company background image
626

Public Financial HoldingsSEHK:626 Stock Report

Market Cap

HK$2.7b

7D

0%

1Y

36.3%

Updated

22 Oct, 2021

Data

Company Financials
626 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends3/6

626 Overview

Public Financial Holdings Limited, an investment and property holding company, provides retail and commercial banking, wealth management, and stockbroking services in Hong Kong and Mainland China.

Price History & Performance

Summary of all time highs, changes and price drops for Public Financial Holdings
Historical stock prices
Current Share PriceHK$2.44
52 Week HighHK$1.74
52 Week LowHK$2.68
Beta0.81
1 Month Change3.39%
3 Month Change-1.61%
1 Year Change36.31%
3 Year Change-22.05%
5 Year Change-30.29%
Change since IPO93.65%

Recent News & Updates

Jul 02
Public Financial Holdings (HKG:626) Will Pay A Larger Dividend Than Last Year At HK$0.05

Public Financial Holdings (HKG:626) Will Pay A Larger Dividend Than Last Year At HK$0.05

Public Financial Holdings Limited ( HKG:626 ) will increase its dividend on the 4th of August to HK$0.05. Based on the...

Shareholder Returns

626HK BanksHK Market
7D0%0.3%1.8%
1Y36.3%-0.6%5.7%

Return vs Industry: 626 exceeded the Hong Kong Banks industry which returned -0.6% over the past year.

Return vs Market: 626 exceeded the Hong Kong Market which returned 5.7% over the past year.

Price Volatility

Is 626's price volatile compared to industry and market?
626 volatility
626 Beta0.81
Industry Beta0.61
Market Beta1

Stable Share Price: 626 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 626's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19911,304Yoke Kong Tanhttps://www.publicfinancial.com.hk

Public Financial Holdings Limited, an investment and property holding company, provides retail and commercial banking, wealth management, and stockbroking services in Hong Kong and Mainland China. The company’s Retail and Commercial Banking Businesses segment offers various products and services, including deposit accounts; mortgages and consumer lending products; hire purchase and leasing; financing to purchasers of licensed public vehicles, such as taxis and public light buses; services and financing for customers in trading, manufacturing, and various other business sectors; foreign exchange services; and cash management services for deposit taking and lending, interest rate risk management, and fund management services. This segment has a combined network of 79 branches in Hong Kong and 5 branches in the People’s Republic of China.

Public Financial Holdings Fundamentals Summary

How do Public Financial Holdings's earnings and revenue compare to its market cap?
626 fundamental statistics
Market CapHK$2.68b
Earnings (TTM)HK$502.23m
Revenue (TTM)HK$1.48b

5.3x

P/E Ratio

0.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
626 income statement (TTM)
RevenueHK$1.48b
Cost of RevenueHK$0
Gross ProfitHK$1.48b
ExpensesHK$981.55m
EarningsHK$502.23m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.46
Gross Margin100.00%
Net Profit Margin33.85%
Debt/Equity Ratio18.3%

How did 626 perform over the long term?

See historical performance and comparison

Dividends

7.0%

Current Dividend Yield

37%

Payout Ratio

Valuation

Is Public Financial Holdings 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: 626 (HK$2.44) is trading below our estimate of fair value (HK$6.61)

Significantly Below Fair Value: 626 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 626 is good value based on its PE Ratio (5.3x) compared to the Hong Kong Banks industry average (5.8x).

PE vs Market: 626 is good value based on its PE Ratio (5.3x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 626's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 626's PB Ratio (0.3x) is in line with the HK Banks industry average.


Future Growth

How is Public Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.8%

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 Public Financial Holdings 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.


Past Performance

How has Public Financial Holdings performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 626 has high quality earnings.

Growing Profit Margin: 626's current net profit margins (33.8%) are higher than last year (27.5%).


Past Earnings Growth Analysis

Earnings Trend: 626's earnings have declined by 0.3% per year over the past 5 years.

Accelerating Growth: 626's earnings growth over the past year (43.3%) exceeds its 5-year average (-0.3% per year).

Earnings vs Industry: 626 earnings growth over the past year (43.3%) exceeded the Banks industry 6.4%.


Return on Equity

High ROE: 626's Return on Equity (5.9%) is considered low.


Financial Health

How is Public Financial Holdings'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: 626's Assets to Equity ratio (5.3x) is low.

Allowance for Bad Loans: 626 has a low allowance for bad loans (80%).

Low Risk Liabilities: 94% of 626's liabilities are made up of primarily low risk sources of funding.

Loan Level: 626 has an appropriate level of Loans to Assets ratio (57%).

Low Risk Deposits: 626's Loans to Deposits ratio (74%) is appropriate.

Level of Bad Loans: 626 has an appropriate level of bad loans (0.8%).


Dividend

What is Public Financial Holdings's current dividend yield, its reliability and sustainability?

6.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 626's dividend (6.97%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 626's dividend (6.97%) is in the top 25% of dividend payers in the Hong Kong market (6.81%)


Stability and Growth of Payments

Stable Dividend: 626's dividend payments have been volatile in the past 10 years.

Growing Dividend: 626's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.2%), 626'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?

13.3yrs

Average board tenure


CEO

Yoke Kong Tan (68 yo)

no data

Tenure

HK$4,143,000

Compensation

Mr. Yoke Kong Tan has been Chief Executive of Public Bank (Hong Kong) Limited at Public Bank Berhad since 2006. Mr. Tan serves as the Chief Executive Officer and Joint Secretary of Public Financial Holding...


CEO Compensation Analysis

Compensation vs Market: Yoke Kong's total compensation ($USD532.91K) is above average for companies of similar size in the Hong Kong market ($USD348.32K).

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


Board Members

Experienced Board: 626's board of directors are seasoned and experienced ( 13.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 626 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

Public Financial Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Public Financial Holdings Limited
  • Ticker: 626
  • Exchange: SEHK
  • Founded: 1991
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: HK$2.679b
  • Shares outstanding: 1.10b
  • Website: https://www.publicfinancial.com.hk

Number of Employees


Location

  • Public Financial Holdings Limited
  • Public Bank Centre
  • 2nd Floor
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:32
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.