SEHK:939

Stock Analysis Report

China Construction Bank

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

5.2%

939

3.9%

HK Banks

3.1%

HK Market


1 Year Return

3.8%

939

-3.7%

HK Banks

0.5%

HK Market

Return vs Industry: 939 exceeded the Hong Kong Banks industry which returned -3.7% over the past year.

Return vs Market: 939 exceeded the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

939IndustryMarket
7 Day5.2%3.9%3.1%
30 Day4.8%-0.3%-1.8%
90 Day1.0%-3.0%-4.8%
1 Year9.5%3.8%1.4%-3.7%4.1%0.5%
3 Year28.7%10.3%17.8%1.4%15.8%4.2%
5 Year46.7%12.1%30.9%0.3%18.9%-0.9%

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

Undervalued: 939 (HK$6.31) is trading below our estimate of fair value (HK$14.64)

Significantly Undervalued: 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 (5.5x) compared to the Banks industry average (5.8x).

PE vs Market: 939 is good value based on its PE Ratio (5.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 939 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 939 is overvalued based on its PB Ratio (0.7x) compared to the HK Banks industry average (0.5x).


Next Steps

Future Growth

How is China Construction Bank forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 939's forecast earnings growth (5.9% per year) is above the savings rate (2%).

Earnings vs Market: 939's earnings (5.9% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

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

Revenue vs Market: 939's revenue (7% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 939's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 939's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

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

2.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 939's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: 939's earnings growth over the past year (3.2%) exceeds its 5-year average (2.6% per year).

Earnings vs Industry: 939 earnings growth over the past year (3.2%) underperformed the Banks industry 5.2%.


Return on Equity

High ROE: 939's Return on Equity (12.7%) is considered low.


Return on Assets

ROA vs Industry: 939 has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 939's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: 939 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 939's debt is covered by short term assets (assets are 2.375180x debt).


Financial Institutions Analysis

Asset Level: 939's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 939 has a sufficient allowance for bad loans.

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

Loan Level: 939 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 939's loans are broadly funded by customer deposits.

Level of Bad Loans: 939 has an appropriate level of bad loans (1.43%)


Next Steps

Dividend

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

5.36%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%2.3%markettop25%6.3%industryaverage5.5%forecastin3Years6.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 939's dividend (5.36%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 939's dividend (5.36%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 939's dividend payments have been volatile 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 (29.7%), 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 (30.8% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Guiping Liu (53yo)

0.4yrs

Tenure

0

Mr. Guiping Liu has been President of China Construction Bank Corporation since May 2019 and its Vice Chairman and Director since June 21, 2019. Mr. Liu worked for another leading banking institution, Agri ...


Management Age and Tenure

5.3yrs

Average Tenure

58yo

Average Age

Experienced Management: 939's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

1.4yrs

Average Tenure

59yo

Average Age

Experienced Board: 939's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Guoli Tian (59yo)

    Chairman of the Board

    • Tenure: 2yrs
    • Compensation: CN¥711.30k
  • Guiya Wang (54yo)

    Chief Investment & Wealth Management Officer and GM of Investment Banking Dept of the Head Office

    • Tenure: 8.6yrs
    • Compensation: CN¥870.00k
  • Zhiling Huang (58yo)

    Chief Economist

    • Tenure: 6.1yrs
    • Compensation: CN¥825.60k
  • Gengsheng Zhang (59yo)

    Executive VP & Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥652.90k
  • Guiping Liu (53yo)

    Vice Chairman & President

    • Tenure: 0.4yrs
  • Yi Huang (55yo)

    Executive Vice President

    • Tenure: 5.5yrs
    • Compensation: CN¥652.90k
  • Yiming Xu (59yo)

    Chief Financial Officer

    • Tenure: 5.3yrs
    • Compensation: CN¥992.40k
  • Yanmin Jin (58yo)

    Chief Risk Officer

    • Tenure: 0.6yrs
  • Lin Liao (53yo)

    Executive Vice President

    • Tenure: 1.1yrs
    • Compensation: CN¥869.00k
  • Qiuyue Fang (59yo)

    GM of Finance & Accounting Department and Shareholder Representative Supervisor

    • Tenure: 1.3yrs

Board Members

  • Callum McCarthy (75yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥410.00k
  • Guoli Tian (59yo)

    Chairman of the Board

    • Tenure: 2yrs
    • Compensation: CN¥711.30k
  • Kegui Lu (57yo)

    GM of Asset Preservation & Operation Center and Employee Representative Supervisor

    • Tenure: 1.4yrs
  • Carl E. Walter (72yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥440.00k
  • Kenneth Patrick Chung (62yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
  • Gengsheng Zhang (59yo)

    Executive VP & Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥652.90k
  • Guiping Liu (53yo)

    Vice Chairman & President

    • Tenure: 0.4yrs
  • Qiuyue Fang (59yo)

    GM of Finance & Accounting Department and Shareholder Representative Supervisor

    • Tenure: 1.3yrs
  • Yuanguo Cheng (56yo)

    GM of Corporate Business Department & Employee Representative Supervisor

    • Tenure: 1.4yrs
  • Yi Wang (56yo)

    GM of Housing Finance & Personal Credit Department and Employee Representative Supervisor

    • Tenure: 1.4yrs

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$1.587t
  • Shares outstanding: 250.01b
  • Website: https://www.asia.ccb.com

Number of Employees


Location

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

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 Analysis2019/10/17 12:42
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.