SEHK:939

Stock Analysis Report

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China Construction Bank

Executive Summary

China Construction Bank Corporation provides various banking and related financial services in the People's Republic of China. More Details


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

Volatility Over Time: 939's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

939

2.6%

HK Banks

4.6%

HK Market


1 Year Return

-4.5%

939

-7.7%

HK Banks

15.2%

HK Market

Return vs Industry: 939 exceeded the Hong Kong Banks industry which returned -7.7% over the past year.

Return vs Market: 939 underperformed the Hong Kong Market which returned 15.2% over the past year.


Shareholder returns

939IndustryMarket
7 Day1.8%2.6%4.6%
30 Day10.1%9.8%12.2%
90 Day7.4%12.5%18.5%
1 Year1.2%-4.5%-2.1%-7.7%19.7%15.2%
3 Year-16.4%-28.8%-20.1%-32.0%-2.7%-12.9%
5 Year80.0%36.7%50.9%14.6%73.1%43.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

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$6.22) is trading below our estimate of fair value (HK$14.51)

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 (5.4x) compared to the HK Banks industry average (6.3x).

PE vs Market: 939 is good value based on its PE Ratio (5.4x) compared to the Hong Kong market (11.8x).


Price to Earnings Growth Ratio

PEG Ratio: 939 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 939 is overvalued based on its PB Ratio (0.6x) compared to the HK Banks industry average (0.4x).


Next Steps

Future Growth

How is China Construction Bank forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 939's forecast earnings growth (7.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 939's earnings (7.1% per year) are forecast to grow slower than the Hong Kong market (21.1% per year).

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

Revenue vs Market: 939's revenue (9.1% per year) is forecast to grow slower than the Hong Kong market (14.2% per year).

High Growth Revenue: 939's revenue (9.1% 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%).


Next Steps

Past Performance

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

2.8%

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 lower than last year (49.3%).


Past Earnings Growth Analysis

Earnings Trend: 939's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: 939's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 939 had negative earnings growth (-7.1%) over the past year, making it difficult to compare to the Banks industry average (-7.2%).


Return on Equity

High ROE: 939's Return on Equity (10.6%) is considered low.


Next Steps

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 (12.1x) is moderate.

Allowance for Bad Loans: 939 has a sufficient allowance for bad loans (217%).

Low Risk Liabilities: 86% 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 (58%).

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%).


Next Steps

Dividend

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

6.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 939's dividend (6.16%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.14%).

High Dividend: 939's dividend (6.16%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.56%).


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 (33%), 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 (30.3% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

China Construction Bank has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Guoli Tian
Executive Chairman of the Board3.25yrsCN¥748.10kno data
Yanmin Jin
Chief Risk Officer1.67yrsCN¥578.00k0.000010%
CN¥ 158.5k
Zhihong Ji
Executive Vice President1.42yrsCN¥395.40kno data
Changmiao Hu
Secretary to the Board1.67yrsCN¥575.90k0.000010%
CN¥ 158.5k
Guiya Wang
Chief Investment & Wealth Management Officer and GM of Investment Banking Dept of the Head Office9.83yrsCN¥870.00kno data
Yi Zhang
General Manager of Financial Accounting Departmentno datano datano data
Jiajin Lyu
Executive VP & Executive Director0.17yrno datano data
Hao Wang
Executive Vice President0.50yrno datano data
Min Zhang
Executive Vice President0.083yrno datano data
Chan Chi Ma
Company Secretaryno datano datano data

1.4yrs

Average Tenure

56yo

Average Age

Experienced Management: 939's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Guoli Tian
Executive Chairman of the Board3.25yrsCN¥748.10kno data
Jiajin Lyu
Executive VP & Executive Director0.17yrno datano data
Malcolm McCarthy
Independent Non-Executive Director3.42yrsCN¥410.00kno data
Carl E. Walter
Independent Non-Executive Director4.25yrsCN¥441.70kno data
Michel A. Madelain
Independent Non-Executive Director1yrno datano data
Yuen-Mei Fung
Independent Non-Executive Director4.25yrsCN¥98.00kno data
Kenneth Patrick Chung
Independent Non-Executive Director2.17yrsno datano data
Qi Zhang
Non-Executive Director3.5yrsno datano data
Graeme Wheeler
Independent Non-Executive Director1.25yrsCN¥110.00kno data
Bo Tian
Non-Executive Director1.42yrsno datano data
Yang Xia
Non-Executive Director1.42yrsno datano data
Yongqing Wang
Shareholder Representative Chairman of the Board of Supervisors1.25yrsno datano data

1.8yrs

Average Tenure

60yo

Average Age

Experienced Board: 939's board of directors are not considered experienced ( 1.8 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 company bio, 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
  • Market Cap: HK$1.585t
  • Shares outstanding: 250.01b
  • Website: https://www.ccb.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
939SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 2005
C6TDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEUROct 2005
CICH.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDOct 2005
939SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2005
939SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2005
601939SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYSep 2007
601939XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYSep 2007
CICH.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008
C6TBDB (Deutsche Boerse AG)ADRDEEUROct 2008

Biography

China Construction Bank Corporation provides various banking and related financial services in the People's Republic of China. It operates through Corporate Banking, Personal Banking, Treasury Business, an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 10:04
End of Day Share Price2021/01/20 00:00
Earnings2020/09/30
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.