OTCPK:BKFC.F

Stock Analysis Report

Bank of Communications

Executive Summary

Bank of Communications Co., Ltd. provides commercial banking products and services primarily in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally.

Snowflake

Fundamentals

Very undervalued with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:BKFC.F

-1.8%

US Banks

-1.6%

US Market


1 Year Return

n/a

OTCPK:BKFC.F

-16.1%

US Banks

-3.0%

US Market

No trading data on BKFC.F.

No trading data on BKFC.F.


Share holder returns

BKFC.FIndustryMarket
7 Day0%-1.8%-1.6%
30 Day-9.3%-10.1%-5.7%
90 Dayn/a-5.0%0.2%
1 Yearn/a-13.7%-16.1%-0.8%-3.0%
3 Yearn/a37.9%28.5%38.1%29.1%
5 Year-11.1%-11.1%49.3%33.2%50.8%34.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Bank of Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).

Bank of Communications's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Bank of Communications is good value based on earnings compared to the US Banks industry average.

Bank of Communications is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Bank of Communications is good value based on expected growth next year.


Price Based on Value of Assets

Bank of Communications is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Bank of Communications expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bank of Communications's revenue is expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

Bank of Communications's earnings are expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).

Bank of Communications's revenue growth is expected to exceed the United States of America market average.

Bank of Communications's earnings growth is positive but not above the United States of America market average.

Bank of Communications's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Bank of Communications is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Bank of Communications performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bank of Communications's year on year earnings growth rate has been positive over the past 5 years.

Bank of Communications's 1-year earnings growth exceeds its 5-year average (5.4% vs 1.9%)

Bank of Communications's earnings growth has not exceeded the US Banks industry average in the past year (5.4% vs 33.1%).


Return on Equity

Bank of Communications has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Bank of Communications used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Bank of Communications improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Bank of Communications'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

Information is not available.

Information is not available.


Financial Institutions Analysis

Bank of Communications has an acceptable proportion of non-loan assets held.

Bank of Communications has a sufficient allowance for bad loans.

Bank of Communications's liabilities are made up of primarily low risk sources of funding.

Bank of Communications's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Bank of Communications are broadly funded by customer deposits.

Bank of Communications has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Bank of Communications's current dividend yield, its reliability and sustainability?

7.05%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Bank of Communications's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Bank of Communications's dividend is above the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Deqi Ren (56yo)

1.2yrs

Tenure

CN¥375,600

Compensation

Mr. Deqi Ren serves as Vice Chairman of the Board at Bank of Communications Co., Ltd. since June 21, 2019. He served as Chairman of the Board at Bank of Communications Co., Ltd. from April 2019 until June  ...


CEO Compensation Analysis

Deqi's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for Deqi to compare compensation growth.


Management Age and Tenure

1.2yrs

Average Tenure

56yo

Average Age

The average tenure for the Bank of Communications management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

59yo

Average Age

The tenure for the Bank of Communications board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Weidong Hou (59yo)

    Executive VP & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥665.40k
  • Yarong Du (55yo)

    Head of the Office of Discipline Investigation & Supervision and Employee Representative Supervisor

    • Tenure: 9.0yrs
    • Compensation: CN¥677.80k
  • Jiajin Lyu (51yo)

    Executive Vice President

    • Tenure: 0.6yrs
  • Deqi Ren (56yo)

    President & Vice Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: CN¥375.60k
  • Zhao Wu (65yo)

    Strategic Cooperation Consultant

    • Tenure: 6.4yrs
  • Mang Guo (57yo)

    Executive Vice President

    • Tenure: 1.1yrs
    • Compensation: CN¥1.12m
  • Eric Pan

    Senior Manager

    • Tenure: 0.0yrs
  • Sheng Gu (56yo)

    GM of HR Department

    • Tenure: 1.3yrs
    • Compensation: CN¥782.10k
  • Han Xu (53yo)

    Chief Business Officer of Retail & Private Business

    • Tenure: 0.9yrs
    • Compensation: CN¥293.60k
  • Hong Tu (53yo)

    Chief Business Officer of Interbank & Market Business

    • Tenure: 0.9yrs
    • Compensation: CN¥293.60k

Board Members

  • Zhihua Xia (64yo)

    External Supervisor

    • Tenure: 3.2yrs
  • Weidong Hou (59yo)

    Executive VP & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥665.40k
  • Qing Chen (59yo)

    GM of Audit Department & Employee Representative Supervisor

    • Tenure: 14.8yrs
    • Compensation: CN¥701.50k
  • Haoyi Cai (65yo)

    Independent Non-Executive Director

    • Tenure: 1.0yrs
  • Jian Li (66yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥250.00k
  • Yarong Du (55yo)

    Head of the Office of Discipline Investigation & Supervision and Employee Representative Supervisor

    • Tenure: 9.0yrs
    • Compensation: CN¥677.80k
  • Li Liu (64yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: CN¥250.00k
  • Taiyin Wang (55yo)

    Non-Executive Director

    • Tenure: 6.0yrs
    • Compensation: CN¥841.50k
  • Deqi Ren (56yo)

    President & Vice Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: CN¥375.60k
  • Xingshe Guan (53yo)

    Employee Supervisor

    • Tenure: 0.2yrs

Company Information

Bank of Communications Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank of Communications Co., Ltd.
  • Ticker: BKFC.F
  • Exchange: OTCPK
  • Founded: 1908
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$422.579b
  • Listing Market Cap: HK$53.879b
  • Shares outstanding: 74.26b
  • Website: https://www.bankcomm.com

Number of Employees


Location

  • Bank of Communications Co., Ltd.
  • 188 Yin Cheng Zhong Lu
  • Pilot Free Trade Zone
  • Shanghai
  • 200120
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3328SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 2005
C4CDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJun 2005
BKFC.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJun 2005
3328SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 2005
3328SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 2005
601328SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYMay 2007
601328XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYMay 2007
BCMX.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Bank of Communications Co., Ltd. provides commercial banking products and services primarily in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company offers personal ba ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 00:07
End of Day Share Price2019/08/15 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.