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Bank of Shanghai Co., Ltd. (601229) Report Analysis

Corporate Events

Negative

Bank of Shanghai Co., Ltd.(SHSE:601229) dropped...

2022-06-10 00:00:00

Bank of Shanghai Co., Ltd. has been removed from Shanghai Stock Exchange 180 Value Index .

Negative

Bank of Shanghai Co., Ltd.(SHSE:601229) dropped...

2022-06-10 00:00:00

"Bank of Shanghai Co., Ltd. has been removed from SSE 180 Index

Neutral

Bank of Shanghai Co., Ltd., Q1 2022 Earnings Ca...

2022-05-30 02:49:00

Bank of Shanghai Co., Ltd., Q1 2022 Earnings Call, May 31, 2022

Neutral

Bank of Shanghai Co., Ltd., Q2 2021 Earnings Ca...

2021-09-14 04:09:00

Bank of Shanghai Co., Ltd., Q2 2021 Earnings Call, Sep 17, 2021

Positive

Bank of Shanghai Co., Ltd. has announced a Fixe...

2021-08-20 00:00:00

Bank of Shanghai Co., Ltd. has announced a Fixed-Income Offering. Security Name: 3.03% Bonds due 2024 Security Type: Corporate Bond/Note (...

Negative

Bank of Shanghai Co., Ltd.(SHSE:601229) dropped from Shanghai Stock Exchange 180 Value Index

2022-06-10 00:00:00

Bank of Shanghai Co., Ltd. has been removed from Shanghai Stock Exchange 180 Value Index .

Negative

Bank of Shanghai Co., Ltd.(SHSE:601229) dropped from SSE 180 Index

2022-06-10 00:00:00

"Bank of Shanghai Co., Ltd. has been removed from SSE 180 Index

Neutral

Bank of Shanghai Co., Ltd., Q1 2022 Earnings Call, May 31, 2022

2022-05-30 02:49:00

Bank of Shanghai Co., Ltd., Q1 2022 Earnings Call, May 31, 2022

Neutral

Bank of Shanghai Co., Ltd., Q2 2021 Earnings Call, Sep 17, 2021

2021-09-14 04:09:00

Bank of Shanghai Co., Ltd., Q2 2021 Earnings Call, Sep 17, 2021

Positive

Bank of Shanghai Co., Ltd. has announced a Fixed-Income Offering.

2021-08-20 00:00:00

Bank of Shanghai Co., Ltd. has announced a Fixed-Income Offering. Security Name: 3.03% Bonds due 2024 Security Type: Corporate Bond/Note (Non Convertible) Principal Amount: CNY 30 billion Coupon Type: Fixed

Fundamental Summary

At a high level, the metrics from Bank of Shanghai's Q1 financial report release were demonstrably positive. Their income and value factors performance indicate that company management is focused on the right targets and executing well. This relative strength should allow Bank of Shanghai to continue to perform well even in a tough market. As such, Bank of Shanghai received an overall score of 85 and a BUY recommendation.

Bank of Shanghai reported earnings results for the first quarter ended March 31, 2022. For the first quarter, the company reported net interest income was CNY 10,234.12 million compared to CNY 9,381.6 million a year ago. Net income was CNY 5,853.18 million compared to CNY 5,553.71 million a year ago. Basic earnings per share from continuing operations was CNY 0.41 compared to CNY 0.39 a year ago. Diluted earnings per share from continuing operations was CNY 0.37 compared to CNY 0.37 a year ago.

Business Description

Bank of Shanghai provides various personal and corporate banking products and services primarily in Mainland China. It operates through Wholesale Financial Business, Retail Financial Business, and Other Business segments. The company accepts current, time-demand, fixed, education, individual call, interest-on-interest, and foreign exchange deposits. Its loan products include license plate loans, loans for individual studies, and individual housing loans; and fixed asset loans, liquidity revolving loans, mortgage loans, syndicated loans, corporation overdrafts, and working capital loans. The company also offers debit and credit cards; open-ended funds; certificate and savings bonds; and unit-linked, annuities, health, and life insurance products. In addition, it provides settlement services, such as cheque, cashier’s order, bank and trade acceptance, remittance, collection with acceptance, consignment collection, and periodical credit and charge services; and intermediary services comprising tender, performance, advance payment, quality and maintenance guarantee, and payment guarantee, as well as entrusted loan of unit and credit certification services. Further, the company offers supply chain services consisting of advance payment financing, chattel mortgage credit extension, accounts receivable financing, credit insurance financing, auto dealer financing, order financing, and domestic letter of credit services; and online, mobile, and telephone banking services. Additionally, it offers investment banking, asset custody, equity investment, wealth management, securities agency, and pension finance services. The company was formerly known as Shanghai City United Bank Ltd. and changed its name to Bank of Shanghai in July 1998. Bank of Shanghai was incorporated in 1995 and is headquartered in Shanghai, China.

Sector Overview

Bank of Shanghai is included in the Banks according to GICS (global industry classification standard). The Banks industry, which is in the Financials sector, includes Diversified & Regional Banks whose operations focus on conventional banking, retail banking, and lending to SMEs (small and medium enterprises). Bank of Shanghai's industry and sector affiliation are expected to negatively affect their likelihood to overperform the market in the upcoming period, as other sectors appear more likely to benefit from the macroeconomic environment we see now.

Fundamental Highlights


Parameter Value Change Score
Assets 2,757,977.3 3.9% 62
Liabilities 2,546,276.5 4.0% 83
Price to Book 0.4 -21.6% 90
Cash & Equivalents 82,567.7 55.1% 90
Equity 211,127.6 14.0% 54
Total Revenues 36,445.9 0.7% 66
Parameter Value Change Score
Return on Equity 11.0 -1.2% 61
Net Cashflow 13,398.2 105.9% 95
Capital Expenditure -921.2 1.9% 80
Free Cashflow 2.3 374.7% 38

* All values are TTM

The below chart reflects Bank of Shanghai's birds-eye view on its performance with respect to its peers, the company's fillings as reported or to a similar industry, market cap, and country of origin. While Bank of Shanghai's peer average final assessment score stands on 70.0, Bank of Shanghai's score is 85.

  •  601229
  •  Peers average
Name Market Cap Balance Sheet Income Statement Cash Flow Rating Final Assessment mc_sort Hidden
China Merchants Bank Co., Ltd. 1.1T 77 63 68
Hold
73
73 0 1
Industrial Bank Co., Ltd. 402.2B 85 67 66
Buy
80
80 1 1
Shanghai Pudong Development Bank Co., Ltd. 233.9B 72 61 68
Hold
68
68 2 1
China Everbright Bank Company Limited 160.4B 76 63 56
Hold
70
70 3 1
China Minsheng Banking Corp., Ltd. 150.8B 81 62 79
Hold
78
78 4 1
Bank of Nanjing Co., Ltd. 111.2B 82 66 54
Hold
74
74 5 1
Bank of Jiangsu Co., Ltd. 100.3B 83 71 84
Buy
86
86 6 1
Bank of Beijing Co., Ltd. 95.8B 84 59 75
Hold
77
77 7 1
Bank of Hangzhou Co., Ltd. 85.0B 81 70 69
Buy
80
80 8 1
Hua Xia Bank Co., Limited 79.1B 81 63 75
Hold
77
77 9 1
Bank of Chengdu Co., Ltd. 61.3B 86 68 58
Buy
79
79 10 1
Bank of Changsha Co., Ltd. 31.4B 79 62 60
Hold
72
72 11 1
QILU BANK CO., LTD. 22.4B 93 69 80
Strong Buy
91
91 12 1
Bank of Guiyang Co.,Ltd. 21.2B 80 62 75
Hold
77
77 13 1
Jiangsu Changshu Rural Commercial Bank Co., Ltd. 20.6B 82 71 80
Buy
84
84 14 1
Bank of Xi'an Co.,Ltd. 16.2B 80 56 51
Hold
70
70 15 1
Xiamen Bank Co., Ltd. 15.6B 83 62 82
Buy
80
80 16 1
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd 12.2B 83 70 69
Buy
81
81 17 1
Jiangsu Zijin Rural Commercial Bank Co.,Ltd 10.5B 77 60 53
Hold
70
70 18 1
Wuxi Rural Commercial Bank Co.,Ltd 10.3B 73 64 79
Hold
73
73 19 1
Jiangsu Suzhou Rural Commercial Bank Co., Ltd 9.0B 74 73 70
Hold
76
76 20 1
Ping An Bank Co., Ltd. 281.2B 83 72 85
Strong Buy
87
87 21 1
Bank of Ningbo Co., Ltd. 225.7B 89 70 71
Buy
86
86 22 1
Bank of Suzhou Co., Ltd. 22.1B 92 60 61
Buy
80
80 23 1
Qingdao Rural Commercial Bank Co., Ltd. 18.4B 74 61 81
Hold
73
73 24 1
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd 11.1B 77 71 64
Hold
76
76 25 1
Jiangsu Jiangyin Rural Commercial Bank Co.,LTD. 9.3B 77 70 53
Hold
72
72 26 1

Technical Analysis

When trying to optimize the timing of an investment, it's critical to analyze whether the stock looks overbought or oversold, and in which direction the momentum is moving. Bank of Shanghai's stock is now priced above its 5-day and 50-day, but below its 200-day moving average, while its MACD (moving average convergence divergence) indicates that the stock's price movement momentum is strengthening. Historically, this is a positive setup in both the short and medium-term. The company is trading near it's 12-month low, which signals it struggle to keep above it support price. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Bank of Shanghai's stock indicates that it's likely oversold. Overall, these technical indicators don't clearly signal directional momentum. Therefore, this stock received a cumulative TA (technical analysis) score of 68.

Neutral 68
Close Price 6.55
52W Low 6.35
52W High 8.42
5D MA 6.51
50D MA 6.48
200D MA 6.98
MACD 0.02
RSI 0.33
STOCH 70.59

Balance Sheet Analysis

Bank of Shanghai appears likely to maintain its strong balance sheet metrics and momentum going forward. Bank of Shanghai's price to book ratio (P/B) was reported as 0.4 and represents -21.6% change from the previous report. Their industry-leading book value factors momentum reinforces an expectation for future positive momentum for their stock price going forward. Therefore, its book value factors earned a score of 90. Also, Bank of Shanghai's management was effective in improving its cash and cash equivalents metrics, which now sit at 82567.7. This represents 55.1% change from the last reporting period. This impressive growth, specifically in contrast to their industry peers' performance, should support an upswing in the company's stock price. Consequently, their cash and cash equivalents movement received a grade of 90. At the same time, one critical balance sheet metric, Equity, was notably weak. Bank of Shanghai reported weak equity changes momentum this period. At filing, equity was reported as 211127.6, representing 14.0% change from the previous report. This parameter often affects companies in the same industry and market capitalization by up to 7.1%. Their equity metrics appear unremarkable relative to their peers. Consequently, their equity movement received a grade of 54. Their balance sheet, therefore, earned a score of 90.

Parameter Value Change Score
Assets 2,757,977.3 3.9% 62
Liabilities 2,546,276.5 4.0% 83
Price to Book 0.4 -21.6% 90
Cash & Equivalents 82,567.7 55.1% 90
Equity 211,127.6 14.0% 54
* All values are TTM

The below chart describes Bank of Shanghai's performance as reflected on its balance sheet with respect to its peers. While Bank of Shanghai received a balance sheet score of 90, the average of its peers stands on 74.0.

  •  601229
  •  Peers average
Name Market Cap Liabilities Movement Asset Change Equity/Intangibles Adjustments Cash & Equivalents Book Value Momentum Balance Sheet mc_sort Hidden
China Merchants Bank Co., Ltd. 1.1T 72 81 68 37 84 77 0 1
Industrial Bank Co., Ltd. 402.2B 74 80 68 90 82 85 1 1
Shanghai Pudong Development Bank Co., Ltd. 233.9B 74 70 55 51 76 72 2 1
China Everbright Bank Company Limited 160.4B 89 44 69 54 76 76 3 1
China Minsheng Banking Corp., Ltd. 150.8B 80 45 69 90 77 81 4 1
Bank of Nanjing Co., Ltd. 111.2B 81 51 51 89 82 82 5 1
Bank of Jiangsu Co., Ltd. 100.3B 87 85 55 92 78 83 6 1
Bank of Beijing Co., Ltd. 95.8B 64 63 68 67 90 84 7 1
Bank of Hangzhou Co., Ltd. 85.0B 82 63 54 87 79 81 8 1
Hua Xia Bank Co., Limited 79.1B 79 49 69 89 76 81 9 1
Bank of Chengdu Co., Ltd. 61.3B 83 76 68 82 83 86 10 1
Bank of Changsha Co., Ltd. 31.4B 74 63 69 72 79 79 11 1
QILU BANK CO., LTD. 22.4B 80 59 95 77 89 93 12 1
Bank of Guiyang Co.,Ltd. 21.2B 74 61 69 77 80 80 13 1
Jiangsu Changshu Rural Commercial Bank Co., Ltd. 20.6B 85 81 69 60 81 82 14 1
Bank of Xi'an Co.,Ltd. 16.2B 81 55 67 97 75 80 15 1
Xiamen Bank Co., Ltd. 15.6B 86 66 69 84 78 83 16 1
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd 12.2B 83 72 69 81 79 83 17 1
Jiangsu Zijin Rural Commercial Bank Co.,Ltd 10.5B 41 80 56 95 80 77 18 1
Wuxi Rural Commercial Bank Co.,Ltd 10.3B 66 72 55 62 78 73 19 1
Jiangsu Suzhou Rural Commercial Bank Co., Ltd 9.0B 78 77 55 60 75 74 20 1
Ping An Bank Co., Ltd. 281.2B 79 78 69 88 79 83 21 1
Bank of Ningbo Co., Ltd. 225.7B 86 51 68 97 84 89 22 1
Bank of Suzhou Co., Ltd. 22.1B 91 82 54 97 89 92 23 1
Qingdao Rural Commercial Bank Co., Ltd. 18.4B 66 68 55 72 77 74 24 1
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd 11.1B 84 53 55 65 79 77 25 1
Jiangsu Jiangyin Rural Commercial Bank Co.,LTD. 9.3B 76 66 69 76 74 77 26 1

Income Statement Analysis

Bank of Shanghai appears likely to maintain its strong income statement metrics, especially Revenue Efficiency. Bank of Shanghai did an excellent job managing its revenue efficiency this past period. Bank of Shanghai's revenue efficiency is 36445.9 according to the metrics in the current filing, which represents a 0.7% change from the previous report. This characteristic can affect companies in the same industry and market capitalization by up to 2.3%. Their revenue efficiency, specifically in contrast to their industry peers', should support a positive movement in the company's stock price. Consequently, their revenue efficiency received a grade of 66. That said, one metric, Return Factors, stood out as strongly negative. Return factors metrics and ratios were disappointing in this report. Bank of Shanghai reported a return on equity (ROE) ratio of 11.0, representing a change of -1.2% from the last report.change of -1.2% from the previous period. This metric might have a 12.5 percent impact on companies in the same industry and with the same market capitalization. They does not yet appear to be headed in the right direction regarding these return on equity and return on assets metrics. Its return factors (ROA & ROE) components, therefore, received a grade of 61. their income statement received an overall score of 64.

Parameter Value Change Score
Total Revenues 36,445.9 0.7% 66
Return on Equity 11.0 -1.2% 61
* All values are TTM

The below chart describes Bank of Shanghai's performance as reflected on its income statement with respect to its peers. While Bank of Shanghai received a income statement score of 64 , the average of its peers stands on 66.0.

  •  601229
  •  Peers average
Name Market Cap Revenue Momentum Earning Movement Return Factors Momentum Income Statement mc_sort Hidden
China Merchants Bank Co., Ltd. 1.1T 58 68 61 63 0 1
Industrial Bank Co., Ltd. 402.2B 48 67 73 67 1 1
Shanghai Pudong Development Bank Co., Ltd. 233.9B 80 67 54 61 2 1
China Everbright Bank Company Limited 160.4B 69 67 61 63 3 1
China Minsheng Banking Corp., Ltd. 150.8B 85 67 55 62 4 1
Bank of Nanjing Co., Ltd. 111.2B 48 65 74 66 5 1
Bank of Jiangsu Co., Ltd. 100.3B 48 69 80 71 6 1
Bank of Beijing Co., Ltd. 95.8B 63 68 50 59 7 1
Bank of Hangzhou Co., Ltd. 85.0B 48 66 82 70 8 1
Hua Xia Bank Co., Limited 79.1B 61 67 61 63 9 1
Bank of Chengdu Co., Ltd. 61.3B 44 68 75 68 10 1
Bank of Changsha Co., Ltd. 31.4B 57 68 58 62 11 1
QILU BANK CO., LTD. 22.4B 50 68 76 69 12 1
Bank of Guiyang Co.,Ltd. 21.2B 69 67 58 62 13 1
Jiangsu Changshu Rural Commercial Bank Co., Ltd. 20.6B 52 71 77 71 14 1
Bank of Xi'an Co.,Ltd. 16.2B 47 64 58 56 15 1
Xiamen Bank Co., Ltd. 15.6B 48 68 59 62 16 1
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd 12.2B 66 68 76 70 17 1
Jiangsu Zijin Rural Commercial Bank Co.,Ltd 10.5B 81 71 55 60 18 1
Wuxi Rural Commercial Bank Co.,Ltd 10.3B 54 69 61 64 19 1
Jiangsu Suzhou Rural Commercial Bank Co., Ltd 9.0B 84 69 77 73 20 1
Ping An Bank Co., Ltd. 281.2B 53 68 81 72 21 1
Bank of Ningbo Co., Ltd. 225.7B 55 68 76 70 22 1
Bank of Suzhou Co., Ltd. 22.1B 53 66 58 60 23 1
Qingdao Rural Commercial Bank Co., Ltd. 18.4B 62 67 57 61 24 1
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd 11.1B 64 67 79 71 25 1
Jiangsu Jiangyin Rural Commercial Bank Co.,LTD. 9.3B 51 68 77 70 26 1

Cash Flow Analysis

Bank of Shanghai appears likely to maintain its strong cash flow metrics and momentum going forward. Bank of Shanghai presents exciting net cash flow numbers for its recent financial release, illustrated by a net cash flow of 13398.2, which is a change of 105.9% from the last filing. This industry-leading net cash flow momentum should reinforce broader positive momentum for its's stock price going forward. Consequently, their net cash flow movement received a grade of 95. Also, Bank of Shanghai's management did a great job this period managing its capital expenditure (CapEx). In terms of the raw numbers, CapEx was reported as -921.2, which represents a 1.9% change from the last period. The company appears to be headed in the right direction regarding resource allocation, exhibiting prudent capital expenditure growth compared to its peers. Therefore, its CapEx movement component earned a score of 80. On the other hand, Free Cash flow, jumped out as looking problematic. Bank of Shanghai's published free cash flow numbers were subpar and could mean that management has lost focus on achieving healthy growth. Bank of Shanghai recorded free cash flow of 2.3, which represents 374.7% growth from the previous report. Companies in the same sector and market capitalization will usually be affected by up to 9.3 percent by this parameter. These free cash flow numbers show that management has not been executing well in generating critical cash flow while also encouraging growth. Disappointing results in free cash flow often lead to negative pressure in stock prices, so we rated their free cash flow with a score of 38. The company's cash flow received an overall score of 81.

Parameter Value Change Score
Net Cashflow 13,398.2 105.9% 95
Capital Expenditure -921.2 1.9% 80
Free Cashflow 2.3 374.7% 38
* All values are TTM

The below chart describes Bank of Shanghai's performance as reflected on its cash flow with respect to its peers. While Bank of Shanghai received a cash flow score of 81, the average of its peers stands on 67.0.

  •  601229
  •  Peers average
Name Market Cap Cashflow Momentum Free Cashflow Growth Capital Expenditure Growth Assets Factors Momentum Cash Flow mc_sort Hidden
China Merchants Bank Co., Ltd. 1.1T 90 45 44 69 68 0 1
Industrial Bank Co., Ltd. 402.2B 81 56 47 69 66 1 1
Shanghai Pudong Development Bank Co., Ltd. 233.9B 48 87 85 69 68 2 1
China Everbright Bank Company Limited 160.4B 43 95 54 69 56 3 1
China Minsheng Banking Corp., Ltd. 150.8B 84 45 91 69 79 4 1
Bank of Nanjing Co., Ltd. 111.2B 49 84 48 69 54 5 1
Bank of Jiangsu Co., Ltd. 100.3B 93 41 90 69 84 6 1
Bank of Beijing Co., Ltd. 95.8B 67 67 92 69 75 7 1
Bank of Hangzhou Co., Ltd. 85.0B 49 87 90 69 69 8 1
Hua Xia Bank Co., Limited 79.1B 80 57 69 69 75 9 1
Bank of Chengdu Co., Ltd. 61.3B 66 67 45 69 58 10 1
Bank of Changsha Co., Ltd. 31.4B 59 81 45 69 60 11 1
QILU BANK CO., LTD. 22.4B 81 54 90 69 80 12 1
Bank of Guiyang Co.,Ltd. 21.2B 67 67 90 69 75 13 1
Jiangsu Changshu Rural Commercial Bank Co., Ltd. 20.6B 71 73 81 69 80 14 1
Bank of Xi'an Co.,Ltd. 16.2B 43 90 62 67 51 15 1
Xiamen Bank Co., Ltd. 15.6B 93 40 85 69 82 16 1
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd 12.2B 96 37 44 69 69 17 1
Jiangsu Zijin Rural Commercial Bank Co.,Ltd 10.5B 46 99 50 67 53 18 1
Wuxi Rural Commercial Bank Co.,Ltd 10.3B 82 52 84 69 79 19 1
Jiangsu Suzhou Rural Commercial Bank Co., Ltd 9.0B 85 50 56 69 70 20 1
Ping An Bank Co., Ltd. 281.2B 91 42 96 69 85 21 1
Bank of Ningbo Co., Ltd. 225.7B 93 38 59 69 71 22 1
Bank of Suzhou Co., Ltd. 22.1B 61 78 49 69 61 23 1
Qingdao Rural Commercial Bank Co., Ltd. 18.4B 86 49 84 69 81 24 1
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd 11.1B 39 98 84 69 64 25 1
Jiangsu Jiangyin Rural Commercial Bank Co.,LTD. 9.3B 42 94 51 69 53 26 1

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.