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Bank of Suzhou Co., Ltd. (002966) Report Analysis

Corporate Events

Positive

Bank of Suzhou Co., Ltd. Announces 2021 Final P...

2022-05-05 19:40:00

Bank of Suzhou Co., Ltd. announced 2021 final profit distribution plan to be implemented (A shares): Cash dividend/10 shares (tax included): C...

Positive

Bank of Suzhou Co., Ltd. Approves Cash Dividend...

2022-04-25 19:33:00

Bank of Suzhou Co., Ltd., at the AGM held on 22 April 2022 approved Cash dividend/10 shares (tax included) of CNY 2.80000000 for 2021.

Neutral

Bank of Suzhou Co., Ltd. Approves Amendments to...

2022-04-25 19:33:00

Bank of Suzhou Co., Ltd., at the AGM held on 22 April 2022 approved amendments to the Company's articles of association.

Negative

Bank of Suzhou Co., Ltd. Elects Li Jianqi as a ...

2022-04-25 19:33:00

Bank of Suzhou Co., Ltd., at the AGM held on 22 April 2022 elected Li Jianqi as a shareholder director.

Neutral

Bank of Suzhou Co., Ltd., Annual General Meetin...

2022-04-06 19:32:00

Bank of Suzhou Co., Ltd., Annual General Meeting, Apr 22, 2022.

Positive

Bank of Suzhou Co., Ltd. Proposes Cash Dividend...

2022-03-29 19:38:00

Bank of Suzhou Co., Ltd. proposed Cash dividend/10 shares (tax included) of CNY 2.80000000.

Positive

Bank of Suzhou Co., Ltd., 1.1000011 : 1, Stock ...

2022-03-28 00:00:00

Bank of Suzhou Co., Ltd., 1.1000011 : 1, Stock Split or Significant Stock Dividend, May-11-2022

Positive

Bank of Suzhou Co., Ltd., 0.28 (CNY), Cash Divi...

2022-03-28 00:00:00

Bank of Suzhou Co., Ltd., 0.28 (CNY), Cash Dividend, May-11-2022

Positive

Bank of Suzhou Co., Ltd. Announces 2021 Final Profit Distribution Plan to Be Implemented (A Shares), Payment Date: 11 May 2022

2022-05-05 19:40:00

Bank of Suzhou Co., Ltd. announced 2021 final profit distribution plan to be implemented (A shares): Cash dividend/10 shares (tax included): CNY 2.80000000, Bonus issue from profit (share/10 shares): none, Bonus issue from capital reserve (share/10 shares): 1.000000. Record date: 10 May 2022, Ex-date: 11 May 2022, Payment date: 11 May 2022. Listing date of the bonus issues: 11 May 2022. 10% withholding tax on cash dividend will be deducted in CNY within the cash dividend receivable. Please refer to below details: Tax on cash dividend/10 shares: CNY 0.28000000(10% x CNY 2.80000000). Net cash dividend/10 shares after tax: CNY 2.52000000(CNY 2.80000000- CNY 0.28000000).

Positive

Bank of Suzhou Co., Ltd. Approves Cash Dividend for 2021

2022-04-25 19:33:00

Bank of Suzhou Co., Ltd., at the AGM held on 22 April 2022 approved Cash dividend/10 shares (tax included) of CNY 2.80000000 for 2021.

Neutral

Bank of Suzhou Co., Ltd. Approves Amendments to the Articles of Association

2022-04-25 19:33:00

Bank of Suzhou Co., Ltd., at the AGM held on 22 April 2022 approved amendments to the Company's articles of association.

Negative

Bank of Suzhou Co., Ltd. Elects Li Jianqi as a Shareholder Director

2022-04-25 19:33:00

Bank of Suzhou Co., Ltd., at the AGM held on 22 April 2022 elected Li Jianqi as a shareholder director.

Neutral

Bank of Suzhou Co., Ltd., Annual General Meeting, Apr 22, 2022

2022-04-06 19:32:00

Bank of Suzhou Co., Ltd., Annual General Meeting, Apr 22, 2022.

Positive

Bank of Suzhou Co., Ltd. Proposes Cash Dividend for 2021

2022-03-29 19:38:00

Bank of Suzhou Co., Ltd. proposed Cash dividend/10 shares (tax included) of CNY 2.80000000.

Positive

Bank of Suzhou Co., Ltd., 1.1000011 : 1, Stock Split or Significant Stock Dividend, May-11-2022

2022-03-28 00:00:00

Bank of Suzhou Co., Ltd., 1.1000011 : 1, Stock Split or Significant Stock Dividend, May-11-2022

Positive

Bank of Suzhou Co., Ltd., 0.28 (CNY), Cash Dividend, May-11-2022

2022-03-28 00:00:00

Bank of Suzhou Co., Ltd., 0.28 (CNY), Cash Dividend, May-11-2022

Fundamental Summary

When Bank of Suzhou released its Q1 data on 2022-04-27, many of the results seemed negative and concerning. When we analyzed their growth and income factors individually, they were each negative. The overall picture, however, was surprisingly positive in relative comparison to their peers. In statistics, this is called the Simpson Paradox (https://www.britannica.com/topic/Simpsons-paradox). We give Bank of Suzhou a 80 rating and a BUY recommendation.

Bank of Suzhou reported earnings results for the full year ended December 31, 2021. For the full year, the company reported net interest income was CNY 7,532.83 million compared to CNY 7,525.43 million a year ago. Net income was CNY 3,106.69 million compared to CNY 2,571.93 million a year ago. Basic earnings per share from continuing operations was CNY 0.8455 compared to CNY 0.7 a year ago. Diluted earnings per share from continuing operations was CNY 0.7727 compared to CNY 0.7 a year ago.

Business Description

Bank of Suzhou provides commercial banking products and services in Suzhou. It offers various deposit products; corporate, micro, and consumer finance; credit cards; investment banking, transaction banking, deposit wealth management, and digital banking services. The company was founded in 2010 and is headquartered in Suzhou, China.

Sector Overview

Bank of Suzhou 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 Suzhou'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 497,181.4 9.7% 82
Liabilities 458,665.9 9.5% 91
Price to Book 0.6 -11.5% 89
Cash & Equivalents 16,647.6 310.5% 97
Equity 36,741.0 12.5% 54
Total Revenues 7,679.1 3.9% 53
Parameter Value Change Score
Return on Equity 9.7 -2.9% 58
Net Cashflow -2,892.3 -176.2% 61
Capital Expenditure -584.3 -13.8% 49
Free Cashflow -2.5 -11.2% 78

* All values are TTM

The below chart reflects Bank of Suzhou'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 Suzhou's peer average final assessment score stands on 68.0, Bank of Suzhou's score is 80.

  •  002966
  •  Peers average
Name Market Cap Balance Sheet Income Statement Cash Flow Rating Final Assessment mc_sort Hidden
Ping An Bank Co., Ltd. 281.2B 83 72 85
Strong Buy
87
87 0 1
Bank of Ningbo Co., Ltd. 225.7B 89 70 71
Buy
86
86 1 1
Qingdao Rural Commercial Bank Co., Ltd. 18.4B 74 61 81
Hold
73
73 2 1
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd 11.1B 77 71 64
Hold
76
76 3 1
Jiangsu Jiangyin Rural Commercial Bank Co.,LTD. 9.3B 77 70 53
Hold
72
72 4 1
China Merchants Bank Co., Ltd. 1.1T 77 63 68
Hold
73
73 5 1
Industrial Bank Co., Ltd. 402.2B 85 67 66
Buy
80
80 6 1
Shanghai Pudong Development Bank Co., Ltd. 233.9B 72 61 68
Hold
68
68 7 1
China Everbright Bank Company Limited 160.4B 76 63 56
Hold
70
70 8 1
China Minsheng Banking Corp., Ltd. 150.8B 81 62 79
Hold
78
78 9 1
Bank of Nanjing Co., Ltd. 111.2B 82 66 54
Hold
74
74 10 1
Bank of Jiangsu Co., Ltd. 100.3B 83 71 84
Buy
86
86 11 1
Bank of Beijing Co., Ltd. 95.8B 84 59 75
Hold
77
77 12 1
Bank of Shanghai Co., Ltd. 92.8B 90 64 81
Buy
85
85 13 1
Bank of Hangzhou Co., Ltd. 85.0B 81 70 69
Buy
80
80 14 1
Hua Xia Bank Co., Limited 79.1B 81 63 75
Hold
77
77 15 1
Bank of Chengdu Co., Ltd. 61.3B 86 68 58
Buy
79
79 16 1
Bank of Changsha Co., Ltd. 31.4B 79 62 60
Hold
72
72 17 1
QILU BANK CO., LTD. 22.4B 93 69 80
Strong Buy
91
91 18 1
Bank of Guiyang Co.,Ltd. 21.2B 80 62 75
Hold
77
77 19 1
Jiangsu Changshu Rural Commercial Bank Co., Ltd. 20.6B 82 71 80
Buy
84
84 20 1
Bank of Xi'an Co.,Ltd. 16.2B 80 56 51
Hold
70
70 21 1
Xiamen Bank Co., Ltd. 15.6B 83 62 82
Buy
80
80 22 1
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd 12.2B 83 70 69
Buy
81
81 23 1
Jiangsu Zijin Rural Commercial Bank Co.,Ltd 10.5B 77 60 53
Hold
70
70 24 1
Wuxi Rural Commercial Bank Co.,Ltd 10.3B 73 64 79
Hold
73
73 25 1
Jiangsu Suzhou Rural Commercial Bank Co., Ltd 9.0B 74 73 70
Hold
76
76 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 Suzhou's stock is now priced above its 5-day, but below its 50-day and 200-day moving average, while its MACD (moving average convergence divergence) indicates that the stock's price movement momentum is weakening. Historically, this is a positive setup in the near-term. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Bank of Suzhou's stock indicates that it's likely oversold. Overall, these technical indicators signal negative momentum. Therefore, this stock received a cumulative TA (technical analysis) score of 52.

Bearish 52
Close Price 6.07
52W Low 5.85
52W High 7.93
5D MA 6.03
50D MA 6.24
200D MA 6.55
MACD -0.03
RSI 0.52
STOCH 26.92

Balance Sheet Analysis

Bank of Suzhou appears likely to maintain its strong balance sheet metrics and momentum going forward. Bank of Suzhou did a great job related to cash and cash equivalents this period, which stood at 16647.6, representing a 310.5% change from the previous filing. Its impressive cash and cash equivalents metrics should support upward pressure on its's stock price. The company's cash and cash equivalents movement, therefore, received a grade of 97. Also, In terms of liabilities, Bank of Suzhou published good numbers. Their reported liabilities were 458665.9, representing a 9.5% change from the previous report. This performance is all interesting relative to their peers and suggests that their stock price has room to grow to reflect a higher intrinsic value. These results statistically lead to positive movement in stock prices, so we rated its liabilities movement component 91. However, one concerning metric, Equity, stood out. Bank of Suzhou management produced disappointing equity metrics this period, which stood at 36741.0, representing a 12.5% change. This parameter often affects companies in the same industry and market capitalization by up to 7.1%. These metrics are all the more disappointing relative to their peers and should blunt potential positive momentum in its's stock price. Therefore, their equity movement component earned a score of 54. Therefore, their balance sheet earned a grade of 92.

Parameter Value Change Score
Assets 497,181.4 9.7% 82
Liabilities 458,665.9 9.5% 91
Price to Book 0.6 -11.5% 89
Cash & Equivalents 16,647.6 310.5% 97
Equity 36,741.0 12.5% 54
* All values are TTM

The below chart describes Bank of Suzhou's performance as reflected on its balance sheet with respect to its peers. While Bank of Suzhou received a balance sheet score of 92, the average of its peers stands on 70.0.

  •  002966
  •  Peers average
Name Market Cap Liabilities Movement Asset Change Equity/Intangibles Adjustments Cash & Equivalents Book Value Momentum Balance Sheet mc_sort Hidden
Ping An Bank Co., Ltd. 281.2B 79 78 69 88 79 83 0 1
Bank of Ningbo Co., Ltd. 225.7B 86 51 68 97 84 89 1 1
Qingdao Rural Commercial Bank Co., Ltd. 18.4B 66 68 55 72 77 74 2 1
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd 11.1B 84 53 55 65 79 77 3 1
Jiangsu Jiangyin Rural Commercial Bank Co.,LTD. 9.3B 76 66 69 76 74 77 4 1
China Merchants Bank Co., Ltd. 1.1T 72 81 68 37 84 77 5 1
Industrial Bank Co., Ltd. 402.2B 74 80 68 90 82 85 6 1
Shanghai Pudong Development Bank Co., Ltd. 233.9B 74 70 55 51 76 72 7 1
China Everbright Bank Company Limited 160.4B 89 44 69 54 76 76 8 1
China Minsheng Banking Corp., Ltd. 150.8B 80 45 69 90 77 81 9 1
Bank of Nanjing Co., Ltd. 111.2B 81 51 51 89 82 82 10 1
Bank of Jiangsu Co., Ltd. 100.3B 87 85 55 92 78 83 11 1
Bank of Beijing Co., Ltd. 95.8B 64 63 68 67 90 84 12 1
Bank of Shanghai Co., Ltd. 92.8B 83 62 54 90 90 90 13 1
Bank of Hangzhou Co., Ltd. 85.0B 82 63 54 87 79 81 14 1
Hua Xia Bank Co., Limited 79.1B 79 49 69 89 76 81 15 1
Bank of Chengdu Co., Ltd. 61.3B 83 76 68 82 83 86 16 1
Bank of Changsha Co., Ltd. 31.4B 74 63 69 72 79 79 17 1
QILU BANK CO., LTD. 22.4B 80 59 95 77 89 93 18 1
Bank of Guiyang Co.,Ltd. 21.2B 74 61 69 77 80 80 19 1
Jiangsu Changshu Rural Commercial Bank Co., Ltd. 20.6B 85 81 69 60 81 82 20 1
Bank of Xi'an Co.,Ltd. 16.2B 81 55 67 97 75 80 21 1
Xiamen Bank Co., Ltd. 15.6B 86 66 69 84 78 83 22 1
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd 12.2B 83 72 69 81 79 83 23 1
Jiangsu Zijin Rural Commercial Bank Co.,Ltd 10.5B 41 80 56 95 80 77 24 1
Wuxi Rural Commercial Bank Co.,Ltd 10.3B 66 72 55 62 78 73 25 1
Jiangsu Suzhou Rural Commercial Bank Co., Ltd 9.0B 78 77 55 60 75 74 26 1

Income Statement Analysis

Bank of Suzhou appears likely to maintain its strong income statement metrics, especially Return Factors. Return factors metrics and ratios were exceptional in this report. Bank of Suzhou reported a return on equity (ROE) ratio of 9.7, representing a change of -2.9% from the last report. The company appears headed in the right direction in terms of these return factors, exhibiting prudent capital expenditure growth compared to its peers. Consequently, their return factors received a grade of 58. That said, one metric, Revenue Efficiency, stood out as strongly negative. Bank of Suzhou management did an underwhelming job managing revenue efficiency this past period. Bank of Suzhou's revenue efficiency is 7679.1 according to the metrics in the current filing, which represents a 3.9% change from the previous report. This metric might have a 2.3 percent impact on companies in the same industry and with the same market capitalization. Their revenue efficiency does not make a compelling case for upward pressure on the company's stock price. Its revenue efficiency, therefore, received a grade of 53. their income statement received an overall score of 60.

Parameter Value Change Score
Total Revenues 7,679.1 3.9% 53
Return on Equity 9.7 -2.9% 58
* All values are TTM

The below chart describes Bank of Suzhou's performance as reflected on its income statement with respect to its peers. While Bank of Suzhou received a income statement score of 60 , the average of its peers stands on 66.0.

  •  002966
  •  Peers average
Name Market Cap Revenue Momentum Earning Movement Return Factors Momentum Income Statement mc_sort Hidden
Ping An Bank Co., Ltd. 281.2B 53 68 81 72 0 1
Bank of Ningbo Co., Ltd. 225.7B 55 68 76 70 1 1
Qingdao Rural Commercial Bank Co., Ltd. 18.4B 62 67 57 61 2 1
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd 11.1B 64 67 79 71 3 1
Jiangsu Jiangyin Rural Commercial Bank Co.,LTD. 9.3B 51 68 77 70 4 1
China Merchants Bank Co., Ltd. 1.1T 58 68 61 63 5 1
Industrial Bank Co., Ltd. 402.2B 48 67 73 67 6 1
Shanghai Pudong Development Bank Co., Ltd. 233.9B 80 67 54 61 7 1
China Everbright Bank Company Limited 160.4B 69 67 61 63 8 1
China Minsheng Banking Corp., Ltd. 150.8B 85 67 55 62 9 1
Bank of Nanjing Co., Ltd. 111.2B 48 65 74 66 10 1
Bank of Jiangsu Co., Ltd. 100.3B 48 69 80 71 11 1
Bank of Beijing Co., Ltd. 95.8B 63 68 50 59 12 1
Bank of Shanghai Co., Ltd. 92.8B 66 67 61 64 13 1
Bank of Hangzhou Co., Ltd. 85.0B 48 66 82 70 14 1
Hua Xia Bank Co., Limited 79.1B 61 67 61 63 15 1
Bank of Chengdu Co., Ltd. 61.3B 44 68 75 68 16 1
Bank of Changsha Co., Ltd. 31.4B 57 68 58 62 17 1
QILU BANK CO., LTD. 22.4B 50 68 76 69 18 1
Bank of Guiyang Co.,Ltd. 21.2B 69 67 58 62 19 1
Jiangsu Changshu Rural Commercial Bank Co., Ltd. 20.6B 52 71 77 71 20 1
Bank of Xi'an Co.,Ltd. 16.2B 47 64 58 56 21 1
Xiamen Bank Co., Ltd. 15.6B 48 68 59 62 22 1
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd 12.2B 66 68 76 70 23 1
Jiangsu Zijin Rural Commercial Bank Co.,Ltd 10.5B 81 71 55 60 24 1
Wuxi Rural Commercial Bank Co.,Ltd 10.3B 54 69 61 64 25 1
Jiangsu Suzhou Rural Commercial Bank Co., Ltd 9.0B 84 69 77 73 26 1

Cash Flow Analysis

Free Cash flow and Net Cash Flow stand out as the most significant drivers of Bank of Suzhou's cash flow's strength. Free cash flow numbers published by Bank of Suzhou were -2.5, which was a -11.2% change from the previous filing. This parameter coud affect companies in the same industry and market capitalization by up to 9.3%. Their free cash flow situation is all the more impressive relative to their peers and competitors. Consequently, their free cash flow movement received a grade of 78. Also, Bank of Suzhou presents exciting net cash flow numbers for its recent financial release, illustrated by a net cash flow of -2892.3, which is a change of -176.2% from the last filing. The company is headed in the right direction regarding business priorities, exhibiting prudent net cash flow management and growth. Consequently, their net cash flow movement received a grade of 61. On the other hand, Capital Expenditure, jumped out as looking rather underwhelming. Bank of Suzhou's management did not a remarkable job this period managing capital expenditures (CapEx). In terms of the raw numbers, CapEx was reported as -584.3, which represents a -13.8% change from the last period. The company's disappointing CapEx growth is expected to stunt the momentum they hoped for this period. Its CapEx movement, therefore, received a grade of 49. Because the company's management is doing an excellent job managing these critical metrics, the cash flow was given a score of 61.

Parameter Value Change Score
Net Cashflow -2,892.3 -176.2% 61
Capital Expenditure -584.3 -13.8% 49
Free Cashflow -2.5 -11.2% 78
* All values are TTM

The below chart describes Bank of Suzhou's performance as reflected on its cash flow with respect to its peers. While Bank of Suzhou received a cash flow score of 61, the average of its peers stands on 62.0.

  •  002966
  •  Peers average
Name Market Cap Cashflow Momentum Free Cashflow Growth Capital Expenditure Growth Assets Factors Momentum Cash Flow mc_sort Hidden
Ping An Bank Co., Ltd. 281.2B 91 42 96 69 85 0 1
Bank of Ningbo Co., Ltd. 225.7B 93 38 59 69 71 1 1
Qingdao Rural Commercial Bank Co., Ltd. 18.4B 86 49 84 69 81 2 1
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd 11.1B 39 98 84 69 64 3 1
Jiangsu Jiangyin Rural Commercial Bank Co.,LTD. 9.3B 42 94 51 69 53 4 1
China Merchants Bank Co., Ltd. 1.1T 90 45 44 69 68 5 1
Industrial Bank Co., Ltd. 402.2B 81 56 47 69 66 6 1
Shanghai Pudong Development Bank Co., Ltd. 233.9B 48 87 85 69 68 7 1
China Everbright Bank Company Limited 160.4B 43 95 54 69 56 8 1
China Minsheng Banking Corp., Ltd. 150.8B 84 45 91 69 79 9 1
Bank of Nanjing Co., Ltd. 111.2B 49 84 48 69 54 10 1
Bank of Jiangsu Co., Ltd. 100.3B 93 41 90 69 84 11 1
Bank of Beijing Co., Ltd. 95.8B 67 67 92 69 75 12 1
Bank of Shanghai Co., Ltd. 92.8B 95 38 80 69 81 13 1
Bank of Hangzhou Co., Ltd. 85.0B 49 87 90 69 69 14 1
Hua Xia Bank Co., Limited 79.1B 80 57 69 69 75 15 1
Bank of Chengdu Co., Ltd. 61.3B 66 67 45 69 58 16 1
Bank of Changsha Co., Ltd. 31.4B 59 81 45 69 60 17 1
QILU BANK CO., LTD. 22.4B 81 54 90 69 80 18 1
Bank of Guiyang Co.,Ltd. 21.2B 67 67 90 69 75 19 1
Jiangsu Changshu Rural Commercial Bank Co., Ltd. 20.6B 71 73 81 69 80 20 1
Bank of Xi'an Co.,Ltd. 16.2B 43 90 62 67 51 21 1
Xiamen Bank Co., Ltd. 15.6B 93 40 85 69 82 22 1
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd 12.2B 96 37 44 69 69 23 1
Jiangsu Zijin Rural Commercial Bank Co.,Ltd 10.5B 46 99 50 67 53 24 1
Wuxi Rural Commercial Bank Co.,Ltd 10.3B 82 52 84 69 79 25 1
Jiangsu Suzhou Rural Commercial Bank Co., Ltd 9.0B 85 50 56 69 70 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.