OTCPK:CMAK.Y

Stock Analysis Report

China Minsheng Banking

Executive Summary

China Minsheng Banking Corp., Ltd. provides various financial products and services to individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions 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 Minsheng Banking's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

CMAK.Y

4.1%

US Banks

1.0%

US Market


1 Year Return

2.1%

CMAK.Y

7.2%

US Banks

8.0%

US Market

Return vs Industry: CMAK.Y matched the US Banks industry which returned 7.2% over the past year.

Return vs Market: CMAK.Y underperformed the US Market which returned 8% over the past year.


Shareholder returns

CMAK.YIndustryMarket
7 Day0%4.1%1.0%
30 Day-3.1%2.8%-0.07%
90 Day-2.7%2.9%-1.0%
1 Year8.0%2.1%10.3%7.2%10.4%8.0%
3 Year-20.7%-28.5%53.9%43.3%46.2%36.7%
5 Year0.2%-15.0%71.9%53.1%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is China Minsheng Banking undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMAK.Y ($6.85) is trading below our estimate of fair value ($15.07)

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


Price To Earnings Ratio

PE vs Industry: CMAK.Y is good value based on its PE Ratio (5.2x) compared to the Banks industry average (12.6x).

PE vs Market: CMAK.Y is good value based on its PE Ratio (5.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: CMAK.Y is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: CMAK.Y is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is China Minsheng Banking forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMAK.Y's forecast earnings growth (5.3% per year) is above the savings rate (2.7%).

Earnings vs Market: CMAK.Y's earnings (5.3% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: CMAK.Y's revenue (10.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: CMAK.Y's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMAK.Y's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has China Minsheng Banking performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CMAK.Y's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: CMAK.Y's earnings growth over the past year (1.9%) is below its 5-year average (3% per year).

Earnings vs Industry: CMAK.Y earnings growth over the past year (1.9%) underperformed the Banks industry 30.1%.


Return on Equity

High ROE: CMAK.Y's Return on Equity (10.7%) is considered low.


Return on Assets

ROA vs Industry: CMAK.Y's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is China Minsheng Banking'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: CMAK.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: CMAK.Y's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: CMAK.Y's level of assets compared to its equity is moderate.

Allowance for Bad Loans: CMAK.Y has a sufficient allowance for bad loans.

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

Loan Level: CMAK.Y has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CMAK.Y's loans are broadly funded by customer deposits.

Level of Bad Loans: CMAK.Y has an appropriate level of bad loans (1.91%)


Next Steps

Dividend

What is China Minsheng Banking's current dividend yield, its reliability and sustainability?

5.61%

Current Dividend Yield


Dividend Yield vs Market

company5.6%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CMAK.Y's dividend (5.61%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CMAK.Y's dividend (5.61%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: CMAK.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: CMAK.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.2%), CMAK.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CMAK.Y's dividends in 3 years are forecast to be well covered by earnings (24% payout ratio).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Wanchun Zheng (55yo)

3.9yrs

Tenure

0

Mr. Wanchun Zheng has been the President of China Minsheng Banking Corp. Ltd. since November 19, 2015 and has been its Executive Director since February 01, 2016. Mr. Zheng served as Senior Executive Vice  ...


CEO Compensation Analysis

Compensation vs. Market: Wanchun's total compensation ($USD0.00) is too low to compare against companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Wanchun's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.5yrs

Average Tenure

56yo

Average Age

Experienced Management: CMAK.Y's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

59yo

Average Age

Experienced Board: CMAK.Y's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Qi Hong (62yo)

    Chairman of the Board

    • Tenure: 5.2yrs
  • Hongri Huang

    President of Nanning Branch

    • Tenure: 0yrs
  • Dan Bai (56yo)

    CFO & Board Secretary

    • Tenure: 7.5yrs
  • Bin Li (52yo)

    Executive Vice President

    • Tenure: 7.2yrs
  • Yunshan Lin (49yo)

    Executive Vice President

    • Tenure: 7.2yrs
  • Jie Shi (54yo)

    Executive Vice President

    • Tenure: 7.2yrs
  • Wanchun Zheng (55yo)

    President & Executive Director

    • Tenure: 3.9yrs
  • Qinghua Hu (56yo)

    Executive VP & Chief Risk Officer

    • Tenure: 2.7yrs
  • Ouyang Yong (56yo)

    Assistant President

    • Tenure: 1.5yrs
  • Qiong Chen (56yo)

    Executive Vice President

    • Tenure: 1.3yrs

Board Members

  • Hong Wei Zhang (65yo)

    Vice Chairman of the Board

    • Tenure: 19.5yrs
  • Zhichun Xie (61yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
  • Yonghao Liu (68yo)

    Vice Chairman of the Board

    • Tenure: 10.6yrs
  • Zhiqiang Lu (68yo)

    Vice Chairman of the Board

    • Tenure: 13.3yrs
  • Qi Hong (62yo)

    Chairman of the Board

    • Tenure: 5.2yrs
  • Hancheng Li (56yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
  • Xuefeng Peng (57yo)

    Independent Non-Executive Director

    • Tenure: 2.7yrs
  • Wanchun Zheng (55yo)

    President & Executive Director

    • Tenure: 3.9yrs
  • Ningyu Liu (50yo)

    Independent Non-Executive Director

    • Tenure: 2.7yrs
  • Juntong Zhang (45yo)

    Chairman of the Supervisory Board

    • Tenure: 0yrs

Company Information

China Minsheng Banking Corp., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Minsheng Banking Corp., Ltd.
  • Ticker: CMAK.Y
  • Exchange: OTCPK
  • Founded: 1996
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CN¥259.225b
  • Listing Market Cap: CN¥36.635b
  • Shares outstanding: 43.78b
  • Website: https://www.cmbc.com.cn

Number of Employees


Location

  • China Minsheng Banking Corp., Ltd.
  • No. 2 Fuxingmennei Avenue
  • Xicheng District
  • Beijing
  • 100031
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
600016SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYDec 2000
600016XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYDec 2000
1988SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDNov 2009
CGMB.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDNov 2009
GHFHDB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURNov 2009
1988SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDNov 2009
1988SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDNov 2009
CMAK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2010

Biography

China Minsheng Banking Corp., Ltd. provides various financial products and services to individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:12
End of Day Share Price2019/09/23 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.