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Bank of Gansu

SEHK:2139
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2139
SEHK
HK$18B
Market Cap
  1. Home
  2. HK
  3. Banks
Company description

Bank of Gansu Co., Ltd., together with its subsidiary, Jianning Chengji Rural Bank, provides various banking services in the People’s Republic of China. The last earnings update was 111 days ago. More info.


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2139 Share Price and Events
7 Day Returns
-1%
SEHK:2139
-0.3%
HK Banks
-0.6%
HK Market
1 Year Returns
-23.3%
SEHK:2139
-14.4%
HK Banks
-9.8%
HK Market
2139 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bank of Gansu (2139) -1% 1.1% -8.2% -23.3% - -
HK Banks -0.3% -9.5% -11.1% -14.4% -4.4% -9.5%
HK Market -0.6% -9.6% -7.5% -9.8% 1.6% -10.6%
1 Year Return vs Industry and Market
  • 2139 underperformed the Banks industry which returned -14.4% over the past year.
  • 2139 underperformed the Market in Hong Kong which returned -9.8% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Bank of Gansu undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bank of Gansu to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bank of Gansu.

SEHK:2139 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= CN¥2.36 * 20.2%
CN¥0.48
Book Value of Equity per Share Median Book Value from the past 5 years. CN¥2.36
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:2139
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.565 (1 + (1- 25%) (380.82%))
1.214
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.214 * 5.96%)
9.24%

Discounted Cash Flow Calculation for SEHK:2139 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Bank of Gansu is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:2139 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (20.2% – 9.24%) * CN¥2.36)
CN¥0.26
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥0.26 / (9.24% - 2%)
CN¥3.57
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥2.36 + CN¥3.57
CN¥5.93
SEHK:2139 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:2139)
1.114
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥5.93 x 1.114
HK$6.6
Value per share (HKD) From above. HK$6.60
Current discount Discount to share price of HK$1.91
= -1 x (HK$1.91 - HK$6.60) / HK$6.60
71.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Bank of Gansu is available for.
Intrinsic value
>50%
Share price is HK$1.91 vs Future cash flow value of HK$6.6
Current Discount Checks
For Bank of Gansu to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Bank of Gansu's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Bank of Gansu's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bank of Gansu's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bank of Gansu's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2139 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥0.32
SEHK:2139 Share Price ** SEHK (2019-08-19) in HKD HK$1.91
SEHK:2139 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.898 CN¥1.72
Hong Kong Banks Industry PE Ratio Median Figure of 32 Publicly-Listed Banks Companies 5.47x
Hong Kong Market PE Ratio Median Figure of 1,498 Publicly-Listed Companies 9.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bank of Gansu.

SEHK:2139 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2139 Share Price ÷ EPS (both in CNY)

= 1.72 ÷ 0.32

5.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of Gansu is good value based on earnings compared to the HK Banks industry average.
  • Bank of Gansu is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Bank of Gansu's expected growth come at a high price?
Raw Data
SEHK:2139 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.3x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
2%per year
Hong Kong Banks Industry PEG Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.79x
Hong Kong Market PEG Ratio Median Figure of 486 Publicly-Listed Companies 0.75x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Bank of Gansu, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Bank of Gansu's assets?
Raw Data
SEHK:2139 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥2.58
SEHK:2139 Share Price * SEHK (2019-08-19) in HKD HK$1.91
SEHK:2139 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.898 CN¥1.72
Hong Kong Banks Industry PB Ratio Median Figure of 32 Publicly-Listed Banks Companies 0.6x
Hong Kong Market PB Ratio Median Figure of 2,185 Publicly-Listed Companies 0.84x
SEHK:2139 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2139 Share Price ÷ Book Value per Share (both in CNY)

= 1.72 ÷ 2.58

0.66x

* Primary Listing of Bank of Gansu.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of Gansu is overvalued based on assets compared to the HK Banks industry average.
X
Value checks
We assess Bank of Gansu's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Bank of Gansu has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Bank of Gansu expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Bank of Gansu, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bank of Gansu expected to grow at an attractive rate?
  • Bank of Gansu's earnings growth is positive but not above the low risk savings rate of 2%.
Growth vs Market Checks
  • Bank of Gansu's earnings growth is positive but not above the Hong Kong market average.
  • Unable to compare Bank of Gansu's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:2139 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2139 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 2%
Hong Kong Banks Industry Earnings Growth Rate Market Cap Weighted Average 6.2%
Hong Kong Banks Industry Revenue Growth Rate Market Cap Weighted Average 8%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.7%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:2139 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:2139 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:2139 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 6,665 -34,298 3,259
2018-12-31 6,886 -24,614 3,435
2018-09-30 6,870 -3,510 3,580
2018-06-30 6,877 -42,285 3,528
2018-03-31 6,593 -41,411 3,405
2017-12-31 6,455 -48,189 3,358
2017-09-30 6,875 -38,773 3,831
2017-06-30 6,102 -24,400 3,245
2017-03-31 4,882 -8,603 2,304
2016-12-31 4,425 -12,964 1,917
2016-09-30 3,749 -8,564 1,179
2016-06-30 3,726 -21,526 1,149

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bank of Gansu's earnings are expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Bank of Gansu is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:2139 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Bank of Gansu Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2139 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:2139 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 0.32
2018-12-31 0.35
2018-09-30 0.36
2018-06-30 0.35
2018-03-31
2017-12-31 0.45
2017-09-30
2017-06-30 0.43
2017-03-31
2016-12-31 0.25
2016-09-30
2016-06-30 0.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Bank of Gansu will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Bank of Gansu's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bank of Gansu has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bank of Gansu's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Bank of Gansu has delivered over 20% year on year earnings growth in the past 5 years.
  • Bank of Gansu's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Bank of Gansu's 1-year earnings growth is negative, it can't be compared to the HK Banks industry average.
Earnings and Revenue History
Bank of Gansu's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bank of Gansu Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2139 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 6,665.21 3,259.06 2,206.08
2018-12-31 6,886.09 3,435.28 2,179.80
2018-09-30 6,870.22 3,580.07 2,125.02
2018-06-30 6,876.67 3,527.88 2,105.57
2018-03-31 6,593.42 3,405.29 2,079.25
2017-12-31 6,454.63 3,358.46 1,980.18
2017-09-30 6,875.40 3,831.44 1,892.10
2017-06-30 6,101.85 3,244.65 1,806.27
2017-03-31 4,881.64 2,303.62 1,741.16
2016-12-31 4,424.87 1,917.03 1,749.94
2016-09-30 3,749.25 1,179.42 1,638.08
2016-06-30 3,726.18 1,149.08 1,668.46
2016-03-31 4,321.43 1,667.44 1,526.86
2015-12-31 3,566.06 1,295.37 1,522.73
2014-12-31 2,732.79 1,083.52 1,048.81
2013-12-31 1,436.76 555.21 581.81
2012-12-31 805.54 361.04 287.95

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bank of Gansu has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bank of Gansu used its assets more efficiently than the HK Banks industry average last year based on Return on Assets.
  • Unable to establish if Bank of Gansu improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Bank of Gansu's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bank of Gansu has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Bank of Gansu's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Bank of Gansu's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bank of Gansu Company Filings, last reported 4 months ago.

SEHK:2139 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 26,030.13 59,916.84 95,137.86
2018-12-31 25,247.59 68,244.61 48,117.49
2018-09-30 24,782.33 51,953.89 85,479.06
2018-06-30 23,816.77 50,374.58 46,721.24
2018-03-31 22,950.89 49,871.43 82,965.66
2017-12-31 16,613.04 36,118.70 44,908.54
2017-09-30 16,189.10 32,842.89 79,883.79
2017-06-30 15,368.15 33,989.73 63,535.60
2017-03-31 14,255.15 30,722.38 54,116.89
2016-12-31 13,343.64 20,408.30 29,199.52
2016-09-30 13,293.11 10,580.76 42,730.02
2016-06-30 13,000.01 10,226.50 52,669.27
2016-03-31 12,831.89 12,595.36 41,417.48
2015-12-31 12,094.71 16,153.84 28,663.70
2014-12-31 10,697.26 3,635.43 26,126.34
2013-12-31 6,645.83 1,490.00 22,821.17
2012-12-31 4,288.48 480.00 6,279.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Bank of Gansu has an acceptable proportion of non-loan assets held.
  • Bank of Gansu's liabilities are made up of primarily low risk sources of funding.
  • Loans at Bank of Gansu are broadly funded by customer deposits.
  • Bank of Gansu's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Bank of Gansu has a sufficient allowance for bad loans.
  • Bank of Gansu has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Bank of Gansu's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bank of Gansu has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.96%
Current annual income from Bank of Gansu dividends.
If you bought HK$2,000 of Bank of Gansu shares you are expected to receive HK$119 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bank of Gansu's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.3%).
  • Bank of Gansu's dividend is below the markets top 25% of dividend payers in Hong Kong (6.25%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:2139 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Banks Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 5.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 977 Stocks 3.9%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.3%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.3%
Hong Kong Top 25% Dividend Yield 75th Percentile 6.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:2139 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
SEHK:2139 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-06-04 0.102 6.088

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Bank of Gansu has stable dividend payments.
  • Bank of Gansu only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Bank of Gansu's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Bank of Gansu's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bank of Gansu afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bank of Gansu has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Wenyong Wang
COMPENSATION CN¥824,336
AGE 53
TENURE AS CEO 0.7 years
CEO Bio

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

CEO Compensation
  • Insufficient data for Wenyong to compare compensation growth.
  • Wenyong's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Bank of Gansu management team in years:

0.7
Average Tenure
50
Average Age
  • The average tenure for the Bank of Gansu management team is less than 2 years, this suggests a new team.
Management Team

Qing Liu

TITLE
Chairman
COMPENSATION
CN¥286K
AGE
53

Wenyong Wang

TITLE
President & Executive Director
COMPENSATION
CN¥824K
AGE
53
TENURE
0.7 yrs

Chunyun Wang

TITLE
Senior Executive of Internal Control & Compliance and Chief Risk Officer
AGE
47
TENURE
1.3 yrs

Zhiyuan Wang

TITLE
VP, GM of the Human Resources Department and GM of Strategy & Development Deparment
AGE
50
TENURE
1.7 yrs

Jumei Hao

TITLE
Secretary
AGE
49
TENURE
0.7 yrs

Po Yi Fok

TITLE
Company Secretary
TENURE
0.1 yrs
Board of Directors Tenure

Average tenure and age of the Bank of Gansu board of directors in years:

2
Average Tenure
51.5
Average Age
  • The average tenure for the Bank of Gansu board of directors is less than 3 years, this suggests a new board.
Board of Directors

Wenyong Wang

TITLE
President & Executive Director
COMPENSATION
CN¥824K
AGE
53
TENURE
0.7 yrs

Xiuli Tang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥143K
AGE
50
TENURE
2 yrs

Qing Liu

TITLE
Chairman
COMPENSATION
CN¥286K
AGE
53
TENURE
0.7 yrs

Mei Luo

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥143K
AGE
41
TENURE
2 yrs

Sincere Wong

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥143K
AGE
54
TENURE
2 yrs

Lan Tang

TITLE
Chairman of the Board of Supervisors
AGE
55
TENURE
0.7 yrs

Hong Xia Zhang

TITLE
Non-Executive Director
COMPENSATION
CN¥143K
AGE
41
TENURE
7.8 yrs

Changhong Wu

TITLE
Non-Executive Director
AGE
55
TENURE
2.8 yrs

Jirong Guo

TITLE
Non-Executive Director
AGE
47
TENURE
2.8 yrs

Youda Zhang

TITLE
Non-Executive Director
AGE
45
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
24. Apr 19 Sell Anar Real Estate Group Co., Ltd. Company 24. Apr 19 24. Apr 19 -155,064,000 HK$2.25 HK$-348,894,572
28. Jan 19 Sell Wei Zhang Individual 25. Jan 19 25. Jan 19 -100,000,000 HK$2.00 HK$-199,999,624
15. Jan 19 Buy H.K. Ruijia Trading Company Limited Company 31. Dec 18 31. Dec 18 147,718,000 HK$2.68 HK$396,180,181
06. Dec 18 Sell Citigroup Inc.,Banking and Securities Investments Company 03. Dec 18 03. Dec 18 -203,551,000 HK$2.14 HK$-435,598,558
X
Management checks
We assess Bank of Gansu's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bank of Gansu has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Need To Know: Bank of Gansu Co., Ltd. (HKG:2139) Insiders Have Been Selling Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Bank of Gansu Co., Ltd. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Bank of Gansu Bank of Gansu Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the insider, Wei Zhang, for HK$200m worth of shares, at about HK$2.00 per share. … It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Bank of Gansu insider transactions don't fill us with confidence.

Simply Wall St -

How Many Bank of Gansu Co., Ltd. (HKG:2139) Shares Do Institutions Own?

View our latest analysis for Bank of Gansu SEHK:2139 Ownership Summary, May 13th 2019 What Does The Institutional Ownership Tell Us About Bank of Gansu? … Insider Ownership Of Bank of Gansu The definition of an insider can differ slightly between different countries, but members of the board of directors always count. … Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Simply Wall St -

Do You Know What Bank of Gansu Co., Ltd.'s (HKG:2139) P/E Ratio Means?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 5.49 = CN¥1.89 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.35

Simply Wall St -

Investors Who Bought Bank of Gansu (HKG:2139) Shares A Year Ago Are Now Down 20%

Because Bank of Gansu hasn't been listed for many years, the market is still learning about how the business performs. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … This proportional reduction in earnings per share isn't far from the 20% decrease in the share price.

Simply Wall St -

Financial Metrics For Bank of Gansu Co., Ltd. (HKG:2139)

As a small-cap finance stock with a market capitalisation of HK$22b, the risk and profitability of Bank of Gansu Co., Ltd. … Basel III target banking regulations to improve the sector’s ability to absorb shocks resulting from economic stress which may expose financial institutions like Bank of Gansu to vulnerabilities. … Low levels of leverage coupled with sufficient liquidity may place Bank of Gansu in a safe position in the face of adverse headwinds.

Simply Wall St -

Risk Factors To Consider Before Investing In Bank of Gansu Co., Ltd. (HKG:2139)

As a small-cap bank with a market capitalisation of HK$23b, Bank of Gansu Co., Ltd.’s (HKG:2139) profit and value are directly affected by economic activity. … Risk associate with repayment is measured by the level of bad debt which is an expense written off Bank of Gansu’s bottom line. … Today I will take you through some bad debt and liability measures to analyse the level of risky assets held by the bank.

Simply Wall St -

How Many Insiders Bought Bank of Gansu Co., Ltd. (HKG:2139) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Bank of Gansu Co., Ltd. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … That means that an insider was happy to buy shares at above the current price.

Simply Wall St -

Can These Factors Give You An Edge In Bank of Gansu Co Ltd (HKG:2139)?

Bank of Gansu Co Ltd’s (HKG:2139) profitability and risk are largely affected by the underlying economic growth for the region it operates in HK given it is a small-cap stock with a market capitalisation of HK$22b. … These reforms target bank level regulation and aims to improve the banking sector’s ability to absorb shocks arising from economic stress which could expose financial institutions to vulnerabilities. … Today we will be measuring Bank of Gansu’s financial risk position by looking at three leverage and liquidity metrics.

Simply Wall St -

Should You Be Concerned About Bank of Gansu Co Ltd’s (HKG:2139) Risks?

As a small-cap bank with a market capitalisation of HK$22.5b, Bank of Gansu Co Ltd’s (HKG:2139) profit and value are directly affected by economic activity. … Risk associate with repayment is measured by the level of bad debt which is an expense written off Bank of Gansu’s bottom line. … Today we will analyse Bank of Gansu’s level of bad debt and liabilities in order to understand the risk involved with investing in the bank.

Simply Wall St -

Is Bank of Gansu Co Ltd's (HKG:2139) PE Ratio A Signal To Buy For Investors?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … Check out our latest analysis for Bank of Gansu

Simply Wall St -

Company Info

Description

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.

Details
Name: Bank of Gansu Co., Ltd.
2139
Exchange: SEHK
Founded: 2011
HK$17,521,436,914
10,069,791,330
Website: http://www.gsbankchina.com
Address: Bank of Gansu Co., Ltd.
Gansu Bank Building,
525 Donggang West Road,
Lanzhou,
Gansu Province, China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2139 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 18. Jan 2018
Number of employees
Current staff
Staff numbers
4,121
Bank of Gansu employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/19 13:01
End of day share price update: 2019/08/19 00:00
Last estimates confirmation: 2019/03/27
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.