OTCPK:CICH.Y

Stock Analysis Report

China Construction Bank

Executive Summary

China Construction Bank Corporation provides various banking and related financial services in the People's Republic of China.

Snowflake

Fundamentals

Very undervalued with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

OTCPK:CICH.Y

0.3%

US Banks

0.9%

US Market


1 Year Return

-17.2%

OTCPK:CICH.Y

-13.6%

US Banks

0.3%

US Market

CICH.Y underperformed the Banks industry which returned -14.2% over the past year.

CICH.Y underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

CICH.YIndustryMarket
7 Day0.6%0.3%0.9%
30 Day-8.4%-5.1%-1.9%
90 Day-8.6%-3.5%1.6%
1 Year-13.4%-17.2%-11.2%-13.6%2.6%0.3%
3 Year12.4%-1.2%43.6%33.7%41.0%31.8%
5 Year20.5%-4.1%53.7%37.0%55.2%38.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is China Construction Bank 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

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

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


Price Based on Earnings

China Construction Bank is good value based on earnings compared to the US Banks industry average.

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


Price Based on Expected Growth

China Construction Bank is good value based on expected growth next year.


Price Based on Value of Assets

China Construction Bank is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is China Construction Bank expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Construction Bank's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).

China Construction Bank's earnings are expected to grow by 6% yearly, however this is not considered high growth (20% yearly).

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

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

2.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

China Construction Bank's 1-year earnings growth exceeds its 5-year average (3.6% vs 2.5%)

China Construction Bank's earnings growth has not exceeded the US Banks industry average in the past year (3.6% vs 33.2%).


Return on Equity

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


Return on Assets

China Construction Bank 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 China Construction Bank 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 China Construction 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

Information is not available.

Information is not available.


Financial Institutions Analysis

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

China Construction Bank has a sufficient allowance for bad loans.

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

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

Loans at China Construction Bank are broadly funded by customer deposits.

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


Next Steps

Dividend

What is China Construction Bank's current dividend yield, its reliability and sustainability?

6.74%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China Construction Bank's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

China Construction Bank's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

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 (3.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Guiping Liu (53yo)

0.3yrs

Tenure

0

Mr. Guiping Liu has been President of China Construction Bank Corporation since May 2019 and its Vice Chairman and Director since June 21, 2019. Mr. Liu worked for another leading banking institution, Agri ...


Management Age and Tenure

5.2yrs

Average Tenure

56.5yo

Average Age

The average tenure for the China Construction Bank management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

1.5yrs

Average Tenure

59yo

Average Age

The average tenure for the China Construction Bank 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

  • Guoli Tian (59yo)

    Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: CN¥711.30k
  • Guiya Wang (54yo)

    Chief Investment & Wealth Management Officer and GM of Investment Banking Dept of the Head Office

    • Tenure: 8.4yrs
    • Compensation: CN¥870.00k
  • Zhiling Huang (58yo)

    Chief Economist

    • Tenure: 5.9yrs
    • Compensation: CN¥825.60k
  • Gengsheng Zhang (59yo)

    Executive VP & Executive Director

    • Tenure: 4.0yrs
    • Compensation: CN¥652.90k
  • Guiping Liu (53yo)

    Vice Chairman & President

    • Tenure: 0.3yrs
  • Yi Huang (55yo)

    Executive Vice President

    • Tenure: 5.3yrs
    • Compensation: CN¥652.90k
  • Yiming Xu (59yo)

    Chief Financial Officer

    • Tenure: 5.2yrs
    • Compensation: CN¥992.40k
  • Lin Liao (53yo)

    Executive Vice President

    • Tenure: 0.9yrs
    • Compensation: CN¥869.00k
  • Lilin Zhang (48yo)

    Executive Vice President

    • Tenure: 1.9yrs
    • Compensation: CN¥636.10k
  • Qiuyue Fang (59yo)

    GM of Finance & Accounting Department and Shareholder Representative Supervisor

    • Tenure: 1.2yrs

Board Members

  • Murray James Horn (64yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: CN¥470.00k
  • Callum McCarthy (75yo)

    Independent Non-Executive Director

    • Tenure: 2.0yrs
    • Compensation: CN¥410.00k
  • Guoli Tian (59yo)

    Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: CN¥711.30k
  • Kegui Lu (57yo)

    GM of Asset Preservation & Operation Center and Employee Representative Supervisor

    • Tenure: 1.3yrs
  • Carl E. Walter (72yo)

    Independent Non-Executive Director

    • Tenure: 4.0yrs
    • Compensation: CN¥440.00k
  • Gengsheng Zhang (59yo)

    Executive VP & Executive Director

    • Tenure: 4.0yrs
    • Compensation: CN¥652.90k
  • Guiping Liu (53yo)

    Vice Chairman & President

    • Tenure: 0.3yrs
  • Qiuyue Fang (59yo)

    GM of Finance & Accounting Department and Shareholder Representative Supervisor

    • Tenure: 1.2yrs
  • Yuanguo Cheng (56yo)

    GM of Corporate Business Department & Employee Representative Supervisor

    • Tenure: 1.3yrs
  • Yi Wang (56yo)

    GM of Housing Finance & Personal Credit Department and Employee Representative Supervisor

    • Tenure: 1.3yrs

Company Information

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


Key Information

  • Name: China Construction Bank Corporation
  • Ticker: CICH.Y
  • Exchange: OTCPK
  • Founded: 1954
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$1.463t
  • Listing Market Cap: HK$186.423b
  • Shares outstanding: 250.01b
  • Website: https://www.asia.ccb.com

Number of Employees


Location

  • China Construction Bank Corporation
  • No. 25, Finance Street
  • Xicheng District
  • Beijing
  • 100033
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
939SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 2005
C6TDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEUROct 2005
CICH.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDOct 2005
939SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2005
939SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2005
601939SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYSep 2007
601939XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYSep 2007
CICH.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

China Construction Bank Corporation provides various banking and related financial services in the People's Republic of China. It operates through Corporate Banking, Personal Banking, Treasury Business, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:15
End of Day Share Price2019/08/19 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.