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China Minsheng Banking Corp Ltd Class A 600016

Morningstar Rating
CNY 3.98 −0.01 (0.25%)
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Company Report

China's Joint-Stock Banks Earnings: Divergent Performance on Differing Exposure for Retail Banks

China Merchants Bank, or CMB, and China Minsheng Bank, or CMBC, reported a deeper year-on-year decline in first-quarter revenue of 5% and 7% versus the 2% and 1% decline in 2023. China Citic Bank’s results were stronger than expected, with revenue increasing 5% year on year, driven by stronger-than-expected growth in fee and investment income, which benefited from falling interest rates. The net profit trend weakened further, with net profit contracting 2% and 6% for CMB and CMBC, respectively, and increasing 0.4% for Citic, year on year.

Price vs Fair Value

600016 is trading at a 465% premium.
Price
CNY 3.98
Fair Value
CNY 3.10
Uncertainty
High
1-Star Price
CNY 6.14
5-Star Price
CNY 7.96
Economic Moat
Bdnhj
Capital Allocation
Dnrfw

Bulls Say, Bears Say

Bulls

CMBC has showed marginal improvements in asset quality as a result of management’s three-year reform to clean up asset risks from 2020 to 2022.

Bears

In light of its high exposure to off-balance-sheet lending and its higher-than-peer leverage ratio, CMBC has to slow its growth to comply with stricter regulations.

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Trading Information

Previous Close Price
CNY 3.99
Day Range
CNY 3.974.02
52-Week Range
CNY 3.584.18
Bid/Ask
CNY 3.97 / CNY 3.98
Market Cap
CNY 174.25 Bil
Volume/Avg
110.4 Mil / 108.2 Mil

Key Statistics

Price/Earnings (Normalized)
4.99
Price/Sales
1.44
Dividend Yield (Trailing)
5.36%
Dividend Yield (Forward)
5.36%
Total Yield
5.36%

Company Profile

Founded in 1996, China Minsheng Banking Corp. is one of the first privately owned commercial banks in China, with headquarters in Beijing. Its shares listed on the Shanghai Exchange and the Hong Kong Exchange in 2000 and 2009, respectively. CMBC positions itself as a bank for non-state-owned enterprises, micro- and small enterprises, and high-end retail customers. The bank has a diversified shareholding structure, with over 23,000 banking outlets in 125 cities in China.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Large Value
Total Number of Employees
63,742

Competitors

Valuation

Metric
600016
600036
000001
Price/Earnings (Normalized)
4.996.405.24
Price/Book Value
0.320.940.53
Price/Sales
1.442.841.48
Price/Cash Flow
2.54
Price/Earnings
600016
600036
000001

Financial Strength

Metric
600016
600036
000001
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
600016
600036
000001
Return on Assets (Normalized)
0.46%1.33%0.84%
Return on Equity (Normalized)
6.61%16.13%11.84%
Return on Invested Capital (Normalized)
Return on Assets
600016
600036
000001
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MFG
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LYG
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NWG
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DB
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