SEHK:998

Stock Analysis Report

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China CITIC Bank

Market Cap

HK$240.4b

Last Updated

2021/08/02 15:32 UTC

Data Sources

Company Financials +

Executive Summary

China CITIC Bank Corporation Limited provides various banking products and services in the People’s Republic of China and internationally. More Details


Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 998 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 998's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.3%

998

-1.3%

HK Banks

-4.7%

HK Market


1 Year Return

4.4%

998

-0.9%

HK Banks

7.4%

HK Market

Return vs Industry: 998 exceeded the Hong Kong Banks industry which returned -0.9% over the past year.

Return vs Market: 998 underperformed the Hong Kong Market which returned 7.4% over the past year.


Shareholder returns

998IndustryMarket
7 Day0.3%-1.3%-4.7%
30 Day-3.3%-6.0%-8.7%
90 Day-11.9%-10.7%-10.0%
1 Year13.0%4.4%5.7%-0.9%11.1%7.4%
3 Year-10.0%-27.1%-10.8%-25.1%9.3%-2.9%
5 Year-2.5%-29.0%17.6%-10.8%37.6%13.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China CITIC 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: 998 (HK$3.55) is trading below our estimate of fair value (HK$10.74)

Significantly Below Fair Value: 998 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 998 is good value based on its PE Ratio (3.1x) compared to the Hong Kong Banks industry average (6.2x).

PE vs Market: 998 is good value based on its PE Ratio (3.1x) compared to the Hong Kong market (10.7x).


Price to Earnings Growth Ratio

PEG Ratio: 998 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 998 is good value based on its PB Ratio (0.3x) compared to the HK Banks industry average (0.4x).


Future Growth

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

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 998's forecast earnings growth (11.6% per year) is above the savings rate (1.5%).

Earnings vs Market: 998's earnings (11.6% per year) are forecast to grow slower than the Hong Kong market (18.3% per year).

High Growth Earnings: 998's earnings are forecast to grow, but not significantly.

Revenue vs Market: 998's revenue (11.1% per year) is forecast to grow slower than the Hong Kong market (12.4% per year).

High Growth Revenue: 998's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 998's Return on Equity is forecast to be low in 3 years time (10.1%).


Past Performance

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

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 998 has high quality earnings.

Growing Profit Margin: 998's current net profit margins (41.2%) are lower than last year (42.8%).


Past Earnings Growth Analysis

Earnings Trend: 998's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: 998's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 998 had negative earnings growth (-1.6%) over the past year, making it difficult to compare to the Banks industry average (-2.9%).


Return on Equity

High ROE: 998's Return on Equity (8.8%) is considered low.


Financial Health

How is China CITIC 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: 998's Assets to Equity ratio (13.5x) is moderate.

Allowance for Bad Loans: 998 has a sufficient allowance for bad loans (166%).

Low Risk Liabilities: 82% of 998's liabilities are made up of primarily low risk sources of funding.

Loan Level: 998 has an appropriate level of Loans to Assets ratio (58%).

Low Risk Deposits: 998's Loans to Deposits ratio (77%) is appropriate.

Level of Bad Loans: 998 has an appropriate level of bad loans (1.5%).


Dividend

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

8.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 998's dividend (8.59%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.06%).

High Dividend: 998's dividend (8.59%) is in the top 25% of dividend payers in the Hong Kong market (6.52%)


Stability and Growth of Payments

Stable Dividend: 998's dividend payments have been volatile in the past 10 years.

Growing Dividend: 998's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.5%), 998's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 998's dividends in 3 years are forecast to be well covered by earnings (27% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Heying Fang (55 yo)

2.42yrs

Tenure

CN¥2,382,800

Compensation

Mr. Heying Fang is the Chief Financial Officer and Executive Director at China CITIC Bank Corporation Ltd. Mr. Fang serves as President at China CITIC Bank Corporation Ltd since March 29, 2019 and served a...


CEO Compensation Analysis

Compensation vs Market: Heying's total compensation ($USD368.76K) is below average for companies of similar size in the Hong Kong market ($USD1.02M).

Compensation vs Earnings: Heying's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 998's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: 998's board of directors are not considered experienced ( 2.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

China CITIC Bank Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China CITIC Bank Corporation Limited
  • Ticker: 998
  • Exchange: SEHK
  • Founded: 1987
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$240.426b
  • Shares outstanding: 48.93b
  • Website: https://www.citicbank.com

Number of Employees


Location

  • China CITIC Bank Corporation Limited
  • Building No. 1
  • 6-30/Floor and 32-42/Floor
  • Beijing
  • 100020
  • China

Listings


Biography

China CITIC Bank Corporation Limited provides various banking products and services in the People’s Republic of China and internationally. The company operates through Corporate Banking, Personal Banking, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 15:32
End of Day Share Price2021/08/02 00:00
Earnings2021/03/31
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.