| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 1/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 6/6 |
3988 Stock Overview
Bank of China Limited, together with its subsidiaries, provides banking and related financial services.
Rewards
Risk Analysis
No risks detected for 3988 from our risk checks.
Bank of China Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | HK$3.01 |
| 52 Week High | HK$3.17 |
| 52 Week Low | HK$2.60 |
| Beta | 0.60 |
| 1 Month Change | 9.46% |
| 3 Month Change | 8.66% |
| 1 Year Change | 11.07% |
| 3 Year Change | -16.16% |
| 5 Year Change | -14.97% |
| Change since IPO | -11.47% |
Recent News & Updates
Shareholder Returns
| 3988 | HK Banks | HK Market | |
|---|---|---|---|
| 7D | 0% | 0.3% | 1.4% |
| 1Y | 11.1% | -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
| 3988 volatility | |
|---|---|
| 3988 Average Weekly Movement | 1.5% |
| Banks Industry Average Movement | 2.5% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in HK Market | 13.2% |
| 10% least volatile stocks in HK Market | 3.0% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1912 | 305,594 | Jin Liu | https://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
| 3988 fundamental statistics | |
|---|---|
| Market Cap | CN¥862.57b |
| Earnings (TTM) | CN¥198.65b |
| Revenue (TTM) | CN¥488.37b |
3.6x
P/E Ratio0.3x
P/B RatioIs 3988 overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| 3988 income statement (TTM) | |
|---|---|
| Revenue | CN¥488.37b |
| Cost of Revenue | CN¥0 |
| Gross Profit | CN¥488.37b |
| Expenses | CN¥289.71b |
| Earnings | CN¥198.65b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Mar 30, 2022
| Earnings per share (EPS) | 0.67 |
| Gross Margin | 100.00% |
| Net Profit Margin | 40.68% |
| Debt/Equity Ratio | 234.1% |
How did 3988 perform over the long term?
See historical performance and comparisonDividends
8.0%
Current Dividend Yield29%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 15:36 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.