SEHK:2388

Stock Analysis Report

BOC Hong Kong (Holdings)

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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

5.1%

2388

3.9%

HK Banks

3.1%

HK Market


1 Year Return

-20.6%

2388

-3.7%

HK Banks

0.5%

HK Market

Return vs Industry: 2388 underperformed the Hong Kong Banks industry which returned -3.7% over the past year.

Return vs Market: 2388 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

2388IndustryMarket
7 Day5.1%3.9%3.1%
30 Day-6.7%-0.3%-1.8%
90 Day-15.0%-3.0%-4.8%
1 Year-16.7%-20.6%1.4%-3.7%4.1%0.5%
3 Year13.4%0.9%17.8%1.4%15.8%4.2%
5 Year32.6%5.6%30.9%0.3%18.9%-0.9%

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

Valuation

Is BOC Hong Kong (Holdings) undervalued compared to its fair value and its price relative to the market?

22.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 2388 (HK$26.6) is trading below our estimate of fair value (HK$34.13)

Significantly Undervalued: 2388 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2388 is poor value based on its PE Ratio (8.7x) compared to the Banks industry average (5.8x).

PE vs Market: 2388 is good value based on its PE Ratio (8.7x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 2388 is poor value based on its PEG Ratio (1.7x)


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

  • Explore potentially undervalued companies in the Banks industry.

Future Growth

How is BOC Hong Kong (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2388's forecast earnings growth (5% per year) is above the savings rate (2%).

Earnings vs Market: 2388's earnings (5% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 2388's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2388's revenue (5% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 2388's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 2388's Return on Equity is forecast to be low in 3 years time (11.8%).


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


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%) underperformed the Banks industry 5.2%.


Return on Equity

High ROE: 2388's Return on Equity (11.1%) is considered low.


Return on Assets

ROA vs Industry: 2388 has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 2388's Return on Capital Employed to determine if it has improved over the past 3 years.


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 11.799740x 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?

5.52%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%2.3%markettop25%6.3%industryaverage5.5%forecastin3Years5.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2388's dividend (5.52%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 2388's dividend (5.52%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

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 (46.9% payout ratio).


Next Steps

Management

What is the CEO of BOC Hong Kong (Holdings)'s salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Yingxin Gao (57yo)

1.8yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

Compensation vs Earnings: Yingxin's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 2388's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

60yo

Average Age

Experienced Board: 2388's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Yingxin Gao (57yo)

    Vice Chairman & Chief Executive

    • Tenure: 1.8yrs
    • Compensation: HK$10.55m
  • Yanlai Zhu (64yo)

    Consultant

    • Tenure: 0yrs
  • Ann Kung (56yo)

    Deputy Chief Executive

    • Tenure: 8.5yrs
  • Yang Sui (45yo)

    Chief Financial Officer

    • Tenure: 5.2yrs
  • Xiangqun Zhong (49yo)

    Chief Operating Officer

    • Tenure: 4.1yrs
  • Shu Yuan (56yo)

    Deputy Chief Executive of Financial Markets

    • Tenure: 3.9yrs
  • Nan Luo (45yo)

    Company Secretary

    • Tenure: 3yrs
  • Qi Wang (56yo)

    Deputy Chief Executive of Legal & Compliance

    • Tenure: 0yrs
  • Bing Wang (47yo)

    Deputy Chief Executive

    • Tenure: 0.8yrs
  • Zhikun Qiu (49yo)

    Deputy Chief Executive

    • Tenure: 0.8yrs

Board Members

  • Savio Tung (68yo)

    Independent Non-Executive Director

    • Tenure: 13.8yrs
    • Compensation: HK$692.00k
  • Beng Seng Koh (68yo)

    Independent Non-Executive Director

    • Tenure: 13.6yrs
    • Compensation: HK$642.00k
  • Yingxin Gao (57yo)

    Vice Chairman & Chief Executive

    • Tenure: 1.8yrs
    • Compensation: HK$10.55m
  • Jonathan Choi (62yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: HK$592.00k
  • Liange Liu (58yo)

    Chairman

    • Tenure: 0.3yrs
  • Quinn Law (66yo)

    Independent Non-executive Director

    • Tenure: 0.6yrs
  • Eva Cheng (58yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: HK$500.00k
  • Jingzhen Lin (54yo)

    Non Executive Director

    • Tenure: 1.2yrs

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$277.007b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BNKH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2002
2388SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2002
BOFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2002
2388SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2002
2388SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2002
BHKL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDApr 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:40
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.