Bank of Communications
Bank of Communications Co., Ltd. provides commercial and retail banking products and services primarily in the People’s Republic of China. The last earnings update was 120 days ago. More info.
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3328 Share Price and Events
7 Day Returns
1 Year Returns
3328 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Bank of Communications (3328) | 1.2% | 2.5% | 11.9% | 1.4% | 47.1% | 32.3% |
| HK Banks | 2.8% | 4.5% | 7.7% | -14.9% | 41.4% | 23.6% |
| HK Market | 4% | 7.9% | 10.4% | -10.7% | 37.6% | 16.4% |
1 Year Return vs Industry and Market
- 3328 outperformed the Banks industry which returned -14.9% over the past year.
- 3328 outperformed the Market in Hong Kong which returned -10.7% over the past year.
3328 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
Bank of Communications
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 Bank of Communications.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 19 analysts.
= Stable Book Value * Return on Equity = CN¥9.85 * 10.8% |
CN¥1.06 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 16 analysts. | CN¥9.85 |
| Discount Rate (Cost of Equity) | See below | 10.6% |
| 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 | 8% |
| Banks Unlevered Beta | Simply Wall St/ S&P Global | 0.6 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.603 (1 + (1- 25%) (544.09%)) |
1.079 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.08 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.079 * 8%) |
10.64% |
Discounted Cash Flow Calculation for SEHK:3328 using Excess Returns Model Model
The calculations below outline how an intrinsic value for Bank of Communications 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)
= (10.8% – 10.64%) * CN¥9.85) |
CN¥0.02 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= CN¥0.02 / (10.64% - 2%) |
CN¥0.18 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= CN¥9.85 + CN¥0.18 |
CN¥10.03 |
| Calculation | Result | |
|---|---|---|
| Exchange Rate | CNY/HKD
(Reporting currency to currency of SEHK:3328) |
1.169 |
| Value per Share (HKD) |
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥10.03 x 1.169 |
HK$11.73 |
| Value per share (HKD) | From above. | HK$11.73 |
| Current discount | Discount to share price of
HK$6.59
= -1 x (HK$6.59 - HK$11.73) / HK$11.73 |
43.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Bank of Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Bank of Communications'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 Bank of Communications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Bank of Communications'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 (2018-09-30) in CNY | CN¥0.95 |
| SEHK:3328 Share Price ** | SEHK (2019-02-22) in HKD | HK$6.59 |
| SEHK:3328 Share Price converted to CNY reporting currency | Exchange rate (HKD/ CNY) 0.855 | CN¥5.64 |
| Hong Kong Banks Industry PE Ratio | Median Figure of 31 Publicly-Listed Banks Companies | 6.19x |
| Hong Kong Market PE Ratio | Median Figure of 1,481 Publicly-Listed Companies | 10.91x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Bank of Communications.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = SEHK:3328 Share Price ÷ EPS (both in CNY) = 5.64 ÷ 0.95 |
5.93x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Bank of Communications is good value based on earnings compared to the HK Banks industry average.
- Bank of Communications is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does
Bank of Communications's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 5.93x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts |
6.2%per year |
| Hong Kong Banks Industry PEG Ratio | Median Figure of 16 Publicly-Listed Banks Companies | 0.9x |
| Hong Kong Market PEG Ratio | Median Figure of 467 Publicly-Listed Companies | 0.78x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 5.93x ÷ 6.2% |
0.95x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Bank of Communications is good value based on expected growth next year.
Price based on value of assets
What value do investors place on
Bank of Communications's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-09-30) in CNY | CN¥8.66 |
| SEHK:3328 Share Price * | SEHK (2019-02-22) in HKD | HK$6.59 |
| SEHK:3328 Share Price converted to CNY reporting currency | Exchange rate (HKD/ CNY) 0.855 | CN¥5.64 |
| Hong Kong Banks Industry PB Ratio | Median Figure of 31 Publicly-Listed Banks Companies | 0.79x |
| Hong Kong Market PB Ratio | Median Figure of 2,118 Publicly-Listed Companies | 0.98x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = SEHK:3328 Share Price ÷ Book Value per Share (both in CNY) = 5.64 ÷ 8.66 |
0.65x |
* Primary Listing of Bank of Communications.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Bank of Communications is good value based on assets compared to the HK Banks industry average.
Value checks
We assess Bank of Communications'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) Bank of Communications has a total score of 6/6, 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.
3328 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
- Bank of Communications's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
- Bank of Communications's earnings growth is positive but not above the Hong Kong market average.
- Bank of Communications's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| SEHK:3328 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts | 6.2% |
| SEHK:3328 Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts | 8.2% |
| Hong Kong Banks Industry Earnings Growth Rate | Market Cap Weighted Average | 6.7% |
| Hong Kong Banks Industry Revenue Growth Rate | Market Cap Weighted Average | 8.3% |
| Hong Kong Market Earnings Growth Rate | Market Cap Weighted Average | 11.6% |
| Hong Kong Market Revenue Growth Rate | Market Cap Weighted Average | 9.8% |
*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 (4 months ago) | See Below |
| Future Estimates | Average of up to 22 Analyst Estimates (S&P Global) | See Below |
| Date (Data in CNY Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | ||||
| 2021-12-31 | ||||
| 2020-12-31 | 229,071 | 81,167 | 10 | |
| 2019-12-31 | 226,844 | 76,763 | 14 | |
| 2018-12-31 | 199,594 | 71,864 | 11 |
| Date (Data in CNY Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-09-30 | 165,007 | 253,017 | 70,415 |
| 2018-06-30 | 162,126 | 41,424 | 69,326 |
| 2018-03-31 | 159,312 | 38,142 | 68,298 |
| 2017-12-31 | 164,430 | 10,727 | 67,530 |
| 2017-09-30 | 164,740 | 311,954 | 68,167 |
| 2017-06-30 | 163,277 | 555,530 | 67,640 |
| 2017-03-31 | 161,130 | 448,426 | 66,583 |
| 2016-12-31 | 162,944 | 485,066 | 66,326 |
| 2016-09-30 | 164,453 | 482,921 | 67,066 |
| 2016-06-30 | 167,912 | 45,194 | 66,865 |
| 2016-03-31 | 169,890 | 464,414 | 66,624 |
| 2015-12-31 | 164,802 | 426,095 | 66,528 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (4 months ago) | See Below |
| Future Estimates | Average of up to 22 Analyst Estimates (S&P Global) | See Below |
All data from Bank of Communications Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CNY Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 1.20 | 1.20 | 1.20 | 1.00 |
| 2022-12-31 | 1.15 | 1.15 | 1.15 | 1.00 |
| 2021-12-31 | 1.08 | 1.08 | 1.08 | 1.00 |
| 2020-12-31 | 1.09 | 1.16 | 1.01 | 14.00 |
| 2019-12-31 | 1.00 | 1.06 | 0.79 | 19.00 |
| 2018-12-31 | 0.95 | 1.00 | 0.77 | 19.00 |
| Date (Data in CNY Millions) | EPS * |
|---|---|
| 2018-09-30 | 0.95 |
| 2018-06-30 | 0.93 |
| 2018-03-31 | 0.92 |
| 2017-12-31 | 0.91 |
| 2017-09-30 | 0.89 |
| 2017-06-30 | 0.88 |
| 2017-03-31 | 0.89 |
| 2016-12-31 | 0.89 |
| 2016-09-30 | 0.90 |
| 2016-06-30 | 0.90 |
| 2016-03-31 | 0.90 |
| 2015-12-31 | 0.90 |
*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.
- Bank of Communications is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Future performance checks
We assess Bank of Communications'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)
Bank of Communications 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.
3328 Past Performance
How has Bank of Communications 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
- Bank of Communications's year on year earnings growth rate has been positive over the past 5 years.
- Bank of Communications's 1-year earnings growth exceeds its 5-year average (3.3% vs 1.8%)
- Bank of Communications's earnings growth has not exceeded the HK Banks industry average in the past year (3.3% vs 3.5%).
Earnings and Revenue History
All data from Bank of Communications Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CNY Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-09-30 | 165,007.00 | 70,415.00 | 60,405.00 | |
| 2018-06-30 | 162,126.00 | 69,326.00 | 60,405.00 | |
| 2018-03-31 | 159,312.00 | 68,298.00 | 60,405.00 | |
| 2017-12-31 | 164,430.00 | 67,530.00 | 60,405.00 | |
| 2017-09-30 | 164,740.00 | 68,167.00 | 58,403.00 | |
| 2017-06-30 | 163,277.00 | 67,640.00 | 58,403.00 | |
| 2017-03-31 | 161,130.00 | 66,583.00 | 58,403.00 | |
| 2016-12-31 | 162,944.00 | 66,326.00 | 58,403.00 | |
| 2016-09-30 | 164,453.00 | 67,066.00 | 57,400.00 | |
| 2016-06-30 | 167,912.00 | 66,865.00 | 57,400.00 | |
| 2016-03-31 | 169,890.00 | 66,624.00 | 57,400.00 | |
| 2015-12-31 | 164,802.00 | 66,528.00 | 57,400.00 | |
| 2015-09-30 | 162,666.00 | 66,368.00 | 52,530.00 | |
| 2015-06-30 | 159,602.00 | 66,401.00 | 52,530.00 | |
| 2015-03-31 | 159,393.00 | 66,130.00 | 52,530.00 | |
| 2014-12-31 | 154,624.00 | 65,850.00 | 52,530.00 | |
| 2014-09-30 | 153,408.00 | 65,111.00 | 45,954.00 | |
| 2014-06-30 | 149,565.00 | 64,241.00 | 45,954.00 | |
| 2014-03-31 | 147,645.00 | 63,279.00 | 45,954.00 | |
| 2013-12-31 | 145,318.00 | 62,295.00 | 45,954.00 | |
| 2013-09-30 | 144,787.00 | 62,567.00 | 2,287.00 | |
| 2013-06-30 | 142,923.00 | 62,107.00 | 2,287.00 | |
| 2013-03-31 | 138,045.00 | 60,198.00 | 1,295.00 | |
| 2012-12-31 | 133,299.00 | 58,369.00 | 2,287.00 | |
| 2012-09-30 | 129,651.00 | 56,827.00 | 1,875.00 | |
| 2012-06-30 | 125,722.00 | 55,428.00 | 1,875.00 | |
| 2012-03-31 | 120,476.00 | 53,332.00 | 2,867.00 |
*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.
- Bank of Communications has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Bank of Communications used its assets less efficiently than the HK Banks industry average last year based on Return on Assets.
- Unable to establish if Bank of Communications 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 Bank of Communications'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)
Bank of Communications has a total score of 2/6, 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.
3328 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 Bank of Communications Company Filings, last reported 4 months ago.
| Date (Data in CNY Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-09-30 | 689,085.00 | 2,397,618.00 | 1,000,511.00 |
| 2018-06-30 | 670,061.00 | 1,332,796.00 | 1,311,773.00 |
| 2018-03-31 | 668,501.00 | 2,267,922.00 | 937,982.00 |
| 2017-12-31 | 676,271.00 | 1,399,080.00 | 1,180,064.00 |
| 2017-09-30 | 663,499.00 | 2,647,951.00 | 456,157.00 |
| 2017-06-30 | 648,408.00 | 1,329,489.00 | 1,202,002.00 |
| 2017-03-31 | 652,158.00 | 2,495,111.00 | 541,836.00 |
| 2016-12-31 | 632,407.00 | 1,244,082.00 | 1,140,845.00 |
| 2016-09-30 | 618,878.00 | 2,254,151.00 | 446,196.00 |
| 2016-06-30 | 555,494.00 | 989,440.00 | 854,297.00 |
| 2016-03-31 | 556,909.00 | 1,847,152.00 | 405,337.00 |
| 2015-12-31 | 538,092.00 | 633,035.00 | 739,769.00 |
| 2015-09-30 | 522,100.00 | 1,833,615.00 | 532,108.00 |
| 2015-06-30 | 491,800.00 | 698,984.00 | 1,155,412.00 |
| 2015-03-31 | 492,839.00 | 1,597,113.00 | 452,429.00 |
| 2014-12-31 | 473,605.00 | 527,673.00 | 765,538.00 |
| 2014-09-30 | 457,880.00 | 1,418,772.00 | 362,748.00 |
| 2014-06-30 | 442,546.00 | 430,110.00 | 838,672.00 |
| 2014-03-31 | 441,736.00 | 1,272,247.00 | 268,934.00 |
| 2013-12-31 | 421,484.00 | 471,552.00 | 785,718.00 |
| 2013-09-30 | 410,555.00 | 1,148,962.00 | 346,491.00 |
| 2013-06-30 | 398,158.00 | 464,948.00 | 719,618.00 |
| 2013-03-31 | 400,227.00 | 1,174,949.00 | 297,486.00 |
| 2012-12-31 | 381,447.00 | 321,129.00 | 672,400.00 |
| 2012-09-30 | 367,742.00 | 1,035,265.00 | 293,462.00 |
| 2012-06-30 | 299,054.00 | 312,801.00 | 816,868.00 |
| 2012-03-31 | 289,067.00 | 1,065,271.00 | 277,227.00 |
BANK ANALYSIS
This company is a bank or financial institution, which is analysed accordingly below.
- Bank of Communications has an acceptable proportion of non-loan assets held.
- Bank of Communications's liabilities are made up of primarily low risk sources of funding.
- Loans at Bank of Communications are broadly funded by customer deposits.
- Bank of Communications's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
- Bank of Communications has a sufficient allowance for bad loans.
- Bank of Communications has an acceptable level of bad loans (less than 2%).
Financial health checks
We assess Bank of Communications'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) Bank of Communications 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.
3328 Dividends
What is Bank of Communications'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
Bank of Communications
shares you are expected to receive
HK$101
in your first year as a dividend.
Dividend Amount
- Bank of Communications's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.97%).
- Bank of Communications's dividend is below the markets top 25% of dividend payers in Hong Kong (5.42%).
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 22 Analyst Estimates (S&P Global) | See Below |
| Hong Kong Banks Industry Average Dividend Yield | Market Cap Weighted Average of 27 Stocks | 4.9% |
| Hong Kong Market Average Dividend Yield | Market Cap Weighted Average of 916 Stocks | 3.4% |
| Hong Kong Minimum Threshold Dividend Yield | 10th Percentile | 1.1% |
| Hong Kong Bottom 25% Dividend Yield | 25th Percentile | 2% |
| Hong Kong Top 25% Dividend Yield | 75th Percentile | 5.4% |
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 CN¥) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 0.45 | 2.00 |
| 2022-12-31 | 0.25 | 3.00 |
| 2021-12-31 | 0.24 | 3.00 |
| 2020-12-31 | 0.34 | 18.00 |
| 2019-12-31 | 0.31 | 20.00 |
| 2018-12-31 | 0.30 | 18.00 |
| Date (Data in CN¥) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-05-31 | 0.286 | 5.589 |
| 2017-05-05 | 0.272 | 5.399 |
| 2016-06-27 | 0.270 | 5.326 |
| 2015-03-26 | 0.270 | 5.753 |
| 2014-05-09 | 0.260 | 5.543 |
| 2013-06-25 | 0.240 | 5.806 |
| 2012-05-10 | 0.100 | 2.225 |
| 2011-10-27 | 0.000 | 0.000 |
| 2011-08-18 | 0.000 | 0.000 |
| 2011-03-31 | 0.036 | 0.635 |
| 2011-03-30 | 0.036 | 0.563 |
| 2010-10-28 | 0.182 | 2.951 |
| 2010-08-18 | 0.182 | 2.669 |
| 2010-06-24 | 0.182 | 2.682 |
| 2010-04-16 | 0.182 | 2.696 |
| 2010-03-30 | 0.182 | 2.392 |
| 2009-10-29 | 0.182 | 2.588 |
| 2009-10-28 | 0.182 | 2.288 |
| 2009-08-20 | 0.182 | 2.337 |
| 2009-04-08 | 0.182 | 2.967 |
| 2009-03-18 | 0.182 | 4.125 |
| 2009-02-24 | 0.182 | 4.797 |
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
Bank of Communications's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (3.3x coverage).
- Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
Income/ dividend checks
We assess Bank of Communications's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.1%) - 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 Bank of Communications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Bank of Communications 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.
3328 Management
CEO
| AGE | 55 |
| TENURE AS CEO | 0.7 years |
CEO Bio
Mr. Deqi Ren has been President of Bank of Communications Co., Ltd. since June 12, 2018, Vice Chairman since August 6, 2018. Mr. Ren served as an Executive Vice President at Bank of China, Taiwan Branch since July 2014. Mr. Ren served as an Executive Vice President at Bank of China Limited since June 30, 2014 until June 12, 2018 and served as its Secretary of the Board. He served as an Executive Director at Bank of China Limited since December 13, 2016 until June 12, 2018. He has been President of Shanghai RMB Trading Unit since September 2016. He joined Bank of China Limited in May 2014. He served in China Construction Bank ("CCB") for many years and held various positions. From August 2003 to October 2013, he served as Deputy General Manager of Credit Approval Department, General Manager of Risk Control Department, General Manager of Credit Management Department and General Manager of the Hubei Branch of CCB. From October 2013 to May 2014, he served as General Manager of Risk Management Department of CCB. He served as Vice Chairman and Director of Bank of Communications Co., Ltd. since June 29, 2018. He was a Non Executive Director of BOC Hong Kong (Holdings) Ltd. since October 20, 2015 until June 12, 2018. He holds the title of Senior Economist. He obtained a Master's Degree in Engineering from Tsinghua University in July 1988.
CEO Compensation
- Insufficient data for Deqi to compare compensation growth.
- Insufficient data for Deqi to establish whether their remuneration is reasonable compared to companies of similar size in Hong Kong.
Management Team Tenure
Average tenure and age of the Bank of Communications management team in years:
- The average tenure for the Bank of Communications management team is less than 2 years, this suggests a new team.
Management Team
Chun Peng
Executive Chairman of the Board
CN¥687K
56
1 yrs
Wei Wu
Executive VP
CN¥714K
49
3.8 yrs
Weidong Hou
Executive VP & Executive Director
CN¥631K
58
8.2 yrs
Zhao Wu
Strategic Cooperation Consultant
64
5.9 yrs
Mang Guo
Executive Vice President
CN¥1M
56
0.6 yrs
Deqi Ren
President & Vice Chairman of the Board
55
0.7 yrs
Eric Pan
Senior Manager
Sheng Gu
GM of HR Department
55
0.8 yrs
Yarong Du
Head of the Office of Discipline Investigation & Supervision and Employee Representative Supervisor
CN¥678K
54
9.3 yrs
Wanjun Fu
Chief Business Officer of Corporate & Institutional Business Sector
50
0.4 yrs
Board of Directors Tenure
Average tenure and age of the Bank of Communications board of directors in years:
- The tenure for the Bank of Communications board of directors is about average.
Board of Directors
Chun Peng
Executive Chairman of the Board
CN¥687K
56
1 yrs
Peter Wong
Vice Chairman of the Board
67
2.4 yrs
Wei Wu
Executive VP
CN¥714K
49
0.1 yrs
Weidong Hou
Executive VP & Executive Director
CN¥631K
58
3.3 yrs
Deqi Ren
President & Vice Chairman of the Board
55
0.5 yrs
Yarong Du
Head of the Office of Discipline Investigation & Supervision and Employee Representative Supervisor
CN¥678K
54
8.5 yrs
Qing Chen
GM of Audit Department & Employee Representative Supervisor
CN¥702K
58
14.3 yrs
Ming Xu
GM of Employee Department & Employee Representative Supervisor
58
2.7 yrs
Jian Li
Independent Non-Executive Director
CN¥250K
65
4.3 yrs
Li Liu
Independent Non-Executive Director
CN¥250K
63
4.4 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (HK$) | Value (HK$) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 07. Aug 18 | Buy | Rujun Shen | Individual | 03. Aug 18 | 03. Aug 18 | 20,000 | HK$5.56 | HK$111,200 | ||
| 07. Aug 18 | Buy | Deqi Ren | Individual | 06. Aug 18 | 06. Aug 18 | 100,000 | HK$5.54 | HK$554,000 | ||
| 12. Jul 18 | Buy | Taiyin Wang | Individual | 12. Jul 18 | 12. Jul 18 | 20,000 | HK$5.54 | HK$110,800 | ||
Management checks
We assess Bank of Communications'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) Bank of Communications 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.
3328 News
Simply Wall St News
Bank of Communications Co Ltd (HKG:3328): What You Have To Know Before Buying For The Upcoming Dividend
Investors who want to cash in on Bank of Communications Co Ltd's (HKG:3328) upcoming dividend of CN¥0.29 per share have only 2 days left to buy the shares before its ex-dividend date, 04 July 2018, in time for dividends payable on the 30 July 2018. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Bank of Communications's latest financial data to analyse its dividend characteristics. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Simply Wall St - – Full articleRisk Factors To Consider Before Investing In Bank of Communications Co Ltd (HKG:3328)
Post-GFC recovery has strengthened economic growth and credit quality, benefiting large banks such as Bank of Communications Co Ltd (HKG:3328), with a market capitalisation of HK$501.85b. … Economic growth fuels demand for loans and affects a borrower’s ability to repay which directly impacts the level of risk Bank of Communications takes on. … The level of risky assets a bank holds on its accounts affects the attractiveness of the company as an investment.
Simply Wall St - – Full articleWhere Bank of Communications Co Ltd. (HKG:3328) Stands In Terms Of Earnings Growth Against Its Industry
(SEHK:3328) released its most recent earnings update (31 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … See our latest analysis for Bank of Communications Did 3328's recent earnings growth beat the long-term trend and the industry? … While Bank of Communications has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future.
Simply Wall St - – Full articleIs It The Right Time To Buy Bank of Communications Co Ltd. (HKG:3328)?
Let’s take a look at Bank of Communications’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … What does the future of Bank of Communications look like? … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.
Simply Wall St - – Full articleWill Bank of Communications Co Ltd. (HKG:3328) Continue To Underperform Its Industry?
View our latest analysis for Bank of Communications Breaking down Return on Equity Return on Equity (ROE) is a measure of Bank of Communications’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Bank of Communications’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity SEHK:3328 Last Perf May 8th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.
Simply Wall St - – Full articleCan These Factors Give You An Edge In Bank of Communications Co Ltd. (HKG:3328)?
View our latest analysis for Bank of Communications SEHK:3328 Historical Debt May 1st 18 Is 3328's Leverage Level Appropriate? … Relative to the prudent industry loan to deposit level of 90%, Bank of Communications’s ratio of over 75.80%is appropriately lower, which places the bank in a relatively safe liquidity position given it has not excessively lent out its deposits and has maintained a suitable level for compliance.Next Steps: Bank of Communications passes all of our liquidity and leverage checks which shows it is prudent in managing those factors. … The bank’s favourable liquidity and leverage position exposes it to less risk when it comes to repaying financial obligations, in particular, in the case of an adverse macro event.
Simply Wall St - – Full articleDoes Bank of Communications Co Ltd.'s (HKG:3328) PE Ratio Signal A Buying Opportunity?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for 3328 Price per share = CN¥4.94 Earnings per share = CN¥0.909 ∴ Price-Earnings Ratio = CN¥4.94 ÷ CN¥0.909 = 5.4x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you inadvertently compared lower risk firms with 3328, then investors would naturally value 3328 at a lower price since it is a riskier investment. … Similarly, if you accidentally compared higher growth firms with 3328, investors would also value 3328 at a lower price since it is a lower growth investment.
Simply Wall St - – Full articleIs Bank of Communications Co Ltd. (HKG:3328) A Smart Pick For Income Investors?
Does Bank of Communications tick all the boxes of a great dividend stock? … Check out our latest analysis for Bank of Communications 5 questions I ask before picking a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is its annual yield among the top 25% of dividend-paying companies? … SEHK:3328 Historical Dividend Yield Mar 28th 18 How does Bank of Communications fare?
Simply Wall St - – Full articleWhat's The Value Of Bank of Communications Co Ltd. (HKG:3328)?
Looking at data points such as book values, on top of the return and cost of equity, can be practical for estimating 3328’s intrinsic value. … The returns above the cost of equity is known as excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (10.73% – 9.55%) * CN¥9.45 = CN¥0.11 Excess Return Per Share is used to calculate the terminal value of 3328, which is how much the business is expected to continue to generate over the upcoming years, in perpetuity. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = CN¥0.11 / (9.55% – 1.88%) = CN¥1.47 These factors are combined to calculate the true value of 3328's stock: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = CN¥9.45 + CN¥1.47 = HK$13.52 Relative to the present share price of CN¥6.43, 3328 is currently trading below what it's actually worth.
Simply Wall St - – Full articleReal Risks You Need To Know Before Investing In Bank of Communications Co Ltd. (HKG:3328)
See our latest analysis for Bank of Communications SEHK:3328 Historical Debt Mar 6th 18 What Is An Appropriate Level Of Risk? … By nature, Bank of Communications is exposed to risky assets by lending to borrowers who may not be able to repay their loans. … Since Bank of Communications’s total deposit to total liabilities is within the sensible margin at 64.69% compared to other banks' level of 50%, it shows a prudent level of the bank's safer form of borrowing and an appropriate level of risk.Next Steps: With positive measures for all three ratios, Bank of Communications shows a prudent level of managing its risky assets.
Simply Wall St - – Full article3328 Company Info
Map
Description
Bank of Communications Co., Ltd. provides commercial and retail banking products and services primarily in the People’s Republic of China. The company offers personal banking products and services, including time deposits, education savings, fixed deposits, current deposits, personal call deposits, and hypothecated loans with RMB and foreign currency time deposit slips; credit, quasi-credit, and debit cards; housing, vehicle, and shop property loans; and wealth management services. It also provides corporate banking products and services, such as corporate time and current, and contracted deposits; receivables transfer, account overdrafts, bill discounts, foreign government loans transfer, businesses guarantee, and inter-bank credit assets re-purchase and buy-out services; online tax payment, agent salary payment, agent collection and payment, and transfer settlement services; corporate cash management, entrusted loans, and agent settlement services; and bancassurance, investment banking, and various government-approved payments agent transfer services. In addition, the company provides international banking services comprising personal and corporate foreign exchange wealth management, import and export settlement, remittance and draft, trade finance, and offshore banking services. Further, it provides treasury, asset management, trustee, insurance, financial leasing, and other financial services; trust investment, fund management, securities dealing and brokerage, and reinsurance services; and e-banking services. It has 198 branches and 3,270 banking outlets in China; 65 overseas banking outlets; and 1 representative office in Toronto. Bank of Communications Co., Ltd. was founded in 1908 and is headquartered in Shanghai, China.
Details
| Name: | Bank of Communications Co., Ltd. |
| 3328 | |
| Exchange: | SEHK |
| Founded: | 1908 |
| HK$515,305,495,528 | |
| 74,262,726,645 | |
| Website: | http://www.bankcomm.com |
| Address: |
Bank of Communications Co., Ltd. 188 Yin Cheng Zhong Lu, Pilot Free Trade Zone, Shanghai, 200120, China |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| SEHK | 3328 | Foreign Shares-Foreign Listed | The Stock Exchange of Hong Kong Ltd. | HK | HKD | 23. Jun 2005 | |
| OTCPK | BKFC.F | Foreign Shares-Foreign Listed | Pink Sheets LLC | US | USD | 23. Jun 2005 | |
| DB | C4C | Foreign Shares-Foreign Listed | Deutsche Boerse AG | DE | EUR | 23. Jun 2005 | |
| SHSC | 3328 | Foreign Shares-Foreign Listed | Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect | HK | HKD | 23. Jun 2005 | |
| SZSC | 3328 | Foreign Shares-Foreign Listed | The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect | HK | HKD | 23. Jun 2005 | |
| OTCPK | BCMX.Y | ADR | Pink Sheets LLC | US | USD | 13. Oct 2008 | |
| SHSE | 601328 | Domestic Shares | Shanghai Stock Exchange | CN | CNY | 15. May 2007 | |
| XSSC | 601328 | Domestic Shares | Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect | CN | CNY | 15. May 2007 |
Number of employees
Current staff
Industry
| Diversified Banks | |
| Banks |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/02/23 12:47 |
| End of day share price update: | 2019/02/22 00:00 |
| Last estimates confirmation: | 2019/02/20 |
| Last earnings filing: | 2018/10/26 |
| Last earnings reported: | 2018/09/30 |
| Last annual earnings reported: | 2017/12/31 |
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.
