China International Capital (SEHK:3908) - Share price, News & Analysis

3908 fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	4/6
Financial Health	3/6
Dividends	2/6

3908 Stock Overview

China International Capital Corporation Limited provides financial services in Mainland China and internationally.

Rewards

Trading at 51.4% below our estimate of its fair value

Earnings are forecast to grow 18.43% per year

Earnings grew by 32.5% over the past year

Risk Analysis

No risks detected for 3908 from our risk checks.

China International Capital Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China International Capital
Historical stock prices
Current Share Price	HK$16.48
52 Week High	HK$23.80
52 Week Low	HK$13.02
Beta	0.90
1 Month Change	15.25%
3 Month Change	-3.06%
1 Year Change	-24.40%
3 Year Change	4.57%
5 Year Change	43.06%
Change since IPO	49.28%

Recent News & Updates

Jun 01

Here's Why I Think China International Capital (HKG:3908) Is An Interesting Stock

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	3908	HK Capital Markets	HK Market
7D	5.0%	3.3%	2.1%
1Y	-24.4%	-19.8%	-23.3%

Return vs Industry: 3908 underperformed the Hong Kong Capital Markets industry which returned -19.8% over the past year.

Return vs Market: 3908 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 3908's price volatile compared to industry and market?
3908 volatility
3908 Average Weekly Movement	6.5%
Capital Markets Industry Average Movement	7.3%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 3908 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 3908's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	13,557	Zhaohui Huang	https://www.cicc.com

China International Capital Corporation Limited provides financial services in Mainland China and internationally. The company operates through six segments: Investment Banking; Equities; Fixed Income, Commodities, and Currencies (FICC); Asset Management; Private Equity; and Wealth Management. The Investment Banking segment provides investment banking services, including equity financing, debt, and structured financing and financial advisory services.

China International Capital Fundamentals Summary

How do China International Capital's earnings and revenue compare to its market cap?
3908 fundamental statistics
Market Cap	CN¥155.96b
Earnings (TTM)	CN¥10.21b
Revenue (TTM)	CN¥32.32b

6.6x

P/E Ratio

2.1x

P/S Ratio

Is 3908 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
3908 income statement (TTM)
Revenue	CN¥32.32b
Cost of Revenue	CN¥2.13b
Gross Profit	CN¥30.19b
Other Expenses	CN¥19.99b
Earnings	CN¥10.21b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.11
Gross Margin	93.41%
Net Profit Margin	31.58%
Debt/Equity Ratio	327.0%

How did 3908 perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

14%

Payout Ratio

Does 3908 pay a reliable dividends?

See 3908 dividend history and benchmarks

When do you need to buy 3908 by to receive an upcoming dividend?
China International Capital dividend dates
Ex Dividend Date	Jun 27 2022
Dividend Pay Date	Aug 19 2022
Days until Ex dividend	1 day
Days until Dividend pay date	54 days

Does 3908 pay a reliable dividends?

See 3908 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 3908 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3908?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 3908. This is calculated by dividing 3908's market cap by their current preferred multiple.
What is 3908's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥155.96b

3908 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does 3908's PE Ratio compare to its peers?

3908 PE Ratio vs Peers

The above table shows the PE ratio for 3908 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8.6x

Forward PE

Price-To-Earnings vs Peers: 3908 is good value based on its Price-To-Earnings Ratio (6.6x) compared to the peer average (8.6x).

Price to Earnings Ratio vs Industry

How does 3908's PE Ratio compare vs other companies in the Hong Kong Capital Markets Industry?

Price-To-Earnings vs Industry: 3908 is good value based on its Price-To-Earnings Ratio (6.6x) compared to the Hong Kong Capital Markets industry average (8.1x)

Price to Earnings Ratio vs Fair Ratio

What is 3908's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3908 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.6x
Fair PE Ratio	7.9x

Price-To-Earnings vs Fair Ratio: 3908 is good value based on its Price-To-Earnings Ratio (6.6x) compared to the estimated Fair Price-To-Earnings Ratio (7.9x).

Share Price vs Fair Value

What is the Fair Price of 3908 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3908 (HK$16.48) is trading below our estimate of fair value (HK$33.91)

Significantly Below Fair Value: 3908 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 3908 is good value based on its PEG Ratio (0.4x)

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

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

18.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3908's forecast earnings growth (18.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 3908's earnings (18.4% per year) are forecast to grow faster than the Hong Kong market (17% per year).

High Growth Earnings: 3908's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3908's revenue (16.3% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 3908's revenue (16.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 3908's Return on Equity is forecast to be low in 3 years time (13.3%).

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Past Performance

How has China International Capital 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

32.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3908 has high quality earnings.

Growing Profit Margin: 3908's current net profit margins (31.6%) are higher than last year (26.4%).

Past Earnings Growth Analysis

Earnings Trend: 3908's earnings have grown significantly by 32.5% per year over the past 5 years.

Accelerating Growth: 3908's earnings growth over the past year (32.5%) is below its 5-year average (32.5% per year).

Earnings vs Industry: 3908 earnings growth over the past year (32.5%) exceeded the Capital Markets industry 13.6%.

Return on Equity

High ROE: 3908's Return on Equity (11.8%) is considered low.

Discover strong past performing companies

Financial Health

How is China International Capital's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3908's short term assets (CN¥596.7B) exceed its short term liabilities (CN¥391.7B).

Long Term Liabilities: 3908's short term assets (CN¥596.7B) exceed its long term liabilities (CN¥184.4B).

Debt to Equity History and Analysis

Debt Level: 3908 has more cash than its total debt.

Reducing Debt: 3908's debt to equity ratio has increased from 175.2% to 327% over the past 5 years.

Debt Coverage: 3908's debt is not well covered by operating cash flow (6.4%).

Interest Coverage: Insufficient data to determine if 3908's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is China International Capital current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

2.13%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 3908's dividend (2.13%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 3908's dividend (2.13%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).

Stability and Growth of Payments

Stable Dividend: 3908 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3908's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14.3%), 3908's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (8.2%), 3908's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

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

4.7yrs

Average management tenure

CEO

Zhaohui Huang (57 yo)

2.5yrs

Tenure

CN¥7,953,264

Compensation

Mr. Zhaohui Huang serves as Chairman at CICC Capital Management Co., Ltd. He serves as Chief Executive Officer of China International Capital Corporation Ltd. since December 30, 2019 and is its Executive D...

CEO Compensation Analysis

Compensation vs Market: Zhaohui's total compensation ($USD1.19M) is about average for companies of similar size in the Hong Kong market ($USD1.03M).

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

Leadership Team

Experienced Management: 3908's management team is considered experienced (4.7 years average tenure).

Board Members

Experienced Board: 3908's board of directors are not considered experienced ( 2.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31