We maintain our fair value estimates for the state-owned enterprise banks in our coverage except for Agricultural Bank of China, which is seeing higher-than-expected net interest margins. We now increase ABC’s NIM assumption by 5 and 2 basis points in 2024 and 2025, respectively, which leads to a rise in fair value estimate to HKD 3.80 from HKD 3.50. Overall, there are no changes to our outlook for the other SOE banks.
CCB's banking app is one of the most popular financial ones in China, with monthly active users increasing 105 million in second-quarter 2023.
As financial disintermediation continues, large-scale and high-quality businesses are more likely to access lower-cost direct financing, which will weaken CCB's customer base and its bargaining power over these customers.
|
Metric
|
00939
|
601988
|
601288
|
|---|---|---|---|
Price/Earnings (Normalized) | 4.40 | 6.84 | 7.19 |
Price/Book Value | 0.47 | 0.64 | 0.68 |
Price/Sales | 1.89 | 2.55 | 2.61 |
Price/Cash Flow | 6.86 | 7.07 | 11.81 |
|
Metric
|
00939
|
601988
|
601288
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
00939
|
601988
|
601288
|
|---|---|---|---|
Return on Assets (Normalized) | 0.85% | 0.71% | 0.66% |
Return on Equity (Normalized) | 11.26% | 10.36% | 11.13% |
Return on Invested Capital (Normalized) | — | — | — |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
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Economic Moat
|
Market Cap
|
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RY
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United States