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.
Rewards
Risk Analysis
Snowflake Analysis
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
Stable Share Price: 3328 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.0%
3328
2.0%
HK Banks
1.7%
HK Market
1 Year Return
-21.0%
3328
-8.8%
HK Banks
-2.9%
HK Market
Return vs Industry: 3328 underperformed the Hong Kong Banks industry which returned -8.8% over the past year.
Return vs Market: 3328 underperformed the Hong Kong Market which returned -2.9% over the past year.
Shareholder returns
| 3328 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | 2.0% | 1.7% |
| 30 Day | -6.4% | -4.0% | -4.2% |
| 90 Day | -1.7% | 0.3% | 4.6% |
| 1 Year | -16.7%-21.0% | -4.0%-8.8% | 0.7%-2.9% |
| 3 Year | -0.9%-16.2% | 8.4%-6.6% | 15.3%3.6% |
| 5 Year | 2.8%-22.1% | 15.5%-11.4% | 15.9%-3.5% |
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 week ago | Simply Wall St
Some Bank of Communications (HKG:3328) Shareholders Are Down 24%1 month ago | Simply Wall St
What Kind Of Shareholders Own Bank of Communications Co., Ltd. (HKG:3328)?1 year ago | Simply Wall St
Bank of Communications Co Ltd (HKG:3328): What You Have To Know Before Buying For The Upcoming DividendValuation
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$5.14) is trading below our estimate of fair value (HK$13.45)
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 (4.7x) compared to the Banks industry average (5.7x).
PE vs Market: 3328 is good value based on its PE Ratio (4.7x) compared to the Hong Kong market (10.1x).
Price to Earnings Growth Ratio
PEG Ratio: 3328 is good value based on its PEG Ratio (0.8x)
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?
5.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 3328's forecast earnings growth (5.8% per year) is above the savings rate (1.6%).
Earnings vs Market: 3328's earnings (5.8% per year) are forecast to grow slower than the Hong Kong market (11.7% per year).
High Growth Earnings: 3328's earnings are forecast to grow, but not significantly.
Revenue vs Market: 3328's revenue (6.3% per year) is forecast to grow slower than the Hong Kong market (10.5% per year).
High Growth Revenue: 3328's revenue (6.3% 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 (10.5%).
Next Steps
Past Performance
How has Bank of Communications performed over the past 5 years?
2.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 3328 has high quality earnings.
Growing Profit Margin: 3328's current net profit margins (40.8%) are lower than last year (42.9%).
Past Earnings Growth Analysis
Earnings Trend: 3328's earnings have grown by 2.1% per year over the past 5 years.
Accelerating Growth: 3328's earnings growth over the past year (4.9%) exceeds its 5-year average (2.1% per year).
Earnings vs Industry: 3328 earnings growth over the past year (4.9%) exceeded the Banks industry 3.7%.
Return on Equity
High ROE: 3328's Return on Equity (9.9%) is considered low.
Return on Assets
Return on Capital Employed
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 7.6x 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 (1.47%)
Next Steps
Dividend
What is Bank of Communications's current dividend yield, its reliability and sustainability?
6.49%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 3328's dividend (6.49%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 3328's dividend (6.49%) is in the top 25% of dividend payers in the Hong Kong market (6.34%)
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 (30.4%), 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 (30.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Bank of Communications has no CEO, or we have no data on them.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 0yrs | CN¥375.60k | 0.00013% CN¥533.5k | |
| Executive VP & Executive Director | 4.3yrs | CN¥665.40k | 0.00013% CN¥533.5k | |
| Strategic Cooperation Consultant | 6.9yrs | no data | no data | |
| Chief Business Officer of Retail & Private Business | 1.4yrs | CN¥293.60k | 0.00011% CN¥451.4k | |
| Chief Business Officer of Interbank & Market Business | 1.4yrs | CN¥293.60k | 0.000070% CN¥287.3k | |
| Senior Manager | 0yrs | no data | no data | |
| Executive Vice President | 1.6yrs | CN¥1.12m | 0.000070% CN¥287.3k | |
| Executive Vice President | 1.1yrs | no data | no data | |
| General Manager | 0yrs | no data | no data | |
| HSBC-BoCom Strategic Cooperation Consultant & Senior Management Member | 6.9yrs | no data | 0.000040% CN¥164.1k |
1.6yrs
Average Tenure
57yo
Average Age
Experienced Management: 3328's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 0yrs | CN¥375.60k | 0.00013% CN¥533.5k | |
| Executive VP & Executive Director | 4.3yrs | CN¥665.40k | 0.00013% CN¥533.5k | |
| Independent Non-Executive Director | 3.3yrs | CN¥250.00k | no data | |
| Independent Non-Executive Director | 1.5yrs | no data | no data | |
| Independent Non-Executive Director | 5.3yrs | CN¥250.00k | no data | |
| Independent Non-Executive Director | 5.4yrs | CN¥250.00k | no data | |
| Non-Executive Director | 6.5yrs | CN¥841.50k | 0.00018% CN¥738.7k | |
| Non-Executive Director | 3.5yrs | no data | no data | |
| Non-Executive Director | 2.5yrs | CN¥882.10k | 0.000030% CN¥123.1k | |
| Non-Executive Director | 2.5yrs | CN¥882.10k | 0.000030% CN¥123.1k |
3.5yrs
Average Tenure
57.5yo
Average Age
Experienced Board: 3328's board of directors are considered experienced (3.5 years average tenure).
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.
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$410.363b
- 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 banking products and services, including demand deposits, time deposits, call deposits, and education deposits; credit cards, quasi-credit cards, and debit cards; housing and personal loans; and publicly and privately-offered wealth management products, and wealth management advisory and consulting services. It also provides corporate banking products and services, such as corporate time and demand 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; overdraft services; investment banking services; offshore banking services, including foreign deposit and loan, inter-bank loan, international settlement, foreign trading and guarantee, business advisory, and other services; and precious metal leasing and commodity trading services. In addition, the company offers international banking services comprising personal and corporate foreign exchange wealth management, import and export settlement, document settlement, remittance and bill, trade finance, and offshore banking services. Further, it provides treasury, asset management, trustee, insurance, financial leasing, debt-to-equity swap, and other financial services; trust investment, fund management, securities dealing and brokerage, and reinsurance services; and e-banking services. It has 201 branches and 3,241 banking outlets in China; 66 overseas banking outlets; and 1 representative office in Toronto. Bank of Communications Co., Ltd. was founded in 1908 and is headquartered in Shanghai, China.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 12:51 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| 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.