SEHK:2139

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Executive Summary

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


Snowflake Analysis

High growth potential with adequate balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

2139

5.3%

HK Banks

0.1%

HK Market


1 Year Return

-37.5%

2139

-17.3%

HK Banks

2.0%

HK Market

Return vs Industry: 2139 underperformed the Hong Kong Banks industry which returned -17.3% over the past year.

Return vs Market: 2139 underperformed the Hong Kong Market which returned 2% over the past year.


Shareholder returns

2139IndustryMarket
7 Day1.0%5.3%0.1%
30 Day0%6.5%2.4%
90 Day0%-4.9%-0.4%
1 Year-37.5%-37.5%-12.2%-17.3%6.3%2.0%
3 Yearn/a-15.8%-28.2%-5.7%-16.0%
5 Yearn/a9.8%-17.0%16.4%-3.4%

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$1.05) is trading below our estimate of fair value (HK$3.73)

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 (25.8x) compared to the HK Banks industry average (5.6x).

PE vs Market: 2139 is poor value based on its PE Ratio (25.8x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2139 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 2139's PB Ratio (0.4x) is in line with the HK Banks industry average.


Next Steps

Future Growth

How is Bank of Gansu forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

69.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2139's forecast earnings growth (69.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 2139's earnings (69.7% per year) are forecast to grow faster than the Hong Kong market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2139's revenue (29.1% per year) is forecast to grow faster than the Hong Kong market (13.3% per year).

High Growth Revenue: 2139's revenue (29.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2139's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

Past Performance

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

-6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2139 has a high level of non-cash earnings.

Growing Profit Margin: 2139's current net profit margins (13%) are lower than last year (38.5%).


Past Earnings Growth Analysis

Earnings Trend: 2139's earnings have declined by 6.8% 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 (-79.7%) over the past year, making it difficult to compare to the Banks industry average (-5.3%).


Return on Equity

High ROE: 2139's Return on Equity (1.4%) 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


Financial Institutions Analysis

Asset Level: 2139's Assets to Equity ratio (13.5x) is moderate.

Allowance for Bad Loans: 2139 has a low allowance for bad loans (68%).

Low Risk Liabilities: 80% of 2139's liabilities are made up of primarily low risk sources of funding.

Loan Level: 2139 has an appropriate level of Loans to Assets ratio (50%).

Low Risk Deposits: 2139's Loans to Deposits ratio (67%) is appropriate.

Level of Bad Loans: 2139 has a high level of bad loans (4.5%).


Next Steps

Dividend

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

2.44%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2139's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2139'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 2139's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2139's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2139 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 2139's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

  • Explore strong dividend paying companies in the Banks industry.

Management

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

1.8yrs

Average management tenure


CEO

Wenyong Wang (54 yo)

1.83yrs

Tenure

CN¥803,000

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 ($USD120.75K) is below average for companies of similar size in the Hong Kong market ($USD559.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Qing Liu
Executive Chairman1.83yrsCN¥833.00k0.0030%
CN¥ 317.2k
Wenyong Wang
President & Executive Director1.83yrsCN¥803.00kno data
Chunyun Wang
Senior Executive of Internal Control & Compliance and Chief Risk Officer2.42yrsno datano data
Jin Hu Qiu
Vice Presidentno datano datano data
Jumei Hao
VP & Secretary1.83yrsno datano data
Po Yi Fok
Company Secretary1.25yrsno datano data

1.8yrs

Average Tenure

54yo

Average Age

Experienced Management: 2139's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Qing Liu
Executive Chairman1.83yrsCN¥833.00k0.0030%
CN¥ 317.2k
Wenyong Wang
President & Executive Director1.83yrsCN¥803.00kno data
Sincere Wong
Independent Non-Executive Director3.17yrsCN¥143.00kno data
Xiuli Tang
Independent Non-Executive Director3.17yrsCN¥143.00kno data
Mei Luo
Independent Non-Executive Director3.17yrsCN¥143.00kno data
HongXia Zhang
Non-Executive Director9yrsCN¥143.00kno data
Youda Zhang
Non-Executive Director3.92yrsno datano data
Changhong Wu
Non-Executive Director3.92yrsno datano data
Jirong Guo
Non-Executive Director3.92yrsno datano data
Wanxiang Liu
Non-Executive Director1.83yrsno datano data
Ximiao Dong
Independent Non-Executive Director1.83yrsCN¥119.00kno data
Lan Tang
Chairman of the Board of Supervisors1.83yrsno datano data

3.2yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 2139's board of directors are considered experienced (3.2 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 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$10.573b
  • 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, Pingliang Jingning Chengji Rural Bank Co., Ltd., provides various banking services in the People’s Republic of China. It operates through three segmen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 12:55
End of Day Share Price2020/10/22 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.