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.
Snowflake
Fundamentals
Very undervalued with flawless balance sheet and pays a dividend.
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
Market Performance
7 Day Return
4.3%
3328
3.9%
HK Banks
3.1%
HK Market
1 Year Return
-3.5%
3328
-3.7%
HK Banks
0.5%
HK Market
Return vs Industry: 3328 matched the Hong Kong Banks industry which returned -3.7% over the past year.
Return vs Market: 3328 underperformed the Hong Kong Market which returned 0.5% over the past year.
Shareholder returns
| 3328 | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.3% | 3.9% | 3.1% |
| 30 Day | -1.5% | -0.3% | -1.8% |
| 90 Day | -10.0% | -3.0% | -4.8% |
| 1 Year | 1.9%-3.5% | 1.4%-3.7% | 4.1%0.5% |
| 3 Year | 7.4%-9.1% | 17.8%1.4% | 15.8%4.2% |
| 5 Year | 25.3%-5.0% | 30.9%0.3% | 18.9%-0.9% |
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
1 year ago | Simply Wall St
Bank of Communications Co Ltd (HKG:3328): What You Have To Know Before Buying For The Upcoming Dividend1 year ago | Simply Wall St
Risk Factors To Consider Before Investing In Bank of Communications Co Ltd (HKG:3328)1 year ago | Simply Wall St
SEHK Favorite Dividend StocksValuation
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
Undervalued: 3328 (HK$5.29) is trading below our estimate of fair value (HK$13.2)
Significantly Undervalued: 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 (4.9x) compared to the Banks industry average (5.8x).
PE vs Market: 3328 is good value based on its PE Ratio (4.9x) compared to the Hong Kong market (10.3x).
Price to Earnings Growth Ratio
Low PEG Ratio: 3328 is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: 3328 is good value based on its PB Ratio (0.5x) compared to the HK Banks industry average (0.5x).
Next Steps
Future Growth
How is Bank of Communications forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
5.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 3328's forecast earnings growth (5.6% per year) is above the savings rate (2%).
Earnings vs Market: 3328's earnings (5.6% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).
High Growth Earnings: 3328's earnings are forecast to grow, but not significantly.
Revenue vs Market: 3328's revenue (7.8% per year) is forecast to grow slower than the Hong Kong market (10% per year).
High Growth Revenue: 3328's revenue (7.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: 3328's Return on Equity is forecast to be low in 3 years time (10.6%).
Next Steps
Past Performance
How has Bank of Communications performed over the past 5 years?
1.7%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: 3328's earnings have grown by 1.7% per year over the past 5 years.
Accelerating Growth: 3328's earnings growth over the past year (9.3%) exceeds its 5-year average (1.7% per year).
Earnings vs Industry: 3328 earnings growth over the past year (9.3%) exceeded the Banks industry 5.2%.
Return on Equity
High ROE: 3328's Return on Equity (10.5%) is considered low.
Return on Assets
ROA vs Industry: 3328's Return on Assets is below or equal to the Banks industry average last year.
Return on Capital Employed
ROCE Improving: Insufficient data to calculate 3328's Return on Capital Employed to determine if it has improved over the past 3 years.
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
Inventory Level: 3328 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 3328's debt is covered by short term assets (assets are 1.758150x debt).
Financial Institutions Analysis
Asset Level: 3328's level of assets compared to its equity is moderate.
Allowance for Bad Loans: 3328 has a sufficient allowance for bad loans.
Low Risk Liabilities: 3328's liabilities are made up of primarily low risk sources of funding.
Loan Level: 3328 has an acceptable proportion of non-loan assets held.
Low Risk Deposits: 3328's loans are broadly funded by customer deposits.
Level of Bad Loans: 3328 has an appropriate level of bad loans (1.38%)
Next Steps
Dividend
What is Bank of Communications's current dividend yield, its reliability and sustainability?
6.28%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: 3328's dividend (6.28%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 3328's dividend (6.28%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).
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 (30.5%), 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 (31.7% payout ratio).
Next Steps
Management
What is the CEO of Bank of Communications's salary, the management and board of directors tenure and is there insider trading?
1.3yrs
Average management tenure
CEO
Deqi Ren (56yo)
1.3yrs
Tenure
CN¥375,600
Compensation
Mr. Deqi Ren serves as Vice Chairman of the Board at Bank of Communications Co., Ltd. since June 21, 2019. He served as Chairman of the Board at Bank of Communications Co., Ltd. from April 2019 until June ...
CEO Compensation Analysis
Compensation vs. Market: Deqi 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: Insufficient data to compare Deqi's compensation with company performance.
Management Age and Tenure
1.3yrs
Average Tenure
57yo
Average Age
Experienced Management: 3328's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Age and Tenure
3.1yrs
Average Tenure
57.5yo
Average Age
Experienced Board: 3328's board of directors are considered experienced (3.1 years average tenure).
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
Weidong Hou (59yo)
Executive VP & Executive Director
- Tenure: 4yrs
- Compensation: CN¥665.40k
Junkang Xu (72yo)
General Manager
- Tenure: 0yrs
Jiajin Lyu (51yo)
Executive Vice President
- Tenure: 0.8yrs
Siu Ng (66yo)
HSBC-BoCom Strategic Cooperation Consultant & Senior Management Member
- Tenure: 6.6yrs
Deqi Ren (56yo)
President & Vice Chairman of the Board
- Tenure: 1.3yrs
- Compensation: CN¥375.60k
Zhao Wu (65yo)
Strategic Cooperation Consultant
- Tenure: 6.6yrs
Mang Guo (57yo)
Executive Vice President
- Tenure: 1.3yrs
- Compensation: CN¥1.12m
Eric Pan
Senior Manager
- Tenure: 0yrs
Han Xu (53yo)
Chief Business Officer of Retail & Private Business
- Tenure: 1.1yrs
- Compensation: CN¥293.60k
Hong Tu (53yo)
Chief Business Officer of Interbank & Market Business
- Tenure: 1.1yrs
- Compensation: CN¥293.60k
Board Members
Jason Yeung (64yo)
Independent Non-Executive Director
- Tenure: 3yrs
- Compensation: CN¥250.00k
Weidong Hou (59yo)
Executive VP & Executive Director
- Tenure: 4yrs
- Compensation: CN¥665.40k
Haoyi Cai (65yo)
Independent Non-Executive Director
- Tenure: 1.2yrs
Jian Li (66yo)
Independent Non-Executive Director
- Tenure: 5yrs
- Compensation: CN¥250.00k
Li Liu (64yo)
Independent Non-Executive Director
- Tenure: 5.1yrs
- Compensation: CN¥250.00k
Taiyin Wang (55yo)
Non-Executive Director
- Tenure: 6.2yrs
- Compensation: CN¥841.50k
Deqi Ren (56yo)
President & Vice Chairman of the Board
- Tenure: 1.3yrs
- Compensation: CN¥375.60k
Haoyang Liu (46yo)
Non-Executive Director
- Tenure: 3.2yrs
Zhaobin He (50yo)
Non-Executive Director
- Tenure: 2.2yrs
- Compensation: CN¥882.10k
Guobin Song (54yo)
Non-Executive Director
- Tenure: 2.2yrs
- Compensation: CN¥882.10k
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$432.857b
- Shares outstanding: 74.26b
- Website: https://www.bankcomm.com
Number of Employees
Location
- Bank of Communications Co., Ltd.
- 188 Yin Cheng Zhong Lu
- Pilot Free Trade Zone
- Shanghai
- 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 | 2019/10/16 12:42 |
| End of Day Share Price | 2019/10/16 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.