OTCPK:CIHH.F

Stock Analysis Report

Executive Summary

China Merchants Bank Co., Ltd. provides various wholesale and retail banking products and services in the People’s Republic of China and internationally.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

CIHH.F

4.8%

US Banks

2.3%

US Market


1 Year Return

29.7%

CIHH.F

0.04%

US Banks

5.6%

US Market

Return vs Industry: CIHH.F exceeded the US Banks industry which returned 0% over the past year.

Return vs Market: CIHH.F exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

CIHH.FIndustryMarket
7 Day0%4.8%2.3%
30 Day-3.2%-0.5%-1.0%
90 Day-7.3%2.0%-0.7%
1 Year29.7%29.7%2.9%0.04%7.9%5.6%
3 Year85.1%85.1%51.5%41.1%45.6%36.3%
5 Year168.2%168.2%70.9%52.3%65.8%47.6%

Price Volatility Vs. Market

How volatile is China Merchants 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 Merchants Bank undervalued compared to its fair value and its price relative to the market?

22.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CIHH.F ($4.72) is trading below our estimate of fair value ($6.07)

Significantly Undervalued: CIHH.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CIHH.F is good value based on its PE Ratio (11x) compared to the Banks industry average (12.6x).

PE vs Market: CIHH.F is good value based on its PE Ratio (11x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CIHH.F is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: CIHH.F is overvalued based on its PB Ratio (1.7x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is China Merchants Bank forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIHH.F's forecast earnings growth (13.3% per year) is above the savings rate (2.7%).

Earnings vs Market: CIHH.F's earnings (13.3% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: CIHH.F's revenue (9.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: CIHH.F's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CIHH.F's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

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

8.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CIHH.F's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: CIHH.F's earnings growth over the past year (12%) exceeds its 5-year average (8.6% per year).

Earnings vs Industry: CIHH.F earnings growth over the past year (12%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: CIHH.F's Return on Equity (15.1%) is considered low.


Return on Assets

ROA vs Industry: CIHH.F has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate CIHH.F's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is China Merchants 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

Inventory Level: CIHH.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: CIHH.F's debt is covered by short term assets (assets are 1.327210x debt).


Financial Institutions Analysis

Asset Level: CIHH.F's level of assets compared to its equity is moderate.

Allowance for Bad Loans: CIHH.F has a sufficient allowance for bad loans.

Low Risk Liabilities: CIHH.F's liabilities are made up of primarily low risk sources of funding.

Loan Level: CIHH.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CIHH.F's loans are broadly funded by customer deposits.

Level of Bad Loans: CIHH.F has an appropriate level of bad loans (1.31%)


Next Steps

Dividend

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

2.55%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CIHH.F's dividend (2.55%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: CIHH.F's dividend (2.55%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: CIHH.F's dividends per share have been stable in the past 10 years.

Growing Dividend: CIHH.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28%), CIHH.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CIHH.F's dividends in 3 years are forecast to be well covered by earnings (30.9% payout ratio).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Huiyu Tian (54yo)

6.1yrs

Tenure

CN¥4,690,000

Compensation

Mr. Huiyu Tian, MPA has been the Chief Executive Officer and President of China Merchants Bank Co., Ltd. since May 2013. Mr. Tian has been an Executive Director at China Merchants Bank Co., Ltd. since Augu ...


CEO Compensation Analysis

Compensation vs. Market: Huiyu's total compensation ($USD661.20K) is below average for companies of similar size in the US market ($USD11.23M).

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


Management Age and Tenure

0.7yrs

Average Tenure

56.5yo

Average Age

Experienced Management: CIHH.F's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

54.5yo

Average Age

Experienced Board: CIHH.F's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Dazhan Huang (61yo)

    Managing Director of China Merchants Finance Group Co Ltd

    • Tenure: 0yrs
  • Cheng Nan

    Qualified Accountant

    • Tenure: 0yrs
  • Shunhua Shi (57yo)

    Executive Vice President

    • Tenure: 1.4yrs
  • Zhihong Tang (59yo)

    Executive Vice President

    • Tenure: 13.4yrs
  • Huiyu Tian (54yo)

    President

    • Tenure: 6.1yrs
    • Compensation: CN¥4.69m
  • Jianjun Liu (54yo)

    Executive VP

    • Tenure: 0.2yrs
  • Liang Wang (54yo)

    Executive VP

    • Tenure: 0.2yrs
  • Wenjing Jiang

    Investor relation officer

    • Tenure: 0yrs
  • Jianzhong Wang (57yo)

    Executive Vice President

    • Tenure: 0.7yrs
  • Wang Yungui (56yo)

    Executive Vice President

    • Tenure: 0.3yrs

Board Members

  • Jianhong Li (63yo)

    Chairman of the Board

    • Tenure: 5.2yrs
  • Xiaoyuan Hong (56yo)

    Non-Executive Director

    • Tenure: 12.3yrs
  • Gangfeng Fu (53yo)

    Vice Chairman of the Board

    • Tenure: 1.3yrs
  • David Wong (66yo)

    Independent Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: CN¥500.00k
  • Huiyu Tian (54yo)

    President

    • Tenure: 6.1yrs
    • Compensation: CN¥4.69m
  • Wanqing Wang (55yo)

    Business Director of the Head Office

    • Tenure: 1.3yrs
  • Jianjun Liu (54yo)

    Executive VP

    • Tenure: 0.2yrs
  • Yuan Liu (57yo)

    Chairman of Board of Supervisors

    • Tenure: 5.2yrs
    • Compensation: CN¥1.48m
  • Liang Wang (54yo)

    Executive VP

    • Tenure: 0.2yrs
  • Menggang Li (52yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: CN¥42.00k

Company Information

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


Key Information

  • Name: China Merchants Bank Co., Ltd.
  • Ticker: CIHH.F
  • Exchange: OTCPK
  • Founded: 1987
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CN¥919.374b
  • Listing Market Cap: CN¥129.613b
  • Shares outstanding: 25.22b
  • Website: https://www.cmbchina.com

Number of Employees


Location

  • China Merchants Bank Co., Ltd.
  • China Merchants Bank Tower
  • 49th Floor
  • Shenzhen
  • Guangdong Province
  • 518040
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
600036SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYApr 2002
600036XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYApr 2002
3968SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDSep 2006
M4BDB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURSep 2006
CIHH.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDSep 2006
3968SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDSep 2006
3968SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDSep 2006
CIHK.YOTCPK (Pink Sheets LLC)ADRUSUSDJul 2010

Biography

China Merchants Bank Co., Ltd. provides various wholesale and retail banking products and services in the People’s Republic of China and internationally. It operates in Wholesale Finance Business, Retail F ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:11
End of Day Share Price2019/10/10 00:00
Earnings2019/06/30
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.