SEHK:3908

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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.


Market Performance


7 Day Return

-15.1%

3908

-0.2%

HK Capital Markets

-0.4%

HK Market


1 Year Return

26.3%

3908

50.4%

HK Capital Markets

25.9%

HK Market

Return vs Industry: 3908 underperformed the Hong Kong Capital Markets industry which returned 50.4% over the past year.

Return vs Market: 3908 matched the Hong Kong Market which returned 25.9% over the past year.


Shareholder returns

3908IndustryMarket
7 Day-15.1%-0.2%-0.4%
30 Day-20.8%-0.9%4.5%
90 Day6.3%23.6%17.7%
1 Year26.3%26.3%53.9%50.4%30.7%25.9%
3 Year25.7%22.7%16.9%7.8%7.7%-3.6%
5 Year90.8%83.2%52.6%33.6%74.5%44.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China International Capital undervalued compared to its fair value and its price relative to the market?

29.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3908 (HK$18.8) is trading below our estimate of fair value (HK$26.63)

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


Price To Earnings Ratio

PE vs Industry: 3908 is good value based on its PE Ratio (11.5x) compared to the HK Capital Markets industry average (15.6x).

PE vs Market: 3908 is good value based on its PE Ratio (11.5x) compared to the Hong Kong market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: 3908 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 3908 is overvalued based on its PB Ratio (1.2x) compared to the HK Capital Markets industry average (0.6x).


Next Steps

Future Growth

How is China International Capital forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3908's forecast earnings growth (17.6% per year) is above the savings rate (1.5%).

Earnings vs Market: 3908's earnings (17.6% per year) are forecast to grow slower than the Hong Kong market (21.3% per year).

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

Revenue vs Market: 3908's revenue (16.5% per year) is forecast to grow faster than the Hong Kong market (13.8% per year).

High Growth Revenue: 3908's revenue (16.5% 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 (12.4%).


Next Steps

Past Performance

How has China International Capital performed over the past 5 years?

25.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3908 has high quality earnings.

Growing Profit Margin: 3908's current net profit margins (24.9%) are lower than last year (27.8%).


Past Earnings Growth Analysis

Earnings Trend: 3908's earnings have grown significantly by 25.8% per year over the past 5 years.

Accelerating Growth: 3908's earnings growth over the past year (53.8%) exceeds its 5-year average (25.8% per year).

Earnings vs Industry: 3908 earnings growth over the past year (53.8%) exceeded the Capital Markets industry 12.8%.


Return on Equity

High ROE: 3908's Return on Equity (10.6%) is considered low.


Next Steps

Financial Health

How is China International Capital's financial position?


Financial Position Analysis

Short Term Liabilities: 3908's short term assets (CN¥428.4B) exceed its short term liabilities (CN¥298.4B).

Long Term Liabilities: 3908's short term assets (CN¥428.4B) exceed its long term liabilities (CN¥130.2B).


Debt to Equity History and Analysis

Debt Level: 3908's debt to equity ratio (397.5%) is considered high.

Reducing Debt: 3908's debt to equity ratio has increased from 158.9% to 397.5% over the past 5 years.

Debt Coverage: 3908's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Next Steps

Dividend

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

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3908's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (1.95%).

High Dividend: 3908's dividend (1.12%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.22%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 3908 has been paying a dividend for less than 10 years.

Growing Dividend: 3908's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.8%), 3908's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3908's dividends in 3 years are forecast to be well covered by earnings (22.4% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Zhaohui Huang (56 yo)

1.17yrs

Tenure

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 Executive Director...


Leadership Team

NamePositionTenureCompensationOwnership
Zhaohui Huang
CEO & Executive Director1.17yrsno data0.15%
CN¥ 357.9m
King Fung Wong
Chief Financial Officer4yrsno datano data
Gang Chu
Chief Operating Officer5.83yrsno datano data
Gang Chen
Chief Compliance Officer4.5yrsno datano data
Bo Wu
Head of Wealth Management Department5.75yrsno datano data
Haizhou Huang
Head of the Equities Department7.75yrsno datano data
Fengwei Zhang
Chief Risk Officer & Head of the Risk Management Department3.67yrsno datano data
Yicheng Xu
Head of Asset Management Segment & Assistant President0.75yrno datano data
Sheng Wang
MD & Head of the Investment Banking Department3.08yrsno datano data
Zahid Ahmed
Managing Director of New York Office1.67yrsno datano data
Lei Wang
Managing Director11.17yrsno datano data
Jiaxing Zhou
Joint Company Secretary5.67yrsno datano data

4.3yrs

Average Tenure

51yo

Average Age

Experienced Management: 3908's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhaohui Huang
CEO & Executive Director1.17yrsno data0.15%
CN¥ 357.9m
Lizuo Jin
Non-Employee Representative Supervisor5.75yrsno datano data
Peter Hugh Nolan
Independent Non-Executive Director1yrno datano data
Wai Keung Siu
Independent Non-Executive Director5.75yrsCN¥577.27k0.0021%
CN¥ 5.1m
Li Liu
Independent Non-Executive Director4.67yrsCN¥532.40kno data
Shenglin Ben
Independent Non-Executive Director5.75yrsCN¥517.60kno data
Wenwu Duan
Non-Executive Director1yrno datano data
Tao Gao
Chairman of the Supervisory Committee3.67yrsno datano data
Lixia Tan
Non-Executive Director1yrno datano data
Rujun Shen
Non-Executive Chairman of the Board1.5yrsno datano data
Zheng Cui
Non-Employee Representative Supervisor1yrno datano data

1.5yrs

Average Tenure

56yo

Average Age

Experienced Board: 3908's board of directors are not considered experienced ( 1.5 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 been diluted in the past year, with total shares outstanding growing by 10.5%.


Top Shareholders

Company Information

China International Capital Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China International Capital Corporation Limited
  • Ticker: 3908
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: HK$246.702b
  • Shares outstanding: 4.83b
  • Website: https://www.cicc.com

Number of Employees


Location

  • China International Capital Corporation Limited
  • China World Office 2
  • 27th and 28th Floor
  • Beijing
  • 100004
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3908SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDNov 2015
CIMDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURNov 2015
3908SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDNov 2015
3908SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDNov 2015
CNIC.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDNov 2015
601995SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYNov 2020

Biography

China International Capital Corporation Limited provides financial services in Mainland China and internationally. The company operates in five segments: Investment Banking; Equities; Fixed Income, Commodi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 10:05
End of Day Share Price2021/02/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.