OTCPK:BNKH.F

Stock Analysis Report

BOC Hong Kong (Holdings)

Executive Summary

BOC Hong Kong (Holdings) Limited, an investment holding company, provides banking and related financial services to corporate and individual customers in Hong Kong, Mainland China, and internationally.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.

Share Price & News

How has BOC Hong Kong (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.0%

OTCPK:BNKH.F

-1.8%

US Banks

-1.6%

US Market


1 Year Return

-26.5%

OTCPK:BNKH.F

-16.1%

US Banks

-3.0%

US Market

BNKH.F underperformed the Banks industry which returned -13.8% over the past year.

BNKH.F underperformed the Market in United States of America which returned -0% over the past year.


Share holder returns

BNKH.FIndustryMarket
7 Day6.0%-1.8%-1.6%
30 Day-11.9%-10.6%-5.8%
90 Day-11.3%-5.0%0.2%
1 Year-26.5%-26.5%-13.7%-16.1%-0.8%-3.0%
3 Year4.9%4.9%37.9%28.5%38.0%29.1%
5 Year5.6%5.6%49.4%33.2%50.8%34.1%

Price Volatility Vs. Market

How volatile is BOC Hong Kong (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is BOC Hong Kong (Holdings) undervalued based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

BOC Hong Kong (Holdings)'s share price is below the future cash flow value, and at a moderate discount (> 20%).

BOC Hong Kong (Holdings)'s share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

BOC Hong Kong (Holdings) is good value based on earnings compared to the US Banks industry average.

BOC Hong Kong (Holdings) is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

BOC Hong Kong (Holdings) is poor value based on expected growth next year.


Price Based on Value of Assets

BOC Hong Kong (Holdings) is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is BOC Hong Kong (Holdings) expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

BOC Hong Kong (Holdings)'s revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

BOC Hong Kong (Holdings)'s earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).

BOC Hong Kong (Holdings)'s revenue growth is positive but not above the United States of America market average.

BOC Hong Kong (Holdings)'s earnings growth is positive but not above the United States of America market average.

BOC Hong Kong (Holdings)'s earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

BOC Hong Kong (Holdings) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has BOC Hong Kong (Holdings) performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

BOC Hong Kong (Holdings)'s year on year earnings growth rate has been positive over the past 5 years.

BOC Hong Kong (Holdings)'s 1-year earnings growth exceeds its 5-year average (12% vs 7.8%)

BOC Hong Kong (Holdings)'s earnings growth has not exceeded the US Banks industry average in the past year (12% vs 33.1%).


Return on Equity

BOC Hong Kong (Holdings) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

BOC Hong Kong (Holdings) used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if BOC Hong Kong (Holdings) 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 BOC Hong Kong (Holdings)'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

BOC Hong Kong (Holdings) has an acceptable proportion of non-loan assets held.

BOC Hong Kong (Holdings) has a sufficient allowance for bad loans.

BOC Hong Kong (Holdings)'s liabilities are made up of primarily low risk sources of funding.

BOC Hong Kong (Holdings)'s level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at BOC Hong Kong (Holdings) are broadly funded by customer deposits.

BOC Hong Kong (Holdings) has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is BOC Hong Kong (Holdings)'s current dividend yield, its reliability and sustainability?

5.98%

Expected Dividend Yield


Dividend Yield and Payments Analysis

BOC Hong Kong (Holdings)'s pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

BOC Hong Kong (Holdings)'s dividend is above the markets top 25% of dividend payers in United States of America (3.82%).

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 (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).


Next Steps

Management

What is the CEO of BOC Hong Kong (Holdings)'s salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Yingxin Gao (57yo)

1.6yrs

Tenure

HK$10,548,000

Compensation

Mr. Yingxin Gao has been Executive Director, Vice Chairman and Chief Executive of Bank of China (Hong Kong) Limited and BOC Hong Kong (Holdings) Ltd. since January 1, 2018. Mr. Gao was a Non-executive Dire ...


CEO Compensation Analysis

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

Insufficient data for Yingxin to compare compensation growth.


Management Age and Tenure

3.3yrs

Average Tenure

52.5yo

Average Age

The tenure for the BOC Hong Kong (Holdings) management team is about average.


Board Age and Tenure

2.4yrs

Average Tenure

60yo

Average Age

The average tenure for the BOC Hong Kong (Holdings) board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Yingxin Gao (57yo)

    Vice Chairman & Chief Executive

    • Tenure: 1.6yrs
    • Compensation: HK$10.55m
  • Yanlai Zhu (64yo)

    Consultant

    • Tenure: 0.0yrs
  • Ann Kung (56yo)

    Deputy Chief Executive

    • Tenure: 8.3yrs
  • Yang Sui (45yo)

    Chief Financial Officer

    • Tenure: 5.0yrs
  • Xiangqun Zhong (49yo)

    Chief Operating Officer

    • Tenure: 3.9yrs
  • Shu Yuan (56yo)

    Deputy Chief Executive of Financial Markets

    • Tenure: 3.8yrs
  • Nan Luo (45yo)

    Company Secretary

    • Tenure: 2.8yrs
  • Qi Wang (56yo)

    Deputy Chief Executive of Legal & Compliance

    • Tenure: 0.0yrs
  • Bing Wang (47yo)

    Deputy Chief Executive

    • Tenure: 0.7yrs
  • Zhikun Qiu (49yo)

    Deputy Chief Executive

    • Tenure: 0.6yrs

Board Members

  • Savio Tung (68yo)

    Independent Non-Executive Director

    • Tenure: 13.7yrs
    • Compensation: HK$692.00k
  • Beng Seng Koh (68yo)

    Independent Non-Executive Director

    • Tenure: 13.4yrs
    • Compensation: HK$642.00k
  • Yingxin Gao (57yo)

    Vice Chairman & Chief Executive

    • Tenure: 1.6yrs
    • Compensation: HK$10.55m
  • Jonathan Choi (62yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: HK$592.00k
  • Liange Liu (58yo)

    Chairman

    • Tenure: 0.1yrs
  • Quinn Law (66yo)

    Independent Non-executive Director

    • Tenure: 0.4yrs
  • Eva Cheng (58yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$500.00k
  • Jingzhen Lin (54yo)

    Non Executive Director

    • Tenure: 1.0yrs

Company Information

BOC Hong Kong (Holdings) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BOC Hong Kong (Holdings) Limited
  • Ticker: BNKH.F
  • Exchange: OTCPK
  • Founded: 1917
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$285.994b
  • Listing Market Cap: HK$36.464b
  • Shares outstanding: 10.57b
  • Website: https://www.bochk.com

Number of Employees


Location

  • BOC Hong Kong (Holdings) Limited
  • Bank of China Tower
  • 24th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BNKH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2002
2388SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2002
BOFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2002
2388SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2002
2388SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2002
BHKL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDApr 2003

Biography

BOC Hong Kong (Holdings) Limited, an investment holding company, provides banking and related financial services to corporate and individual customers in Hong Kong, Mainland China, and internationally. It  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 23:58
End of Day Share Price2019/08/21 00:00
Earnings2018/12/31
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.