Shanghai Pudong Development Bank Co., Ltd. (600000) Report Analysis
Shanghai Pudong's financial results from Q1 demonstrated decent performance, but will likely only help Shanghai Pudong remain on par with its peers. Its growth, value, and income factors all individually appear positive and give support for optimism regarding the likelihood of continued positive performance. We gave Shanghai Pudong a 68 rating and a HOLD recommendation.
Shanghai Pudong reported earnings results for the first quarter ended March 31, 2022. For the first quarter, the company reported net interest income was CNY 34,502 million compared to CNY 33,672 million a year ago. Net income was CNY 19,388 million compared to CNY 18,697 million a year ago. Basic earnings per share from continuing operations was CNY 0.64 compared to CNY 0.61 a year ago. Diluted earnings per share from continuing operations was CNY 0.58 compared to CNY 0.56 a year ago.
Business Description
Shanghai Pudong provides commercial banking products and services in the People’s Republic of China. The company offers various personal banking services, including savings and account management products; wealth management services comprising open-ended funds, special investments, SPDB structured deposits, security investment custody accounts, individual FX trading, collective security investments, and insurance products distribution; cards; lending services, such as deposit/treasury bond pledged loans and car mortgages; online payment and consumption services; and instant messaging services. It also provides corporate banking services consisting of corporate cash management solutions, ebanking solutions, supply chain financing solutions, asset custody solutions, occupational pension products, and trade finance services; and investment banking and offshore banking services, as well as services to small and medium enterprises, and multi-national companies. In addition, the company offers treasury and market products, including foreign exchange risk management, interest rate risk management, structural, fixed income, and commodity exchange products. As of December 31, 2020, it had 1,640 branches. Shanghai Pudong was founded in 1992 and is headquartered in Shanghai, the People’s Republic of China.
Sector Overview
Shanghai Pudong 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). Shanghai Pudong'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.
Parameter | Value | Change | Score | |
---|---|---|---|---|
Return on Equity | 8.0 | -10.3% | 54 | |
Net Cashflow | -101,329.0 | -279.8% | 48 | |
Capital Expenditure | -9,436.0 | 16.8% | 85 | |
Free Cashflow | -14.2 | -58.5% | 87 |
* All values are TTM
The below chart reflects Shanghai Pudong'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 Shanghai Pudong's peer average final assessment score stands on 74.0, Shanghai Pudong's score is 68.
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. Shanghai Pudong'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. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Shanghai Pudong'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.
Shanghai Pudong appears likely to maintain its strong balance sheet metrics and momentum going forward. Shanghai Pudong publishes solid book value factor metrics in this report. Price to book ratio (P/B) now sits at 0.4 and represents a -16.0% change from the previous report. These book value factor numbers show that management has been prudent in focusing on efficient growth. We believe the stock price has room to grow to reflect its intrinsic value accurately. Therefore, its book value factors earned a score of 76. Also, Shanghai Pudong has done an excellent job managing its liabilities. Shanghai Pudong's liabilities stood at 7727317.0 in the current filing, which represents a 4.5% 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. The company's liabilities movement component, therefore, received a grade of 74. That said, one metric, Cash & Equivalents, stood out as strongly negative. Shanghai Pudong's management did a relatively poor job managing cash and cash equivalents, which now sit at 163847.0 and represents a -43.7% change from the last reporting period. This performance is significantly less impressive than its peers and competitors. Discouraging results like these statistically lead to negative pressure in stock prices, so we rated their cash and cash equivalents with a score of 51. Therefore, the company's balance sheet earned a grade of 72.
Parameter | Value | Change | Score |
---|---|---|---|
Assets | 8,423,074.0 | 4.4% | 70 |
Liabilities | 7,727,317.0 | 4.5% | 74 |
Price to Book | 0.4 | -16.0% | 76 |
Cash & Equivalents | 163,847.0 | -43.7% | 51 |
Equity | 657,418.0 | 3.9% | 55 |
The below chart describes Shanghai Pudong's performance as reflected on its balance sheet with respect to its peers. While Shanghai Pudong received a balance sheet score of 72, the average of its peers stands on 78.0.
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 |
China Everbright Bank Company Limited | 160.4B | 89 | 44 | 69 | 54 | 76 | 76 | 2 | 1 |
China Minsheng Banking Corp., Ltd. | 150.8B | 80 | 45 | 69 | 90 | 77 | 81 | 3 | 1 |
Bank of Nanjing Co., Ltd. | 111.2B | 81 | 51 | 51 | 89 | 82 | 82 | 4 | 1 |
Bank of Jiangsu Co., Ltd. | 100.3B | 87 | 85 | 55 | 92 | 78 | 83 | 5 | 1 |
Bank of Beijing Co., Ltd. | 95.8B | 64 | 63 | 68 | 67 | 90 | 84 | 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 |
Shanghai Pudong appears likely to maintain its strong income statement metrics, especially Revenue Efficiency. Shanghai Pudong did an excellent job managing its revenue efficiency this past period. Shanghai Pudong's revenue efficiency is 112637.0 according to the metrics in the current filing, which represents a -0.2% change from the previous report. This parameter often affects 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. The company's revenue efficiency, therefore, received a grade of 80. That said, one metric, Return Factors, stood out as strongly negative. Shanghai Pudong's reported return on equity (ROE) ratio was 8.0, representing a change of -10.3%. 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 54. their income statement received an overall score of 61.
Parameter | Value | Change | Score |
---|---|---|---|
Total Revenues | 112,637.0 | -0.2% | 80 |
Return on Equity | 8.0 | -10.3% | 54 |
The below chart describes Shanghai Pudong's performance as reflected on its income statement with respect to its peers. While Shanghai Pudong received a income statement score of 61 , the average of its peers stands on 66.0.
Two metrics jump up as the most significant positive drivers of the cash flow's strength in Shanghai Pudong's recent report: Free Cash flow and Capex. Free cash flow numbers published by Shanghai Pudong were -14.2, which was a -58.5% 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. The company's free cash flow movement, therefore, received a grade of 87. Also, Shanghai Pudong's management was effective in improving its CapEx, which now sits at -9436.0 and represents 16.8% change from the previous report. This performance is all the more impressive relative to their peers and competitors. Consequently, their CapEx movement received a grade of 85. At the same time, one critical cash flow metric, Net Cash Flow, was notably weak. Shanghai Pudong's net cash flow metrics were -101329.0 according to their current filing, which represents a -279.8% change from the previous report. Shanghai Pudong's net cash flow metrics are especially disappointing relative to their peers. Consequently, their net cash flow movement received a grade of 48. Because its management is doing an excellent job managing these critical metrics, the cash flow was given a score of 68.
Parameter | Value | Change | Score |
---|---|---|---|
Net Cashflow | -101,329.0 | -279.8% | 48 |
Capital Expenditure | -9,436.0 | 16.8% | 85 |
Free Cashflow | -14.2 | -58.5% | 87 |
The below chart describes Shanghai Pudong's performance as reflected on its cash flow with respect to its peers. While Shanghai Pudong received a cash flow score of 68, the average of its peers stands on 66.0.
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 |
China Everbright Bank Company Limited | 160.4B | 43 | 95 | 54 | 69 | 56 | 2 | 1 |
China Minsheng Banking Corp., Ltd. | 150.8B | 84 | 45 | 91 | 69 | 79 | 3 | 1 |
Bank of Nanjing Co., Ltd. | 111.2B | 49 | 84 | 48 | 69 | 54 | 4 | 1 |
Bank of Jiangsu Co., Ltd. | 100.3B | 93 | 41 | 90 | 69 | 84 | 5 | 1 |
Bank of Beijing Co., Ltd. | 95.8B | 67 | 67 | 92 | 69 | 75 | 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 |
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