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Bank of Beijing Co., Ltd. (601169) Report Analysis

Fundamental Summary

At a high level, the metrics from Bank of Beijing's Q1 financial report release provided many positive indicators. Their income and value factors indicate a well-executed and balanced strategy, which is generating exciting income. These results lead us to believe that there should be significant upside potential for the stock. As such, Bank of Beijing received an overall score of 77 and a HOLD recommendation.

Bank of Beijing reported earnings results for the first quarter ended March 31, 2022. For the first quarter, the company reported net interest income was CNY 12,971 million compared to CNY 12,885 million a year ago. Net income was CNY 7,353 million compared to CNY 6,898 million a year ago. Basic earnings per share from continuing operations was CNY 0.35 compared to CNY 0.33 a year ago. Diluted earnings per share from continuing operations was CNY 0.35 compared to CNY 0.33 a year ago.

Business Description

Bank of Beijing provides various banking products and services to individual and corporate clients in China, Hong Kong, and the Netherlands. The company accepts current, fixed, personal call, education, automatic notice and fixed, and foreign currency deposits; and offers personal housing, auto, student, building property mortgage consumption, and government loans. It also provides insurance products; funds; third-party depository, fee collection, and safe deposits box services; and savings and debit, and credit cards. In addition, the company offers corporate banking services, including account settling, institution financing and credit, cash management, trade finance, and investment banking services, as well as enterprise electronic banking services. Further, it operates as an agent for precious metal exchange and bond settlements; and trades in personal foreign exchange. Additionally, the company is involved in the valet trading of current and future foreign exchange; settlement and sale of future foreign exchange; and investment banking and asset custody, and foreign exchange deposit, as well as exchange, settlement, and L/G services. It operates through a network of 670 branches. The company was founded in 1996 and is headquartered in Beijing, China.

Sector Overview

Bank of Beijing 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 Beijing'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 3,139,910.0 2.7% 63
Liabilities 2,836,233.0 0.4% 64
Price to Book 0.3 -23.8% 90
Cash & Equivalents 169,037.0 -4.3% 67
Equity 283,777.0 33.0% 68
Total Revenues 43,992.0 2.4% 63
Parameter Value Change Score
Return on Equity 8.6 -17.1% 50
Net Cashflow 12,170.0 -76.8% 67
Capital Expenditure -1,868.0 46.7% 92
Free Cashflow -3.1 -574.8% 67

* All values are TTM

The below chart reflects Bank of Beijing'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 Beijing's peer average final assessment score stands on 72.0, Bank of Beijing's score is 77.

  •  601169
  •  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 Shanghai Co., Ltd. 92.8B 90 64 81
Buy
85
85 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 Beijing's stock is now priced above its 5-day, 50-day, and 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 the near, medium, and long-term. In particular, many institutional investors keep close watch of the 200-day moving average. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Bank of Beijing's stock indicates that it's likely oversold. Overall, these technical indicators signal positive upward momentum. Therefore, this stock received a cumulative TA (technical analysis) score of 78.

Bullish 78
Close Price 4.53
52W Low 4.28
52W High 4.92
5D MA 4.53
50D MA 4.49
200D MA 4.48
MACD 0.02
RSI 0.2
STOCH 85.71

Balance Sheet Analysis

Overall, Bank of Beijing's critical balance sheet metrics appear to signal strong support and a high likelihood of positive growth going forward. Bank of Beijing's price to book ratio (P/B) was reported as 0.3 and represents -23.8% 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 Beijing did a great job related to equity this period, which stood at 283777.0, representing a 33.0% change. This parameter often affects companies in the same industry and market capitalization by up to 7.1%. This performance is significantly more impressive than its peers and competitors. Consequently, their equity movement received a grade of 68. At the same time, one critical balance sheet metric, Assets, was notably weak. Bank of Beijing assets metrics were reported as 3139910.0, representing a 2.7% change from the last filing. The lack of good news about assets momentum should be a cause for concern and is often met with downward pressure on the company's stock price. Its asset component, therefore, received a grade of 63. Similarly, because its management is doing an excellent job managing these critical metrics, the balance sheet was given a score of 84.

Parameter Value Change Score
Assets 3,139,910.0 2.7% 63
Liabilities 2,836,233.0 0.4% 64
Price to Book 0.3 -23.8% 90
Cash & Equivalents 169,037.0 -4.3% 67
Equity 283,777.0 33.0% 68
* All values are TTM

The below chart describes Bank of Beijing's performance as reflected on its balance sheet with respect to its peers. While Bank of Beijing received a balance sheet score of 84, the average of its peers stands on 76.0.

  •  601169
  •  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 Shanghai Co., Ltd. 92.8B 83 62 54 90 90 90 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 Beijing's income statement factors had several troubling metrics this period. Bank of Beijing's reported return on equity (ROE) ratio was 8.6, representing a change of -17.1%. 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. Therefore, their return factors component earned a score of 50. However, one encouraging metric, Revenue Efficiency, stood out. Bank of Beijing's financials reveal an interesting trend for their revenue efficiency. This parameter often affects companies in the same industry and market capitalization by up to 2.3%. Their impressive revenue efficiency is even more impressive relative to its peers and competitors in the current market. As a result, its revenue efficiency earned a score of 63. Because of these weaknesses, their income statement received an overall score of 59.

Parameter Value Change Score
Total Revenues 43,992.0 2.4% 63
Return on Equity 8.6 -17.1% 50
* All values are TTM

The below chart describes Bank of Beijing's performance as reflected on its income statement with respect to its peers. While Bank of Beijing received a income statement score of 59 , the average of its peers stands on 66.0.

  •  601169
  •  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 Shanghai Co., Ltd. 92.8B 66 67 61 64 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 Beijing appears likely to maintain its strong cash flow metrics and momentum going forward. Bank of Beijing's management did a great job this period managing its capital expenditure (CapEx). In terms of the raw numbers, CapEx was reported as -1868.0, which represents a 46.7% 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 92. Also, Bank of Beijing presents exciting net cash flow numbers for its recent financial release, illustrated by a net cash flow of 12170.0, which is a change of -76.8% 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 67. On the other hand, Net Cash Flow, jumped out as looking problematic. Bank of Beijing's produced underwhelming cash flow numbers in this filing. Net cash flow was reported as 12170.0, which is a -76.8% change from the last report. Their net cash flow momentum should be a cause for concern and could bring negative momentum for Bank of Beijing's stock price going forward. Consequently, their net cash flow movement received a grade of 67. Because their management is doing an excellent job managing these critical metrics, the cash_flow was given a score of 75.

Parameter Value Change Score
Net Cashflow 12,170.0 -76.8% 67
Capital Expenditure -1,868.0 46.7% 92
Free Cashflow -3.1 -574.8% 67
* All values are TTM

The below chart describes Bank of Beijing's performance as reflected on its cash flow with respect to its peers. While Bank of Beijing received a cash flow score of 75, the average of its peers stands on 67.0.

  •  601169
  •  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 Shanghai Co., Ltd. 92.8B 95 38 80 69 81 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.