Bank of Communications Co., Ltd. provides commercial banking products and services. More Details
Flawless balance sheet, undervalued and pays a dividend.
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 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: 3328's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: 3328 exceeded the Hong Kong Banks industry which returned -1.1% over the past year.
Return vs Market: 3328 underperformed the Hong Kong Market which returned 21.7% over the past year.
Long-Term 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
3 weeks ago | Simply Wall StAre Institutions Heavily Invested In Bank of Communications Co., Ltd.'s (HKG:3328) Shares?
2 months ago | Simply Wall StDid Bank of Communications Co., Ltd. (HKG:3328) Insiders Buy Up More Shares?
Is Bank of Communications undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 3328 (HK$5.1) is trading below our estimate of fair value (HK$16.2)
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 (4.1x) compared to the Hong Kong Banks industry average (6.7x).
PE vs Market: 3328 is good value based on its PE Ratio (4.1x) compared to the Hong Kong market (11.5x).
Price to Earnings Growth Ratio
PEG Ratio: 3328 is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: 3328's PB Ratio (0.4x) is in line with the HK Banks industry average.
How is Bank of Communications forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 3328's forecast earnings growth (6% per year) is above the savings rate (1.5%).
Earnings vs Market: 3328's earnings (6% per year) are forecast to grow slower than the Hong Kong market (19.4% per year).
High Growth Earnings: 3328's earnings are forecast to grow, but not significantly.
Revenue vs Market: 3328's revenue (8.3% per year) is forecast to grow slower than the Hong Kong market (12.8% per year).
High Growth Revenue: 3328's revenue (8.3% 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 (9.8%).
How has Bank of Communications performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 3328 has high quality earnings.
Growing Profit Margin: 3328's current net profit margins (40.5%) are lower than last year (41.3%).
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 has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 3328 had negative earnings growth (-0.8%) over the past year, making it difficult to compare to the Banks industry average (-4.7%).
Return on Equity
High ROE: 3328's Return on Equity (8.9%) is considered low.
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
Financial Institutions Analysis
Asset Level: 3328's Assets to Equity ratio (12.4x) is moderate.
Allowance for Bad Loans: 3328 has a sufficient allowance for bad loans (130%).
Low Risk Liabilities: 75% of 3328's liabilities are made up of primarily low risk sources of funding.
Loan Level: 3328 has an appropriate level of Loans to Assets ratio (54%).
Low Risk Deposits: 3328's Loans to Deposits ratio (79%) is appropriate.
Level of Bad Loans: 3328 has an appropriate level of bad loans (1.6%).
What is Bank of Communications's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 3328's dividend (7.48%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.9%).
High Dividend: 3328's dividend (7.48%) is in the top 25% of dividend payers in the Hong Kong market (6.05%)
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 (30.3%), 3328's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 3328's dividends in 3 years are forecast to be well covered by earnings (31.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jun Liu (48 yo)
Mr. Jun Liu serves as President at Bank of Communications Co., Ltd. since July 7, 2020 and serves as its Vice Chairman since August 5, 2020. He serves as an Executive Director of Bank of Communications Co....
CEO Compensation Analysis
Compensation vs Market: Jun's total compensation ($USD70.35K) is below average for companies of similar size in the Hong Kong market ($USD933.95K).
Compensation vs Earnings: Insufficient data to compare Jun's compensation with company performance.
Experienced Management: 3328's management team is considered experienced (2.3 years average tenure).
Experienced Board: 3328's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Bank of Communications Co., Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: Bank of Communications Co., Ltd.
- Ticker: 3328
- Exchange: SEHK
- Founded: 1908
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: HK$407.100b
- Shares outstanding: 74.26b
- Website: https://www.bankcomm.com
Number of Employees
- Bank of Communications Co., Ltd.
- 188 Yin Cheng Zhong Lu
- China (Shanghai) Pilot Free Trade Zone
Bank of Communications Co., Ltd. provides commercial banking products and services. The company offers personal banking products and services, including demand, time, call, withdrawal, foreign currency, sw...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/20 10:32|
|End of Day Share Price||2021/06/18 00:00|
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.