Xiamen Bank Co., Ltd. (601187) Report Analysis
At a high level, the metrics from Xiamen's Q1 financial report release were demonstrably positive. Their income and value factors indicate a well-executed and balanced strategy, which is generating exciting income. There should be significant upside potential for the stock looking forward. As such, Xiamen received an overall score of 80 and a BUY recommendation.
Xiamen reported earnings results for the first quarter ended March 31, 2022. For the first quarter, the company reported net interest income was CNY 1,118.91 million compared to CNY 1,012.52 million a year ago. Net income was CNY 627.11 million compared to CNY 538.21 million a year ago. Basic earnings per share from continuing operations was CNY 0.21 compared to CNY 0.2 a year ago. Diluted earnings per share from continuing operations was CNY 0.21 compared to CNY 0.2 a year ago.
Business Description
Xiamen provides various banking products and services to individuals, corporate customers, and small and micro finance businesses. It offers personal savings products, personal loans, investment and financial management products, bank cards, and convenience finance services; cash management, international business, investment banking, intermediate business, and investment banking services, as well as corporate deposits and loans; and financing solutions for emerging and small businesses. The company also provides financial market services, including precious metal, bond, foreign exchange and derivative, bill collection and clearance, inter-bank, and franchise business services; and online and mobile banking services. It has branches in Chongqing and Fujian Province. The company was founded in 1996 and is based in Xiamen, China.
Sector Overview
Xiamen 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). Xiamen'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 | -1.5% | 59 | |
Net Cashflow | 541.4 | 105.2% | 93 | |
Capital Expenditure | -284.5 | 7.8% | 85 | |
Free Cashflow | 2.7 | 131.8% | 40 |
* All values are TTM
The below chart reflects Xiamen'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 Xiamen's peer average final assessment score stands on 72.0, Xiamen's score is 80.
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. Xiamen'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. 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), Xiamen'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 73.
Overall, Xiamen's critical balance sheet metrics appear to signal strong support and a high likelihood of positive growth going forward. In terms of liabilities, Xiamen published good numbers. Their reported liabilities were 320028.8, representing 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 86. Also, Xiamen's management was effective in improving its cash and cash equivalents metrics, which now sit at 16852.2. This represents 22.1% 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. Therefore, its cash and cash equivalents movement earned a score of 84. On the other hand, Assets, jumped out as looking rather underwhelming. Xiamen's management did not succeed in significantly improving the value of the assets on their balance sheet, which now sits at 343812.3 and represents a 4.3% change from the previous report. This unimpressive metric is weaker than its peers and competitors. Its asset component, therefore, received a grade of 66. The company's balance sheet, Therefore, earned a score of 83.
Parameter | Value | Change | Score |
---|---|---|---|
Assets | 343,812.3 | 4.3% | 66 |
Liabilities | 320,028.8 | 4.5% | 86 |
Price to Book | 0.7 | -17.8% | 78 |
Cash & Equivalents | 16,852.2 | 22.1% | 84 |
Equity | 23,259.7 | 2.2% | 69 |
The below chart describes Xiamen's performance as reflected on its balance sheet with respect to its peers. While Xiamen received a balance sheet score of 83, the average of its peers stands on 75.0.
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 |
QILU BANK CO., LTD. | 22.4B | 80 | 59 | 95 | 77 | 89 | 93 | 13 | 1 |
Bank of Guiyang Co.,Ltd. | 21.2B | 74 | 61 | 69 | 77 | 80 | 80 | 14 | 1 |
Jiangsu Changshu Rural Commercial Bank Co., Ltd. | 20.6B | 85 | 81 | 69 | 60 | 81 | 82 | 15 | 1 |
Bank of Xi'an Co.,Ltd. | 16.2B | 81 | 55 | 67 | 97 | 75 | 80 | 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 |
Xiamen appears likely to maintain its strong income statement metrics, especially Return Factors. Return factors metrics and ratios were exceptional in this report. Xiamen reported a return on equity (ROE) ratio of 10.1, representing a change of -1.5% 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. Consequently, their return factors received a grade of 59. That said, one metric, Revenue Efficiency, stood out as strongly negative. Xiamen management did an underwhelming job managing revenue efficiency this past period. Xiamen's revenue efficiency is 4524.4 according to the metrics in the current filing, which represents a 5.2% 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. 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 62.
Parameter | Value | Change | Score |
---|---|---|---|
Total Revenues | 4,524.4 | 5.2% | 48 |
Return on Equity | 10.1 | -1.5% | 59 |
The below chart describes Xiamen's performance as reflected on its income statement with respect to its peers. While Xiamen received a income statement score of 62 , the average of its peers stands on 65.0.
Xiamen appears likely to maintain its strong cash flow metrics and momentum going forward. Xiamen's management was effective in improving their net cash flow, which now sits at 541.4 and represents a 105.2% change from the previous report. Their net cash flow metrics are especially remarkable relative to their peers. Hence, its net cash flow earned a score of 93. Also, Xiamen's published capital expenditures (CapEx) numbers were encouraging and reflected management's balanced change strategy. Xiamen recorded CapEx of -284.5, which represents 7.8% 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. Consequently, their CapEx movement received a grade of 85. However, one discouraging result, Free Cash flow, stood out. Xiamen did a poor job related to generating and maintaining strong free cash flow this period, which stood at 2.7, representing a 131.8% change from the previous filing. Companies in the same sector and market capitalization will usually be affected by up to 9.3 percent by this parameter. Their free cash flow situation is more concerning relative to their peers and competitors. Consequently, their free cash flow movement received a grade of 40. Consequently, its cash flow earned a score of 82.
Parameter | Value | Change | Score |
---|---|---|---|
Net Cashflow | 541.4 | 105.2% | 93 |
Capital Expenditure | -284.5 | 7.8% | 85 |
Free Cashflow | 2.7 | 131.8% | 40 |
The below chart describes Xiamen's performance as reflected on its cash flow with respect to its peers. While Xiamen received a cash flow score of 82, the average of its peers stands on 67.0.
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