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China Merchants Bank (CIHKY)
OTHER OTC:CIHKY
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China Merchants Bank
(OTC:CIHKY)
Rating:76Outperform
Price Target:―
China Merchants Bank (CIHKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$152.27B
Dividend Yield4.56%
Average Volume (3M)2.62K
Price to Earnings (P/E)7.5
Beta (1Y)0.27
Revenue Growth-2.87%
EPS Growth2.19%
CountryUS
Employees117,201
SectorFinancial
Sector Strength78
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.03
Shares Outstanding918,180,240
10 Day Avg. Volume2,044
30 Day Avg. Volume2,616
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.21
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit1.06
Enterprise Value/Ebitda2.53
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
China Merchants Bank Business Overview & Revenue Model
Company DescriptionChina Merchants Bank (CIHKY) is one of the largest commercial banks in China, headquartered in Shenzhen. Established in 1987, it operates primarily in the financial services sector, providing a comprehensive range of financial solutions including personal banking, corporate banking, treasury operations, and wealth management services. The bank is known for its innovative approach to banking, leveraging technology to enhance customer experiences and streamline operations.
How the Company Makes MoneyChina Merchants Bank generates revenue through various streams, primarily driven by interest income from its extensive portfolio of loans offered to individuals, small and medium-sized enterprises, and large corporations. In addition to interest income, the bank earns substantial fees from its wealth management services, including investment advisory and asset management. The bank also benefits from transaction service fees, such as those related to credit cards and payment processing. Significant partnerships with financial technology firms and other financial institutions facilitate its digital banking initiatives, further expanding its revenue potential. By maintaining a diversified range of financial products and services, China Merchants Bank effectively captures a broad market segment, contributing to its robust earnings.
China Merchants Bank Earnings Call Summary
Earnings Call Date:Aug 29, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced perspective with stable financial performance, strategic technological investments, and ESG improvements, countered by challenges in interest margins, rising NPLs, and declining fee-based income.Q4-2024 Updates
Positive Updates
Stable Financial Performance
Net profit attributable to shareholders increased by 1.22% to RMB 1.39 billion, with a cost-to-income ratio decrease of 1.05 percentage points to 31.92%, demonstrating effective cost management.
Asset Growth
Total assets exceeded RMB 12 trillion, an increase of 10.19%, while total customer deposits surpassed RMB 9 trillion, up by 11.54%.
Strong Retail Finance Contribution
Retail finance accounted for 58.37% of net operating income, and retail loans grew by 6%, with retail customer AUM approaching RMB 15 trillion.
Technological Advancements
Investment in technology amounted to RMB 13.35 billion, with significant advancements in AI applications across 120 scenarios.
ESG Improvements
CMB's MSCI ESG rating was upgraded to AAA, with significant increases in green loan and green leasing balances by 9% and 19% respectively.
Negative Updates
Interest Margin Decline
Net Interest Margin (NIM) decreased by 17 basis points to 1.98%, reflecting challenges in maintaining interest income amidst a competitive market.
Non-Performing Loan (NPL) Increase
NPL balance rose by RMB 4.03 billion to RMB 65.61 billion, with a slight increase in the retail NPL ratio, indicating rising pressures in asset quality.
Fee-Based Income Challenges
Net fee and commission income decreased by 14%, influenced by sluggish consumption and regulatory fee cuts, impacting overall non-interest income.
Company Guidance
In the 2024 Annual Results Presentation for China Merchants Bank, several financial metrics were highlighted to showcase the bank's performance and strategic positioning. The bank reported a net operating income of RMB 337.12 billion, which marked a year-over-year decrease of 0.58%, while net profit attributable to shareholders increased by 1.22% to RMB 1.39 billion. The return on average assets (ROAA) was 1.28%, and the return on average equity (ROAE) was 14.49%, both slightly declining year-over-year. The net interest income was RMB 211.27 billion, reflecting a year-over-year decrease of 1.58%, and the net interest margin (NIM) was 1.98%, down by 17 basis points from the previous year. Total assets surpassed RMB 12 trillion, growing by 10.19%, with customer deposits exceeding RMB 9 trillion, an increase of 11.54%. The cost-to-income ratio improved to 31.92%, and the non-performing loan (NPL) ratio remained at 0.95%. The bank's allowance coverage ratio was 411.98%, and its credit cost ratio was 0.65%. Additionally, the bank's core Tier 1 capital adequacy ratio (CAR) increased to 14.86%, supporting its robust financial position. The bank continues to focus on technology investments, with RMB 13.35 billion allocated towards IT, representing 4.38% of its net operating income, and has over 10,000 R&D personnel. These metrics collectively highlight China Merchants Bank's steady growth and strategic focus on enhancing profitability, asset quality, and technological advancement amidst a challenging economic environment.China Merchants Bank Financial Statement Overview
Summary
China Merchants Bank exhibits a strong financial position with consistent revenue growth, solid profitability, a strong equity base, and effective cash flow management. The absence of debt enhances its financial stability.Income Statement
China Merchants Bank demonstrates a strong income statement characterized by consistent revenue growth over recent years, with a notable increase in total revenue from 297.8 billion CNY in 2023 to 334.9 billion CNY in 2024. The net profit margin remains robust, highlighted by a net income of 148.4 billion CNY in 2024, indicating effective cost management. However, the lack of EBIT and EBITDA figures for 2024 limits a more comprehensive margin analysis.85
Very Positive
Balance Sheet
The balance sheet of China Merchants Bank is solid, with a high equity ratio of 10.09% in 2024, supported by substantial stockholders' equity of 1,226.01 billion CNY. The absence of total debt in 2024 marks a significant improvement in financial stability compared to previous years. The bank's assets have grown consistently, reaching over 12.15 trillion CNY, indicating strong asset management and growth.90
Very Positive
Cash Flow
China Merchants Bank's cash flow statement shows a strong operating cash flow of 447.0 billion CNY in 2024, reflecting efficient cash generation capabilities. There is a remarkable increase in free cash flow from 181.4 billion CNY in 2023 to 412.1 billion CNY in 2024, suggesting improved capital management. However, the volatile nature of financing cash flows could pose risks if not managed carefully in the future.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 372.05B | 334.86B | 297.80B | 287.99B | 265.29B | 225.61B |
| Gross Profit | 319.34B | 334.86B | 297.80B | 342.26B | 265.29B | 225.61B |
| EBITDA | 133.05B | 0.00 | 0.00 | 179.72B | 161.70B | 0.00 |
| Net Income | 147.60B | 148.39B | 146.60B | 138.01B | 119.92B | 97.34B |
Balance Sheet | ||||||
| Total Assets | 12.53T | 12.15T | 11.03T | 10.14T | 9.25T | 8.36T |
| Cash, Cash Equivalents and Short-Term Investments | 1.16T | 1.21T | 1.07T | 960.91B | 846.62B | 876.67B |
| Total Debt | 664.17B | 493.38B | 436.55B | 429.69B | 631.11B | 609.26B |
| Total Liabilities | 11.28T | 10.92T | 9.94T | 9.18T | 8.38T | 7.63T |
| Stockholders Equity | 1.25T | 1.23T | 953.39B | 945.50B | 858.75B | 723.75B |
Cash Flow | ||||||
| Free Cash Flow | 237.83B | 412.09B | 181.39B | 535.25B | 157.89B | 402.20B |
| Operating Cash Flow | 264.88B | 447.02B | 211.55B | 570.14B | 182.05B | 421.33B |
| Investing Cash Flow | -493.91B | -292.86B | -255.11B | -513.93B | -19.70B | -240.75B |
| Financing Cash Flow | -572.88B | 2.15B | 546.71B | -297.03B | 89.36B | -211.79B |
China Merchants Bank Technical Analysis
Negative
30.79
Price Trends
32.57
Negative
30.89
Negative
28.44
Positive
Market Momentum
-0.47
Positive
38.62
Neutral
3.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIHKY, the sentiment is Negative. The current price of 30.79 is below the 20-day moving average (MA) of 31.56, below the 50-day MA of 32.57, and above the 200-day MA of 28.44, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 38.62 is Neutral, neither overbought nor oversold. The STOCH value of 3.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CIHKY.
China Merchants Bank Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $81.69B | 14.17 | 11.19% | 3.13% | 3.60% | 22.68% | |
76 Outperform | $152.27B | 7.54 | 14.30% | 4.56% | -2.87% | 2.19% | |
76 Outperform | $75.99B | 11.69 | 11.64% | 4.10% | 1.10% | 32.55% | |
73 Outperform | $113.21B | 18.07 | 17.47% | 0.81% | 17.32% | 12.99% | |
69 Neutral | $165.66B | 43.71 | 13.78% | 0.18% | 2.48% | 0.37% | |
68 Neutral | $17.90B | 11.86 | 10.29% | 3.72% | 9.74% | 1.66% | |
65 Neutral | $83.41B | 13.97 | 8.69% | 2.38% | -2.22% | 24.37% |
* Financial Sector Average
Performance Comparison
CIHKY
China Merchants Bank
30.79
11.45
59.20%
HDB
Hdfc Bank
71.16
10.87
18.03%
IBN
Icici Bank
31.74
2.45
8.36%
MFG
Mizuho Financial
6.60
2.37
56.03%
PNC
PNC Financial
207.44
29.39
16.51%
USB
US Bancorp
48.83
4.45
10.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.