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BOC Hong Kong (Holdings)

SEHK:2388
Snowflake Description

Flawless balance sheet with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2388
SEHK
HK$319B
Market Cap
  1. Home
  2. HK
  3. Banks
Company description

BOC Hong Kong (Holdings) Limited, an investment holding company, provides banking and related financial services to corporate and individual customers in Hong Kong, Mainland China, and internationally. The last earnings update was 82 days ago. More info.


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2388 Share Price and Events
7 Day Returns
-0.8%
SEHK:2388
-0.9%
HK Banks
-2%
HK Market
1 Year Returns
-21.7%
SEHK:2388
-13%
HK Banks
-13.2%
HK Market
2388 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
BOC Hong Kong (Holdings) (2388) -0.8% -1.9% -9.3% -21.7% 31% 34.2%
HK Banks -0.9% -1.3% -8.8% -13% 17.7% 6%
HK Market -2% -2.7% -9.8% -13.2% 18.1% 4.3%
1 Year Return vs Industry and Market
  • 2388 underperformed the Banks industry which returned -13% over the past year.
  • 2388 underperformed the Market in Hong Kong which returned -13.2% over the past year.
Price Volatility
2388
Industry
5yr Volatility vs Market

Value

 Is BOC Hong Kong (Holdings) 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 BOC Hong Kong (Holdings) 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 BOC Hong Kong (Holdings).

SEHK:2388 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 10 analysts.
= Stable Book Value * Return on Equity
= HK$28.89 * 12.5%
HK$3.60
Book Value of Equity per Share Weighted future Book Value estimates from 9 analysts. HK$28.89
Discount Rate (Cost of Equity) See below 7.3%
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:2388
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.59 (1 + (1- 25%) (16.78%))
0.775
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.8 * 6.65%)
7.32%

Discounted Cash Flow Calculation for SEHK:2388 using Excess Returns Model Model

The calculations below outline how an intrinsic value for BOC Hong Kong (Holdings) 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:2388 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.5% – 7.32%) * HK$28.89)
HK$1.48
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= HK$1.48 / (7.32% - 2%)
HK$27.89
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= HK$28.89 + HK$27.89
HK$56.78
SEHK:2388 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$56.78
Current discount Discount to share price of HK$30.20
= -1 x (HK$30.20 - HK$56.78) / HK$56.78
46.8%

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

Current Discount
Amount off the current price BOC Hong Kong (Holdings) is available for.
Intrinsic value
47%
Share price is HK$30.2 vs Future cash flow value of HK$56.78
Current Discount Checks
For BOC Hong Kong (Holdings) to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • BOC Hong Kong (Holdings)'s share price is below the future cash flow value, and at a moderate discount (> 20%).
  • BOC Hong Kong (Holdings)'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 BOC Hong Kong (Holdings)'s earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are BOC Hong Kong (Holdings)'s earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2388 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$3.03
SEHK:2388 Share Price ** SEHK (2019-06-18) in HKD HK$30.2
Hong Kong Banks Industry PE Ratio Median Figure of 31 Publicly-Listed Banks Companies 6.01x
Hong Kong Market PE Ratio Median Figure of 1,488 Publicly-Listed Companies 10.66x

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

** Primary Listing of BOC Hong Kong (Holdings).

SEHK:2388 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2388 Share Price ÷ EPS (both in HKD)

= 30.2 ÷ 3.03

9.98x

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

  • BOC Hong Kong (Holdings) is overvalued based on earnings compared to the HK Banks industry average.
  • BOC Hong Kong (Holdings) is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does BOC Hong Kong (Holdings)'s expected growth come at a high price?
Raw Data
SEHK:2388 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
6.3%per year
Hong Kong Banks Industry PEG Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.81x
Hong Kong Market PEG Ratio Median Figure of 467 Publicly-Listed Companies 0.75x

*Line of best fit is calculated by linear regression .

SEHK:2388 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.98x ÷ 6.3%

1.59x

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

  • BOC Hong Kong (Holdings) is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on BOC Hong Kong (Holdings)'s assets?
Raw Data
SEHK:2388 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$26.53
SEHK:2388 Share Price * SEHK (2019-06-18) in HKD HK$30.2
Hong Kong Banks Industry PB Ratio Median Figure of 31 Publicly-Listed Banks Companies 0.66x
Hong Kong Market PB Ratio Median Figure of 2,170 Publicly-Listed Companies 0.93x
SEHK:2388 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2388 Share Price ÷ Book Value per Share (both in HKD)

= 30.2 ÷ 26.53

1.14x

* Primary Listing of BOC Hong Kong (Holdings).

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

  • BOC Hong Kong (Holdings) is overvalued based on assets compared to the HK Banks industry average.
X
Value checks
We assess BOC Hong Kong (Holdings)'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. BOC Hong Kong (Holdings) has a total score of 3/6, 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 BOC Hong Kong (Holdings) expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

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
6.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is BOC Hong Kong (Holdings) expected to grow at an attractive rate?
  • BOC Hong Kong (Holdings)'s earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • BOC Hong Kong (Holdings)'s earnings growth is positive but not above the Hong Kong market average.
  • BOC Hong Kong (Holdings)'s revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:2388 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2388 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 6.3%
SEHK:2388 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 8.3%
Hong Kong Banks Industry Earnings Growth Rate Market Cap Weighted Average 6.5%
Hong Kong Banks Industry Revenue Growth Rate Market Cap Weighted Average 8.2%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.6%

*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:2388 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:2388 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 67,830 38,477 5
2020-12-31 64,578 36,434 10
2019-12-31 60,002 33,805 10
SEHK:2388 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 53,168 -5,466 32,000
2018-09-30 52,432 -133,611 31,603
2018-06-30 51,438 -261,609 31,112
2018-03-31 49,558 -203,328 29,797
2017-12-31 47,936 -145,192 28,574
2017-09-30 46,690 -122,996 28,148
2017-06-30 45,444 -100,800 27,722
2017-03-31 43,716 -144,393 26,148
2016-12-31 41,987 -187,986 24,574
2016-09-30 40,566 -172,606 23,997
2016-06-30 39,144 -157,225 23,420
2016-03-31 39,320 -178,537 23,589

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • BOC Hong Kong (Holdings)'s earnings are expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).
  • BOC Hong Kong (Holdings)'s revenue is expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).
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:2388 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from BOC Hong Kong (Holdings) Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2388 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 3.62 4.05 3.11 8.00
2020-12-31 3.42 3.71 2.96 14.00
2019-12-31 3.18 3.38 2.94 14.00
SEHK:2388 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 3.03
2018-09-30 2.99
2018-06-30 2.94
2018-03-31 2.82
2017-12-31 2.70
2017-09-30 2.66
2017-06-30 2.62
2017-03-31 2.47
2016-12-31 2.32
2016-09-30 2.27
2016-06-30 2.22
2016-03-31 2.23

*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.
  • BOC Hong Kong (Holdings) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess BOC Hong Kong (Holdings)'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.
BOC Hong Kong (Holdings) has a total score of 1/6, 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 BOC Hong Kong (Holdings) 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 BOC Hong Kong (Holdings)'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.
  • BOC Hong Kong (Holdings)'s year on year earnings growth rate has been positive over the past 5 years.
  • BOC Hong Kong (Holdings)'s 1-year earnings growth exceeds its 5-year average (12% vs 7.8%)
  • BOC Hong Kong (Holdings)'s earnings growth has exceeded the HK Banks industry average in the past year (12% vs 4.9%).
Earnings and Revenue History
BOC Hong Kong (Holdings)'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 BOC Hong Kong (Holdings) Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2388 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 53,168.00 32,000.00 12,597.00
2018-09-30 52,432.00 31,602.50 12,329.50
2018-06-30 51,438.00 31,112.00 11,955.00
2018-03-31 49,558.00 29,796.50 11,729.00
2017-12-31 47,936.00 28,574.00 11,610.00
2017-09-30 46,690.00 28,148.00 11,318.50
2017-06-30 45,444.00 27,722.00 11,027.00
2017-03-31 43,715.50 26,148.00 10,700.50
2016-12-31 41,987.00 24,574.00 10,374.00
2016-09-30 40,565.50 23,997.00 10,075.50
2016-06-30 39,144.00 23,420.00 9,777.00
2016-03-31 39,319.50 23,588.50 9,676.50
2015-12-31 39,495.00 23,757.00 9,576.00
2015-06-30 36,817.00 21,930.00 8,439.00
2015-03-31 37,275.00 21,928.50 8,739.50
2014-12-31 37,733.00 21,927.00 9,040.00
2014-09-30 42,312.00 23,830.00 10,662.00
2014-06-30 41,416.00 23,083.00 10,509.00
2014-03-31 40,496.50 22,667.50 10,300.50
2013-12-31 39,577.00 22,252.00 10,092.00
2013-09-30 37,885.50 21,595.50 9,920.00
2013-06-30 36,194.00 20,939.00 9,748.00
2013-03-31 35,476.00 20,934.50 9,570.00
2012-12-31 34,758.00 20,930.00 9,392.00
2012-09-30 33,980.50 20,305.00 9,300.50
2012-06-30 33,203.00 19,680.00 9,209.00

*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.
  • BOC Hong Kong (Holdings) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • BOC Hong Kong (Holdings) used its assets more efficiently than the HK Banks industry average last year based on Return on Assets.
  • Unable to establish if BOC Hong Kong (Holdings) 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 BOC Hong Kong (Holdings)'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.
BOC Hong Kong (Holdings) has a total score of 4/6, 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 BOC Hong Kong (Holdings)'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 BOC Hong Kong (Holdings)'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 BOC Hong Kong (Holdings) Company Filings, last reported 5 months ago.

SEHK:2388 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 284,907.00 53,579.00 563,679.00
2018-09-30 284,907.00 53,579.00 563,679.00
2018-06-30 252,325.00 67,929.00 340,867.00
2018-03-31 252,325.00 67,929.00 340,867.00
2017-12-31 248,623.00 71,667.00 417,773.00
2017-09-30 248,623.00 71,667.00 417,773.00
2017-06-30 241,737.00 57,344.00 406,794.00
2017-03-31 241,737.00 57,344.00 406,794.00
2016-12-31 234,554.00 69,518.00 342,559.00
2016-09-30 234,554.00 69,518.00 342,559.00
2016-06-30 234,615.00 78,850.00 415,219.00
2016-03-31 234,615.00 78,850.00 415,219.00
2015-12-31 200,165.00 66,472.00 270,826.00
2015-06-30 190,630.00 52,021.00 431,008.00
2015-03-31 190,630.00 52,021.00 431,008.00
2014-12-31 181,472.00 52,364.00 447,563.00
2014-09-30 181,472.00 52,364.00 454,503.00
2014-06-30 173,378.00 47,228.00 407,043.00
2014-03-31 173,378.00 47,228.00 407,043.00
2013-12-31 163,008.00 44,445.00 378,705.00
2013-09-30 163,008.00 44,445.00 378,705.00
2013-06-30 155,702.00 47,413.00 311,097.00
2013-03-31 155,702.00 47,413.00 311,097.00
2012-12-31 155,074.00 55,892.00 349,413.00
2012-09-30 155,074.00 55,892.00 349,413.00
2012-06-30 144,412.00 56,191.00 373,836.00
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.
  • BOC Hong Kong (Holdings) has an acceptable proportion of non-loan assets held.
  • BOC Hong Kong (Holdings)'s liabilities are made up of primarily low risk sources of funding.
  • Loans at BOC Hong Kong (Holdings) are broadly funded by customer deposits.
  • BOC Hong Kong (Holdings)'s level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • BOC Hong Kong (Holdings) has a sufficient allowance for bad loans.
  • BOC Hong Kong (Holdings) has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess BOC Hong Kong (Holdings)'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. BOC Hong Kong (Holdings) has a total score of 6/6, 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 BOC Hong Kong (Holdings)'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
4.86%
Current annual income from BOC Hong Kong (Holdings) dividends. Estimated to be 5.44% next year.
If you bought HK$2,000 of BOC Hong Kong (Holdings) shares you are expected to receive HK$97 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?
  • BOC Hong Kong (Holdings)'s pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.1%).
  • BOC Hong Kong (Holdings)'s dividend is below the markets top 25% of dividend payers in Hong Kong (5.95%).
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:2388 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 10 Analyst Estimates (S&P Global) See Below
Hong Kong Banks Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 5.3%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

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

SEHK:2388 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.77 7.00
2020-12-31 1.66 12.00
2019-12-31 1.55 12.00
SEHK:2388 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-04-10 1.468 4.526
2018-06-27 1.398 4.235
2017-08-30 1.265 3.245
2017-03-31 1.170 3.312
2016-03-30 1.224 4.607
2015-03-25 1.120 4.384
2014-03-26 1.010 4.053
2013-03-26 1.238 4.982
2012-08-23 1.090 4.385
2012-03-29 1.188 5.150
2011-08-24 1.202 6.240
2011-03-24 0.972 4.222
2010-08-26 0.970 3.880
2010-03-23 1.140 6.154
2009-08-27 0.570 3.261

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of BOC Hong Kong (Holdings)'s earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess BOC Hong Kong (Holdings)'s dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - 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 BOC Hong Kong (Holdings) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. BOC Hong Kong (Holdings) has a total score of 4/6, 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 BOC Hong Kong (Holdings)'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
Yingxin Gao
COMPENSATION HK$10,548,000
AGE 56
TENURE AS CEO 1.4 years
CEO Bio

Mr. Yingxin Gao has been Executive Director, Vice Chairman and Chief Executive of Bank of China (Hong Kong) Limited and BOC Hong Kong (Holdings) Ltd. since January 1, 2018. Mr. Gao was a Non-executive Director of Bank of China (Hong Kong) Limited and BOC Hong Kong (Holdings) Ltd. from March 2015 to December 2017. He was Executive Director of BOC from December 2016 to January 2018 and Executive Vice President of Bank of China from May 2015 to January 24, 2018. Mr. Gao was also the Deputy Chief Executive (Corporate Banking) of Bank of China (Hong Kong) Limited and BOC Hong Kong (Holdings) Ltd. from February 2005 to March 2015 and an Executive Director from May 2007 to March 2015. He has been appointed as Chairman of BOCHK Charitable Foundation, and Chairman of BOC Insurance (International) Holdings Company Limited with effect from 1 January 2018 and Chairman of BOC Life effective from 9 February 2018. On 1 January 2018, Mr. Gao has been appointed as the designated representative of BOCHK to Hong Kong Association of Banks, member of Risk Management Committee of Hong Kong Exchanges and Clearing Limited, member of each of Banking Advisory Committee and Bank Notes Issue Advisory Committee, Chairman of Hong Kong Interbank Clearing Limited, as well as Vice Chairman of Board of Trustees of Ho Leung Ho Lee Foundation. He has been appointed as Chairman of Chinese Banking Association of Hong Kong since 15 January 2018, Chairman of Hong Kong Chinese Enterprises Association and Chairman of The Hong Kong Chinese Enterprises Charitable Foundation Limited since 19 January 2018, Vice President of The Hong Kong Institute of Bankers since 12 February 2018, member of Exchange Fund Advisory Committee since 20 February 2018, and member of General Committee of Hong Kong General Chamber of Commerce since 22 March 2018. He has been serving as Chairman of the board of directors of China Cultural Industrial Investment Fund Co., Ltd. in May 2015, Chairman of BOCI and Chairman of Bank of China (Luxembourg) S.A. in August 2015 and Chairman of BOC International (China) Limited in September 2016. He is also Chairman of BOC Poverty Relief and Education Charity Fund Limited. He was Chairman of NCB, Vice Chairman of NCB (China) and a Director of BOCG Insurance and resigned all the positions in March 2015. Before joining BOCHK, he was President and Chief Operating Officer of BOCI. He joined BOC Group in 1986 where he began working on financing projects for various industries at BOC’s Head Office in Beijing. In 1999, he became the General Manager of Corporate Banking at BOC Head Office where he was responsible for managing and building BOC Group’s customer relationships with and global financing for multinational corporations and premium domestic clients in the Mainland of China. He was also in charge of BOC’s major financing projects. He was a Chairman at Chairman of Bank of China (UK) Limited since October 2015 to December 12, 2018. Mr. Gao graduated from the East China University of Science and Technology with a Master’s Degree in Engineering in 1986.

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

Average tenure and age of the BOC Hong Kong (Holdings) management team in years:

3.6
Average Tenure
55
Average Age
  • The tenure for the BOC Hong Kong (Holdings) management team is about average.
Management Team

Yingxin Gao

TITLE
Vice Chairman & Chief Executive
COMPENSATION
HK$11M
AGE
56
TENURE
1.4 yrs

Yang Sui

TITLE
Chief Financial Officer
AGE
44
TENURE
4.8 yrs

Xiangqun Zhong

TITLE
Chief Operating Officer
AGE
48
TENURE
3.8 yrs

Qi Wang

TITLE
Deputy Chief Executive of Legal & Compliance
AGE
55

Ann Kung

TITLE
Deputy Chief Executive
AGE
55
TENURE
8.2 yrs

Shu Yuan

TITLE
Deputy Chief Executive of Financial Markets
AGE
55
TENURE
3.6 yrs

Bing Wang

TITLE
Deputy Chief Executive
AGE
46
TENURE
0.5 yrs

Nan Luo

TITLE
Company Secretary
AGE
44
TENURE
2.7 yrs

Yanlai Zhu

TITLE
Consultant
AGE
63
Board of Directors Tenure

Average tenure and age of the BOC Hong Kong (Holdings) board of directors in years:

2.2
Average Tenure
59
Average Age
  • The average tenure for the BOC Hong Kong (Holdings) board of directors is less than 3 years, this suggests a new board.
Board of Directors

Yingxin Gao

TITLE
Vice Chairman & Chief Executive
COMPENSATION
HK$11M
AGE
56
TENURE
1.4 yrs

Liange Liu

TITLE
Vice Chairman
AGE
57
TENURE
0.5 yrs

Savio Tung

TITLE
Independent Non-Executive Director
COMPENSATION
HK$692K
AGE
67
TENURE
13.5 yrs

Beng Seng Koh

TITLE
Independent Non-Executive Director
COMPENSATION
HK$642K
AGE
67
TENURE
13.3 yrs

Jonathan Choi

TITLE
Independent Non-Executive Director
COMPENSATION
HK$592K
AGE
61
TENURE
3 yrs

Eva Cheng

TITLE
Independent Non-Executive Director
COMPENSATION
HK$500K
AGE
57
TENURE
4.7 yrs

Jingzhen Lin

TITLE
Non Executive Director
AGE
53
TENURE
0.8 yrs

Quinn Law

TITLE
Independent Non-executive Director
AGE
65
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess BOC Hong Kong (Holdings)'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. BOC Hong Kong (Holdings) 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

BOC Hong Kong (Holdings) Limited (HKG:2388): What Can We Expect From This High Growth Stock?

In December 2018, BOC Hong Kong (Holdings) Limited (HKG:2388) announced its latest earnings update, which revealed that the company gained from a strong tailwind, eventuating to a double-digit earnings growth of 12%. … Investors may find it useful to understand how market analysts perceive BOC Hong Kong (Holdings)'s earnings growth outlook over the next few years and whether the future looks even brighter than the past. … Check out our latest analysis for BOC Hong Kong (Holdings) Analysts' outlook for this coming year seems rather subdued, with earnings rising by a single digit 5.5%.

Simply Wall St -

What Should Investors Know About BOC Hong Kong (Holdings) Limited's (HKG:2388) Future?

In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for BOC Hong Kong (Holdings) in the longer term. … See our latest analysis for BOC Hong Kong (Holdings) How will BOC Hong Kong (Holdings) perform in the near future? … SEHK:2388 Past and Future Earnings, May 13th 2019 This results in an annual growth rate of 6.7% based on the most recent earnings level of HK$32b to the final forecast of HK$39b by 2022.

Simply Wall St -

Why BOC Hong Kong (Holdings) Limited (HKG:2388) May Not Be As Risky Than You Think

As a HK$374b market capitalisation bank, BOC Hong Kong (Holdings) Limited (HKG:2388) is well-positioned to benefit from the improving credit quality as a result of post-GFC recovery. … Growth stimulates demand for loans and impacts a borrower’s ability to repay which directly affects the level of risk BOC Hong Kong (Holdings) takes on. … It is relevant to understand a bank’s level of risky assets on its accounts as it affects the attractiveness of its stock as an investment.

Simply Wall St -

Did You Miss BOC Hong Kong (Holdings)'s (HKG:2388) 57% Share Price Gain?

For example, the BOC Hong Kong (Holdings) Limited (HKG:2388) share price is up 57% in the last 5 years, clearly besting than the market return of around 20% (ignoring dividends). … While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … Over half a decade, BOC Hong Kong (Holdings) managed to grow its earnings per share at 7.5% a year.

Simply Wall St -

At HK$32.15, Is BOC Hong Kong (Holdings) Limited (HKG:2388) Worth Looking At Closely?

Today we're going to take a look at the well-established BOC Hong Kong (Holdings) Limited (HKG:2388). … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s take a look at BOC Hong Kong (Holdings)’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Simply Wall St -

Why These Fundamentals Make BOC Hong Kong (Holdings) Limited’s (HKG:2388) More Attractive

As these large financial institutions revert back to health after the 2008 Financial Crisis, we are seeing an increase in market confidence in these “too-big-to-fail” banking stocks. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks to vulnerabilities. … Investors should be more cautious when it comes to financial stocks given the different type of risk to which they are exposed.

Simply Wall St -

What Does BOC Hong Kong (Holdings) Limited's (HKG:2388) Share Price Indicate?

Today we're going to take a look at the well-established BOC Hong Kong (Holdings) Limited (HKG:2388). … A question to answer is whether BOC Hong Kong (Holdings)'s current trading price of HK$31.35 reflective of the actual value of the? … Let’s take a look at BOC Hong Kong (Holdings)’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Should You Be Concerned About BOC Hong Kong (Holdings) Limited’s (HKG:2388) Risks?

As a HK$307.1b market capitalisation company operating in the financial services sector, BOC Hong Kong (Holdings) Limited (HKG:2388) has benefited from strong economic growth and improved credit quality as a result of post-GFC recovery. … A borrower’s demand for, and ability to repay, loans is driven by economic growth which directly impacts the level of risk BOC Hong Kong (Holdings) takes on. … Check out our latest analysis for BOC Hong Kong (Holdings)

Simply Wall St -

BOC Hong Kong (Holdings) Limited (HKG:2388) Is Trading At A 4.64% Discount

This is because the rules banks face are different to other companies, which can impact the way we forecast their cash flows. … For example, banks are required to hold more capital to reduce the risk to depositors.

Simply Wall St -

Should You Be Tempted To Sell BOC Hong Kong (Holdings) Limited (HKG:2388) Because Of Its PE Ratio?

This analysis is intended to introduce important early concepts to people who are starting to invest. … While this might not seem positive, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … View our latest analysis for BOC Hong Kong (Holdings)

Simply Wall St -

Company Info

Description

BOC Hong Kong (Holdings) Limited, an investment holding company, provides banking and related financial services to corporate and individual customers in Hong Kong, Mainland China, and internationally. It operates through four segments: Personal Banking, Corporate Banking, Treasury, and Insurance. The company offers savings, current, and time deposit accounts; mortgage plans; overdrafts; personal loans; personal life, medical and accident, travel and leisure, business protection, home, domestic helper, motor, and golfer insurance products; wealth management services; and Internet, phone, and mobile banking services. It also provides cross-border services for corporate customers; business banking, trade finance and services, investment, treasury, corporate collection and payment, e-commerce, and card services; small business, asset-pledge, machinery and equipment financing, and project financing and syndicated loans; and payroll, custody, and cash management services; and business comprehensive, property, liability, group, and retailer comprehensive insurance plans. In addition, it provides investment products and services, including securities, foreign exchange, fund, precious metals and FX margin, bonds, currency linked investment, structured products, bonds, and savings plans. The company operates approximately 200 branches, 270 automated banking centers, and approximately 1,000 self-service machines. BOC Hong Kong (Holdings) Limited was founded in 1917 and is based in Central, Hong Kong. The company is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. BOC Hong Kong (Holdings) Limited is a subsidiary of BOC Hong Kong (BVI) Limited.

Details
Name: BOC Hong Kong (Holdings) Limited
2388
Exchange: SEHK
Founded: 1917
HK$319,297,964,033
10,572,780,266
Website: http://www.bochk.com
Address: BOC Hong Kong (Holdings) Limited
Bank of China Tower,
24th Floor,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2388 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 25. Jul 2002
OTCPK BNKH.F Ordinary Shares Pink Sheets LLC US USD 25. Jul 2002
DB BOF Ordinary Shares Deutsche Boerse AG DE EUR 25. Jul 2002
SHSC 2388 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 25. Jul 2002
SZSC 2388 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 25. Jul 2002
OTCPK BHKL.Y SPONSORED ADR Pink Sheets LLC US USD 23. Apr 2003
Number of employees
Current staff
Staff numbers
14,046
BOC Hong Kong (Holdings) employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 12:43
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/14
Last earnings filing: 2019/03/29
Last earnings reported: 2018/12/31
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.