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Bank of Hangzhou Co., Ltd. (600926) Report Analysis

Corporate Events

Neutral

Bank of Hangzhou Co., Ltd., 2021 Earnings Call,...

2022-04-26 15:00:00

Bank of Hangzhou Co., Ltd., 2021 Earnings Call, Apr 27, 2022

Neutral

Bank of Hangzhou Co., Ltd., Q1 2022 Earnings Ca...

2022-04-26 10:31:00

Bank of Hangzhou Co., Ltd., Q1 2022 Earnings Call, Apr 27, 2022

Neutral

Bank of Hangzhou Co., Ltd., 2021 Earnings Call, Apr 27, 2022

2022-04-26 15:00:00

Bank of Hangzhou Co., Ltd., 2021 Earnings Call, Apr 27, 2022

Neutral

Bank of Hangzhou Co., Ltd., Q1 2022 Earnings Call, Apr 27, 2022

2022-04-26 10:31:00

Bank of Hangzhou Co., Ltd., Q1 2022 Earnings Call, Apr 27, 2022

Fundamental Summary

According to their recent financial report, which was published on 2022-04-25, Bank of Hangzhou had several impressive financial metrics that should make them more attractive than their peers going forward. Their positive income, growth, and value factors indicate that it is likely to continue to produce impressive results for the foreseeable future, as well. There should be significant upside potential for the stock looking forward. Therefore, they earned a total score of 80 out of 100 and a BUY recommendation.

Bank of Hangzhou reported earnings results for the first quarter ended March 31, 2022. For the first quarter, the company reported net interest income was CNY 5,459.42 million compared to CNY 5,383.2 million a year ago. Net income was CNY 3,308.7 million compared to CNY 2,518.28 million a year ago. Basic earnings per share from continuing operations was CNY 0.51 compared to CNY 0.38 a year ago. Diluted earnings per share from continuing operations was CNY 0.44 compared to CNY 0.38 a year ago.

Business Description

Bank of Hangzhou provides various banking products and services to small and medium enterprises, and urban and rural residents in China. It operates approximately 200 branches. The company was founded in 1996 and is headquartered in Hangzhou, China.

Sector Overview

Bank of Hangzhou 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 Hangzhou'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 1,456,949.4 4.8% 63
Liabilities 1,363,992.3 4.9% 82
Price to Book 1.0 7.7% 79
Cash & Equivalents 28,588.7 30.0% 87
Equity 82,977.9 3.6% 54
Total Revenues 19,847.4 5.2% 48
Parameter Value Change Score
Return on Equity 11.4 5.4% 82
Net Cashflow -19,048.5 45.6% 49
Capital Expenditure -672.8 16.8% 90
Free Cashflow -12.8 -33.8% 87

* All values are TTM

The below chart reflects Bank of Hangzhou'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 Hangzhou's peer average final assessment score stands on 72.0, Bank of Hangzhou's score is 80.

  •  600926
  •  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
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 Hangzhou'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 Hangzhou'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 14.58
52W Low 11.78
52W High 15.77
5D MA 14.13
50D MA 14.2
200D MA 14.25
MACD 0.06
RSI 0.78
STOCH 100.0

Balance Sheet Analysis

Bank of Hangzhou appears likely to maintain its strong balance sheet metrics and momentum going forward. Bank of Hangzhou's management was effective in improving its cash and cash equivalents metrics, which now sit at 28588.7. This represents 30.0% change from the last reporting period. This performance is significantly more impressive than its peers and competitors. It suggests that their stock price has room to grow to reflect its actual intrinsic value. The company's cash and cash equivalents movement, therefore, received a grade of 87. Also, Bank of Hangzhou is doing a good job of keeping its liabilities under control and growing intelligently. At filing, their liabilities were 1363992.3, representing 4.9% 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. The company's liabilities movement component, therefore, received a grade of 82. On the other hand, Equity, jumped out as looking rather underwhelming. Bank of Hangzhou management produced disappointing equity metrics this period, which stood at 82977.9, representing a 3.6% 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. Consequently, their equity movement received a grade of 54. Therefore, their balance sheet earned a grade of 81.

Parameter Value Change Score
Assets 1,456,949.4 4.8% 63
Liabilities 1,363,992.3 4.9% 82
Price to Book 1.0 7.7% 79
Cash & Equivalents 28,588.7 30.0% 87
Equity 82,977.9 3.6% 54
* All values are TTM

The below chart describes Bank of Hangzhou's performance as reflected on its balance sheet with respect to its peers. While Bank of Hangzhou received a balance sheet score of 81, the average of its peers stands on 75.0.

  •  600926
  •  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
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 Hangzhou appears likely to maintain its strong income statement metrics, especially Return Factors. Return factors metrics and ratios were exceptional in this report. Bank of Hangzhou reported a return on equity (ROE) ratio of 11.4, representing a change of 5.4% 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. Therefore, its return factors component earned a score of 82. That said, one metric, Revenue Efficiency, stood out as strongly negative. Bank of Hangzhou'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. As a result, their revenue efficiency earned a score of 48. their income statement received an overall score of 70.

Parameter Value Change Score
Total Revenues 19,847.4 5.2% 48
Return on Equity 11.4 5.4% 82
* All values are TTM

The below chart describes Bank of Hangzhou's performance as reflected on its income statement with respect to its peers. While Bank of Hangzhou received a income statement score of 70 , the average of its peers stands on 68.0.

  •  600926
  •  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
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

Two metrics jump up as the most significant positive drivers of the cash flow's strength in Bank of Hangzhou's recent report: Capex and Free Cash flow. Bank of Hangzhou's management was effective in improving its CapEx, which now sits at -672.8 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 90. Also, Bank of Hangzhou did a great job related to free cash flow this period, which stood at -12.8, representing a -33.8% 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 87. On the other hand, Net Cash Flow, jumped out as looking rather underwhelming. Bank of Hangzhou's produced underwhelming cash flow numbers in this filing. Net cash flow was reported as -19048.5, which is a 45.6% change from the last report. Bank of Hangzhou's net cash flow metrics are especially disappointing relative to their peers. Hence, their net cash flow earned a score of 49. Therefore, the company's cash flow earned a grade of 69.

Parameter Value Change Score
Net Cashflow -19,048.5 45.6% 49
Capital Expenditure -672.8 16.8% 90
Free Cashflow -12.8 -33.8% 87
* All values are TTM

The below chart describes Bank of Hangzhou's performance as reflected on its cash flow with respect to its peers. While Bank of Hangzhou received a cash flow score of 69, the average of its peers stands on 67.0.

  •  600926
  •  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
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.