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
Earnings are forecast to decline by an average of 0.5% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet established 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
-1.2%
2388
-0.6%
HK Banks
2.5%
HK Market
1 Year Return
-21.1%
2388
-10.0%
HK Banks
6.1%
HK Market
Return vs Industry: 2388 underperformed the Hong Kong Banks industry which returned -10% over the past year.
Return vs Market: 2388 underperformed the Hong Kong Market which returned 6.1% over the past year.
Shareholder returns
| 2388 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.2% | -0.6% | 2.5% |
| 30 Day | -11.8% | -10.5% | -0.6% |
| 90 Day | -11.2% | -9.4% | 9.1% |
| 1 Year | -16.2%-21.1% | -4.4%-10.0% | 10.5%6.1% |
| 3 Year | -35.0%-43.5% | -9.5%-22.9% | 2.8%-8.2% |
| 5 Year | -6.6%-27.4% | 3.5%-21.8% | 14.1%-5.0% |
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
4 days ago | Simply Wall St
Would BOC Hong Kong (Holdings) Limited (HKG:2388) Be Valuable To Income Investors?1 month ago | Simply Wall St
Do Institutions Own Shares In BOC Hong Kong (Holdings) Limited (HKG:2388)?2 months ago | Simply Wall St
Introducing BOC Hong Kong (Holdings) (HKG:2388), The Stock That Dropped 35% In The Last Three YearsValuation
Is BOC Hong Kong (Holdings) undervalued compared to its fair value and its price relative to the market?
21.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2388 (HK$21.35) is trading below our estimate of fair value (HK$27.16)
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 (7x) compared to the HK Banks industry average (5.1x).
PE vs Market: 2388 is good value based on its PE Ratio (7x) compared to the Hong Kong market (10.4x).
Price to Earnings Growth Ratio
PEG Ratio: 2388's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: 2388 is overvalued based on its PB Ratio (0.7x) compared to the HK Banks industry average (0.4x).
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?
-0.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2388's earnings are forecast to decline over the next 3 years (-0.5% per year).
Earnings vs Market: 2388's earnings are forecast to decline over the next 3 years (-0.5% per year).
High Growth Earnings: 2388's earnings are forecast to decline over the next 3 years.
Revenue vs Market: 2388's revenue (1.4% per year) is forecast to grow slower than the Hong Kong market (11.4% per year).
High Growth Revenue: 2388's revenue (1.4% 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 (9.9%).
Next Steps
Past Performance
How has BOC Hong Kong (Holdings) performed over the past 5 years?
9.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2388 has high quality earnings.
Growing Profit Margin: 2388's current net profit margins (57%) are lower than last year (60.2%).
Past Earnings Growth Analysis
Earnings Trend: 2388's earnings have grown by 9.4% per year over the past 5 years.
Accelerating Growth: 2388's earnings growth over the past year (0.4%) is below its 5-year average (9.4% per year).
Earnings vs Industry: 2388 earnings growth over the past year (0.4%) underperformed the Banks industry 4.8%.
Return on Equity
High ROE: 2388's Return on Equity (11.1%) is considered low.
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
Financial Institutions Analysis
Asset Level: 2388's Assets to Equity ratio (9.8x) is low.
Allowance for Bad Loans: 2388 has a sufficient allowance for bad loans (219%).
Low Risk Liabilities: 84% of 2388's liabilities are made up of primarily low risk sources of funding.
Loan Level: 2388 has an appropriate level of Loans to Assets ratio (47%).
Low Risk Deposits: 2388's Loans to Deposits ratio (62%) is appropriate.
Level of Bad Loans: 2388 has an appropriate level of bad loans (0.2%).
Next Steps
Dividend
What is BOC Hong Kong (Holdings) current dividend yield, its reliability and sustainability?
7.20%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 2388's dividend (7.2%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 2388's dividend (7.2%) is in the top 25% of dividend payers in the Hong Kong market (6.86%)
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 reasonable payout ratio (50.5%), 2388's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 2388's dividends in 3 years are forecast to be well covered by earnings (48.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
BOC Hong Kong (Holdings) has no CEO, or we have no data on them.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Financial Officer | 6yrs | no data | no data | |
| Chief Operating Officer | 4.92yrs | no data | no data | |
| Chief Risk Officer | 0.75yr | no data | no data | |
| Deputy Chief Executive | 9.33yrs | no data | no data | |
| Deputy Chief Executive of Financial Markets | 4.75yrs | no data | no data | |
| Deputy Chief Executive | 0.58yr | no data | no data | |
| Deputy Chief Executive | 1.67yrs | no data | no data | |
| Deputy Chief Executive | 1.08yrs | no data | no data | |
| Company Secretary | 3.83yrs | no data | no data | |
| Consultant | no data | no data | no data |
3.8yrs
Average Tenure
50yo
Average Age
Experienced Management: 2388's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Non-Executive Director | 14.67yrs | HK$651.00k | 0.0076% HK$ 17.2m | |
| Independent Non-Executive Director | 14.42yrs | HK$601.00k | no data | |
| Independent Non-Executive Director | 4.17yrs | HK$551.00k | no data | |
| Non-Executive Chairman | 1.08yrs | no data | no data | |
| Independent Non-executive Director | 1.42yrs | HK$404.00k | no data | |
| Independent Non-Executive Director | 5.83yrs | HK$502.00k | no data | |
| Vice Chairman | 0.42yr | no data | no data | |
| Non Executive Director | 2yrs | no data | no data | |
| Non-Executive Director | 0.42yr | no data | no data |
2.0yrs
Average Tenure
59yo
Average Age
Experienced Board: 2388's board of directors are not considered experienced ( 2 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$227.315b
- Shares outstanding: 10.57b
- Website: https://www.bochk.com
Number of Employees
Location
- BOC Hong Kong (Holdings) Limited
- Bank of China Tower
- 53rd 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. The ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/07 13:00 |
| End of Day Share Price | 2020/08/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.