BOC Hong Kong (Holdings)
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
1 Year Returns
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.
Value
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for BOC Hong Kong (Holdings).
| 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.
| 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.
| 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 |
| 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
Current Discount Checks
- 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?
| 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).
| 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?
| 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 .
| 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?
| 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 |
| 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.
Value checks
We assess BOC Hong Kong (Holdings)'s value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check) 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
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!
Earnings growth vs Low Risk Savings
- 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
| 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
| 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 |
| 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 |
| 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.
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.
| 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 |
| 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%).
Future performance checks
We assess BOC Hong Kong (Holdings)'s future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
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.
| 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.
Past performance checks
We assess BOC Hong Kong (Holdings)'s performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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
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.
Balance sheet
Assets
Liabilities and shares
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.
All data from BOC Hong Kong (Holdings) Company Filings, last reported 5 months ago.
| 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.
- 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%).
Financial health checks
We assess BOC Hong Kong (Holdings)'s financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) BOC Hong Kong (Holdings) has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
HK$2,000 of
BOC Hong Kong (Holdings)
shares you are expected to receive
HK$97
in your first year as a dividend.
Dividend Amount
- BOC Hong Kong (Holdings)'s pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.1%).
- BOC Hong Kong (Holdings)'s dividend is below the markets top 25% of dividend payers in Hong Kong (5.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
| Hong Kong Banks Industry Average Dividend Yield | Market Cap Weighted Average of 29 Stocks | 5.3% |
| Hong Kong Market Average Dividend Yield | Market Cap Weighted Average of 966 Stocks | 3.7% |
| Hong Kong Minimum Threshold Dividend Yield | 10th Percentile | 1.2% |
| Hong Kong Bottom 25% Dividend Yield | 25th Percentile | 2.1% |
| Hong Kong Top 25% Dividend Yield | 75th Percentile | 5.9% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in HK$) | 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 |
| 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).
- Dividends after 3 years are expected to be well covered by earnings (2x coverage).
Income/ dividend checks
We assess BOC Hong Kong (Holdings)'s dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- The tenure for the BOC Hong Kong (Holdings) management team is about average.
Management Team
Yingxin Gao
Vice Chairman & Chief Executive
HK$11M
56
1.4 yrs
Yang Sui
Chief Financial Officer
44
4.8 yrs
Xiangqun Zhong
Chief Operating Officer
48
3.8 yrs
Qi Wang
Deputy Chief Executive of Legal & Compliance
55
Ann Kung
Deputy Chief Executive
55
8.2 yrs
Shu Yuan
Deputy Chief Executive of Financial Markets
55
3.6 yrs
Bing Wang
Deputy Chief Executive
46
0.5 yrs
Nan Luo
Company Secretary
44
2.7 yrs
Yanlai Zhu
Consultant
63
Board of Directors Tenure
Average tenure and age of the BOC Hong Kong (Holdings) board of directors in years:
- 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
Vice Chairman & Chief Executive
HK$11M
56
1.4 yrs
Liange Liu
Vice Chairman
57
0.5 yrs
Savio Tung
Independent Non-Executive Director
HK$692K
67
13.5 yrs
Beng Seng Koh
Independent Non-Executive Director
HK$642K
67
13.3 yrs
Jonathan Choi
Independent Non-Executive Director
HK$592K
61
3 yrs
Eva Cheng
Independent Non-Executive Director
HK$500K
57
4.7 yrs
Jingzhen Lin
Non Executive Director
53
0.8 yrs
Quinn Law
Independent Non-executive Director
65
0.3 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (HK$) | Value (HK$) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess BOC Hong Kong (Holdings)'s management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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 - – Full articleWhat 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 - – Full articleWhy 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 - – Full articleDid 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 - – Full articleAt 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 - – Full articleWhy 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 - – Full articleWhat 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 - – Full articleShould 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 - – Full articleBOC 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 - – Full articleShould 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 - – Full articleCompany 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
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.
