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3988

Bank of ChinaSEHK:3988 Stock Report

Last Price

HK$3.01

Market Cap

HK$1.1t

7D

0%

1Y

11.1%

Updated

21 Jan, 2022

Data

Company Financials +
3988 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends6/6

3988 Stock Overview

Bank of China Limited, together with its subsidiaries, provides banking and related financial services.

Bank of China Competitors

Industrial and Commercial Bank of China

SEHK:1398

HK$2.0t

China Construction Bank

SEHK:939

HK$1.5t

Agricultural Bank of China

SEHK:1288

HK$1.3t

Postal Savings Bank of China

SEHK:1658

HK$638.9b

Price History & Performance

Summary of all time highs, changes and price drops for Bank of China
Historical stock prices
Current Share PriceHK$3.01
52 Week HighHK$3.17
52 Week LowHK$2.60
Beta0.60
1 Month Change9.46%
3 Month Change8.66%
1 Year Change11.07%
3 Year Change-16.16%
5 Year Change-14.97%
Change since IPO-11.47%

Recent News & Updates

Shareholder Returns

3988HK BanksHK Market
7D0%0.3%1.4%
1Y11.1%-0.7%-14.5%

Return vs Industry: 3988 exceeded the Hong Kong Banks industry which returned -0.7% over the past year.

Return vs Market: 3988 exceeded the Hong Kong Market which returned -14.5% over the past year.

Price Volatility

Is 3988's price volatile compared to industry and market?
3988 volatility
3988 Average Weekly Movement1.5%
Banks Industry Average Movement2.5%
Market Average Movement6.7%
10% most volatile stocks in HK Market13.2%
10% least volatile stocks in HK Market3.0%

Stable Share Price: 3988 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 3988's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1912305,594Jin Liuhttps://www.boc.cn

Bank of China Limited, together with its subsidiaries, provides banking and related financial services. It operates through six segments: Corporate Banking, Personal Banking, Treasury Operations, Investment Banking, Insurance, and Other Operations. The Corporate Banking segment offers current accounts, deposits, overdrafts, loans, trade-related products and other credit facilities, foreign exchange, derivatives, and wealth management products to corporate customers, government authorities, and financial institutions.

Bank of China Fundamentals Summary

How do Bank of China's earnings and revenue compare to its market cap?
3988 fundamental statistics
Market CapCN¥862.57b
Earnings (TTM)CN¥198.65b
Revenue (TTM)CN¥488.37b

3.6x

P/E Ratio

0.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3988 income statement (TTM)
RevenueCN¥488.37b
Cost of RevenueCN¥0
Gross ProfitCN¥488.37b
ExpensesCN¥289.71b
EarningsCN¥198.65b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Mar 30, 2022

Earnings per share (EPS)0.67
Gross Margin100.00%
Net Profit Margin40.68%
Debt/Equity Ratio234.1%

How did 3988 perform over the long term?

See historical performance and comparison

Dividends

8.0%

Current Dividend Yield

29%

Payout Ratio

Valuation

Is Bank of China 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: 3988 (HK$3.01) is trading below our estimate of fair value (HK$12.86)

Significantly Below Fair Value: 3988 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3988 is good value based on its PE Ratio (3.6x) compared to the Hong Kong Banks industry average (6.1x).

PE vs Market: 3988 is good value based on its PE Ratio (3.6x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 3988 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 3988's PB Ratio (0.3x) is in line with the HK Banks industry average.


Future Growth

How is Bank of China forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3988's forecast earnings growth (6.7% per year) is above the savings rate (1.5%).

Earnings vs Market: 3988's earnings (6.7% per year) are forecast to grow slower than the Hong Kong market (16.4% per year).

High Growth Earnings: 3988's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3988's revenue (8.1% per year) is forecast to grow slower than the Hong Kong market (11.6% per year).

High Growth Revenue: 3988's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3988's Return on Equity is forecast to be low in 3 years time (10.3%).


Past Performance

How has Bank of China performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3988 has high quality earnings.

Growing Profit Margin: 3988's current net profit margins (40.7%) are higher than last year (39.2%).


Past Earnings Growth Analysis

Earnings Trend: 3988's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: 3988's earnings growth over the past year (19.2%) exceeds its 5-year average (3% per year).

Earnings vs Industry: 3988 earnings growth over the past year (19.2%) exceeded the Banks industry 9.6%.


Return on Equity

High ROE: 3988's Return on Equity (9.7%) is considered low.


Financial Health

How is Bank of China'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: 3988's Assets to Equity ratio (11.5x) is moderate.

Allowance for Bad Loans: 3988 has a sufficient allowance for bad loans (192%).

Low Risk Liabilities: 75% of 3988's liabilities are made up of primarily low risk sources of funding.

Loan Level: 3988 has an appropriate level of Loans to Assets ratio (58%).

Low Risk Deposits: 3988's Loans to Deposits ratio (85%) is appropriate.

Level of Bad Loans: 3988 has an appropriate level of bad loans (1.3%).


Dividend

What is Bank of China current dividend yield, its reliability and sustainability?

8.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3988's dividend (8.04%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.33%).

High Dividend: 3988's dividend (8.04%) is in the top 25% of dividend payers in the Hong Kong market (7.02%)


Stability and Growth of Payments

Stable Dividend: 3988's dividends per share have been stable in the past 10 years.

Growing Dividend: 3988's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.6%), 3988's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3988's dividends in 3 years are forecast to be well covered by earnings (30.8% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Jin Liu (54 yo)

0.75

Tenure

Mr. Jin Liu serves as Non-Executive Director and Vice Chairman of BOC Hong Kong (Holdings) Ltd. since August 3, 2021. He is Non-Executive Director at Bank of China (Hong Kong) Limited since August 3, 2021...


Leadership Team

Experienced Management: 3988's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: 3988's board of directors are considered experienced (3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Bank of China Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Bank of China Limited
  • Ticker: 3988
  • Exchange: SEHK
  • Founded: 1912
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: HK$1.059t
  • Shares outstanding: 294.38b
  • Website: https://www.boc.cn

Number of Employees


Location

  • Bank of China Limited
  • No. 1 Fuxingmen Nei Dajie
  • Xicheng District
  • Beijing
  • 100818
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 15:36
End of Day Share Price2022/01/21 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.