Jilin Jiutai Rural Commercial Bank Corporation Limited

SEHK:6122 Stock Report

Market Cap: HK$4.2b

Jilin Jiutai Rural Commercial Bank Valuation

Is 6122 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 6122 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6122 (HK$0.82) is trading below our estimate of fair value (HK$2.67)

Significantly Below Fair Value: 6122 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6122?

Key metric: As 6122 is an unprofitable bank we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for 6122. This is calculated by dividing 6122's market cap by their current book value.
What is 6122's PB Ratio?
PB Ratio0.2x
BookCN¥16.32b
Market CapCN¥3.87b

Price to Book Ratio vs Peers

How does 6122's PB Ratio compare to its peers?

The above table shows the PB ratio for 6122 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average0.2x
440 Dah Sing Financial Holdings
0.2x4.3%HK$7.9b
2356 Dah Sing Banking Group
0.3x5.6%HK$10.0b
9668 China Bohai Bank
0.1xn/aHK$16.7b
23 Bank of East Asia
0.2x12.8%HK$25.2b
6122 Jilin Jiutai Rural Commercial Bank
0.2xn/aHK$4.2b

Price-To-Book vs Peers: 6122 is expensive based on its Price-To-Book Ratio (0.2x) compared to the peer average (0.2x).

Price to Book Ratio vs Industry

How does 6122's PB Ratio compare vs other companies in the HK Banks Industry?

7 CompaniesPrice / BookEstimated GrowthMarket Cap
9668 China Bohai Bank
0.1xn/aUS$2.14b
1216 Zhongyuan Bank
0.1xn/aUS$1.41b
1578 Bank of Tianjin
0.1xn/aUS$1.27b
2066 Shengjing Bank
0.1xn/aUS$1.18b
6122 0.2xIndustry Avg. 0.3xNo. of Companies14PB00.61.21.82.43+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: 6122 is good value based on its Price-To-Book Ratio (0.2x) compared to the Hong Kong Banks industry average (0.3x).

Price to Book Ratio vs Fair Ratio

What is 6122's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6122 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio0.2x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate 6122's Price-To-Book Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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