Executive Summary
Bank of Communications Co., Ltd. provides commercial banking products and services primarily in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 24.8% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Bank of Communications's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 3328 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 3328's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
4.8%
3328
3.7%
HK Banks
2.2%
HK Market
1 Year Return
-20.6%
3328
-12.2%
HK Banks
7.5%
HK Market
Return vs Industry: 3328 underperformed the Hong Kong Banks industry which returned -13.3% over the past year.
Return vs Market: 3328 underperformed the Hong Kong Market which returned 7.5% over the past year.
Shareholder returns
| 3328 | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.8% | 3.7% | 2.2% |
| 30 Day | 4.1% | 7.5% | 9.4% |
| 90 Day | 9.0% | 13.0% | 15.8% |
| 1 Year | -14.8%-20.6% | -6.8%-12.2% | 11.8%7.5% |
| 3 Year | -19.5%-33.0% | -19.2%-31.2% | -3.5%-13.6% |
| 5 Year | 27.8%-5.6% | 46.6%11.3% | 65.0%37.0% |
Long-Term Price Volatility Vs. Market
How volatile is Bank of Communications's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
What To Know Before Buying Bank of Communications Co., Ltd. (HKG:3328) For Its Dividend4 months ago | Simply Wall St
Do Institutions Own Bank of Communications Co., Ltd. (HKG:3328) Shares?5 months ago | Simply Wall St
Should You Or Shouldn't You: A Dividend Analysis on Bank of Communications Co., Ltd. (HKG:3328)Valuation
Is Bank of Communications undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 3328 (HK$4.36) is trading below our estimate of fair value (HK$12.69)
Significantly Below Fair Value: 3328 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 3328 is good value based on its PE Ratio (4.1x) compared to the HK Banks industry average (6.4x).
PE vs Market: 3328 is good value based on its PE Ratio (4.1x) compared to the Hong Kong market (11.5x).
Price to Earnings Growth Ratio
PEG Ratio: 3328's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: 3328's PB Ratio (0.3x) is in line with the HK Banks industry average.
Next Steps
Future Growth
How is Bank of Communications forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
-24.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 3328's earnings are forecast to decline over the next 3 years (-24.8% per year).
Earnings vs Market: 3328's earnings are forecast to decline over the next 3 years (-24.8% per year).
High Growth Earnings: 3328's earnings are forecast to decline over the next 3 years.
Revenue vs Market: 3328's revenue (7.6% per year) is forecast to grow slower than the Hong Kong market (14% per year).
High Growth Revenue: 3328's revenue (7.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 3328's Return on Equity is forecast to be low in 3 years time (10.4%).
Next Steps
Past Performance
How has Bank of Communications performed over the past 5 years?
1.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 3328 has high quality earnings.
Growing Profit Margin: 3328's current net profit margins (38.4%) are lower than last year (40.8%).
Past Earnings Growth Analysis
Earnings Trend: 3328's earnings have grown by 1.9% per year over the past 5 years.
Accelerating Growth: 3328's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 3328 had negative earnings growth (-9.1%) over the past year, making it difficult to compare to the Banks industry average (-7.2%).
Return on Equity
High ROE: 3328's Return on Equity (8.5%) is considered low.
Next Steps
Financial Health
How is Bank of Communications'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: 3328's Assets to Equity ratio (12.9x) is moderate.
Allowance for Bad Loans: 3328 has a sufficient allowance for bad loans (148%).
Low Risk Liabilities: 74% of 3328's liabilities are made up of primarily low risk sources of funding.
Loan Level: 3328 has an appropriate level of Loans to Assets ratio (53%).
Low Risk Deposits: 3328's Loans to Deposits ratio (77%) is appropriate.
Level of Bad Loans: 3328 has an appropriate level of bad loans (1.7%).
Next Steps
Dividend
What is Bank of Communications's current dividend yield, its reliability and sustainability?
8.65%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 3328's dividend (8.65%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.11%).
High Dividend: 3328's dividend (8.65%) is in the top 25% of dividend payers in the Hong Kong market (6.67%)
Stability and Growth of Payments
Stable Dividend: 3328's dividend payments have been volatile in the past 10 years.
Growing Dividend: 3328's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (35.9%), 3328's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 3328's dividends in 3 years are forecast to be well covered by earnings (30.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Jun Liu (48 yo)
0.67
Tenure
Mr. Jun Liu serves as President at Bank of Communications Co., Ltd. since May 29, 2020 and serves as its Vice Chairman since August 5, 2020. He serves as an Executice Director of Bank of Communications Co....
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 1.75yrs | CN¥779.00k | 0.00027% CN¥ 979.9k | |
| Executive VP & Head of Accounting | no data | CN¥716.90k | 0.000070% CN¥ 254.0k | |
| GM of HR Department | 2.75yrs | CN¥1.16m | 0.00012% CN¥ 435.5k | |
| Chief Business Officer of Interbank & Market Business | 2.33yrs | CN¥1.18m | 0.000070% CN¥ 254.0k | |
| Executive Vice President | 1.33yrs | CN¥298.60k | no data | |
| Vice Chairman & President | 0.67yr | no data | no data | |
| Senior Manager | no data | no data | no data | |
| Strategic Cooperation Consultant | 7.83yrs | no data | no data | |
| Co-Head of Asia Pacific | 0.83yr | no data | no data | |
| Co-Head of Asia Pacific | 0.83yr | no data | no data | |
| Head of Accounting Institution | no data | no data | no data | |
| Executive Vice President | no data | no data | no data |
1.3yrs
Average Tenure
56yo
Average Age
Experienced Management: 3328's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 1.75yrs | CN¥779.00k | 0.00027% CN¥ 979.9k | |
| Vice Chairman & President | 0.67yr | no data | no data | |
| Independent Non-Executive Director | 4.25yrs | CN¥282.00k | no data | |
| Independent Non-Executive Director | 0.42yr | no data | no data | |
| Independent Non-Executive Director | 2.42yrs | no data | no data | |
| Independent Non Executive Director | 0.17yr | no data | no data | |
| Chairman of the Shareholder Supervisory Board | 0.17yr | no data | no data | |
| Non-Executive Director | 4.42yrs | no data | no data | |
| Independent Non-Executive Director | 3.17yrs | CN¥282.00k | no data | |
| Non-Executive Director | 3.42yrs | CN¥863.00k | 0.000030% CN¥ 108.9k | |
| Non-Executive Director | 1.42yrs | no data | no data | |
| Non-Executive Director | 1.25yrs | no data | 0.000070% CN¥ 254.0k |
1.6yrs
Average Tenure
55.5yo
Average Age
Experienced Board: 3328's board of directors are not considered experienced ( 1.6 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: 3328 insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Bank of Communications Co., Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Bank of Communications Co., Ltd.
- Ticker: 3328
- Exchange: SEHK
- Founded: 1908
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: HK$362.909b
- Shares outstanding: 74.26b
- Website: https://www.bankcomm.com
Number of Employees
Location
- Bank of Communications Co., Ltd.
- 188 Yin Cheng Zhong Lu
- China (Shanghai) Pilot Free Trade Zone
- Shanghai
- Shanghai Province
- 200120
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 3328 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Jun 2005 |
| C4C | DB (Deutsche Boerse AG) | Yes | Foreign Shares-Foreign Listed | DE | EUR | Jun 2005 |
| BKFC.F | OTCPK (Pink Sheets LLC) | Yes | Foreign Shares-Foreign Listed | US | USD | Jun 2005 |
| 3328 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Jun 2005 |
| 3328 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Jun 2005 |
| 601328 | SHSE (Shanghai Stock Exchange) | Domestic Shares | CN | CNY | May 2007 | |
| 601328 | XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect) | Domestic Shares | CN | CNY | May 2007 | |
| BCMX.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Oct 2008 |
Biography
Bank of Communications Co., Ltd. provides commercial banking products and services primarily in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company offers personal ba...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/15 10:17 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| 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.