SEHK:6196

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Bank of Zhengzhou

Executive Summary

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


Snowflake Analysis

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.7%

6196

2.4%

HK Banks

5.0%

HK Market


1 Year Return

-30.7%

6196

-8.9%

HK Banks

-5.3%

HK Market

Return vs Industry: 6196 underperformed the Hong Kong Banks industry which returned -8.7% over the past year.

Return vs Market: 6196 underperformed the Hong Kong Market which returned -5.2% over the past year.


Shareholder returns

6196IndustryMarket
7 Day2.7%2.4%5.0%
30 Day-5.6%2.1%4.0%
90 Day-17.7%-4.6%-4.0%
1 Year-26.9%-30.7%-4.8%-8.9%-1.9%-5.3%
3 Year-47.8%-53.3%0.8%-13.5%-0.5%-10.9%
5 Yearn/a-6.4%-28.3%-9.0%-23.5%

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$1.85) is trading below our estimate of fair value (HK$4.93)

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 (4x) compared to the Banks industry average (5.3x).

PE vs Market: 6196 is good value based on its PE Ratio (4x) compared to the Hong Kong market (9.4x).


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 (0.3x) compared to the HK Banks industry average (0.4x).


Next Steps

Future Growth

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

-2.7%

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 (37.5%) are higher than last year (34.7%).


Past Earnings Growth Analysis

Earnings Trend: 6196's earnings have declined by -2.7% per year over the past 5 years.

Accelerating Growth: 6196's earnings growth over the past year (15.1%) exceeds its 5-year average (-2.7% per year).

Earnings vs Industry: 6196 earnings growth over the past year (15.1%) exceeded the Banks industry 4.7%.


Return on Equity

High ROE: 6196's Return on Equity (8.3%) is considered low.


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


Financial Institutions Analysis

Asset Level: 6196's Assets to Equity ratio (12.9x) is moderate.

Allowance for Bad Loans: 6196 has a sufficient allowance for bad loans (160%).

Low Risk Liabilities: 69% of 6196's liabilities are made up of primarily low risk sources of funding.

Loan Level: 6196 has an appropriate level of Loans to Assets ratio (40%).

Low Risk Deposits: 6196's Loans to Deposits ratio (63%) is appropriate.

Level of Bad Loans: 6196 has a high level of bad loans (2.2%).


Next Steps

Dividend

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

5.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6196's dividend (5.35%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.44%).

High Dividend: 6196's dividend (5.35%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.14%).


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 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.2%), 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

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

4.7yrs

Average management tenure


CEO

Xueqing Shen (54yo)

8.17yrs

Tenure

CN¥1,803,000

Compensation

Mr. Xueqing Shen has serves as President of Bank of Zhengzhou Co., Ltd. (“Bank”) since April 5, 2012. Mr. Shen has been an Executive Director of Bank of Zhengzhou Co., Ltd since July 12, 2012. Prior to joi ...


CEO Compensation Analysis

Compensation vs Market: Xueqing's total compensation ($USD253.41K) is below average for companies of similar size in the Hong Kong market ($USD461.64K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tianyu Wang
Chairman of the Board9.25yrsCN¥1.21m0.00042% CN¥98.3k
Xueqing Shen
President & Executive Director8.17yrsCN¥1.80mno data
Tao Jiang
Chief Information Officer4.5yrsCN¥949.00k0.000080% CN¥18.7k
Yanli Wang
Chief Risk Officer23.83yrsCN¥1.14m0.0019% CN¥439.9k
Zhaoqi Wang
Chief Auditor2.25yrsCN¥949.00k0.0012% CN¥278.5k
Chunqiao Fu
VP, Joint Company Secretary & Director of the Office of the Board of Directors4.75yrsCN¥1.61mno data
Li Guoquan
General Manager of the Planning & Finance Departmentno datano datano data
Wing Han Leung
Joint Secretary4.58yrsno datano data

4.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: 6196's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tianyu Wang
Chairman of the Board9.25yrsCN¥1.21m0.00042% CN¥98.3k
Xueqing Shen
President & Executive Director8.17yrsCN¥1.80mno data
Mei-Bo Chan
Independent Non-Executive Director4.75yrsCN¥180.00kno data
Shihao Wang
Non-Executive Director8.33yrsCN¥169.00kno data
Jingguo Zhang
Non-Executive Director7.92yrsCN¥36.00kno data
Songwei Liang
Non-Executive Director7.92yrsno datano data
Hongjun Ji
Non-Executive Director7.92yrsCN¥36.00kno data
Lijuan Zhao
Chairman of the Board of Supervisors4yrsno datano data
Taifeng Xie
Independent Non-Executive Director4.75yrsCN¥180.00kno data
Yanyan Li
Independent Non-Executive Director1.92yrsno datano data

7.9yrs

Average Tenure

55yo

Average Age

Experienced Board: 6196's board of directors are considered experienced (7.9 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 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$23.400b
  • Shares outstanding: 6.51b
  • 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 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, 2019, it had 13 branches in Nanyang, Xinxiang, Luoyang, Anyang, Xuchang, Shangqiu, Luohe, Xinyang, Puyang, Pingdingshan, Zhumadian, Kaifeng, and Zhoukou of Henan Province; 157 sub-branches, as well as network of 158 internal and 93 external self-service equipment outlets. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 13:28
End of Day Share Price2020/06/05 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.