company background image
3618

Chongqing Rural Commercial BankSEHK:3618 Stock Report

Last Price

HK$2.89

Market Cap

HK$49.6b

7D

-2.0%

1Y

-16.0%

Updated

26 Jan, 2022

Data

Company Financials +
3618 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends6/6

3618 Stock Overview

Chongqing Rural Commercial Bank Co., Ltd., together with its subsidiaries, provides a range of banking and related financial services in the People’s Republic of China.

Chongqing Rural Commercial Bank Competitors

Dongguan Rural Commercial Bank

SEHK:9889

HK$53.3b

Guangzhou Rural Commercial Bank

SEHK:1551

HK$34.5b

Bank of Chongqing

SEHK:1963

HK$27.5b

Industrial and Commercial Bank of China

SEHK:1398

HK$2.0t

Price History & Performance

Summary of all time highs, changes and price drops for Chongqing Rural Commercial Bank
Historical stock prices
Current Share PriceHK$2.89
52 Week HighHK$3.70
52 Week LowHK$2.59
Beta0.87
1 Month Change7.04%
3 Month Change4.71%
1 Year Change-15.99%
3 Year Change-35.35%
5 Year Change-40.04%
Change since IPO-44.42%

Recent News & Updates

Shareholder Returns

3618HK BanksHK Market
7D-2.0%1.1%-0.06%
1Y-16.0%1.3%-15.0%

Return vs Industry: 3618 underperformed the Hong Kong Banks industry which returned 1.3% over the past year.

Return vs Market: 3618 underperformed the Hong Kong Market which returned -15% over the past year.

Price Volatility

Is 3618's price volatile compared to industry and market?
3618 volatility
3618 Average Weekly Movement2.3%
Banks Industry Average Movement2.5%
Market Average Movement6.7%
10% most volatile stocks in HK Market13.1%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 3618 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 3618's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195115,088Wenhui Xiehttps://www.cqrcb.com

Chongqing Rural Commercial Bank Co., Ltd., together with its subsidiaries, provides a range of banking and related financial services in the People’s Republic of China. It operates in three segments: Corporate Banking, Personal Banking, and Financial Market Operations. The Corporate Banking segment offers financial products and services, including deposit takings, corporate loans, trade financing, financial leasing, and other corporate intermediary services to corporations, government agencies, and financial institutions.

Chongqing Rural Commercial Bank Fundamentals Summary

How do Chongqing Rural Commercial Bank's earnings and revenue compare to its market cap?
3618 fundamental statistics
Market CapCN¥40.30b
Earnings (TTM)CN¥9.38b
Revenue (TTM)CN¥19.52b

2.8x

P/E Ratio

0.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3618 income statement (TTM)
RevenueCN¥19.52b
Cost of RevenueCN¥0
Gross ProfitCN¥19.52b
ExpensesCN¥10.14b
EarningsCN¥9.38b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.83
Gross Margin100.00%
Net Profit Margin48.07%
Debt/Equity Ratio322.8%

How did 3618 perform over the long term?

See historical performance and comparison

Dividends

9.3%

Current Dividend Yield

27%

Payout Ratio

Valuation

Is Chongqing Rural Commercial Bank 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: 3618 (HK$2.89) is trading below our estimate of fair value (HK$16.38)

Significantly Below Fair Value: 3618 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3618 is good value based on its PE Ratio (2.8x) compared to the Hong Kong Banks industry average (6.2x).

PE vs Market: 3618 is good value based on its PE Ratio (2.8x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: 3618 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 3618's PB Ratio (0.3x) is in line with the HK Banks industry average.


Future Growth

How is Chongqing Rural Commercial Bank forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3618's forecast earnings growth (7.5% per year) is above the savings rate (1.5%).

Earnings vs Market: 3618's earnings (7.5% per year) are forecast to grow slower than the Hong Kong market (16.3% per year).

High Growth Earnings: 3618's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3618's revenue (13% per year) is forecast to grow faster than the Hong Kong market (11.5% per year).

High Growth Revenue: 3618's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3618's Return on Equity is forecast to be low in 3 years time (9.7%).


Past Performance

How has Chongqing Rural Commercial Bank performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3618 has high quality earnings.

Growing Profit Margin: 3618's current net profit margins (48.1%) are higher than last year (45.2%).


Past Earnings Growth Analysis

Earnings Trend: 3618's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: 3618's earnings growth over the past year (5.4%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: 3618 earnings growth over the past year (5.4%) underperformed the Banks industry 9.6%.


Return on Equity

High ROE: 3618's Return on Equity (9%) is considered low.


Financial Health

How is Chongqing Rural Commercial Bank'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


Financial Institutions Analysis

Asset Level: 3618's Assets to Equity ratio (11.8x) is moderate.

Allowance for Bad Loans: 3618 has a sufficient allowance for bad loans (312%).

Low Risk Liabilities: 69% of 3618's liabilities are made up of primarily low risk sources of funding.

Loan Level: 3618 has an appropriate level of Loans to Assets ratio (44%).

Low Risk Deposits: 3618's Loans to Deposits ratio (70%) is appropriate.

Level of Bad Loans: 3618 has an appropriate level of bad loans (1.3%).


Dividend

What is Chongqing Rural Commercial Bank current dividend yield, its reliability and sustainability?

9.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3618's dividend (9.3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.38%).

High Dividend: 3618's dividend (9.3%) is in the top 25% of dividend payers in the Hong Kong market (7.06%)


Stability and Growth of Payments

Stable Dividend: 3618's dividends per share have been stable in the past 10 years.

Growing Dividend: 3618's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.8%), 3618's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3618's dividends in 3 years are forecast to be well covered by earnings (27.3% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Wenhui Xie (48 yo)

8.08yrs

Tenure

CN¥445,800

Compensation

Mr. Wenhui Xie has serves as President and deputy Secretary to the Party Committee of Chongqing Rural Commercial Bank Co., Ltd. (“Bank”) since December 2013. Mr. Xie has been an Executive Director of Chong...


CEO Compensation Analysis

Compensation vs Market: Wenhui's total compensation ($USD70.47K) is below average for companies of similar size in the Hong Kong market ($USD691.77K).

Compensation vs Earnings: Wenhui's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 3618's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: 3618's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Chongqing Rural Commercial Bank Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Chongqing Rural Commercial Bank Co., Ltd.
  • Ticker: 3618
  • Exchange: SEHK
  • Founded: 1951
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: HK$49.600b
  • Shares outstanding: 11.36b
  • Website: https://www.cqrcb.com

Number of Employees


Location

  • Chongqing Rural Commercial Bank Co., Ltd.
  • No. 36 Jinshamen Road
  • Jiangbei District
  • Chongqing
  • 400023
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 10:04
End of Day Share Price2022/01/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.