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China Merchants Bank Co., Ltd. (600036) Q2 2021 Report Analysis


Filing Date

2021-08-13

Grade by Sector

65 / 100

Rating

Country

China

Exchange

SHSE

Market Cap

$201.6B

Sector

Financials

Industry

Banks

Rating

Grade by Sector

Filing Date

Market Cap

Country

Exchange

Sector

Industry

65 / 100

2021-08-13

$201.6B

China

SHSE

Financials

Banks

Company Highlights


Parameter Value Change Score
Assets 8,885,886.0 3% 79
Capital Expenditure -19,834.0 -1% 59
Cash & Equivalents 252,594.0 1975% 98
Equity 720,810.0 0% 78
Liabilities 8,124,318.0 3% 79
Total Revenues 244,796.0 5% 67
Parameter Value Change Score
Free Cashflow 5.94 -65% 48
Cashflow 102,716.0 207% 59
Price to Book 1.9 6% 49
Return on Equity 15.64 8% 72

* All values are TTM

Report Summary

Our analysis of China Merchants Bank Co., Ltd.'s expected performance over the next quarter is based on a systematic deep dive into their income statement, balance sheet, & statement of cash flows. Additionally, numerous critical general factors and ratios are also included. First, analysis of the balance sheet parameters outperformed the market benchmark. Next, the income statement performance metrics stayed at par with their benchmark in this time frame. Third, cash flow metrics stayed at par with their benchmark. Last, the most historically impactful financial ratios forecast that in the current market their performance will likely not outperform the market. With all factors taken together, our cumulative assessment of China Merchants Bank Co., Ltd. generated the cumulative score of 65.

  •  600036
  •  Industry average

Balance Sheet Analysis

Looking closer at the balance sheet underlined certain key numbers that provide meaningful signals in the next 3 months or longer. Typically, the balance sheet factors affect up to 49.8% of the likelihood that a company will over-perform its benchmark throughout the coming quarters. Specifically, looking closer at China Merchants Bank Co., Ltd.'s debt service capabilities found impressive overperformance going into cash and cash equivalents. Typically, the debt service capabilities factors influence approximately up to 8.4% of the chances of a company to beat the market. In addition, China Merchants Bank Co., Ltd.'s assets forecasts satisfactory results in terms of assets changes. The strength of a company's assets can be responsible for up to 13.6% of the chances of the company to beat the market. Drilling down further into China Merchants Bank Co., Ltd.'s debt structure found moderate execution in terms of liabilities movement. Generally, the debt structure factors will influence up to 13.6% of the chances of a company to beat the market. Last, the company's intangible assets and technical changes reveals moderate overperformance related to shareholders' equity and intangible assets adjustments. Intangible assets and technical changes historically contribute up to 14.2% of the chances of the company to beat its benchmark performance during the near term. With all these factors considered, their balance sheet produced a total score of 83.

  •  600036
  •  Industry average
Parameter Value Change Score
Assets 8,885,886.0 3% 79
Capital Expenditure -19,834.0 -1% 59
Cash & Equivalents 252,594.0 1975% 98
Equity 720,810.0 0% 78
Liabilities 8,124,318.0 3% 79
All values are TTM

Income Statement Analysis

Reviewing China Merchants Bank Co., Ltd.'s income statement underlined several key results that typically have the greatest effect on company performance for the near term. Drilling into their net income implies unexceptional performance with connection to earnings movement. Generally, the company's net income can affect up to 8.8% of the chances of a company to over-perform. Next, the company's cost of sales forecasts modest momentum with connection to capital expenditure growth. In general, a Company's cost of sales affect roughly 7.5% of the probability that a company will over-perform the market. Reviewing their revenue suggests passable overperformance with respect to revenue momentum. Revenue momentum affects roughly 1.3% of the chances of a company to beat the market during the next quarter. Bottom line, our bottom line grade for their income statement received the weighted score of 65.

  •  600036
  •  Industry average
Parameter Value Change Score
Total Revenues 244,796.0 5% 67
All values are TTM

Cash Flow Analysis

Analyzing the changes in their cash flow pointed to a number of key factors that effect the performance in the near term. Specifically, the companys flow of cash coming from operations, finance, and investments we see standard performance in terms of cash flow momentum. Historically, the flow of cash coming from operations, finance, and investments factors can be responsible for up to 3.5% of the probability that a company will over-perform. Further, China Merchants Bank Co., Ltd.'s net cash flow signals below average sentiment in terms of free cash flow growth. Typically, these factors will contribute up to 1.7% of the likelihood that the company will beat its benchmark performance throughout the next quarter. Our cumulative grade of the companys cash flow deserved a cumulative score of 57.

  •  600036
  •  Industry average
Parameter Value Change Score
Free Cashflow 5.94 -65% 48
Cashflow 102,716.0 207% 59
All values are TTM

General & Ratios Analysis

Our holistic analysis of these critical factors in the reports makes up our bird's eye view of their likelihood to over-perform their benchmark for the near term. Specifically, the company's performance related to general factors conveys satisfactory results in terms of macroeconomic environment. Particularly, reviewing the company's health and sustainability signals unremarkable momentum with connection to book value momentum. Typically, these factors influence up to 25.1% of the likelihood that the company will beat its benchmark performance. Looking at focusing on their capital efficiency suggests mediocre momentum related to assets factors momentum. Generally, the capital efficiency factors will impact up to 3.5% of the chances of the company to beat the market in the course of the coming months. Fourth, looking at investors' interest indicates mediocre execution in terms of return factors momentum. Statistically, these factors affect roughly up to 2.7% of the chances of a company to beat its benchmark performance for the current market. Last, diving deeper into the company's capital efficiency forecasts mediocre momentum related to assets factors momentum. In general, the capital efficiency factors will impact up to 3.5% of the probability that the company will over-perform its benchmark during the near term. Now taking all these factors into consideration, our cumulative assessment of the company's general factors and ratios produced the ranking of 54.

  •  600036
  •  Industry average
Parameter Value Change Score
Price to Book 1.9 6% 49
Return on Equity 15.64 8% 72
All values are TTM

This report is intended for general guidance and information purposes only and under no circumstances is tailored to a specific factor or variable related to its reader or intended to be used or considered as financial or investment advice, a solicitation of any offer, a recommendation, or an offer to sell or buy any securities or other form of a financial asset. For the full disclaimer, click here.