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China Construction Bank

SEHK:939
Snowflake Description

Flawless balance sheet, undervalued and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
939
SEHK
HK$1,746B
Market Cap
  1. Home
  2. HK
  3. Banks
Company description

China Construction Bank Corporation provides various banking and related financial services in the People's Republic of China. The last earnings update was 123 days ago. More info.


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939 Share Price and Events
7 Day Returns
2.1%
SEHK:939
2.8%
HK Banks
4%
HK Market
1 Year Returns
-17.8%
SEHK:939
-14.9%
HK Banks
-10.7%
HK Market
939 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Construction Bank (939) 2.1% 3.6% 7.1% -17.8% 51.5% 30.2%
HK Banks 2.8% 4.5% 7.7% -14.9% 41.4% 23.6%
HK Market 4% 7.9% 10.4% -10.7% 37.6% 16.4%
1 Year Return vs Industry and Market
  • 939 underperformed the Banks industry which returned -14.9% over the past year.
  • 939 underperformed the Market in Hong Kong which returned -10.7% over the past year.
Price Volatility
939
Industry
5yr Volatility vs Market

939 Value

 Is China Construction Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Construction Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Construction Bank.

SEHK:939 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 20 analysts.
= Stable Book Value * Return on Equity
= CN¥8.69 * 13.7%
CN¥1.19
Book Value of Equity per Share Weighted future Book Value estimates from 18 analysts. CN¥8.69
Discount Rate (Cost of Equity) See below 10.6%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:939
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 8%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.603 (1 + (1- 25%) (121.34%))
1.079
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.079 * 8%)
10.64%

Discounted Cash Flow Calculation for SEHK:939 using Excess Returns Model Model

The calculations below outline how an intrinsic value for China Construction Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:939 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.7% – 10.64%) * CN¥8.69)
CN¥0.27
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥0.27 / (10.64% - 2%)
CN¥3.11
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥8.69 + CN¥3.11
CN¥11.8
SEHK:939 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:939)
1.169
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥11.8 x 1.169
HK$13.79
Value per share (HKD) From above. HK$13.79
Current discount Discount to share price of HK$6.94
= -1 x (HK$6.94 - HK$13.79) / HK$13.79
49.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price China Construction Bank is available for.
Intrinsic value
50%
Share price is HK$6.94 vs Future cash flow value of HK$13.79
Current Discount Checks
For China Construction Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Construction Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China Construction Bank's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Construction Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Construction Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:939 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in CNY CN¥1.02
SEHK:939 Share Price ** SEHK (2019-02-22) in HKD HK$6.94
SEHK:939 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.855 CN¥5.93
Hong Kong Banks Industry PE Ratio Median Figure of 31 Publicly-Listed Banks Companies 6.19x
Hong Kong Market PE Ratio Median Figure of 1,481 Publicly-Listed Companies 10.91x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Construction Bank.

SEHK:939 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:939 Share Price ÷ EPS (both in CNY)

= 5.93 ÷ 1.02

5.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Construction Bank is good value based on earnings compared to the HK Banks industry average.
  • China Construction Bank is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Construction Bank's expected growth come at a high price?
Raw Data
SEHK:939 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.79x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
7.5%per year
Hong Kong Banks Industry PEG Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.9x
Hong Kong Market PEG Ratio Median Figure of 467 Publicly-Listed Companies 0.78x

*Line of best fit is calculated by linear regression .

SEHK:939 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.79x ÷ 7.5%

0.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Construction Bank is good value based on expected growth next year.
Price based on value of assets
What value do investors place on China Construction Bank's assets?
Raw Data
SEHK:939 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in CNY CN¥7.37
SEHK:939 Share Price * SEHK (2019-02-22) in HKD HK$6.94
SEHK:939 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.855 CN¥5.93
Hong Kong Banks Industry PB Ratio Median Figure of 31 Publicly-Listed Banks Companies 0.79x
Hong Kong Market PB Ratio Median Figure of 2,118 Publicly-Listed Companies 0.98x
SEHK:939 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:939 Share Price ÷ Book Value per Share (both in CNY)

= 5.93 ÷ 7.37

0.81x

* Primary Listing of China Construction Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Construction Bank is overvalued based on assets compared to the HK Banks industry average.
X
Value checks
We assess China Construction Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. China Construction Bank has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

939 Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Construction Bank expected to grow at an attractive rate?
  • China Construction Bank's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • China Construction Bank's earnings growth is positive but not above the Hong Kong market average.
  • China Construction Bank's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:939 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:939 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 7.5%
SEHK:939 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 7.7%
Hong Kong Banks Industry Earnings Growth Rate Market Cap Weighted Average 6.7%
Hong Kong Banks Industry Revenue Growth Rate Market Cap Weighted Average 8.3%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:939 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:939 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 736,819 297,708 18
2019-12-31 700,460 275,342 17
2018-12-31 646,974 256,747 20
SEHK:939 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-09-30 488,910 -29,991 254,085
2018-06-30 484,830 -425,058 249,907
2018-03-31 474,945 -532,288 245,022
2017-12-31 468,669 -828,211 241,219
2017-09-30 466,354 -414,628 237,800
2017-06-30 464,105 -993,356 235,322
2017-03-31 464,543 -885,667 232,453
2016-12-31 469,582 -959,394 230,393
2016-09-30 482,586 -270,918 230,423
2016-06-30 486,662 -1,458,367 229,660
2016-03-31 510,448 698,842 229,092
2015-12-31 495,157 -460,031 228,145

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Construction Bank's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
  • China Construction Bank's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:939 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from China Construction Bank Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:939 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 1.19 1.27 1.11 16.00
2019-12-31 1.10 1.17 1.04 19.00
2018-12-31 1.02 1.04 1.00 17.00
SEHK:939 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-09-30 1.02
2018-06-30 1.00
2018-03-31 0.98
2017-12-31 0.96
2017-09-30 0.94
2017-06-30 0.94
2017-03-31 0.93
2016-12-31 0.92
2016-09-30 0.92
2016-06-30 0.92
2016-03-31 0.91
2015-12-31 0.91

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China Construction Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Construction Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Construction Bank has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

939 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Construction Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Construction Bank's year on year earnings growth rate has been positive over the past 5 years.
  • China Construction Bank's 1-year earnings growth exceeds its 5-year average (6.8% vs 2.6%)
  • China Construction Bank's earnings growth has exceeded the HK Banks industry average in the past year (6.8% vs 3.5%).
Earnings and Revenue History
China Construction Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Construction Bank Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:939 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 488,910.00 254,085.00 158,933.00
2018-06-30 484,830.00 249,907.00 162,785.00
2018-03-31 474,945.00 245,022.00 158,933.00
2017-12-31 468,669.00 241,219.00 158,933.00
2017-09-30 466,354.00 237,800.00 151,784.00
2017-06-30 464,105.00 235,322.00 218,259.00
2017-03-31 464,543.00 232,453.00 151,784.00
2016-12-31 469,582.00 230,393.00 151,784.00
2016-09-30 482,586.00 230,423.00 155,919.00
2016-06-30 486,662.00 229,660.00 155,919.00
2016-03-31 510,448.00 229,092.00 154,429.00
2015-12-31 495,157.00 228,145.00 155,919.00
2015-09-30 497,363.00 229,089.00 158,550.00
2015-06-30 498,575.00 229,063.00 158,550.00
2015-03-31 489,337.00 229,055.00 158,550.00
2014-12-31 496,640.00 227,830.00 158,550.00
2014-09-30 493,145.00 228,473.00 154,148.00
2014-06-30 487,805.00 225,608.00 154,148.00
2014-03-31 488,365.00 220,857.00 154,148.00
2013-12-31 468,604.00 214,657.00 154,148.00
2013-09-30 456,986.00 211,470.00 138,644.00
2013-06-30 446,061.00 206,607.00 138,644.00
2013-03-31 437,185.00 201,247.00 138,644.00
2012-12-31 422,907.00 193,179.00 138,644.00
2012-09-30 407,045.00 188,437.00 118,208.00
2012-06-30 395,125.00 182,716.00 118,208.00
2012-03-31 377,080.00 173,585.00 118,208.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China Construction Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Construction Bank used its assets more efficiently than the HK Banks industry average last year based on Return on Assets.
  • Unable to establish if China Construction Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess China Construction Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Construction Bank has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

939 Health

 How is China Construction Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of China Construction Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Construction Bank Company Filings, last reported 4 months ago.

SEHK:939 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 1,938,849.00 1,812,149.00 6,200,965.00
2018-06-30 1,864,577.00 1,662,608.00 5,919,020.00
2018-03-31 1,853,616.00 1,831,914.00 6,255,060.00
2017-12-31 1,795,827.00 1,681,598.00 1,304,855.00
2017-09-30 1,708,626.00 1,746,359.00 4,450,063.00
2017-06-30 1,644,602.00 1,601,473.00 1,408,812.00
2017-03-31 1,650,607.00 1,509,911.00 4,593,113.00
2016-12-31 1,589,654.00 1,494,352.00 1,374,445.00
2016-09-30 1,571,448.00 1,303,361.00 3,879,711.00
2016-06-30 1,505,960.00 1,103,938.00 1,299,507.00
2016-03-31 1,510,224.00 870,572.00 4,058,102.00
2015-12-31 1,445,083.00 1,075,258.00 1,265,774.00
2015-09-30 1,374,400.00 926,244.00 3,975,591.00
2015-06-30 1,312,450.00 811,153.00 1,031,787.00
2015-03-31 1,316,263.00 801,920.00 4,017,543.00
2014-12-31 1,251,848.00 919,171.00 1,084,057.00
2014-09-30 1,208,179.00 841,944.00 3,963,955.00
2014-06-30 1,147,012.00 728,496.00 1,078,248.00
2014-03-31 1,147,719.00 640,983.00 2,098,077.00
2013-12-31 1,074,329.00 674,359.00 941,937.00
2013-09-30 1,049,612.00 728,752.00 1,504,996.00
2013-06-30 1,000,511.00 583,356.00 1,336,558.00
2013-03-31 1,010,825.00 468,479.00 1,917,447.00
2012-12-31 949,545.00 403,429.00 1,148,784.00
2012-09-30 917,684.00 354,122.00 1,404,867.00
2012-06-30 869,405.00 334,468.00 1,120,181.00
2012-03-31 869,161.00 318,743.00 1,886,245.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • China Construction Bank has an acceptable proportion of non-loan assets held.
  • China Construction Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at China Construction Bank are broadly funded by customer deposits.
  • China Construction Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • China Construction Bank has a sufficient allowance for bad loans.
  • China Construction Bank has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess China Construction Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Construction Bank has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

939 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.9%
Current annual income from China Construction Bank dividends. Estimated to be 5.9% next year.
If you bought HK$2,000 of China Construction Bank shares you are expected to receive HK$98 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China Construction Bank's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.97%).
  • China Construction Bank's dividend is below the markets top 25% of dividend payers in Hong Kong (5.42%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:939 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
Hong Kong Banks Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 4.9%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 916 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:939 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.45 1.00
2022-12-31 0.42 1.00
2021-12-31 0.40 1.00
2020-12-31 0.36 18.00
2019-12-31 0.33 20.00
2018-12-31 0.31 18.00
SEHK:939 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2018-06-29 0.291 5.002
2017-04-28 0.278 4.625
2017-03-29 0.278 5.009
2016-03-30 0.274 5.723
2015-03-27 0.301 6.358
2014-07-02 0.300 6.329
2013-04-22 0.268 5.919
2013-03-25 0.268 5.410
2012-06-07 0.237 5.118
2011-06-09 0.212 4.507
2010-04-29 0.202 3.436
2010-03-29 0.202 3.533
2009-11-09 0.000 0.000
2009-10-23 0.000 0.000
2009-08-31 0.000 0.000
2009-04-24 0.194 4.027
2009-03-27 0.194 4.814
2009-02-24 0.221 6.079

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of China Construction Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess China Construction Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Construction Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Construction Bank has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

939 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Zuji Wang
COMPENSATION CN¥660,200
AGE 60
TENURE AS CEO 3.6 years
CEO Bio

Mr. Zuji Wang has been Vice Chairman, President and Executive Director at China Construction Bank Corporation since July 09, 2015. Mr. Wang served as Vice Chairman of China Insurance Regulatory Commission from September 2012 to May 2015. He served as vice governor of People's Government of Jilin Province from January 2008 to September 2012, assistant governor of People's Government of Jilin Province, director-general of Development and Reform Commission of People's Government of Jilin Province and concurrently director-general of Leadership Team Office of Revitalizing Jilin Old Industrial Base from April 2006 to January 2008, assistant governor of People's Government of Jilin Province and director- general of State-owned Assets Supervision & Administration Commission of the People's Government of Jilin Province from May 2005 to April 2006, assistant governor of People's Government of Jilin Province from February 2005 to May 2005, director of Comprehensive Planning Department of China Development Bank from January 2004 to February 2005, director of Business Development Department of China Development Bank from March 2003 to January 2004, president of Changchun Branch of China Development Bank from January 2000 to March 2003 and deputy director of Loan Department II (North-east China Loan Department) of China Development Bank from January 1997 to January 2000. He serves as vice chairman of China's National Association of Financial Market Institutional Investors. Mr. Wang obtained his doctorate degree in economics from Jilin University.

CEO Compensation
  • Zuji's compensation has been consistent with company performance over the past year.
  • Zuji's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the China Construction Bank management team in years:

4.7
Average Tenure
55.5
Average Age
  • The tenure for the China Construction Bank management team is about average.
Management Team

Guoli Tian

TITLE
Chairman of the Board
COMPENSATION
CN¥275K
AGE
58

Zuji Wang

TITLE
Vice Chairman & President
COMPENSATION
CN¥660K
AGE
60
TENURE
3.6 yrs

Yiming Xu

TITLE
Chief Financial Officer
COMPENSATION
CN¥975K
AGE
58
TENURE
4.7 yrs

Zhiling Huang

TITLE
Chief Economist & Secretary
AGE
57
TENURE
8 yrs

Gengsheng Zhang

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥606K
AGE
58
TENURE
5.8 yrs

Yi Huang

TITLE
Executive Vice President
COMPENSATION
CN¥606K
AGE
54
TENURE
4.8 yrs

Kepeng Zhu

TITLE
Chief Disciplinary Officer
COMPENSATION
CN¥606K
AGE
53
TENURE
3.6 yrs

Lin Liao

TITLE
Executive VP & Chief Risk Officer
COMPENSATION
CN¥796K
AGE
52
TENURE
1.9 yrs

Lilin Zhang

TITLE
Executive Vice President
COMPENSATION
CN¥403K
AGE
47
TENURE
1.4 yrs

Guiya Wang

TITLE
Chief Investment & Wealth Management Officer and GM of Investment Banking Dept of the Head Office
COMPENSATION
CN¥870K
AGE
53
TENURE
7.9 yrs
Board of Directors Tenure

Average tenure and age of the China Construction Bank board of directors in years:

1
Average Tenure
58
Average Age
  • The average tenure for the China Construction Bank board of directors is less than 3 years, this suggests a new board.
Board of Directors

Guoli Tian

TITLE
Chairman of the Board
COMPENSATION
CN¥275K
AGE
58
TENURE
1.3 yrs

Zuji Wang

TITLE
Vice Chairman & President
COMPENSATION
CN¥660K
AGE
60
TENURE
3.6 yrs

Gengsheng Zhang

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥606K
AGE
58
TENURE
3.5 yrs

Qiuyue Fang

TITLE
GM of Finance & Accounting Department and Shareholder Representative Supervisor
AGE
58
TENURE
0.7 yrs

Kegui Lu

TITLE
GM of Asset Preservation & Operation Center and Employee Representative Supervisor
AGE
56
TENURE
0.8 yrs

Jianhang Wu

TITLE
GM of Strategic Planning Department & Shareholder Representative Supervisor
AGE
56
TENURE
0.7 yrs

Yuanguo Cheng

TITLE
GM of Corporate Business Department & Employee Representative Supervisor
AGE
55
TENURE
0.8 yrs

Yi Wang

TITLE
GM of Housing Finance & Personal Credit Department and Employee Representative Supervisor
AGE
55
TENURE
0.8 yrs

Timpson Chung

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥440K
AGE
67
TENURE
5.7 yrs

Murray James Horn

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥470K
AGE
63
TENURE
5.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess China Construction Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Construction Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

939 News

Simply Wall St News

Should You Be Concerned About China Construction Bank Corporation’s (HKG:939) Liquidity?

As these large financial institutions revert back to health after the 2008 Financial Crisis, we are seeing an increase in market confidence in these “too-big-to-fail” banking stocks. … Following the crisis, a set of reforms termed Basel III was enforced to bolster risk management, regulation, and supervision in the financial services industry. … Investors should be more cautious when it comes to financial stocks given the different type of risk to which they are exposed.

Simply Wall St -

Does China Construction Bank Corporation's (HKG:939) CEO Pay Compare Well With Peers?

Zuji Wang has been the CEO of China Construction Bank Corporation (HKG:939) since 2015. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Zuji Wang's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What To Know Before Buying China Construction Bank Corporation (HKG:939) For Its Dividend

Historically, China Construction Bank Corporation (HKG:939) has paid dividends to shareholders, and these days it yields 5.1%. … Let's dig deeper into whether China Construction Bank should have a place in your portfolio. … View our latest analysis for China Construction Bank

Simply Wall St -

Have You Considered These Key Risks For China Construction Bank Corporation (HKG:939)?

Post-GFC recovery has strengthened economic growth and credit quality, benefiting large banks such as China Construction Bank Corporation (HKG:939), with a market capitalisation of HK$1.6t. … Growth stimulates demand for loans and impacts a borrower’s ability to repay which directly affects the level of risk China Construction Bank takes on. … It is relevant to understand a bank’s level of risky assets on its accounts as it affects the attractiveness of its stock as an investment.

Simply Wall St -

What You Should Know About China Construction Bank Corporation’s (HKG:939) Liquidity

As these large financial institutions revert back to health after the 2008 Financial Crisis, we are seeing an increase in market confidence in these “too-big-to-fail” banking stocks. … These reforms target bank level regulation and aims to improve the banking sector’s ability to absorb shocks arising from economic stress which could expose financial institutions to vulnerabilities. … As a large bank in HKD, 939 is exposed to strict regulation which has focused investor attention on the type and level of risks it is subjected to, and higher scrutiny on its risk-taking behaviour.

Simply Wall St -

Does China Construction Bank Corporation's (HKG:939) CEO Pay Compare Well With Peers?

In 2015 Zuji Wang was appointed CEO of China Construction Bank Corporation (HKG:939). … First, this article will compare CEO compensation with compensation at other large companies. … Our data indicates that China Construction Bank Corporation is worth HK$1.6t, and total annual CEO compensation is CN¥660k.

Simply Wall St -

Can China Construction Bank Corporation (HKG:939) Continue To Outperform Its Industry?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … China Construction Bank Corporation (HKG:939) performed in-line with its diversified banks industry on the basis of its ROE – producing a return of13.4% relative to the peer average of 11.8% over the past 12 months. … Check out our latest analysis for China Construction Bank

Simply Wall St -

Why China Construction Bank Corporation (HKG:939) Is An Attractive Investment

I've been keeping an eye on China Construction Bank Corporation (HKG:939) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe 939 has a lot to offer. … company with a

Simply Wall St -

Risk Factors To Consider Before Investing In China Construction Bank Corporation (HKG:939)

As a CN¥1.81t market capitalisation company operating in the financial services sector, China Construction Bank Corporation (HKG:939) has benefited from strong economic growth and improved credit quality as a result of post-GFC recovery. … Economic growth fuels demand for loans and affects a borrower’s ability to repay which directly impacts the level of risk China Construction Bank takes on. … Since the level of risky assets held by a bank impacts its cash flow and therefore the attractiveness of its stock as an investment, I will take you through three metrics that are insightful proxies for risk.

Simply Wall St -

China Construction Bank Corporation (HKG:939): Dividend Is Coming In 2 Days, Should You Buy?

Have you been keeping an eye on China Construction Bank Corporation's (HKG:939) upcoming dividend of CN¥0.35 per share payable on the 06 August 2018? … Is this future income a persuasive enough catalyst for investors to think about China Construction Bank as an investment today? … Check out our latest analysis for China Construction Bank

Simply Wall St -

939 Company Info

Map
Description

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, and Others segments. The company offers personal banking products and services, such as foreign currency deposits, all in one accounts, and RMB deposits; personal business loans, personal car loans, and personal housing loans; physical gold for personal investment and personal gold accounts; credit cards; foreign exchange services; certificate treasury and savings bonds, securities deposit accounts, and securities services, as well as bank-securities transfer and book-entry treasury bond over the counter services; and wealth management products. It also provides corporate banking products and services, including corporate term, notification, and demand deposits, as well corporate deposits by agreement and statement of deposits; SME, traditional credit, commercial draft, buyer credit, and RMB credit line loans; international settlement and financing services, and FI services for foreign banks; fund settlement services; guarantee-based, consulting and advising, and factoring services; and custody services, as well as e-banking services. In addition, the company offers corporate services comprising institutional services comprising services for government agencies, services for non-banking financial institutions, social security, banks cooperation, bank-securities cooperation, and bank-insurance cooperation. As of December 31, 2017, it operated 14,920 institutions, including 14,890 domestic institutions and 30 overseas institutions. China Construction Bank Corporation was founded in 1954 and is headquartered in Beijing, the People's Republic of China.

Details
Name: China Construction Bank Corporation
939
Exchange: SEHK
Founded: 1954
HK$1,746,466,354,478
250,010,977,486
Website: http://www.ccb.com
Address: China Construction Bank Corporation
No. 25, Finance Street,
Xicheng District,
Beijing,
100033,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 939 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 27. Oct 2005
OTCPK CICH.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 27. Oct 2005
DB C6T Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 27. Oct 2005
SHSC 939 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 27. Oct 2005
SZSC 939 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 27. Oct 2005
OTCPK CICH.Y ADR Pink Sheets LLC US USD 24. Oct 2008
SHSE 601939 Domestic Shares Shanghai Stock Exchange CN CNY 25. Sep 2007
XSSC 601939 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 25. Sep 2007
Number of employees
Current staff
Staff numbers
364,750
China Construction Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/23 12:47
End of day share price update: 2019/02/22 00:00
Last estimates confirmation: 2019/02/18
Last earnings filing: 2018/10/23
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.