SEHK:2139

Stock Analysis Report

Executive Summary

Bank of Gansu Co., Ltd., together with its subsidiary, Jianning Chengji Rural Bank, provides various banking services in the People’s Republic of China.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2139's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.4%

2139

2.4%

HK Banks

5.3%

HK Market


1 Year Return

-53.1%

2139

-16.2%

HK Banks

-20.4%

HK Market

Return vs Industry: 2139 underperformed the Hong Kong Banks industry which returned -17.9% over the past year.

Return vs Market: 2139 underperformed the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

2139IndustryMarket
7 Day-9.4%2.4%5.3%
30 Day-17.9%-2.9%-8.5%
90 Day-22.8%-10.7%-14.7%
1 Year-50.3%-53.1%-11.7%-16.2%-17.6%-20.4%
3 Yearn/a2.3%-11.8%-2.5%-12.3%
5 Yearn/a5.8%-18.9%-5.7%-20.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bank of Gansu 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: 2139 (HK$1.15) is trading below our estimate of fair value (HK$4.3)

Significantly Below Fair Value: 2139 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2139 is poor value based on its PE Ratio (9.8x) compared to the Banks industry average (5.3x).

PE vs Market: 2139 is poor value based on its PE Ratio (9.8x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2139's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2139 is good value based on its PB Ratio (0.4x) compared to the HK Banks industry average (0.5x).


Next Steps

Future Growth

How is Bank of Gansu 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 Bank of Gansu 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 Bank of Gansu performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2139 has high quality earnings.

Growing Profit Margin: 2139's current net profit margins (27.6%) are lower than last year (52.2%).


Past Earnings Growth Analysis

Earnings Trend: 2139's earnings have grown by 16% per year over the past 5 years.

Accelerating Growth: 2139's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2139 had negative earnings growth (-69.8%) over the past year, making it difficult to compare to the Banks industry average (5.8%).


Return on Equity

High ROE: 2139's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Bank of Gansu'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: 2139 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2139's debt is covered by short term assets (assets are 1.7x debt).


Financial Institutions Analysis

Asset Level: 2139's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 2139 has a sufficient allowance for bad loans.

Low Risk Liabilities: 2139's liabilities are made up of primarily low risk sources of funding.

Loan Level: 2139 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 2139's loans are broadly funded by customer deposits.

Level of Bad Loans: 2139 has a high level of bad loans (2.97%)


Next Steps

Dividend

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

9.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2139's dividend (9.71%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.63%).

High Dividend: 2139's dividend (9.71%) is in the top 25% of dividend payers in the Hong Kong market (7.28%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 2139's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 2139's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95%), 2139's dividend payments are not well 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

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

1.3yrs

Average management tenure


CEO

Wenyong Wang (53yo)

1.25s

Tenure

CN¥824,336

Compensation

Mr. Wang Wenyong has been President & Director of Bank of Gansu Co., Ltd. since December 3, 2018. 


CEO Compensation Analysis

Compensation vs Market: Wenyong's total compensation ($USD116.12K) is below average for companies of similar size in the Hong Kong market ($USD469.46K).

Compensation vs Earnings: Insufficient data to compare Wenyong's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Qing Liu
Executive Chairman1.25yrsCN¥286.00k0.0030% CN¥347.4k
Wenyong Wang
President & Executive Director1.25yrsCN¥824.34kno data
Chunyun Wang
Senior Executive of Internal Control & Compliance and Chief Risk Officer1.83yrsno datano data
Zhiyuan Wang
VP, GM of the Human Resources Department and GM of Strategy & Development Deparment2.25yrsno datano data
Jin Hu Qiu
Vice Presidentno datano datano data
Jumei Hao
VP & Secretary1.25yrsno datano data
Po Yi Fok
Company Secretary0.67yrno datano data

1.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 2139's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Qing Liu
Executive Chairman1.25yrsCN¥286.00k0.0030% CN¥347.4k
Wenyong Wang
President & Executive Director1.25yrsCN¥824.34kno data
Xiuli Tang
Independent Non-Executive Director2.58yrsCN¥143.00kno data
Mei Luo
Independent Non-Executive Director2.58yrsCN¥143.00kno data
HongXia Zhang
Non-Executive Director8.42yrsCN¥143.00kno data
Youda Zhang
Non-Executive Director3.25yrsno datano data
Changhong Wu
Non-Executive Director3.25yrsno datano data
Jirong Guo
Non-Executive Director3.25yrsno datano data
Zhenjun Yang
External Supervisor2.58yrsno datano data
Lan Tang
Chairman of the Board of Supervisors1.25yrsno datano data

2.6yrs

Average Tenure

49yo

Average Age

Experienced Board: 2139's board of directors are not considered experienced ( 2.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Bank of Gansu Co., Ltd.
  • Ticker: 2139
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: HK$11.580b
  • Shares outstanding: 10.07b
  • Website: https://www.gsbankchina.com

Number of Employees


Location

  • Bank of Gansu Co., Ltd.
  • Gansu Bank Building
  • 525 Donggang West Road
  • Lanzhou
  • Gansu Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2139SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJan 2018

Biography

Bank of Gansu Co., Ltd., together with its subsidiary, Jianning Chengji Rural Bank, provides various banking services in the People’s Republic of China. It operates through three segments: Corporate Banking, Retail Banking, and Financial Market Operations. The Corporate Banking segment offers a range of financial products and services, including deposits, corporate loans and advances, agency services, consulting and advisory services, remittance and settlement services, and guarantee services to corporations and government agencies. The Retail Banking segment provides deposits, personal loans, bank cards, personal wealth management services, and remittance services to retail customers. The Financial Market Operations segment engages in the inter-bank money market transactions, repurchases transactions, and investments; and trades in debt securities, as well as issues debts. As of December 31, 2018, the company had 1 operational department, 12 branches, 189 sub-branches, 5 micro-to-small sub-branches, and 2 community banks. Bank of Gansu Co., Ltd. was founded in 2011 and is headquartered in Lanzhou, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 14:35
End of Day Share Price2020/03/31 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.