SEHK:6196

Stock Analysis Report

Bank of Zhengzhou

Executive Summary

Bank of Zhengzhou Co., Ltd. provides various banking products and services in the People’s Republic of China.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Bank of Zhengzhou's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6196 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

6196

-1.9%

HK Banks

-1.9%

HK Market


1 Year Return

-31.8%

6196

-2.7%

HK Banks

1.0%

HK Market

Return vs Industry: 6196 underperformed the Hong Kong Banks industry which returned -2.7% over the past year.

Return vs Market: 6196 underperformed the Hong Kong Market which returned 1% over the past year.


Shareholder returns

6196IndustryMarket
7 Day-1.5%-1.9%-1.9%
30 Day-1.8%4.1%2.3%
90 Day3.1%9.9%7.4%
1 Year-27.8%-31.8%2.5%-2.7%4.7%1.0%
3 Year-36.8%-43.4%24.2%7.0%22.6%10.3%
5 Yearn/a32.1%1.3%21.5%1.3%

Price Volatility Vs. Market

How volatile is Bank of Zhengzhou's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bank of Zhengzhou 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: 6196 (HK$2.66) is trading below our estimate of fair value (HK$7.15)

Significantly Below Fair Value: 6196 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6196 is good value based on its PE Ratio (5.2x) compared to the Banks industry average (5.8x).

PE vs Market: 6196 is good value based on its PE Ratio (5.2x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6196's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6196 is good value based on its PB Ratio (0.4x) compared to the HK Banks industry average (0.5x).


Next Steps

Future Growth

How is Bank of Zhengzhou forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6196's forecast earnings growth (9.6% per year) is above the savings rate (2%).

Earnings vs Market: 6196's earnings (9.6% per year) are forecast to grow slower than the Hong Kong market (11% per year).

High Growth Earnings: 6196's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6196's revenue (24.1% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 6196's revenue (24.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6196's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

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

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6196 has a high level of non-cash earnings.

Growing Profit Margin: 6196's current net profit margins (37%) are lower than last year (50.7%).


Past Earnings Growth Analysis

Earnings Trend: 6196's earnings have grown by 1.1% per year over the past 5 years.

Accelerating Growth: 6196's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6196 had negative earnings growth (-37.9%) over the past year, making it difficult to compare to the Banks industry average (3.6%).


Return on Equity

High ROE: 6196's Return on Equity (8.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bank of Zhengzhou'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

Inventory Level: 6196 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6196's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: 6196's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 6196 has a sufficient allowance for bad loans.

Low Risk Liabilities: 6196's liabilities are made up of primarily low risk sources of funding.

Loan Level: 6196 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 6196's loans are broadly funded by customer deposits.

Level of Bad Loans: 6196 has a high level of bad loans (2.22%)


Next Steps

Dividend

What is Bank of Zhengzhou's current dividend yield, its reliability and sustainability?

6.30%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%2.2%markettop25%6.3%industryaverage5.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 6196's dividend (6.3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.19%).

High Dividend: 6196's dividend (6.3%) is in the top 25% of dividend payers in the Hong Kong market (6.28%)


Stability and Growth of Payments

Stable Dividend: 6196 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6196 has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.8%), 6196's dividend payments are well 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

What is the CEO of Bank of Zhengzhou's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Xueqing Shen (54yo)

0yrs

Tenure

CN¥2,023,000

Compensation

Mr. Xueqing Shen has serves as President of Bank of Zhengzhou Co., Ltd. (“Bank”) since December 2011. Mr. Shen has been an Executive Director of Bank of Zhengzhou Co., Ltd since February 2012. Prior to joi ...


CEO Compensation Analysis

Compensation vs Market: Xueqing's total compensation ($USD288.71K) is below average for companies of similar size in the Hong Kong market ($USD501.13K).

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


Management Age and Tenure

4.0yrs

Average Tenure

52yo

Average Age

Experienced Management: 6196's management team is considered experienced (4 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

55yo

Average Age

Experienced Board: 6196's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCN¥36,540,04004 Nov 19
Haitong Securities Co., Ltd.
EntityCompany
Shares20,000,000
Max PriceCN¥1.83
BuyCN¥43,952,99509 Oct 19
Haitong Securities Co., Ltd.
EntityCompany
Shares23,000,000
Max PriceCN¥1.91
SellCN¥47,259,95305 Aug 19
Hai Tong Asset Management (HK) Limited
EntityCompany
Shares17,000,000
Max PriceCN¥2.78
BuyCN¥80,000,35331 May 19
Hai Tong Asset Management (HK) Limited
EntityCompany
Shares17,000,000
Max PriceCN¥4.71
BuyCN¥400,000,14903 Dec 18
Yunnan International Holding Group Limited
EntityCompany
Shares94,339,623
Max PriceCN¥4.24

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.8%.


Management Team

  • Sharon Leung

    Secretary

    • Tenure: 4yrs
  • Chunqiao Fu (46yo)

    VP, Joint Company Secretary & Director of the Office of the Board of Directors

    • Tenure: 4.2yrs
  • Tianyu Wang (53yo)

    Chairman of the Board

    • Tenure: 8.7yrs
    • Compensation: CN¥2.13m
  • Xueqing Shen (54yo)

    President & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥2.02m
  • Yanli Wang (48yo)

    Chief Risk Officer

    • Tenure: 0yrs
  • Tao Feng (56yo)

    Vice Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: CN¥1.87m
  • Tao Jiang (47yo)

    Chief Information Officer

    • Tenure: 3.9yrs
  • Li Guoquan

    General Manager of the Planning & Finance Department

    • Tenure: 0yrs
  • Zhaoqi Wang (52yo)

    Chief Auditor

    • Tenure: 1.7yrs

Board Members

  • Mabel Chan (48yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥180.00k
  • Shihao Wang (69yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥172.00k
  • Jingguo Zhang (56yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥36.00k
  • Tianyu Wang (53yo)

    Chairman of the Board

    • Tenure: 8.7yrs
    • Compensation: CN¥2.13m
  • Xueqing Shen (54yo)

    President & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥2.02m
  • Lijuan Zhao (57yo)

    Chairman of the Board of Supervisors

    • Tenure: 3.4yrs
  • Taifeng Xie (61yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥180.00k
  • Ge Wu (52yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥180.00k
  • Tao Feng (56yo)

    Vice Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: CN¥1.87m
  • Yanyan Li (51yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥75.00k

Company Information

Bank of Zhengzhou Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank of Zhengzhou Co., Ltd.
  • Ticker: 6196
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: HK$26.648b
  • Shares outstanding: 5.92b
  • Website: https://www.zzbank.cn

Number of Employees


Location

  • Bank of Zhengzhou Co., Ltd.
  • 22 Shangwu Waihuan Road
  • Zhengdong New District
  • Zhengzhou
  • Henan Province
  • 450046
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6196SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2015
3BZDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2015
6196SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2015
2936XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesForeign Shares-Foreign ListedCNCNYDec 2015
2936SZSE (Shenzhen Stock Exchange)Domestic SharesCNCNYSep 2018

Biography

Bank of Zhengzhou Co., Ltd. provides various banking products and services in the People’s Republic of China. It operates through Corporate Banking, Retail Banking, and Treasury Business segments. The Corp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 13:01
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.