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Bank of Communications

SEHK:3328
Snowflake Description

Very undervalued with flawless balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3328
SEHK
HK$515B
Market Cap
  1. Home
  2. HK
  3. Banks
Company description

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 112 days ago. More info.


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3328 Share Price and Events
7 Day Returns
-1.1%
SEHK:3328
0.7%
HK Banks
1.6%
HK Market
1 Year Returns
3.8%
SEHK:3328
-14.4%
HK Banks
-11%
HK Market
3328 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bank of Communications (3328) -1.1% 1.2% 9.2% 3.8% 45.6% 29.2%
HK Banks 0.7% 4.9% 6.1% -14.4% 39% 21.3%
HK Market 1.6% 6.7% 6.9% -11% 34.7% 15.6%
1 Year Return vs Industry and Market
  • 3328 outperformed the Banks industry which returned -14.4% over the past year.
  • 3328 outperformed the Market in Hong Kong which returned -11% over the past year.
Price Volatility
3328
Industry
5yr Volatility vs Market

3328 Value

 Is Bank of Communications undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bank of Communications.

SEHK:3328 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 13 analysts.
= Stable Book Value * Return on Equity
= CN¥9.88 * 10.9%
CN¥1.07
Book Value of Equity per Share Weighted future Book Value estimates from 17 analysts. CN¥9.88
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.

Calculation of Discount Rate/ Cost of Equity for SEHK:3328
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))
= 0.604 (1 + (1- 25%) (539.94%))
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%)
10.63%

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.

SEHK:3328 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.9% – 10.63%) * CN¥9.88)
CN¥0.02
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥0.02 / (10.63% - 2%)
CN¥0.28
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥9.88 + CN¥0.28
CN¥10.16
SEHK:3328 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:3328)
1.159
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥10.16 x 1.159
HK$11.78
Value per share (HKD) From above. HK$11.78
Current discount Discount to share price of HK$6.51
= -1 x (HK$6.51 - HK$11.78) / HK$11.78
44.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Bank of Communications is available for.
Intrinsic value
45%
Share price is HK$6.51 vs Future cash flow value of HK$11.78
Current Discount Checks
For Bank of Communications to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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?
Raw Data
SEHK:3328 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in CNY CN¥0.95
SEHK:3328 Share Price ** SEHK (2019-02-15) in HKD HK$6.51
SEHK:3328 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.863 CN¥5.62
Hong Kong Banks Industry PE Ratio Median Figure of 31 Publicly-Listed Banks Companies 6.14x
Hong Kong Market PE Ratio Median Figure of 1,482 Publicly-Listed Companies 10.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bank of Communications.

SEHK:3328 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:3328 Share Price ÷ EPS (both in CNY)

= 5.62 ÷ 0.95

5.91x

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?
Raw Data
SEHK:3328 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.91x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
7%per year
Hong Kong Banks Industry PEG Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.89x
Hong Kong Market PEG Ratio Median Figure of 465 Publicly-Listed Companies 0.76x

*Line of best fit is calculated by linear regression .

SEHK:3328 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.91x ÷ 7%

0.84x

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?
Raw Data
SEHK:3328 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in CNY CN¥8.66
SEHK:3328 Share Price * SEHK (2019-02-15) in HKD HK$6.51
SEHK:3328 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.863 CN¥5.62
Hong Kong Banks Industry PB Ratio Median Figure of 31 Publicly-Listed Banks Companies 0.77x
Hong Kong Market PB Ratio Median Figure of 2,117 Publicly-Listed Companies 0.97x
SEHK:3328 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:3328 Share Price ÷ Book Value per Share (both in CNY)

= 5.62 ÷ 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.
X
Value checks
We assess Bank of Communications's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. 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

 How is Bank of Communications expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

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!
Annual Growth Rate
7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bank of Communications expected to grow at an attractive rate?
  • 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
Raw Data
SEHK:3328 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:3328 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 7%
SEHK:3328 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 9.4%
Hong Kong Banks Industry Earnings Growth Rate Market Cap Weighted Average 6.9%
Hong Kong Banks Industry Revenue Growth Rate Market Cap Weighted Average 8.9%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.7%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10%

*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
Raw Data
SEHK:3328 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:3328 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 244,049 83,183 10
2019-12-31 226,844 76,763 11
2018-12-31 208,499 72,510 11
SEHK:3328 Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Bank of Communications's earnings are expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
  • Bank of Communications's revenue is expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:3328 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 13 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.

SEHK:3328 Future Estimates Data
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 15.00
2019-12-31 1.00 1.06 0.79 20.00
2018-12-31 0.95 1.00 0.77 20.00
SEHK:3328 Past Financials Data
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%).
X
Future performance checks
We assess Bank of Communications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Bank of Communications's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Bank of Communications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bank of Communications Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3328 Past Revenue, Cash Flow and Net Income Data
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.
X
Past performance checks
We assess Bank of Communications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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

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

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.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Bank of Communications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
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.
Raw Data

All data from Bank of Communications Company Filings, last reported 4 months ago.

SEHK:3328 Past Debt and Equity Data
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.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • 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%).
X
Financial health checks
We assess Bank of Communications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bank of Communications has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
5.08%
Current annual income from Bank of Communications dividends. Estimated to be 5.7% next year.
If you bought HK$2,000 of Bank of Communications shares you are expected to receive HK$102 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bank of Communications's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2%).
  • Bank of Communications's dividend is below the markets top 25% of dividend payers in Hong Kong (5.51%).
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.
Raw Data
SEHK:3328 Annualized Past and Future Dividends
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 13 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 3.5%
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 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:3328 Future Dividends Estimate Data
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 19.00
2019-12-31 0.31 22.00
2018-12-31 0.30 19.00
SEHK:3328 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2018-05-31 0.286 5.607
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
2009-02-16 0.182 4.729

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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
X
Income/ dividend checks
We assess Bank of Communications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Bank of Communications's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Deqi Ren
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:

1
Average Tenure
55
Average Age
  • The average tenure for the Bank of Communications management team is less than 2 years, this suggests a new team.
Management Team

Chun Peng

TITLE
Executive Chairman of the Board
COMPENSATION
CN¥687K
AGE
56
TENURE
1 yrs

Wei Wu

TITLE
Executive VP
COMPENSATION
CN¥714K
AGE
49
TENURE
3.8 yrs

Weidong Hou

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥631K
AGE
58
TENURE
8.2 yrs

Zhao Wu

TITLE
Strategic Cooperation Consultant
AGE
64
TENURE
5.9 yrs

Mang Guo

TITLE
Executive Vice President
COMPENSATION
CN¥1M
AGE
56
TENURE
0.6 yrs

Deqi Ren

TITLE
President & Vice Chairman of the Board
AGE
55
TENURE
0.7 yrs

Eric Pan

TITLE
Senior Manager

Sheng Gu

TITLE
GM of HR Department
AGE
55
TENURE
0.8 yrs

Yarong Du

TITLE
Head of the Office of Discipline Investigation & Supervision and Employee Representative Supervisor
COMPENSATION
CN¥678K
AGE
54
TENURE
9.3 yrs

Wanjun Fu

TITLE
Chief Business Officer of Corporate & Institutional Business Sector
AGE
50
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Bank of Communications board of directors in years:

3
Average Tenure
58
Average Age
  • The tenure for the Bank of Communications board of directors is about average.
Board of Directors

Chun Peng

TITLE
Executive Chairman of the Board
COMPENSATION
CN¥687K
AGE
56
TENURE
1 yrs

Peter Wong

TITLE
Vice Chairman of the Board
AGE
67
TENURE
2.4 yrs

Wei Wu

TITLE
Executive VP
COMPENSATION
CN¥714K
AGE
49
TENURE
0.1 yrs

Weidong Hou

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥631K
AGE
58
TENURE
3.3 yrs

Deqi Ren

TITLE
President & Vice Chairman of the Board
AGE
55
TENURE
0.5 yrs

Yarong Du

TITLE
Head of the Office of Discipline Investigation & Supervision and Employee Representative Supervisor
COMPENSATION
CN¥678K
AGE
54
TENURE
8.5 yrs

Qing Chen

TITLE
GM of Audit Department & Employee Representative Supervisor
COMPENSATION
CN¥702K
AGE
58
TENURE
14.3 yrs

Ming Xu

TITLE
GM of Employee Department & Employee Representative Supervisor
AGE
58
TENURE
2.7 yrs

Jian Li

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥250K
AGE
65
TENURE
4.3 yrs

Li Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥250K
AGE
63
TENURE
4.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
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
X
Management checks
We assess Bank of Communications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Risk 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 -

Where 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 -

Is 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 -

Will 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 -

Can 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 -

Does 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 -

Is 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 -

What'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 -

Real 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 -

3328 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$514,603,663,141
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
Staff numbers
91,463
Bank of Communications employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/15 12:45
End of day share price update: 2019/02/15 00:00
Last estimates confirmation: 2019/02/11
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.