QILU BANK CO., LTD. (601665) Report Analysis
The financials published by QILU for Q1 were strong and encouraging. it generate impressive and balanced results that reveal its underlying strength, not only in terms of value but also due to its impressive growth and income factors. These encouraging results suggest a bright future for QILU's stock. Therefore, QILU earned a score of 91 and a STRONG BUY recommendation.
QILU reported earnings results for the first quarter ended March 30, 2022. For the first quarter, the company reported net interest income was CNY 1,955.54 million compared to CNY 1,710.24 million a year ago. Net income was CNY 903.92 million compared to CNY 752.94 million a year ago. Basic earnings per share from continuing operations was CNY 0.17 compared to CNY 0.18 a year ago. Diluted earnings per share from continuing operations was CNY 0.17 compared to CNY 0.18 a year ago.
Business Description
QILU provides personal and corporate banking services in the People’s Republic of China. The company offers personal savings products, including deposits and withdrawals; personal demand, savings, and education savings deposits; personal, housing mortgage, consumer credit, home and home improvement, parking, salary, and other loans; wealth management services; credit cards; and insurance products. It also provides corporate deposits; and corporate financing; supply chain financing; cash management; and investment banking products and services. In addition, the company offers international banking products and services, such as foreign exchange funds, accounts, deposits, and guarantees; trade financing; remittance route; international settlement services; commercial acceptance bills bonding/guarantee services; and Internet banking services. Further, it is involved in bills discounting and execution, interbank lending and investment, bond investment and spot bond trading, and foreign exchange and derivatives trading activities. The company was formerly known as Jinan City Commercial Bank Co., Ltd and changed its name to QILU on June 6, 2009. QILU was founded in 1996 and is based in Jinan, the People's Republic of China.
Sector Overview
QILU 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). QILU'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 | 10.1 | 4.0% | 76 | |
Net Cashflow | -3,070.8 | -359.4% | 81 | |
Capital Expenditure | -197.4 | 39.7% | 90 | |
Free Cashflow | 6.9 | 38.9% | 54 |
* All values are TTM
The below chart reflects QILU'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 QILU's peer average final assessment score stands on 75.0, QILU's score is 91.
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. QILU's stock is now priced below 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 weakening. Historically, this is a negative setup in the near, medium, and long-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), QILU'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 42.
Overall, QILU's critical balance sheet metrics appear to signal strong support and a high likelihood of positive growth going forward. QILU produced great equity metrics for this filing, demonstrating management's skill in increasing shareholder value. QILU's equity was reported as 33004.2, which represents a 5.4% change from the last report. Companies in the same sector and market capitalization will usually be affected by up to 7.1 percent by this parameter. This performance is significantly more impressive than its peers and competitors. The company's equity movement component, therefore, received a grade of 95. Also, QILU's price to book ratio (P/B) was reported as 0.8 and represents -26.7% change from the previous report. The company's book value factor metrics are even more remarkable when compared to their peers. Therefore, its book value factors earned a score of 89. That said, one metric, Assets, stood out as particularly concerning. QILU assets metrics were reported as 453130.2, representing a 8.8% 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. Consequently, their asset movement received a grade of 59. Similarly, because its management is doing an excellent job managing these critical metrics, the balance sheet was given a score of 93.
Parameter | Value | Change | Score |
---|---|---|---|
Assets | 453,130.2 | 8.8% | 59 |
Liabilities | 419,871.6 | 9.0% | 80 |
Price to Book | 0.8 | -26.7% | 89 |
Cash & Equivalents | 11,575.4 | 17.8% | 77 |
Equity | 33,004.2 | 5.4% | 95 |
The below chart describes QILU's performance as reflected on its balance sheet with respect to its peers. While QILU received a balance sheet score of 93, the average of its peers stands on 72.0.
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 |
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 |
Hua Xia Bank Co., Limited | 79.1B | 79 | 49 | 69 | 89 | 76 | 81 | 10 | 1 |
Bank of Chengdu Co., Ltd. | 61.3B | 83 | 76 | 68 | 82 | 83 | 86 | 11 | 1 |
Bank of Changsha Co., Ltd. | 31.4B | 74 | 63 | 69 | 72 | 79 | 79 | 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 |
QILU appears likely to maintain its strong income statement metrics, especially Return Factors. Return factors metrics and ratios were exceptional in this report. QILU reported a return on equity (ROE) ratio of 10.1, representing a change of 4.0% from the last report. Its return factor metrics are even more remarkable when compared to their peers. The company's return factors (ROA & ROE) components, therefore, received a grade of 76. That said, one metric, Revenue Efficiency, stood out as strongly negative. QILU management did an underwhelming job managing revenue efficiency this past period. QILU's revenue efficiency is 6311.9 according to the metrics in the current filing, which represents a 9.3% 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. Its uninspiring revenue efficiency is even more concerning relative to its peers and competitors in the current market. As a result, their revenue efficiency earned a score of 50. their income statement received an overall score of 69.
Parameter | Value | Change | Score |
---|---|---|---|
Total Revenues | 6,311.9 | 9.3% | 50 |
Return on Equity | 10.1 | 4.0% | 76 |
The below chart describes QILU's performance as reflected on its income statement with respect to its peers. While QILU received a income statement score of 69 , the average of its peers stands on 67.0.
QILU appears likely to maintain its strong cash flow metrics and momentum going forward. QILU's published capital expenditures (CapEx) numbers were encouraging and reflected management's balanced change strategy. QILU recorded CapEx of -197.4, which represents 39.7% change from the previous report. This remarkable CapEx growth is expected to reinforce upward momentum for its's stock price going forward. The company's CapEx movement, therefore, received a grade of 90. Also, QILU presents exciting net cash flow numbers for its recent financial release, illustrated by a net cash flow of -3070.8, which is a change of -359.4% 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 81. That said, one metric, Free Cash flow, stood out as strongly negative. QILU's published free cash flow numbers were subpar and could mean that management has lost focus on achieving healthy growth. QILU recorded free cash flow of 6.9, which represents 38.9% growth from the previous report. 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. Its free cash flow movement, therefore, received a grade of 54. Consequently, its cash flow earned a score of 80.
Parameter | Value | Change | Score |
---|---|---|---|
Net Cashflow | -3,070.8 | -359.4% | 81 |
Capital Expenditure | -197.4 | 39.7% | 90 |
Free Cashflow | 6.9 | 38.9% | 54 |
The below chart describes QILU's performance as reflected on its cash flow with respect to its peers. While QILU received a cash flow score of 80, the average of its peers stands on 77.0.
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