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3328

Bank of Communications SEHK:3328 Stock Report

Last Price

HK$5.33

Market Cap

HK$412.8b

7D

0.6%

1Y

2.5%

Updated

28 Jun, 2022

Data

Company Financials +
3328 fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends6/6

3328 Stock Overview

Bank of Communications Co., Ltd. provides commercial banking products and services.

Bank of Communications Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Bank of Communications
Historical stock prices
Current Share PriceHK$5.33
52 Week HighHK$5.74
52 Week LowHK$4.35
Beta0.46
1 Month Change-0.37%
3 Month Change-2.91%
1 Year Change2.50%
3 Year Change-11.90%
5 Year Change-3.44%
Change since IPO107.54%

Recent News & Updates

May 04
Do Bank of Communications's (HKG:3328) Earnings Warrant Your Attention?

Do Bank of Communications's (HKG:3328) Earnings Warrant Your Attention?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Jan 13
I Ran A Stock Scan For Earnings Growth And Bank of Communications (HKG:3328) Passed With Ease

I Ran A Stock Scan For Earnings Growth And Bank of Communications (HKG:3328) Passed With Ease

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

3328HK BanksHK Market
7D0.6%-0.9%1.7%
1Y2.5%0.1%-21.2%

Return vs Industry: 3328 exceeded the Hong Kong Banks industry which returned 0.1% over the past year.

Return vs Market: 3328 exceeded the Hong Kong Market which returned -21.2% over the past year.

Price Volatility

Is 3328's price volatile compared to industry and market?
3328 volatility
3328 Average Weekly Movement2.3%
Banks Industry Average Movement3.0%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.4%

Stable Share Price: 3328 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 3328's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190889,890Jun Liuhttps://www.bankcomm.com

Bank of Communications Co., Ltd. provides commercial banking products and services. The company offers personal banking products and services, including demand, time, call, withdrawal, foreign currency, swap management, and education deposits, as well as certificate of deposits; credit and debit cards; housing and personal loans; and wealth management products, and wealth management advisory and consulting services. It also provides corporate banking products and services, such as corporate time and demand structured deposits; cash management services, such as accounts receivable/accounts payable management, account management, liquidity management, and investment and financing management; financing, settlement, and risk management services; financing services; syndicated loans; overdrafts; investment banking services; offshore banking services, including forex deposit and loan, inter-bank loan, international settlement, forex trading and guarantee, business advisory, and other services; and precious metal leasing and commodity trading services.

Bank of Communications Fundamentals Summary

How do Bank of Communications's earnings and revenue compare to its market cap?
3328 fundamental statistics
Market CapCN¥352.07b
Earnings (TTM)CN¥83.36b
Revenue (TTM)CN¥207.66b

4.1x

P/E Ratio

0.4x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3328 income statement (TTM)
RevenueCN¥207.66b
Cost of RevenueCN¥0
Gross ProfitCN¥207.66b
Other ExpensesCN¥124.30b
EarningsCN¥83.36b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.12
Gross Margin100.00%
Net Profit Margin40.14%
Debt/Equity Ratio251.9%

How did 3328 perform over the long term?

See historical performance and comparison

Dividends

7.8%

Current Dividend Yield

32%

Payout Ratio

Does 3328 pay a reliable dividends?

See 3328 dividend history and benchmarks
When do you need to buy 3328 by to receive an upcoming dividend?
Bank of Communications dividend dates
Ex Dividend DateJul 04 2022
Dividend Pay DateAug 02 2022
Days until Ex dividend5 days
Days until Dividend pay date34 days

Does 3328 pay a reliable dividends?

See 3328 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is 3328 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3328?

Other financial metrics that can be useful for relative valuation.

3328 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does 3328's PE Ratio compare to its peers?

3328 PE Ratio vs Peers
The above table shows the PE ratio for 3328 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.9x
1658 Postal Savings Bank of China
6.4x13.6%HK$569.3b
2388 BOC Hong Kong (Holdings)
14.5x14.1%HK$333.6b
998 China CITIC Bank
2.7x10.7%HK$241.5b
11 Hang Seng Bank
19.9x19.3%HK$264.2b
3328 Bank of Communications
4.1x8.3%HK$415.3b

Price-To-Earnings vs Peers: 3328 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the peer average (10.9x).


Price to Earnings Ratio vs Industry

How does 3328's PE Ratio compare vs other companies in the HK Banks Industry?

Price-To-Earnings vs Industry: 3328 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the Hong Kong Banks industry average (5.6x)


Price to Earnings Ratio vs Fair Ratio

What is 3328's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3328 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.1x
Fair PE Ratio5.7x

Price-To-Earnings vs Fair Ratio: 3328 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the estimated Fair Price-To-Earnings Ratio (5.7x).


Share Price vs Fair Value

What is the Fair Price of 3328 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3328 (HK$5.33) is trading below our estimate of fair value (HK$23.85)

Significantly Below Fair Value: 3328 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 3328 is good value based on its PEG Ratio (0.5x)


Discover undervalued companies

Future Growth

How is Bank of Communications forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3328's forecast earnings growth (8.3% per year) is above the savings rate (1.5%).

Earnings vs Market: 3328's earnings (8.3% per year) are forecast to grow slower than the Hong Kong market (17.1% 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 (10.3% 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

Future ROE: 3328's Return on Equity is forecast to be low in 3 years time (10.9%).


Discover growth companies

Past Performance

How has Bank of Communications performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


4.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3328 has high quality earnings.

Growing Profit Margin: 3328's current net profit margins (40.1%) are lower than last year (40.5%).


Past Earnings Growth Analysis

Earnings Trend: 3328's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: 3328's earnings growth over the past year (12.1%) exceeds its 5-year average (4% per year).

Earnings vs Industry: 3328 earnings growth over the past year (12.1%) exceeded the Banks industry 11.4%.


Return on Equity

High ROE: 3328's Return on Equity (9%) is considered low.


Discover strong past performing companies

Financial Health

How is Bank of Communications's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 3328's Assets to Equity ratio (12.4x) is moderate.

Allowance for Bad Loans: 3328 has a sufficient allowance for bad loans (152%).

Low Risk Liabilities: 75% 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 (55%).

Low Risk Deposits: 3328's Loans to Deposits ratio (80%) is appropriate.

Level of Bad Loans: 3328 has an appropriate level of bad loans (1.5%).


Discover healthy companies

Dividend

What is Bank of Communications's current dividend yield, its reliability and sustainability?

Dividend Score

6/6

Dividend Score 6/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


7.81%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 28 2022Ex Dividend DateJul 04 2022Dividend Pay DateAug 02 202229 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 3328's dividend (7.81%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.7%).

High Dividend: 3328's dividend (7.81%) is in the top 25% of dividend payers in the Hong Kong market (7.78%)


Stability and Growth of Payments

Stable Dividend: 3328's dividends per share have been stable in the past 10 years.

Growing Dividend: 3328's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.8%), 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 (31.9% payout ratio).


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Jun Liu (49 yo)

1.92yrs

Tenure

CN¥825,500

Compensation

Mr. Jun Liu serves as President at Bank of Communications Co., Ltd. since July 7, 2020 and serves as its Vice Chairman since August 5, 2020. He serves as an Executive Director of Bank of Communications Co....


CEO Compensation Analysis

Compensation vs Market: Jun's total compensation ($USD123.36K) is below average for companies of similar size in the Hong Kong market ($USD1.06M).

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


Leadership Team

Experienced Management: 3328's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: 3328's board of directors are not considered experienced ( 2.8 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.


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 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
  • Implied Market Cap: HK$412.759b
  • 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
  • 200120
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.