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939

China Construction BankSEHK:939 Stock Report

Last Price

HK$5.94

Market Cap

HK$1.5t

7D

1.4%

1Y

-2.0%

Updated

26 Jan, 2022

Data

Company Financials +
939 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends5/6

939 Stock Overview

China Construction Bank Corporation provides various banking and related financial services to individuals and corporate customers in the People's Republic of China and internationally.

China Construction Bank Competitors

Industrial and Commercial Bank of China

SEHK:1398

HK$2.0t

Agricultural Bank of China

SEHK:1288

HK$1.2t

Bank of China

SEHK:3988

HK$1.1t

Postal Savings Bank of China

SEHK:1658

HK$634.4b

Price History & Performance

Summary of all time highs, changes and price drops for China Construction Bank
Historical stock prices
Current Share PriceHK$5.94
52 Week HighHK$6.74
52 Week LowHK$5.03
Beta0.68
1 Month Change10.82%
3 Month Change11.45%
1 Year Change-1.98%
3 Year Change-14.41%
5 Year Change2.41%
Change since IPO152.77%

Recent News & Updates

Jun 27
China Construction Bank's (HKG:939) Shareholders Will Receive A Bigger Dividend Than Last Year

China Construction Bank's (HKG:939) Shareholders Will Receive A Bigger Dividend Than Last Year

China Construction Bank Corporation ( HKG:939 ) has announced that it will be increasing its dividend on the 5th of...

Shareholder Returns

939HK BanksHK Market
7D1.4%1.1%-0.06%
1Y-2.0%1.3%-15.0%

Return vs Industry: 939 underperformed the Hong Kong Banks industry which returned 1.3% over the past year.

Return vs Market: 939 exceeded the Hong Kong Market which returned -15% over the past year.

Price Volatility

Is 939's price volatile compared to industry and market?
939 volatility
939 Average Weekly Movement2.0%
Banks Industry Average Movement2.5%
Market Average Movement6.7%
10% most volatile stocks in HK Market13.1%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 939 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 939's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1954370,093Jiang Wanghttps://www.ccb.com

China Construction Bank Corporation provides various banking and related financial services to individuals and corporate customers in the People's Republic of China and internationally. It operates through Corporate Banking, Personal Banking, Treasury Business, and Others segments. The company accepts various deposits, such as foreign currency, all in one accounts, RMB, corporate term and notification, and corporate demand deposits, as well corporate deposits by agreement.

China Construction Bank Fundamentals Summary

How do China Construction Bank's earnings and revenue compare to its market cap?
939 fundamental statistics
Market CapCN¥1.21t
Earnings (TTM)CN¥291.75b
Revenue (TTM)CN¥618.22b

4.1x

P/E Ratio

0.5x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
939 income statement (TTM)
RevenueCN¥618.22b
Cost of RevenueCN¥3.42b
Gross ProfitCN¥614.80b
ExpensesCN¥323.05b
EarningsCN¥291.75b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.17
Gross Margin99.45%
Net Profit Margin47.19%
Debt/Equity Ratio88.4%

How did 939 perform over the long term?

See historical performance and comparison

Dividends

6.8%

Current Dividend Yield

28%

Payout Ratio

Valuation

Is China Construction Bank 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: 939 (HK$5.94) is trading below our estimate of fair value (HK$20.02)

Significantly Below Fair Value: 939 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 939 is good value based on its PE Ratio (4.1x) compared to the Hong Kong Banks industry average (6.2x).

PE vs Market: 939 is good value based on its PE Ratio (4.1x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: 939 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 939 is overvalued based on its PB Ratio (0.5x) compared to the HK Banks industry average (0.3x).


Future Growth

How is China Construction Bank forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 939's forecast earnings growth (8% per year) is above the savings rate (1.5%).

Earnings vs Market: 939's earnings (8% per year) are forecast to grow slower than the Hong Kong market (16.3% per year).

High Growth Earnings: 939's earnings are forecast to grow, but not significantly.

Revenue vs Market: 939's revenue (8.1% per year) is forecast to grow slower than the Hong Kong market (11.5% per year).

High Growth Revenue: 939's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 939's Return on Equity is forecast to be low in 3 years time (11.9%).


Past Performance

How has China Construction Bank performed over the past 5 years?

3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 939 has high quality earnings.

Growing Profit Margin: 939's current net profit margins (47.2%) are higher than last year (47.2%).


Past Earnings Growth Analysis

Earnings Trend: 939's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: 939's earnings growth over the past year (19.9%) exceeds its 5-year average (3.6% per year).

Earnings vs Industry: 939 earnings growth over the past year (19.9%) exceeded the Banks industry 9.6%.


Return on Equity

High ROE: 939's Return on Equity (11.7%) is considered low.


Financial Health

How is China Construction 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: 939's Assets to Equity ratio (11.8x) is moderate.

Allowance for Bad Loans: 939 has a sufficient allowance for bad loans (228%).

Low Risk Liabilities: 87% of 939's liabilities are made up of primarily low risk sources of funding.

Loan Level: 939 has an appropriate level of Loans to Assets ratio (59%).

Low Risk Deposits: 939's Loans to Deposits ratio (74%) is appropriate.

Level of Bad Loans: 939 has an appropriate level of bad loans (1.5%).


Dividend

What is China Construction Bank current dividend yield, its reliability and sustainability?

6.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 939's dividend (6.75%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.38%).

High Dividend: 939's dividend (6.75%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.06%).


Stability and Growth of Payments

Stable Dividend: 939's dividends per share have been stable in the past 10 years.

Growing Dividend: 939's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.8%), 939's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 939's dividends in 3 years are forecast to be well covered by earnings (30% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Jiang Wang (58 yo)

0.92

Tenure

Mr. Jiang Wang serves as President at China Construction Bank since February 2021. He serves as President at China Construction Bank Corporation since February 05, 2021 and has been its Executive Vice Chai...


Leadership Team

Experienced Management: 939's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: 939's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Construction Bank Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: China Construction Bank Corporation
  • Ticker: 939
  • Exchange: SEHK
  • Founded: 1954
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: HK$1.494t
  • Shares outstanding: 250.01b
  • Website: https://www.ccb.com

Number of Employees


Location

  • China Construction Bank Corporation
  • No. 25, Financial Street
  • Xicheng District
  • Beijing
  • 100033
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 10:06
End of Day Share Price2022/01/26 00:00
Earnings2021/09/30
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.