Executive Summary
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.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet average dividend payer.
Share Price & News
How has BOC Hong Kong (Holdings)'s share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2388 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.1%
2388
3.0%
HK Banks
2.9%
HK Market
1 Year Return
-13.9%
2388
-9.8%
HK Banks
-3.8%
HK Market
Return vs Industry: 2388 underperformed the Hong Kong Banks industry which returned -9.8% over the past year.
Return vs Market: 2388 underperformed the Hong Kong Market which returned -3.8% over the past year.
Shareholder returns
| 2388 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | 3.0% | 2.9% |
| 30 Day | -4.3% | -4.3% | -4.1% |
| 90 Day | 2.6% | -1.9% | 2.9% |
| 1 Year | -9.6%-13.9% | -5.1%-9.8% | -0.2%-3.8% |
| 3 Year | -1.1%-11.9% | 7.9%-7.0% | 15.3%3.7% |
| 5 Year | 27.2%1.3% | 16.0%-11.0% | 16.8%-2.7% |
Price Volatility Vs. Market
How volatile is BOC Hong Kong (Holdings)'s share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Some BOC Hong Kong (Holdings) (HKG:2388) Shareholders Are Down 14%1 month ago | Simply Wall St
At HK$28.20, Is BOC Hong Kong (Holdings) Limited (HKG:2388) Worth Looking At Closely?2 months ago | Simply Wall St
What Kind Of Shareholders Own BOC Hong Kong (Holdings) Limited (HKG:2388)?Valuation
Is BOC Hong Kong (Holdings) undervalued compared to its fair value and its price relative to the market?
26.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2388 (HK$27.65) is trading below our estimate of fair value (HK$37.66)
Significantly Below Fair Value: 2388 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 2388 is poor value based on its PE Ratio (9x) compared to the Banks industry average (5.8x).
PE vs Market: 2388 is good value based on its PE Ratio (9x) compared to the Hong Kong market (10.1x).
Price to Earnings Growth Ratio
PEG Ratio: 2388 is poor value based on its PEG Ratio (4.9x)
Price to Book Ratio
PB vs Industry: 2388 is overvalued based on its PB Ratio (1x) compared to the HK Banks industry average (0.5x).
Next Steps
Future Growth
How is BOC Hong Kong (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
1.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2388's forecast earnings growth (1.8% per year) is above the savings rate (1.6%).
Earnings vs Market: 2388's earnings (1.8% per year) are forecast to grow slower than the Hong Kong market (11.7% per year).
High Growth Earnings: 2388's earnings are forecast to grow, but not significantly.
Revenue vs Market: 2388's revenue (3.9% per year) is forecast to grow slower than the Hong Kong market (10.5% per year).
High Growth Revenue: 2388's revenue (3.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 2388's Return on Equity is forecast to be low in 3 years time (11%).
Next Steps
Past Performance
How has BOC Hong Kong (Holdings) performed over the past 5 years?
8.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2388 has high quality earnings.
Growing Profit Margin: 2388's current net profit margins (59.7%) are lower than last year (60.4%).
Past Earnings Growth Analysis
Earnings Trend: 2388's earnings have grown by 8.8% per year over the past 5 years.
Accelerating Growth: 2388's earnings growth over the past year (3.7%) is below its 5-year average (8.8% per year).
Earnings vs Industry: 2388 earnings growth over the past year (3.7%) exceeded the Banks industry 3.7%.
Return on Equity
High ROE: 2388's Return on Equity (11.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is BOC Hong Kong (Holdings)'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: 2388 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 2388's debt is covered by short term assets (assets are 11.8x debt).
Financial Institutions Analysis
Asset Level: 2388's level of assets compared to its equity is moderate.
Allowance for Bad Loans: 2388 has a sufficient allowance for bad loans.
Low Risk Liabilities: 2388's liabilities are made up of primarily low risk sources of funding.
Loan Level: 2388 has an acceptable proportion of non-loan assets held.
Low Risk Deposits: 2388's loans are broadly funded by customer deposits.
Level of Bad Loans: 2388 has an appropriate level of bad loans (0.19%)
Next Steps
Dividend
What is BOC Hong Kong (Holdings)'s current dividend yield, its reliability and sustainability?
5.31%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 2388's dividend (5.31%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).
High Dividend: 2388's dividend (5.31%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).
Stability and Growth of Payments
Stable Dividend: 2388's dividend payments have been volatile in the past 10 years.
Growing Dividend: 2388's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.9%), 2388's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 2388's dividends in 3 years are forecast to be well covered by earnings (25.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Yingxin Gao (57yo)
2.1yrs
Tenure
HK$10,548,000
Compensation
Mr. Yingxin Gao has been Executive Director, Vice Chairman and Chief Executive of Bank of China (Hong Kong) Limited and BOC Hong Kong (Holdings) Ltd. since January 1, 2018. Mr. Gao was a Non-executive Dire ...
CEO Compensation Analysis
Compensation vs Market: Yingxin's total compensation ($USD1.36M) is about average for companies of similar size in the Hong Kong market ($USD1.12M).
Compensation vs Earnings: Yingxin's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairman & Chief Executive | 2.1yrs | HK$10.55m | no data | |
| Chief Financial Officer | 5.5yrs | no data | no data | |
| Chief Operating Officer | 4.4yrs | no data | no data | |
| Deputy Chief Executive of Legal & Compliance | 0yrs | no data | no data | |
| Chief Risk Officer | 0.3yrs | no data | no data | |
| Deputy Chief Executive | 8.8yrs | no data | no data | |
| Deputy Chief Executive of Financial Markets | 4.3yrs | no data | no data | |
| Deputy Chief Executive | 1.2yrs | no data | no data | |
| Deputy Chief Executive | 1.1yrs | no data | no data | |
| Company Secretary | 3.3yrs | no data | no data |
3.3yrs
Average Tenure
49yo
Average Age
Experienced Management: 2388's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairman & Chief Executive | 2.1yrs | HK$10.55m | no data | |
| Independent Non-Executive Director | 14.2yrs | HK$692.00k | 0.00038% HK$1.1m | |
| Independent Non-Executive Director | 13.9yrs | HK$642.00k | no data | |
| Independent Non-Executive Director | 3.7yrs | HK$592.00k | no data | |
| Non-Executive Chairman | 0.6yrs | no data | no data | |
| Independent Non-executive Director | 0.9yrs | no data | no data | |
| Independent Non-Executive Director | 5.3yrs | HK$500.00k | no data | |
| Non Executive Director | 1.5yrs | no data | no data |
2.9yrs
Average Tenure
60yo
Average Age
Experienced Board: 2388's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
BOC Hong Kong (Holdings) Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: BOC Hong Kong (Holdings) Limited
- Ticker: 2388
- Exchange: SEHK
- Founded: 1917
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: HK$295.509b
- Shares outstanding: 10.57b
- Website: https://www.bochk.com
Number of Employees
Location
- BOC Hong Kong (Holdings) Limited
- Bank of China Tower
- 24th Floor
- Central
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BNKH.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jul 2002 |
| 2388 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jul 2002 |
| BOF | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jul 2002 |
| 2388 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jul 2002 |
| 2388 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jul 2002 |
| BHKL.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Apr 2003 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/18 12:43 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.