjing 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: 2066 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2066's debt is covered by short term assets (assets are 1.363630x debt).


Financial Institutions Analysis

Asset Level: 2066's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 2066 has a sufficient allowance for bad loans.

Low Risk Liabilities: 2066's liabilities are made up of primarily low risk sources of funding.

Loan Level: 2066 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 2066's loans are broadly funded by customer deposits.

Level of Bad Loans: 2066 has an appropriate level of bad loans (1.69%)


Next Steps

Dividend

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

2.38%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%2.3%markettop25%6.2%industryaverage5.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2066's dividend (2.38%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 2066's dividend (2.38%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 2066 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2066 has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.8%), 2066's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Qiang Zhang (55yo)

1.7yrs

Tenure

CN¥3,505,000

Compensation

Mr. Zhang Qiang has been the President of Shengjing Bank Co. Ltd., since February 28, 2018 and as its Executive Director since May 14, 2018. Mr. Qiang served as the vice president of the head office of CI ...


CEO Compensation Analysis

Compensation vs. Market: Qiang has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

Compensation vs Earnings: Qiang's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

6.2yrs

Average Tenure

54yo

Average Age

Experienced Management: 2066's management team is seasoned and experienced (6.2 years average tenure).


Board Age and Tenure

1.7yrs

Average Tenure

55yo

Average Age

Experienced Board: 2066's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Huofa Qiu (59yo)

    Chairman of the Board

    • Tenure: 0.4yrs
    • Compensation: CN¥43.00k
  • Yigong Wang (53yo)

    Chief Risk Officer

    • Tenure: 6.2yrs
    • Compensation: CN¥3.49m
  • Gang Wu (49yo)

    VP & Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥3.50m
  • Guang Hu (60yo)

    Chief Internal Auditor

    • Tenure: 9.1yrs
    • Compensation: CN¥577.00k
  • Yi Zhang (49yo)

    Chief Information Officer & GM of Information Technology Department

    • Tenure: 6.2yrs
  • Zhiyan Liu (59yo)

    CFO and GM of Planning & Accounting Management Department

    • Tenure: 5.3yrs
    • Compensation: CN¥463.00k
  • Zhi Zhou (50yo)

    Secretary of the Board

    • Tenure: 4.7yrs
  • Qiang Zhang (55yo)

    President & Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥3.51m

Board Members

  • Tiancai Xing (58yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥254.00k
  • Huofa Qiu (59yo)

    Chairman of the Board

    • Tenure: 0.4yrs
    • Compensation: CN¥43.00k
  • Yigong Wang (53yo)

    Chief Risk Officer

    • Tenure: 6.2yrs
    • Compensation: CN¥3.49m
  • Gang Wu (49yo)

    VP & Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥3.50m
  • Yuguo Li (65yo)

    Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: CN¥19.00k
  • Yanxue Liu (53yo)

    Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥3.61m
  • Qiang Zhang (55yo)

    President & Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥3.51m
  • Guoju Ni (64yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥254.00k
  • Jinyi Li (55yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥254.00k
  • Liya Yang (55yo)

    Chairman of the Board of Supervisors

    • Tenure: 1.2yrs

Company Information

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


Key Information

  • Name: Shengjing Bank Co., Ltd.
  • Ticker: 2066
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: HK$32.461b
  • Shares outstanding: 5.80b
  • Website: https://www.shengjingbank.com.cn

Number of Employees


Location

  • Shengjing Bank Co., Ltd.
  • No. 109, North Station Road
  • Shenhe District
  • Shenyang
  • Liaoning Province
  • 110013
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2066SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2014
6SYDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2014

Biography

Shengjing Bank Co., Ltd. provides banking products and services to individual and corporate customers in Mainland China. Its Corporate Banking segment offers corporate loans and advances, trade financing a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:56
End of Day Share Price2019/10/22 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.