Dongguan Rural Commercial Bank (SEHK:9889) - Share price, News & Analysis

9889 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	4/6
Financial Health	6/6
Dividends	3/6

9889 Stock Overview

Dongguan Rural Commercial Bank Co., Ltd. provides various commercial banking products and services in Dongguan.

Rewards

Trading at 52.6% below our estimate of its fair value

Revenue is forecast to grow 18.79% per year

Earnings grew by 14.1% over the past year

Risk Analysis

Unstable dividend track record

Dongguan Rural Commercial Bank Competitors

Chongqing Rural Commercial Bank

SEHK:3618

HK$47.6b

Guangzhou Rural Commercial Bank

SEHK:1551

HK$32.1b

Industrial and Commercial Bank of China

SEHK:1398

HK$1.9t

China Construction Bank

SEHK:939

HK$1.4t

Price History & Performance

Summary of all time highs, changes and price drops for Dongguan Rural Commercial Bank
Historical stock prices
Current Share Price	HK$7.65
52 Week High	HK$8.40
52 Week Low	HK$6.51
Beta	0
1 Month Change	-0.13%
3 Month Change	-2.30%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-7.27%

Shareholder Returns

	9889	HK Banks	HK Market
7D	0.1%	0.6%	2.1%
1Y	n/a	-6.9%	-25.1%

Return vs Industry: Insufficient data to determine how 9889 performed against the Hong Kong Banks industry.

Return vs Market: Insufficient data to determine how 9889 performed against the Hong Kong Market.

Price Volatility

Is 9889's price volatile compared to industry and market?
9889 volatility
9889 Average Weekly Movement	2.3%
Banks Industry Average Movement	3.6%
Market Average Movement	8.0%
10% most volatile stocks in HK Market	15.1%
10% least volatile stocks in HK Market	3.9%

Stable Share Price: 9889 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 9889's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1952	7,962	Qiang Fu	https://www.drcbank.com

Dongguan Rural Commercial Bank Co., Ltd. provides various commercial banking products and services in Dongguan. It operates through Corporate Banking, Personal Banking, Treasury, and Others segments.

Dongguan Rural Commercial Bank Fundamentals Summary

How do Dongguan Rural Commercial Bank's earnings and revenue compare to its market cap?
9889 fundamental statistics
Market Cap	CN¥45.07b
Earnings (TTM)	CN¥5.75b
Revenue (TTM)	CN¥11.06b

7.8x

P/E Ratio

0.9x

P/B Ratio

Is 9889 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
9889 income statement (TTM)
Revenue	CN¥11.06b
Cost of Revenue	CN¥0
Gross Profit	CN¥11.06b
Other Expenses	CN¥5.31b
Earnings	CN¥5.75b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.83
Gross Margin	100.00%
Net Profit Margin	51.98%
Debt/Equity Ratio	185.7%

How did 9889 perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

35%

Payout Ratio

Valuation

Is Dongguan Rural Commercial Bank undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 9889 (HK$7.65) is trading below our estimate of fair value (HK$16.13)

Significantly Below Fair Value: 9889 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 9889 is poor value based on its PE Ratio (7.8x) compared to the Hong Kong Banks industry average (5.5x).

PE vs Market: 9889 is good value based on its PE Ratio (7.8x) compared to the Hong Kong market (8.8x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 9889's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 9889 is overvalued based on its PB Ratio (0.9x) compared to the HK Banks industry average (0.4x).

Future Growth

How is Dongguan Rural Commercial Bank forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.8%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 9889's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if 9889's earnings are forecast to grow faster than the Hong Kong market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 9889's revenue (18.8% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 9889's revenue (18.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 9889's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Dongguan Rural Commercial Bank performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 9889 has high quality earnings.

Growing Profit Margin: 9889's current net profit margins (52%) are lower than last year (53.6%).

Past Earnings Growth Analysis

Earnings Trend: 9889's earnings have grown by 6.3% per year over the past 5 years.

Accelerating Growth: 9889's earnings growth over the past year (14.1%) exceeds its 5-year average (6.3% per year).

Earnings vs Industry: 9889 earnings growth over the past year (14.1%) exceeded the Banks industry 11.2%.

Return on Equity

High ROE: 9889's Return on Equity (11.3%) is considered low.

Financial Health

How is Dongguan Rural Commercial Bank's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: 9889's Assets to Equity ratio (11.8x) is moderate.

Allowance for Bad Loans: 9889 has a sufficient allowance for bad loans (379%).

Low Risk Liabilities: 82% of 9889's liabilities are made up of primarily low risk sources of funding.

Loan Level: 9889 has an appropriate level of Loans to Assets ratio (49%).

Low Risk Deposits: 9889's Loans to Deposits ratio (66%) is appropriate.

Level of Bad Loans: 9889 has an appropriate level of bad loans (0.8%).

Dividend

What is Dongguan Rural Commercial Bank current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.43%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 9889's dividend (4.43%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.81%).

High Dividend: 9889's dividend (4.43%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.82%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether 9889's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 9889's dividend payments are increasing as they only just started paying a dividend.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34.8%), 9889's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: 9889's dividends in 3 years are forecast to be well covered by earnings (32% payout ratio).

Discover strong dividend paying companies

Management

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

5.7yrs

Average management tenure

CEO

Qiang Fu (51 yo)

no data

Tenure

Mr. Qiang Fu is Executive Director of Dongguan Rural Commercial Bank Co., Ltd. from November 2018 and serves as its President.

Leadership Team

Experienced Management: 9889's management team is seasoned and experienced (5.7 years average tenure).

Board Members

Experienced Board: 9889's board of directors are considered experienced (3.8 years average tenure).

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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: 9889 only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/05/20 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31