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Bank of Zhengzhou

SEHK:6196
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
6196
SEHK
HK$30B
Market Cap
  1. Home
  2. HK
  3. Banks
Company description

Bank of Zhengzhou Co., Ltd. provides various banking products and services in the People’s Republic of China. The last earnings update was 52 days ago. More info.


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6196 Share Price and Events
7 Day Returns
-0.3%
SEHK:6196
0.7%
HK Banks
-0%
HK Market
1 Year Returns
-27.2%
SEHK:6196
-12.2%
HK Banks
-13%
HK Market
6196 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bank of Zhengzhou (6196) -0.3% -1.3% -19.3% -27.2% -34.7% -
HK Banks 0.7% -0.9% -7.7% -12.2% 18.5% 8.7%
HK Market -0% -1.1% -8.6% -13% 18.1% 5.4%
1 Year Return vs Industry and Market
  • 6196 underperformed the Banks industry which returned -12.2% over the past year.
  • 6196 underperformed the Market in Hong Kong which returned -13% over the past year.
Price Volatility
6196
Industry
5yr Volatility vs Market

Value

 Is Bank of Zhengzhou undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bank of Zhengzhou to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bank of Zhengzhou.

SEHK:6196 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= CN¥4.50 * 14.4%
CN¥0.65
Book Value of Equity per Share Median Book Value from the past 5 years. CN¥4.50
Discount Rate (Cost of Equity) See below 13.9%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:6196
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.592 (1 + (1- 25%) (476.79%))
2.146
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (2 * 5.96%)
13.92%

Discounted Cash Flow Calculation for SEHK:6196 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Bank of Zhengzhou is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:6196 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (14.4% – 13.92%) * CN¥4.50)
CN¥0.02
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥0.02 / (13.92% - 2%)
CN¥0.17
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥4.50 + CN¥0.17
CN¥4.67
SEHK:6196 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:6196)
1.133
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥4.67 x 1.133
HK$5.29
Value per share (HKD) From above. HK$5.29
Current discount Discount to share price of HK$2.97
= -1 x (HK$2.97 - HK$5.29) / HK$5.29
43.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Bank of Zhengzhou is available for.
Intrinsic value
44%
Share price is HK$2.97 vs Future cash flow value of HK$5.29
Current Discount Checks
For Bank of Zhengzhou to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Bank of Zhengzhou's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Bank of Zhengzhou's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bank of Zhengzhou's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bank of Zhengzhou's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:6196 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥0.44
SEHK:6196 Share Price ** SEHK (2019-06-20) in HKD HK$2.97
SEHK:6196 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.882 CN¥2.62
Hong Kong Banks Industry PE Ratio Median Figure of 31 Publicly-Listed Banks Companies 6.03x
Hong Kong Market PE Ratio Median Figure of 1,489 Publicly-Listed Companies 10.66x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bank of Zhengzhou.

SEHK:6196 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:6196 Share Price ÷ EPS (both in CNY)

= 2.62 ÷ 0.44

6.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of Zhengzhou is good value based on earnings compared to the HK Banks industry average.
  • Bank of Zhengzhou is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Bank of Zhengzhou's expected growth come at a high price?
Raw Data
SEHK:6196 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
10.2%per year
Hong Kong Banks Industry PEG Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.85x
Hong Kong Market PEG Ratio Median Figure of 467 Publicly-Listed Companies 0.75x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Bank of Zhengzhou, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Bank of Zhengzhou's assets?
Raw Data
SEHK:6196 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥5.05
SEHK:6196 Share Price * SEHK (2019-06-20) in HKD HK$2.97
SEHK:6196 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.882 CN¥2.62
Hong Kong Banks Industry PB Ratio Median Figure of 31 Publicly-Listed Banks Companies 0.67x
Hong Kong Market PB Ratio Median Figure of 2,171 Publicly-Listed Companies 0.93x
SEHK:6196 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:6196 Share Price ÷ Book Value per Share (both in CNY)

= 2.62 ÷ 5.05

0.52x

* Primary Listing of Bank of Zhengzhou.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of Zhengzhou is good value based on assets compared to the HK Banks industry average.
X
Value checks
We assess Bank of Zhengzhou's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Bank of Zhengzhou has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover Bank of Zhengzhou, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bank of Zhengzhou expected to grow at an attractive rate?
  • Bank of Zhengzhou's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Bank of Zhengzhou's earnings growth is positive but not above the Hong Kong market average.
  • Bank of Zhengzhou's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:6196 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:6196 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 10.2%
SEHK:6196 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 23.5%
Hong Kong Banks Industry Earnings Growth Rate Market Cap Weighted Average 6.5%
Hong Kong Banks Industry Revenue Growth Rate Market Cap Weighted Average 8.5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:6196 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:6196 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 16,000 1
2020-12-31 14,500 1
2019-12-31 13,000 1
SEHK:6196 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 7,053 -41,086 2,448
2018-12-31 6,973 -23,827 2,556
2018-09-30 8,653 -23,762 4,401
2018-06-30 8,616 -8,190 4,412
2018-03-31 8,454 -22,417 4,383
2017-12-31 8,256 -46,831 4,280
2017-09-30 7,986 -99,216 4,084
2017-06-30 7,894 -45,349 4,148
2017-03-31 7,884 -52,287 4,198
2016-12-31 7,634 -10,798 3,999
2016-09-30 7,538 35,404 4,069
2016-06-30 7,247 -17,746 3,727

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bank of Zhengzhou's earnings are expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).
  • Bank of Zhengzhou's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:6196 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Bank of Zhengzhou Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:6196 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
SEHK:6196 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 0.44
2018-12-31 0.47
2018-09-30 0.83
2018-06-30 0.83
2018-03-31 0.82
2017-12-31 0.80
2017-09-30 0.76
2017-06-30 0.78
2017-03-31 0.79
2016-12-31 0.75
2016-09-30 0.82
2016-06-30 0.80

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Bank of Zhengzhou is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Bank of Zhengzhou's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bank of Zhengzhou has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bank of Zhengzhou's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Bank of Zhengzhou's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Bank of Zhengzhou's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Bank of Zhengzhou's 1-year earnings growth is negative, it can't be compared to the HK Banks industry average.
Earnings and Revenue History
Bank of Zhengzhou's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bank of Zhengzhou Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:6196 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 7,053.40 2,448.46 2,336.40
2018-12-31 6,973.49 2,556.49 2,336.40
2018-09-30 8,652.69 4,400.92 2,659.35
2018-06-30 8,615.53 4,412.10 1,560.80
2018-03-31 8,453.59 4,383.44 1,381.07
2017-12-31 8,256.04 4,280.02 1,963.00
2017-09-30 7,985.56 4,084.06 803.04
2017-06-30 7,893.58 4,148.40 2,391.39
2017-03-31 7,884.30 4,198.34 2,305.94
2016-12-31 7,634.11 3,998.77 2,222.09
2016-09-30 7,538.18 4,069.38 1,978.53
2016-06-30 7,247.29 3,727.48 2,048.22
2016-03-31 6,696.66 3,333.26 1,972.05
2015-12-31 6,563.73 3,356.37 1,828.98
2015-09-30 6,214.17 3,183.03 1,718.07
2015-06-30 5,864.61 3,009.70 1,607.15
2015-03-31 5,435.97 2,736.39 1,566.40
2014-12-31 5,007.32 2,463.08 1,525.65
2013-12-31 3,856.98 1,901.85 1,152.01
2012-12-31 2,999.38 1,460.30 1,176.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bank of Zhengzhou has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bank of Zhengzhou used its assets less efficiently than the HK Banks industry average last year based on Return on Assets.
  • Unable to establish if Bank of Zhengzhou improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Bank of Zhengzhou's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bank of Zhengzhou has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Bank of Zhengzhou's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Bank of Zhengzhou's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bank of Zhengzhou Company Filings, last reported 2 months ago.

SEHK:6196 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 38,991.12 125,485.42 130,803.55
2018-12-31 37,863.50 131,275.71 35,175.09
2018-09-30 38,679.06 116,696.36 118,616.06
2018-06-30 34,890.56 111,425.79 32,423.97
2018-03-31 33,661.00 112,569.52 122,635.95
2017-12-31 33,439.37 111,649.49 31,515.17
2017-09-30 24,658.26 124,533.31 83,623.14
2017-06-30 23,073.10 115,730.07 63,544.08
2017-03-31 22,934.76 104,382.05 84,326.03
2016-12-31 21,861.38 97,304.13 28,231.80
2016-09-30
2016-06-30 19,931.39 65,103.01 35,043.65
2016-03-31 17,824.02 52,461.90 36,901.19
2015-12-31 17,824.02 52,461.90 36,901.19
2015-09-30 17,824.02 52,461.90 36,901.19
2015-06-30 12,445.83 32,468.76 38,324.58
2015-03-31 12,445.83 32,468.76 38,324.58
2014-12-31 11,405.58 25,289.53 29,366.48
2013-12-31 9,536.47 21,355.15 27,884.36
2012-12-31 7,671.35 12,218.31 16,255.59
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Bank of Zhengzhou has an acceptable proportion of non-loan assets held.
  • Bank of Zhengzhou's liabilities are made up of primarily low risk sources of funding.
  • Loans at Bank of Zhengzhou are broadly funded by customer deposits.
  • Bank of Zhengzhou's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Bank of Zhengzhou has a sufficient allowance for bad loans.
  • Bank of Zhengzhou has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Bank of Zhengzhou's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bank of Zhengzhou has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.72%
Current annual income from Bank of Zhengzhou dividends.
If you bought HK$2,000 of Bank of Zhengzhou shares you are expected to receive HK$114 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bank of Zhengzhou's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.1%).
  • Bank of Zhengzhou's dividend is below the markets top 25% of dividend payers in Hong Kong (5.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:6196 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Hong Kong Banks Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 5.3%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:6196 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
SEHK:6196 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-29 0.150 5.393
2018-10-22 0.000 0.000
2018-08-20 0.000 0.000
2018-04-30 0.000 0.000
2018-03-22 0.000 0.000
2017-05-19 0.220 5.858
2016-06-20 0.200 4.764

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of Zhengzhou has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Bank of Zhengzhou has only been paying a dividend for 3 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Bank of Zhengzhou's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Bank of Zhengzhou's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bank of Zhengzhou afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bank of Zhengzhou has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Xueqing Shen
COMPENSATION CN¥2,023,000
AGE 53
CEO Bio

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 joining the Bank, he held a number of positions in Guangdong Development Bank Co., Ltd. (currently known as China Guangfa Bank Co., Ltd.) from June 1996 to November 2011. He had served successively as the deputy manager and the manager of general office, the director of operations department and the assistant to sub-branch President of Huayuan Road sub-branch, Zhengzhou branch from June 1996 to October 2000, the assistant to sub-branch President, the Vice President and the President of Dongming Road sub-branch, Zhengzhou branch from October 2000 to July 2004, the General Manager of No.3 corporate banking department and the General Manager of general office of Zhengzhou branch from July 2004 to April 2006, the President of Anyang sub-branch from April 2006 to September 2009, and the Vice President of Changsha branch from October 2009 to November 2011. Prior to that, he had worked in Financial and Trade Commission of Pingdingshan City, Henan Province from July 1990 to June 1996 and had served as the deputy chief of information investigation section since May 1995. Mr. Shen graduated from Henan Institute of Finance and Economics (Henan, China) in June 1990, majoring in public finance, and obtained a bachelor’s degree in economics. He obtained an executive master’s degree in business administration degree from Xi’an Jiaotong University (Shaanxi, China) in December 2008, and an executive master’s degree in business administration from Tsinghua University (Beijing, China) in July 2015. He has been a senior economist accredited by the People’s Government of Henan Province since December 2005.

CEO Compensation
  • Xueqing's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Xueqing's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Bank of Zhengzhou management team in years:

3.5
Average Tenure
51
Average Age
  • The tenure for the Bank of Zhengzhou management team is about average.
Management Team

Tianyu Wang

TITLE
Chairman of the Board
COMPENSATION
CN¥2M
AGE
52

Xueqing Shen

TITLE
President & Executive Director
COMPENSATION
CN¥2M
AGE
53

Tao Feng

TITLE
Vice Chairman of the Board
COMPENSATION
CN¥2M
AGE
55

Tao Jiang

TITLE
Chief Information Officer
AGE
46
TENURE
3.5 yrs

Yanli Wang

TITLE
Chief Risk Officer
AGE
47

Zhaoqi Wang

TITLE
Chief Auditor
AGE
51
TENURE
1.3 yrs

Chunqiao Fu

TITLE
VP, Joint Company Secretary & Director of the Office of the Board of Directors
AGE
45
TENURE
3.8 yrs

Li Guoquan

TITLE
General Manager of the Planning & Finance Department

Sharon Leung

TITLE
Secretary
TENURE
3.6 yrs
Board of Directors Tenure

Average tenure and age of the Bank of Zhengzhou board of directors in years:

4
Average Tenure
54
Average Age
  • The tenure for the Bank of Zhengzhou board of directors is about average.
Board of Directors

Tianyu Wang

TITLE
Chairman of the Board
COMPENSATION
CN¥2M
AGE
52
TENURE
8.3 yrs

Xueqing Shen

TITLE
President & Executive Director
COMPENSATION
CN¥2M
AGE
53
TENURE
7.3 yrs

Tao Feng

TITLE
Vice Chairman of the Board
COMPENSATION
CN¥2M
AGE
55
TENURE
3 yrs

Shihao Wang

TITLE
Non-Executive Director
COMPENSATION
CN¥172K
AGE
68
TENURE
7.3 yrs

Lijuan Zhao

TITLE
Chairman of the Board of Supervisors
AGE
56
TENURE
3 yrs

Taifeng Xie

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥180K
AGE
60
TENURE
4 yrs

Ge Wu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥180K
AGE
51
TENURE
4 yrs

Mabel Chan

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥180K
AGE
47
TENURE
4 yrs

Yanyan Li

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥75K
AGE
50
TENURE
0.9 yrs

Jingguo Zhang

TITLE
Non-Executive Director
COMPENSATION
CN¥36K
AGE
55
TENURE
7.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
31. May 19 Buy Hai Tong Asset Management (HK) Limited Company 28. May 19 28. May 19 17,000,000 HK$4.71 HK$80,000,353
03. Dec 18 Buy Yunnan International Holding Group Limited Company 01. Nov 18 01. Nov 18 75,000,000 HK$4.58 HK$343,500,174
03. Dec 18 Buy Yunnan International Holding Group Limited Company 01. Nov 18 01. Nov 18 318,000 HK$4.01 HK$1,275,181
03. Dec 18 Buy Yunnan International Holding Group Limited Company 28. Nov 18 28. Nov 18 94,339,623 HK$4.24 HK$400,000,149
23. Oct 18 Buy Yunnan International Holding Group Limited Company 02. Oct 18 02. Oct 18 44,000,000 HK$4.58 HK$201,520,162
19. Oct 18 Sell Glory Sun Financial Group Limited Company 28. Sep 18 28. Sep 18 -72,802,000 HK$4.10 HK$-298,488,388
X
Management checks
We assess Bank of Zhengzhou's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bank of Zhengzhou has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Bank of Zhengzhou Co., Ltd. (HKG:6196) A Smart Pick For Income Investors?

Bank of Zhengzhou's earnings per share have been essentially flat over the past five years. … Conclusion To summarise, shareholders should always check that Bank of Zhengzhou's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … Earnings per share have been falling, and the company has cut its dividend at least once in the past.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Bank of Zhengzhou Co., Ltd. (HKG:6196)

View our latest analysis for Bank of Zhengzhou How Do You Calculate Bank of Zhengzhou's P/E Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) Or for Bank of Zhengzhou: P/E of 6.2 = CN¥2.7 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.44 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each HK$1 of company earnings.

Simply Wall St -

What Kind Of Shareholder Owns Most Bank of Zhengzhou Co., Ltd. (HKG:6196) Stock?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that have been privatized tend to have low insider ownership. … Bank of Zhengzhou is a pretty big company.

Simply Wall St -

Does Bank of Zhengzhou Co., Ltd.'s (HKG:6196) CEO Pay Compare Well With Peers?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Xueqing Shen's Compensation Compare With Similar Sized Companies. … has a market cap of HK$36b, and is paying total annual CEO compensation of CN¥3.0m.

Simply Wall St -

The Bank of Zhengzhou (HKG:6196) Share Price Is Down 18% So Some Shareholders Are Getting Worried

(HKG:6196) shareholders should be happy to see the share price up 10% in the last month. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Although the share price is down over three years, Bank of Zhengzhou actually managed to grow EPS by 10% per year in that time.

Simply Wall St -

Understated Factors To Consider Before Investing In Bank of Zhengzhou Co., Ltd. (HKG:6196)

Bank of Zhengzhou Co., Ltd.’s (HKG:6196) profitability and risk are largely affected by the underlying economic growth for the region it operates in HK given it is a small-cap stock with a market capitalisation of HK$35b. … The Basel III reforms are aimed at banking regulations to improve financial institutions’ ability to absorb shocks caused by economic stress which could expose banks like Bank of Zhengzhou to vulnerabilities. … High liquidity and low leverage could position Bank of Zhengzhou favourably at the face of macro headwinds.

Simply Wall St -

Why Bank of Zhengzhou Co., Ltd. (HKG:6196) May Not Be As Risky Than You Think

As a small-cap bank with a market capitalisation of HK$31b, Bank of Zhengzhou Co., Ltd.’s (HKG:6196) profit and value are directly affected by economic growth. … Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Bank of Zhengzhou’s bottom line. … Check out our latest analysis for Bank of Zhengzhou

Simply Wall St -

Read This Before You Buy Bank of Zhengzhou Co., Ltd. (HKG:6196) Because Of Its P/E Ratio

We'll look at Bank of Zhengzhou Co., Ltd.'s (HKG:6196) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate Bank of Zhengzhou's Price To Earnings Ratio … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Be Concerned About Bank of Zhengzhou Co Ltd’s (HKG:6196) Liquidity?

As a small-cap bank stock with a market capitalisation of HK$34b, Bank of Zhengzhou Co Ltd’s (HKG:6196) risk and profitability are largely determined by the underlying economic growth of the HK regions in which it operates. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Bank of Zhengzhou to vulnerabilities. … Since its financial standing can unexpectedly decline in the case of an adverse macro event such as political instability, it is important to understand how prudent the bank is at managing its risk levels.

Simply Wall St -

Is Bank of Zhengzhou Co Ltd (HKG:6196) Over-Exposed To Risk?

Bank of Zhengzhou Co Ltd (HKG:6196) is a small-cap bank with a market capitalisation of HK$36.9b. … Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Bank of Zhengzhou’s bottom line. … Today we will analyse Bank of Zhengzhou’s level of bad debt and liabilities in order to understand the risk involved with investing in the bank.

Simply Wall St -

Company Info

Description

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 Corporate Banking segment provides deposit products, corporate loans and advances, trade finance products, financial leasing services, agency services, and remittance and settlement services to corporations, government agencies, and financial institutions. The Retail Banking segment offers deposit products, personal loans, bank cards, personal wealth management services, remittance and settlement services, and collection and payment agency services to retail customers. The Treasury Business segment engages in the interbank money market transactions and repurchases transactions, as well as offers investment services. The company also offers short-term, medium-term, and long-term loans; provides guarantees and safe-deposit box services; accepts and discounts bills; issues financial bonds; acts as an issuing agent, cashing agent, and the underwriter of government bonds; trades in government bonds; and acts as an insurance agent, as well as offers online, telephone, and mobile banking services. As of December 31, 2018, it had a total of 152 on-site self-service outlets in Zhengzhou Province and 140 off-site self-service outlets in Henan Province. The company was formerly known as Commercial Bank of Zhengzhou Co., Ltd. and changed its name to Bank of Zhengzhou Co., Ltd. in December 2009. Bank of Zhengzhou Co., Ltd. was founded in 1996 and is headquartered in Zhengzhou, China.

Details
Name: Bank of Zhengzhou Co., Ltd.
6196
Exchange: SEHK
Founded: 1996
HK$29,832,153,068
5,921,931,900
Website: http://www.zzbank.cn
Address: Bank of Zhengzhou Co., Ltd.
22 Shangwu Waihuan Road,
Zhengdong New District,
Zhengzhou,
Henan Province, 450046,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 6196 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 23. Dec 2015
DB 3BZ Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 23. Dec 2015
SHSC 6196 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 23. Dec 2015
SZSC 6196 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 23. Dec 2015
XSEC 002936 Foreign Shares-Foreign Listed Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect CN CNY 23. Dec 2015
SZSE 002936 Domestic Shares Shenzhen Stock Exchange CN CNY 19. Sep 2018
Number of employees
Current staff
Staff numbers
4,708
Bank of Zhengzhou employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/20 12:54
End of day share price update: 2019/06/20 00:00
Last estimates confirmation: 2019/05/20
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.