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Hua Xia Bank Co., Limited (600015) Report Analysis

Corporate Events

Neutral

Hua Xia Bank Co., Limited, 2021 Earnings Call, ...

2022-05-03 03:55:00

Hua Xia Bank Co., Limited, 2021 Earnings Call, May 05, 2022

Positive

Hua Xia Bank Co., Limited, 0.338 (CNY), Cash Di...

2022-05-02 00:00:00

Hua Xia Bank Co., Limited, 0.338 (CNY), Cash Dividend, Jun-08-2022

Neutral

Hua Xia Bank Co., Limited, H1 2021 Earnings Cal...

2021-08-30 13:17:00

Hua Xia Bank Co., Limited, H1 2021 Earnings Call, Aug 31, 2021

Neutral

Hua Xia Bank Co., Limited, 2021 Earnings Call, May 05, 2022

2022-05-03 03:55:00

Hua Xia Bank Co., Limited, 2021 Earnings Call, May 05, 2022

Positive

Hua Xia Bank Co., Limited, 0.338 (CNY), Cash Dividend, Jun-08-2022

2022-05-02 00:00:00

Hua Xia Bank Co., Limited, 0.338 (CNY), Cash Dividend, Jun-08-2022

Neutral

Hua Xia Bank Co., Limited, H1 2021 Earnings Call, Aug 31, 2021

2021-08-30 13:17:00

Hua Xia Bank Co., Limited, H1 2021 Earnings Call, Aug 31, 2021

Fundamental Summary

According to their recent financial report, which was published on 2022-04-29, Hua Xia had several impressive financial metrics that should make them more attractive than their peers going forward. Their income and value factors indicate a well-executed and balanced strategy, which is generating exciting income. This relative strength should allow Hua Xia to continue to perform well even in a tough market. Therefore, they earned a total score of 77 out of 100 and a HOLD recommendation.

Hua Xia reported earnings results for the first quarter ended March 31, 2022. For the first quarter, the company reported net interest income was CNY 18,796 million compared to CNY 20,325 million a year ago. Net income was CNY 5,626 million compared to CNY 5,355 million a year ago. Basic earnings per share from continuing operations was CNY 0.3 compared to CNY 0.29 a year ago. Diluted earnings per share from continuing operations was CNY 0.3.

Business Description

Hua Xia provides commercial banking services in China. The company offers various deposit products, including current, time, personal call, education, FX agreement savings, agreement, notice, and foreign currency deposits, as well as corporate deposits and withdrawals. It also provides housing mortgage and guarantee, and housing mortgage transfer loans; private loans and loans for self-employed; personal auto, comprehensive consumer, study subsidy, small pledge, and entrusted loans; working capital, fixed asset, credit and guarantee, stock pledged, warehouse receipt pledge, foreign currency pledged, corporate time deposit certificate and gold pledge, and syndicate loans; bank and trade acceptance discounting, domestic factoring with recourse, and export tax rebate custody loans; and confirmed warehouse and buyer shared interest payment for bill discounting products. In addition, the company offers credit and debit cards; wealth management, and investment and management products; gold and forex trading services; fund investment services; and agency sales, guarantee, collection and payment, settlement, and other services, as well as acts as a third party for custody, transfer, savings, deposits, and withdrawal of securities settlement funds. Further, it provides cash management and international settlement services; import and export trade financing; forex settlement and sale services; and corporate financial advisory and asset custody services, as well as products and services for SMEs and financing institutions. Additionally, the company offers internet and mobile banking, and online payment services. As of December 31, 2020, it operated 44 tier-1 branches, 79 tier-2 branches, 7 non-local branches, and 1,022 outlets in 122 cities. Hua Xia was incorporated in 1992 and is headquartered in Beijing, China.

Sector Overview

Hua Xia 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). Hua Xia'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 3,824,685.0 7.8% 49
Liabilities 3,519,737.0 8.1% 79
Price to Book 0.3 -9.4% 76
Cash & Equivalents 209,180.0 103.0% 89
Equity 282,459.0 4.3% 69
Total Revenues 62,073.0 3.3% 61
Parameter Value Change Score
Return on Equity 8.2 -2.2% 61
Net Cashflow 39,107.0 29.6% 80
Capital Expenditure -4,461.0 -345.2% 69
Free Cashflow 8.0 21.8% 57

* All values are TTM

The below chart reflects Hua Xia'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 Hua Xia's peer average final assessment score stands on 73.0, Hua Xia's score is 77.

  •  600015
  •  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 Shanghai Co., Ltd. 92.8B 90 64 81
Buy
85
85 8 1
Bank of Hangzhou Co., Ltd. 85.0B 81 70 69
Buy
80
80 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. Hua Xia'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. 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), Hua Xia'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 47.

Bearish 47
Close Price 5.17
52W Low 5.05
52W High 6.26
5D MA 5.14
50D MA 5.31
200D MA 5.54
MACD -0.05
RSI 0.33
STOCH 68.75

Balance Sheet Analysis

Overall, Hua Xia's critical balance sheet metrics appear to signal strong support and a high likelihood of positive growth going forward. Hua Xia reported a positive trendline in their cash and cash equivalents metrics. Specifically, they reported that cash and cash equivalents were 209180.0, representing 103.0% change from the last report. This impressive growth, specifically in contrast to their industry peers' performance, should support an upswing in the company's stock price. The company's cash and cash equivalents movement, therefore, received a grade of 89. Also, Hua Xia is doing a good job of keeping its liabilities under control and growing intelligently. At filing, their liabilities were 3519737.0, representing 8.1% change from the previous period. These liabilities changes appear balanced compared to their peers and project the message that management is capable and focused on balancing asset growth, resource allocation, and growing liabilities. Therefore, we rated their liabilities movement with a score of 79. However, one concerning metric, Assets, stood out. Mediocre performance in terms of assets could drop the bar on expectations for Hua Xia's future attractiveness, as they changed to 3824685.0 in the latest filing. This works out to a 7.8% change from the last period. This unimpressive metric is weaker than its peers and competitors. Its asset component, therefore, received a grade of 49. Therefore, it received a score of 81.

Parameter Value Change Score
Assets 3,824,685.0 7.8% 49
Liabilities 3,519,737.0 8.1% 79
Price to Book 0.3 -9.4% 76
Cash & Equivalents 209,180.0 103.0% 89
Equity 282,459.0 4.3% 69
* All values are TTM

The below chart describes Hua Xia's performance as reflected on its balance sheet with respect to its peers. While Hua Xia received a balance sheet score of 81, the average of its peers stands on 76.0.

  •  600015
  •  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 Shanghai Co., Ltd. 92.8B 83 62 54 90 90 90 8 1
Bank of Hangzhou Co., Ltd. 85.0B 82 63 54 87 79 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

Hua Xia appears likely to maintain its strong income statement metrics, especially Revenue Efficiency. Hua Xia's financials reveal an interesting trend for their revenue efficiency. This characteristic can affect companies in the same industry and market capitalization by up to 2.3%. Their industry-leading revenue efficiency makes a strong case for upward pressure on its's stock price. The company's revenue efficiency, therefore, received a grade of 61. That said, one metric, Revenue Efficiency, stood out as strongly negative. Hua Xia's revenue efficiency metrics look especially concerning this period, highlighting issues management is having controlling and reducing expenses while increasing earnings. This metric might have a 2.3 percent impact on companies in the same industry and with the same market capitalization. Their revenue efficiency, specifically in contrast to their industry peers', isn't encouraging. Its revenue efficiency, therefore, received a grade of 61. their income statement received an overall score of 63.

Parameter Value Change Score
Total Revenues 62,073.0 3.3% 61
Return on Equity 8.2 -2.2% 61
* All values are TTM

The below chart describes Hua Xia's performance as reflected on its income statement with respect to its peers. While Hua Xia received a income statement score of 63 , the average of its peers stands on 68.0.

  •  600015
  •  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 Shanghai Co., Ltd. 92.8B 66 67 61 64 8 1
Bank of Hangzhou Co., Ltd. 85.0B 48 66 82 70 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

Hua Xia appears likely to maintain its strong cash flow metrics and momentum going forward. Hua Xia presents exciting net cash flow numbers for its recent financial release, illustrated by a net cash flow of 39107.0, which is a change of 29.6% from the last filing. This industry-leading net cash flow momentum should reinforce broader positive momentum for its's stock price going forward. Hence, its net cash flow earned a score of 80. Also, Hua Xia's management was effective in improving its CapEx, which now sits at -4461.0 and represents -345.2% change from the previous report. 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 69. That said, one metric, Free Cash flow, stood out as strongly negative. Hua Xia did a poor job related to generating and maintaining strong free cash flow this period, which stood at 8.0, representing a 21.8% change from the previous filing. Companies in the same industry and market capitalization are typically affected by this parameter by up to 9.3%. These free cash flow numbers show that management has not been executing well in generating critical cash flow while also encouraging growth. Consequently, their free cash flow movement received a grade of 57. 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 39,107.0 29.6% 80
Capital Expenditure -4,461.0 -345.2% 69
Free Cashflow 8.0 21.8% 57
* All values are TTM

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

  •  600015
  •  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 Shanghai Co., Ltd. 92.8B 95 38 80 69 81 8 1
Bank of Hangzhou Co., Ltd. 85.0B 49 87 90 69 69 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.