BOC Hong Kong (Holdings) (BHKLY) AI Stock Analysis

• Market Cap: $53.20B
• Dividend Yield: 5.75%
• Average Volume (3M): 332.00
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.11
• Revenue Growth: 2.28%
• EPS Growth: 13.23%
• Country: US
• Employees: 15,309
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 5.38
• Shares Outstanding: 528,639,000
• 10 Day Avg. Volume: 108
• 30 Day Avg. Volume: 332
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.96
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 1.45
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ―

BOC Hong Kong (Holdings) demonstrates strong financial health with significant revenue growth and profitability, supported by a robust balance sheet. The positive technical trend and attractive valuation further enhance its stock appeal. However, the negative free cash flow and lack of detailed earnings call insights are areas to monitor.

Positive Factors

Revenue Growth

The strong revenue growth indicates BOC Hong Kong's ability to expand its market presence and enhance its product offerings, which is crucial for long-term sustainability and competitiveness in the banking sector.

Profitability Margins

High profitability margins reflect effective cost management and operational efficiency, providing BOC Hong Kong with a competitive edge and the ability to reinvest in growth opportunities.

Balance Sheet Health

A debt-free balance sheet enhances financial stability and flexibility, allowing BOC Hong Kong to navigate economic fluctuations and invest in strategic initiatives without the burden of interest obligations.

Negative Factors

Negative Free Cash Flow

Negative free cash flow suggests potential liquidity issues and limits the company's ability to fund operations and growth without external financing, which could impact long-term financial health.

Declining Operating Cash Flows

A decline in operating cash flows indicates potential challenges in cash generation from core operations, which could affect the company's ability to sustain growth and meet financial obligations over time.

Equity Financing

A lower equity ratio may suggest reliance on other forms of financing, which could limit financial flexibility and increase vulnerability to market changes, impacting long-term strategic initiatives.

BOC Hong Kong (Holdings) Business Overview & Revenue Model

Company Description

BOC Hong Kong (Holdings) Limited, an investment holding company, provides banking and related financial services to corporate and individual customers in Hong Kong, China, and internationally. The company operates through four segments: Personal Banking, Corporate Banking, Treasury, and Insurance. It offers savings, current, and time deposit accounts; mortgage plans; payrolls, corporate deposits, and E-cheques services. The company also offers cross-border financial and remittance services for individual and corporate customers. In addition, the company offers investment services in securities, funds, foreign exchange, precious metals and FX margin, bonds, and structured products, as well as business and personal loans. Further, the company provides business and accident protection, medical, travel, leisure, family protection, and personal life insurance. Additionally, the company offers safe deposit box, e-Bill, and payment services. Furthermore, it provides wealth management, overdraft, private banking services, as well as account opening, payment and collection, digital banking, loan, and cross border services. BOC Hong Kong (Holdings) Limited was founded in 1917 and is based in Central, Hong Kong. The company is a subsidiary of BOC Hong Kong (BVI) Limited.

How the Company Makes Money

BOC Hong Kong makes money primarily through interest income, which is earned from loans and advances to customers. The bank also generates non-interest income from fees and commissions related to its retail and corporate banking services, such as account management, credit card services, trade finance, and wealth management. Additionally, the bank earns revenue through its treasury operations, which involve trading and investment activities in the money and capital markets. BOC Hong Kong's earnings are further supported by strategic partnerships and its relationship with its parent company, Bank of China, which enhances its ability to offer competitive banking solutions and expand its client base.

BOC Hong Kong (Holdings) Financial Statement Overview

Summary

BOC Hong Kong (Holdings) exhibits a robust financial position with strong revenue growth and profitability margins. The balance sheet is healthy with no debt, but cash flow management needs attention due to negative free cash flow and declining operating cash flows. However, the company maintains a strong equity position and solid return on equity.

Income Statement

BOC Hong Kong (Holdings) showed a strong income statement performance with a notable increase in total revenue from 2023 to 2024. The net profit margin for 2024 was approximately 53.22%, which is robust, indicating effective cost management despite a decrease in reported EBIT and EBITDA. Revenue growth from 2023 to 2024 was approximately 21.44%, highlighting strong performance in generating sales.

Balance Sheet

The balance sheet is solid, characterized by zero total debt in 2024, reflecting strong financial stability. The equity ratio stands at approximately 8.07%, indicating that a smaller portion of the company's assets is financed by equity. However, the return on equity (ROE) is strong at approximately 11.28% for 2024, reflecting efficient utilization of shareholders' equity.

Cash Flow

Cash flow analysis reveals some challenges, as the operating cash flow significantly decreased from 2023 to 2024. The negative free cash flow is a concern, driven by higher capital expenditures. The operating cash flow to net income ratio is low, suggesting potential cash generation issues relative to net earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.84B	59.16B	99.75B	76.86B	94.50B
Gross Profit	71.84B	152.42B	99.75B	76.86B	94.50B
EBITDA	0.00	44.07B	36.50B	33.22B	0.00
Net Income	38.23B	32.72B	27.33B	24.35B	27.86B
Balance Sheet
Total Assets	4.19T	3.87T	3.69T	3.64T	3.32T
Cash, Cash Equivalents and Short-Term Investments	683.00B	418.20B	364.93B	389.36B	314.25B
Total Debt	0.00	669.39B	630.20B	716.53B	541.66B
Total Liabilities	3.85T	3.55T	3.38T	3.34T	3.02T
Stockholders Equity	338.72B	320.14B	303.05B	298.00B	290.30B
Cash Flow
Free Cash Flow	-323.00M	68.45B	136.84B	42.21B	16.17B
Operating Cash Flow	1.88B	69.75B	138.10B	43.38B	17.49B
Investing Cash Flow	-2.33B	-1.96B	-42.97B	-265.72B	-109.90B
Financing Cash Flow	-22.76B	138.12B	-61.86B	293.58B	203.23B

BOC Hong Kong (Holdings) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHKLY, the sentiment is Positive. The current price of 100.65 is above the 20-day moving average (MA) of 94.67, above the 50-day MA of 93.34, and above the 200-day MA of 76.51, indicating a bullish trend. The MACD of 1.67 indicates Negative momentum. The RSI at 63.83 is Neutral, neither overbought nor oversold. The STOCH value of 95.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BHKLY.

BOC Hong Kong (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BHKLY	75 Outperform	$53.20B	10.27	12.04%	5.75%	2.28%	13.23%
ITUB	73 Outperform	$71.33B	9.98	20.49%	6.76%	5.44%	2.81%
LYG	71 Outperform	$65.43B	12.92	10.06%	3.77%	0.76%	-5.74%
HDB	69 Neutral	$168.34B	43.27	13.78%	0.20%	2.48%	33.95%
Sector *	68 Neutral	$17.85B	11.54	9.95%	3.76%	9.70%	1.08%
WF	66 Neutral	$13.68B	7.12	8.90%	3.23%	-3.55%	1.59%
MFG	65 Neutral	$83.56B	14.20	8.69%	2.34%	-2.22%	24.37%