SEHK:2066

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


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

Stable Share Price: 2066 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.4%

2066

-0.9%

HK Banks

1.5%

HK Market


1 Year Return

22.3%

2066

-19.3%

HK Banks

1.4%

HK Market

Return vs Industry: 2066 exceeded the Hong Kong Banks industry which returned -19.3% over the past year.

Return vs Market: 2066 exceeded the Hong Kong Market which returned 1.4% over the past year.


Shareholder returns

2066IndustryMarket
7 Day-3.4%-0.9%1.5%
30 Day-3.7%-9.1%-1.7%
90 Day-3.5%-15.8%3.6%
1 Year22.3%22.3%-14.3%-19.3%5.4%1.4%
3 Year17.1%8.6%-17.6%-29.8%-4.3%-14.6%
5 Year-28.7%-38.9%13.5%-14.1%24.7%3.7%

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?

5.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2066 (HK$6.85) is trading below our estimate of fair value (HK$7.27)

Significantly Below Fair Value: 2066 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2066 is poor value based on its PE Ratio (8.9x) compared to the HK Banks industry average (5.5x).

PE vs Market: 2066 is good value based on its PE Ratio (8.9x) compared to the Hong Kong market (11.1x).


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 overvalued based on its PB Ratio (0.7x) compared to the HK Banks industry average (0.4x).


Next Steps

Future Growth

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

7.9%

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 Shengjing 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 Shengjing Bank performed over the past 5 years?

-4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2066 has a high level of non-cash earnings.

Growing Profit Margin: 2066's current net profit margins (47.8%) are lower than last year (53.1%).


Past Earnings Growth Analysis

Earnings Trend: 2066's earnings have declined by 4.9% 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 (-6%) over the past year, making it difficult to compare to the Banks industry average (-6%).


Return on Equity

High ROE: 2066's Return on Equity (6.3%) is considered low.


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


Financial Institutions Analysis

Asset Level: 2066's Assets to Equity ratio (13.1x) is moderate.

Allowance for Bad Loans: 2066 has a sufficient allowance for bad loans (130%).

Low Risk Liabilities: 76% of 2066's liabilities are made up of primarily low risk sources of funding.

Loan Level: 2066 has an appropriate level of Loans to Assets ratio (47%).

Low Risk Deposits: 2066's Loans to Deposits ratio (67%) is appropriate.

Level of Bad Loans: 2066 has a high level of bad loans (2.5%).


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2066's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2066's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2066's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2066's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2066 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 2066'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?

5.6yrs

Average management tenure


CEO

Guoyong Shen (49 yo)

0.17

Tenure

Mr. Guoyong Shen serves as President of Shengjing Bank Co. Ltd., since July 6, 2020 and served as its Executive Vice President since March 27, 2020 until July 6, 2020. Mr. Shen had been a Vice President of ...


Leadership Team

NamePositionTenureCompensationOwnership
Huofa Qiu
Chairman of the Board1.33yrsCN¥3.36mno data
Yigong Wang
VP & Executive Director7.08yrsCN¥3.68mno data
Gang Wu
VP & Executive Director6.33yrsCN¥3.53mno data
Guoyong Shen
President0.17yrno datano data
Hong Bao
CFO & General Manager of Accounting0.50yrno datano data
Yi Zhang
Chief Information Officer & GM of Information Technology Department7.08yrsno datano data
Zheng Li
Human Resources Director0.50yrno datano data
Guang Hu
Chief Internal Auditor10yrsCN¥577.00kno data
Ying Li
Chief Risk Officer0.50yrno datano data
Yin Ping Kwong
Joint Company Secretary6.25yrsno datano data
Zhi Zhou
Joint Company Secretary5.58yrsno datano data

5.6yrs

Average Tenure

51yo

Average Age

Experienced Management: 2066's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Huofa Qiu
Chairman of the Board1.33yrsCN¥3.36mno data
Yigong Wang
VP & Executive Director7.08yrsCN¥3.68mno data
Gang Wu
VP & Executive Director6.33yrsCN¥3.53mno data
Kwok Leung Tai
Independent Non-Executive Director2.08yrsCN¥257.00kno data
Tiancai Xing
Independent Non-Executive Director2.58yrsCN¥257.00kno data
Weiqing Zhao
Non-Executive Director6.33yrsCN¥40.00kno data
Yuguo Li
Non-Executive Director7.17yrsCN¥22.00kno data
Jianwei Li
Non-Executive Director14.25yrsCN¥42.00kno data
Qiyang Zhang
Non-Executive Director3.33yrsCN¥2.74mno data
Yanxue Liu
Non-Executive Director2.58yrsCN¥822.00kno data
Jinyi Li
Independent Non-Executive Director2.58yrsCN¥257.00kno data
Liya Yang
Chairman of the Board of Supervisors2.08yrsno datano data

3.0yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 2066's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.


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 substantially diluted in the past year, with total shares outstanding growing by 51.8%.


Top Shareholders

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$60.257b
  • Shares outstanding: 8.80b
  • Website: https://www.shengjingbank.com.cn

Number of Employees


Location

  • Shengjing Bank Co., Ltd.
  • No. 109, Beizhan 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 Analysis2020/09/19 19:11
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.