SEHK:6122

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Jilin Jiutai Rural Commercial Bank

Executive Summary

Jilin Jiutai Rural Commercial Bank Corporation Limited provides commercial banking and related financial services to personal, corporate, and small business customers in China.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Jilin Jiutai Rural Commercial Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6122 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

6122

0.08%

HK Banks

0.6%

HK Market


1 Year Return

-9.6%

6122

-12.0%

HK Banks

-9.9%

HK Market

Return vs Industry: 6122 exceeded the Hong Kong Banks industry which returned -12% over the past year.

Return vs Market: 6122 matched the Hong Kong Market which returned -9.9% over the past year.


Shareholder returns

6122IndustryMarket
7 Day0%0.08%0.6%
30 Day1.1%-4.0%-3.6%
90 Day-8.7%-6.1%-6.8%
1 Year-3.6%-9.6%-8.0%-12.0%-7.0%-9.9%
3 Year-34.7%-41.7%-3.9%-17.3%-4.7%-14.3%
5 Yearn/a-10.3%-31.3%-15.4%-28.5%

Price Volatility Vs. Market

How volatile is Jilin Jiutai Rural Commercial Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Jilin Jiutai Rural Commercial Bank undervalued compared to its fair value and its price relative to the market?

9.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6122 (HK$2.72) is trading above our estimate of fair value (HK$2.28)

Significantly Below Fair Value: 6122 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6122 is poor value based on its PE Ratio (9.8x) compared to the Banks industry average (5.2x).

PE vs Market: 6122 is poor value based on its PE Ratio (9.8x) compared to the Hong Kong market (9.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6122's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6122 is overvalued based on its PB Ratio (0.7x) compared to the HK Banks industry average (0.5x).


Next Steps

Future Growth

How is Jilin Jiutai Rural Commercial Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

4.9%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Jilin Jiutai Rural Commercial Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

-13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6122 has high quality earnings.

Growing Profit Margin: 6122's current net profit margins (25.7%) are higher than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: 6122's earnings have declined by -13.5% per year over the past 5 years.

Accelerating Growth: 6122's earnings growth over the past year (10%) exceeds its 5-year average (-13.5% per year).

Earnings vs Industry: 6122 earnings growth over the past year (10%) exceeded the Banks industry 4.7%.


Return on Equity

High ROE: 6122's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is Jilin Jiutai 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: 6122's Assets to Equity ratio (10.7x) is moderate.

Allowance for Bad Loans: 6122 has a sufficient allowance for bad loans (168%).

Low Risk Liabilities: 84% of 6122's liabilities are made up of primarily low risk sources of funding.

Loan Level: 6122 has an appropriate level of Loans to Assets ratio (58%).

Low Risk Deposits: 6122's Loans to Deposits ratio (76%) is appropriate.

Level of Bad Loans: 6122 has an appropriate level of bad loans (1.7%).


Next Steps

Dividend

What is Jilin Jiutai Rural Commercial Bank's current dividend yield, its reliability and sustainability?

7.19%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 6122's dividend (7.19%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.59%).

High Dividend: 6122's dividend (7.19%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.35%).


Stability and Growth of Payments

Stable Dividend: 6122 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6122 has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.4%), 6122's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Xiangmin Liang (53yo)

0.75

Tenure

CN¥1,682,000

Compensation

Mr. Liang Xiangmin serves as President at Jilin Jiutai Rural Commercial Bank Corporation Ltd since August 23, 2019. He had been Chief Operating Officer at Jilin Jiutai Rural Commercial Bank Co., Ltd. since ...


CEO Compensation Analysis

Compensation vs Market: Xiangmin's total compensation ($USD235.69K) is below average for companies of similar size in the Hong Kong market ($USD493.41K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bing Gao
Chairman of the Board11.42yrsCN¥2.64m0.0075% CN¥857.0k
Xiangmin Liang
President & Executive Director0.75yrCN¥1.68mno data
Chunyu Yuan
Joint Company Secretary7.42yrsCN¥1.64m0.0012% CN¥136.6k
Hailiang Zhang
Head of Accounting Department8.33yrsno datano data
Kwok Yin Lau
Joint Company Secretary2yrsno datano data

4.7yrs

Average Tenure

49yo

Average Age

Experienced Management: 6122's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bing Gao
Chairman of the Board11.42yrsCN¥2.64m0.0075% CN¥857.0k
Xiangmin Liang
President & Executive Director0.75yrCN¥1.68mno data
Chunyu Yuan
Joint Company Secretary7.42yrsCN¥1.64m0.0012% CN¥136.6k
Wing Yin Chung
Independent Non-Executive Director3.83yrsCN¥298.00kno data
Shujun Wu
Non-Executive Director7.42yrsno datano data
Xinyou Zhang
Non-Executive Director7.42yrsno datano data
Baocheng Wang
Non-Executive Director4.08yrsno datano data
Jinguan Yang
Independent Non-Executive Director4.08yrsCN¥100.00kno data
Hui Luo
Chairman of Board of Supervisors 11.42yrsno datano data
Qiuhua Zhang
Independent Non-Executive Director0.75yrno datano data

5.8yrs

Average Tenure

53yo

Average Age

Experienced Board: 6122's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 6122 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

Jilin Jiutai Rural Commercial Bank Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jilin Jiutai Rural Commercial Bank Corporation Limited
  • Ticker: 6122
  • Exchange: SEHK
  • Founded: 2008
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$11.381b
  • Shares outstanding: 4.18b
  • Website: https://www.jtnsh.com

Number of Employees


Location

  • Jilin Jiutai Rural Commercial Bank Corporation Limited
  • No. 2559 Wei Shan Road
  • High-tech Zone
  • Changchun
  • Jilin Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6122SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJan 2017
2JJDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJan 2017

Biography

Jilin Jiutai Rural Commercial Bank Corporation Limited provides commercial banking and related financial services to personal, corporate, and small business customers in China. The company operates through three segments: Corporate Banking, Retail Banking, and Treasury Operations. It offers savings and personal notice, time, and corporate deposits, as well as current accounts and certificates of deposit. The company also provides brand class, agriculture, consumer, and other loans; corporate credit products, such as general, equipment, inventory mortgage, land reclamation, operational real estate mortgage, intellectual property pledge, mechanical equipment mortgage, engineering mechanical equipment, and pledge loans; and loans for micro enterprises, as well as loans for water conservancy construction projects and inland order form financing services. In addition, it offers guarantee, trade finance, and notes discounted products; insurance products; private banking services; financing steward services; asset financing products; finance leasing services; foreign exchange services; agency, consulting and advisory, remittance and settlement, and bank card, personal wealth management services; and e-banking services, as well as trades in debt securities. As of December 31, 2019, the company had 345 outlets, which include 150 outlets comprising 3 branches in Changchun, Songyuan, and Tonghua; and 365 self-service outlets, 94 self-service areas, and 1,127 self-service facilities. Jilin Jiutai Rural Commercial Bank Corporation Limited was founded in 2008 and is based in Changchun, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 13:44
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.