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

Fundamentals

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


Market Performance


7 Day Return

-8.2%

2139

3.9%

HK Banks

3.1%

HK Market


1 Year Return

-22.2%

2139

-3.7%

HK Banks

0.5%

HK Market

Return vs Industry: 2139 underperformed the Hong Kong Banks industry which returned -3.7% over the past year.

Return vs Market: 2139 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

2139IndustryMarket
7 Day-8.2%3.9%3.1%
30 Day-6.1%-0.3%-1.8%
90 Day-11.1%-3.0%-4.8%
1 Year-17.6%-22.2%1.4%-3.7%4.1%0.5%
3 Yearn/a17.8%1.4%15.8%4.2%
5 Yearn/a30.9%0.3%18.9%-0.9%

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

Undervalued: 2139 (HK$1.68) is trading below our estimate of fair value (HK$6.27)

Significantly Undervalued: 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 (8.8x) compared to the Banks industry average (5.8x).

PE vs Market: 2139 is good value based on its PE Ratio (8.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low 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 overvalued based on its PB Ratio (0.6x) 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?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2139's forecast earnings growth (6.9% per year) is above the savings rate (2%).

Earnings vs Market: 2139's earnings (6.9% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 2139's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 2139's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 2139's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 2139's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

23.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2139's earnings have grown significantly by 23% 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 (-50.7%) over the past year, making it difficult to compare to the Banks industry average (5.2%).


Return on Equity

High ROE: 2139's Return on Equity (7.1%) is considered low.


Return on Assets

ROA vs Industry: 2139'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 2139's Return on Capital Employed to determine if it has improved over the past 3 years.


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 1.173970x 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?

6.73%

Current Dividend Yield


Dividend Yield vs Market

company6.7%marketbottom25%2.3%markettop25%6.3%industryaverage5.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2139's dividend (6.73%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 2139's dividend (6.73%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

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 reasonable payout ratio (59.2%), 2139's dividend payments are 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 Bank of Gansu's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Wenyong Wang (53yo)

0.8yrs

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: Insufficient data to establish whether Wenyong's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Management Age and Tenure

0.8yrs

Average Tenure

50yo

Average Age

Experienced Management: 2139's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 2139's board of directors are not considered experienced ( 2.2 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.


Recent Insider Transactions

SellCN¥348,894,57224 Apr 19
Anar Real Estate Group Co., Ltd.
EntityCompany
Shares155,064,000
Max PriceCN¥2.25
SellCN¥199,999,62428 Jan 19
Wei Zhang
EntityIndividual
Shares100,000,000
Max PriceCN¥2.00
BuyCN¥396,180,18115 Jan 19
H.K. Ruijia Trading Company Limited
EntityCompany
Shares147,718,000
Max PriceCN¥2.68
SellCN¥435,598,55806 Dec 18
Citigroup Inc.,Banking and Securities Investments
EntityCompany
Shares203,551,000
Max PriceCN¥2.14

Ownership Breakdown


Management Team

  • Qing Liu (53yo)

    Chairman

    • Tenure: 0.8yrs
    • Compensation: CN¥286.00k
  • Chunyun Wang (47yo)

    Senior Executive of Internal Control & Compliance and Chief Risk Officer

    • Tenure: 1.4yrs
  • Zhiyuan Wang (50yo)

    VP, GM of the Human Resources Department and GM of Strategy & Development Deparment

    • Tenure: 1.8yrs
  • Wenyong Wang (53yo)

    President & Executive Director

    • Tenure: 0.8yrs
    • Compensation: CN¥824.34k
  • Jumei Hao (49yo)

    VP & Secretary

    • Tenure: 0.8yrs
  • Po Yi Fok

    Company Secretary

    • Tenure: 0.3yrs

Board Members

  • Sincere Wong (54yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥143.00k
  • Xiuli Tang (50yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥143.00k
  • Mei Luo (41yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥143.00k
  • Qing Liu (53yo)

    Chairman

    • Tenure: 0.8yrs
    • Compensation: CN¥286.00k
  • Hong Xia Zhang (41yo)

    Non-Executive Director

    • Tenure: 8yrs
    • Compensation: CN¥143.00k
  • Youda Zhang (45yo)

    Non-Executive Director

    • Tenure: 2.9yrs
  • Changhong Wu (55yo)

    Non-Executive Director

    • Tenure: 2.9yrs
  • Jirong Guo (47yo)

    Non-Executive Director

    • Tenure: 2.9yrs
  • Wenyong Wang (53yo)

    President & Executive Director

    • Tenure: 0.8yrs
    • Compensation: CN¥824.34k
  • Lan Tang (55yo)

    Chairman of the Board of Supervisors

    • Tenure: 0.8yrs

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$17.622b
  • 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 Bankin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:58
End of Day Share Price2019/10/17 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.