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China Construction Bank Corporation Class H (HK:0939)
:0939

China Construction Bank (0939) AI Stock Analysis

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HK

China Construction Bank

(OTC:0939)

Rating:82Outperform
Price Target:
China Construction Bank's overall score is bolstered by its strong financial performance and attractive valuation. The bank's leadership in green finance and technological advancements further supports the score. However, technical analysis suggests moderate market momentum, and attention is needed on declining commission income and NIM pressure. The high dividend yield and low P/E ratio enhance the stock's appeal, balancing some operational challenges.
Positive Factors
Dividend Yield
CCB offers the highest dividend yield among SOE peers, making it attractive to investors.
Earnings Growth
Strong growth in other non-NII, which more than tripled to Rmb26bn, driven by gains in investment securities.
Negative Factors
Share Performance
CCB’s share performance was the weakest among Big Four Banks due to investor concerns on mortgage repricing and uncertainties in the property sector.

China Construction Bank (0939) vs. iShares MSCI Hong Kong ETF (EWH)

China Construction Bank Business Overview & Revenue Model

Company DescriptionChina Construction Bank Corporation provides various banking and related financial services to individuals and corporate customers in the People's Republic of China and internationally. It operates through Corporate Banking, Personal Banking, Treasury Business, and Others segments. The company accepts various deposits, such as foreign currency, all in one accounts, RMB, corporate term and notification, and corporate demand deposits, as well corporate deposits by agreement. Its loan products include personal business, car, and housing loans; and SME, traditional credit, commercial draft, buyer credit, and RMB credit line loans. The company also offers credit cards; physical gold for personal investment and personal gold accounts; foreign exchange services; certificate treasury and savings bonds, securities deposit accounts, and securities services, as well as bank-securities transfer and book-entry treasury bond over the counter services; and wealth management products. In addition, it provides collection, salaries payment, third-party collection and payment, insurance agency, and remittance services; international settlement and financing, and FI services; securities and fund settlement services; guarantee-based, consulting and advising, and factoring services; fund custody services; and e-banking services. Further, the company offers institutional services comprising services for government agencies, social security, banks cooperation, bank-securities cooperation, bank-insurance cooperation, and services for non-banking financial institutions. It operates 14,741 banking outlets. China Construction Bank Corporation was founded in 1954 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyChina Construction Bank makes money primarily through interest income from loans and advances, which constitutes a significant portion of its revenue. The bank provides a wide range of loan products, including personal loans, mortgages, and corporate loans. Additionally, CCB generates income through service fees and commissions from financial services such as wealth management, insurance, and investment products. The bank's treasury operations, including interbank lending, foreign exchange trading, and securities investment, also contribute to its earnings. CCB's partnerships with other financial institutions and its extensive network of branches and subsidiaries enhance its ability to generate revenue from various financial services.

China Construction Bank Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q4-2024)
|
% Change Since: 10.84%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Positive
CCB demonstrated strong financial performance and industry leadership in green finance and ESG, while also advancing in technology. However, challenges remain in commission income, NIM, and the personal housing loan market.
Q4-2024 Updates
Positive Updates
Strong Financial Performance
CCB's operating income reached RMB728.6 billion with a net profit of RMB336.3 billion. The NPL ratio decreased by 0.03 percentage points to 1.34%, and key indicators like ROE at 10.69% and capital adequacy ratio at 19.69% lead the industry.
Leadership in Green Finance
CCB achieved RMB4.7 trillion in green loans, marking significant growth from the previous year. The bank's commitment to green finance is a notable achievement.
ESG Excellence
CCB received an AAA rating in MSCI ESG ratings, positioning it as the only Chinese Mainland bank with such a distinction among the top 10 global banks.
Technological Advancements
CCB implemented the DeepSeek AI model, improving efficiency in various business operations and enhancing customer service capabilities.
Negative Updates
Decline in Commission Income
Commission income fell by 9.35% in 2024, consistent with industry trends, despite an overall increase in non-interest income.
Pressure on Net Interest Margin
The bank's NIM faced pressure due to policy changes and market conditions, although it remains competitive within the industry.
Challenges in Personal Housing Loan Market
Despite policy support, the personal housing loan market faces challenges with a need for risk mitigation strategies to handle potential non-performing loans.
Company Guidance
In the 2024 annual results announcement call, China Construction Bank (CCB) presented a robust performance with operating income reaching RMB728.6 billion and a net profit of RMB336.3 billion. Key financial metrics included a non-performing loan (NPL) ratio of 1.34%, a net interest margin (NIM) of 1.51%, a return on assets (ROA) of 0.85%, a return on equity (ROE) of 10.69%, and a capital adequacy ratio of 19.69%. The cost-to-income ratio stood at 29.58%. CCB emphasized its strategic focus on technology, finance power, and national strategy industries, with loans to technology-related and strategic emerging industries totaling over RMB3.5 trillion and RMB2.84 trillion, respectively. Green loans saw significant growth, reaching RMB4.7 trillion. The bank maintained its leading position in various sectors, including inclusive finance with a balance of RMB3.41 trillion, and supported infrastructure development with industry loans at RMB25.85 trillion. Looking forward, CCB plans to maintain stable loan growth, enhance support for the real economy, and optimize asset structure while adapting to a low-interest environment and exploring high-quality development opportunities. The bank also focused on digital transformation, leveraging AI models like DeepSeek to enhance operational efficiency and customer service.

China Construction Bank Financial Statement Overview

Summary
China Construction Bank demonstrates solid financial health across all verticals. The income statement reflects strong profitability with stable margins, although revenue growth is moderate. The balance sheet is particularly strong, highlighting financial stability and low leverage. Cash flow generation is robust, though free cash flow growth varies. Overall, the bank is well-positioned in the industry with strong financials supporting its operations.
Income Statement
85
Very Positive
China Construction Bank shows a solid gross profit margin consistently aligned with its total revenue, indicating efficient cost management. The net profit margin is also robust, demonstrating strong profitability. However, revenue growth has been moderate, with fluctuations over the years. EBIT and EBITDA margins were only available for some years, showing good profitability when available.
Balance Sheet
88
Very Positive
The bank maintains a very strong equity position with a significant equity ratio, highlighting stability. The debt-to-equity ratio is exceptionally healthy, with negligible debt levels in recent years. Return on equity shows a stable and strong return, reflecting efficient use of shareholders' equity to generate profits.
Cash Flow
80
Positive
Operating cash flow is strong, and free cash flow has shown substantial growth in some years, although it declined in the latest period. Cash flow ratios indicate that the bank effectively converts its net income into operational liquidity, however, free cash flow growth has fluctuated.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
904.33B749.57B622.34B821.28B822.64B754.96B
Gross Profit
1.07T749.57B1.41T821.28B822.64B754.96B
EBIT
533.25B504.69B414.17B910.24B377.00B334.09B
EBITDA
280.74B0.0026.13B935.68B0.00916.20B
Net Income Common Stockholders
332.11B335.58B332.65B324.73B302.51B271.05B
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.78T3.54T3.95T3.89T3.23T3.74T
Total Assets
42.79T40.57T38.32T34.60T30.25T28.13T
Total Debt
0.000.006.61T2.00T1.62T1.29T
Net Debt
-3.78T-3.54T-3.95T-1.90T-1.61T-2.45T
Total Liabilities
39.38T37.23T35.15T31.72T27.64T25.74T
Stockholders Equity
3.39T3.32T3.01T2.86T2.59T2.36T
Cash FlowFree Cash Flow
1.38T308.85B560.60B954.67B415.48B554.94B
Operating Cash Flow
1.40T338.02B585.69B978.42B436.72B580.68B
Investing Cash Flow
-1.39T-692.63B-821.25B-651.67B-518.55B-642.16B
Financing Cash Flow
-291.79B-7.20B-47.33B-6.42B16.12B-89.96B

China Construction Bank Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.28
Price Trends
50DMA
6.68
Positive
100DMA
6.48
Positive
200DMA
6.02
Positive
Market Momentum
MACD
0.16
Negative
RSI
71.17
Negative
STOCH
95.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0939, the sentiment is Positive. The current price of 7.28 is above the 20-day moving average (MA) of 7.00, above the 50-day MA of 6.68, and above the 200-day MA of 6.02, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 71.17 is Negative, neither overbought nor oversold. The STOCH value of 95.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0939.

China Construction Bank Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
HK$1.84T5.0810.81%6.01%-3.79%-0.62%
64
Neutral
$12.87B9.817.76%16985.65%12.28%-7.83%
$270.23B6.0510.80%7.14%
$208.54B5.779.57%5.59%
$73.55B5.60
5.83%
$157.07B8.1514.86%4.31%
$331.44B5.52
8.33%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0939
China Construction Bank
7.28
2.49
51.95%
ACGBF
Agricultural Bank of China
0.68
0.27
65.85%
BACHF
Bank of China
0.60
0.18
42.86%
BKFCF
Bank of Communications Co
0.90
0.23
34.33%
CIHHF
China Merchants Bank Co
6.42
2.12
49.30%
IDCBF
Industrial and Commercial Bank of China
0.75
0.23
44.23%

China Construction Bank Corporate Events

China Construction Bank Approves Key Resolutions for 2025
Apr 29, 2025

China Construction Bank’s Board of Directors convened to approve several key resolutions, reflecting its strategic focus and operational priorities for 2025. Among the resolutions, the Board approved the CCB First Quarter Capital Management Pillar III Report and the Internal Capital Adequacy Assessment for 2025, indicating a robust approach to capital management. Additionally, the Board authorized a charitable donation quota of RMB137 million to support poverty alleviation and rural revitalization, showcasing its commitment to social responsibility. The re-election of Mr. Zhang Jinliang as Executive Director was also confirmed, ensuring continuity in leadership.

China Construction Bank Reports Q1 2025 Financial Results
Apr 29, 2025

China Construction Bank Corporation has released its unaudited consolidated financial results for the first quarter of 2025, showing a slight decline in both operating income and net profit compared to the same period in 2024. Despite this, the bank experienced a significant increase in net cash from operating activities, indicating strong liquidity management. The total assets of the bank grew by 5.48% from the end of 2024, reflecting a robust expansion in its financial position.

China Construction Bank’s Q1 2025 Report Highlights Financial Health and Global Compliance
Apr 29, 2025

China Construction Bank’s first quarter report for 2025 highlights key prudential regulatory indicators and risk-weighted assets, reflecting its robust financial health and compliance with global banking standards. The report underscores the bank’s commitment to maintaining a strong leverage ratio and managing liquidity risk effectively, which is crucial for its stability and reputation as a globally systemically important bank.

China Construction Bank Strengthens Leadership with Key Appointments
Apr 22, 2025

China Construction Bank Corporation announced key resolutions from its recent Board of Directors meeting held in Beijing. The board approved the concurrent appointment of Mr. Ji Zhihong as the Secretary to the Board, in addition to his role as Executive Vice President. Mr. Ji brings extensive experience from his previous roles at the People’s Bank of China. Additionally, Ms. Han Jing was appointed as Executive Vice President, pending approval from the National Financial Regulatory Administration. Her background includes significant leadership roles at the Agricultural Bank of China. These appointments are expected to strengthen the bank’s executive team and enhance its strategic operations.

China Construction Bank Appoints New Board Secretary
Apr 22, 2025

China Construction Bank Corporation announced the appointment of Mr. Ji Zhihong as the secretary to the Board of Directors, effective April 18, 2025. This strategic appointment is expected to enhance the bank’s governance and operational efficiency, potentially impacting its industry positioning positively.

China Construction Bank Holds Successful 2025 Shareholders Meetings
Apr 22, 2025

China Construction Bank Corporation recently held its First Extraordinary General Meeting of 2025, along with the First A and H Shareholders Class Meetings, on April 22, 2025, in Beijing. The meetings were conducted in compliance with relevant laws and regulations, and were attended by a significant number of shareholders and authorized proxies, representing a large portion of the bank’s voting shares. The successful execution of these meetings reflects the bank’s commitment to governance and shareholder engagement, potentially reinforcing its position in the financial industry.

China Construction Bank Updates 2024 Final Dividend Details
Apr 22, 2025

China Construction Bank Corporation has announced an update to its 2024 final dividend, declaring a dividend of RMB 0.206 per share, which will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.076576916. The announcement also details the withholding tax arrangements for non-resident shareholders, with a 10% tax rate applicable to both enterprise and individual non-resident shareholders, and a 20% tax rate for domestic individual investors through Southbound Trading. This update reflects the bank’s commitment to returning value to its shareholders and highlights the tax implications for different categories of investors.

China Construction Bank CIO Resigns, Impacting Tech Strategy
Apr 21, 2025

China Construction Bank Corporation announced the resignation of Mr. Jin Panshi as Chief Information Officer, effective April 21, 2025, due to age. During his tenure, Mr. Jin Panshi significantly contributed to the bank’s technological advancements, including IT strategic planning and fintech innovation, enhancing the bank’s digital transformation efforts.

China Construction Bank Schedules Board Meeting to Review Q1 2025 Financial Results
Apr 15, 2025

China Construction Bank Corporation has announced that its Board of Directors will convene on April 29, 2025, to review and approve the financial results for the first quarter ending March 31, 2025. This meeting is significant as it will provide insights into the bank’s financial performance and strategic direction, potentially impacting stakeholders and the bank’s position in the competitive banking industry.

China Construction Bank Announces Key Resolutions for 2025 EGM
Apr 3, 2025

China Construction Bank has announced the agenda for its First Extraordinary General Meeting of 2025, which includes key resolutions such as the profit distribution plan for 2024, the election of new directors, and the issuance of A Shares to specific targets. These resolutions are crucial for CCB’s strategic direction, involving significant financial decisions like the introduction of strategic investment from the Ministry of Finance and the authorization for the Board to manage the issuance of A Shares, which could impact the bank’s capital structure and shareholder returns.

China Construction Bank Announces 2025 Shareholders Meeting for A Share Issuance
Apr 3, 2025

China Construction Bank Corporation has announced the convening of its First H Shareholders Class Meeting of 2025, scheduled for April 22, 2025, in Beijing. The meeting will focus on special resolutions regarding the issuance of A Shares to a specific target, detailing aspects such as issuance method, pricing, and use of proceeds. This move is likely to impact the bank’s capital structure and market positioning, potentially influencing shareholder value and investment strategies.

China Construction Bank Announces 2024 Final Dividend Details
Apr 3, 2025

China Construction Bank Corporation has announced an update regarding its 2024 final cash dividend, declaring a dividend of RMB 0.206 per share for the financial year ending December 31, 2024. The update includes details on the date of shareholders’ approval, which is set for April 22, 2025, and information related to the Hong Kong share register. The ex-dividend date is scheduled for April 30, 2025, with the record date on May 8, 2025, and the payment date on May 28, 2025. This announcement is significant for stakeholders as it provides clarity on the dividend distribution timeline and reflects the bank’s financial performance and commitment to returning value to its shareholders.

China Construction Bank Approves A Share Issuance to Ministry of Finance
Mar 30, 2025

China Construction Bank (CCB) held a board meeting on March 30, 2025, where it approved resolutions related to the issuance of A shares to a specific target. The board confirmed that the bank meets the conditions for issuing these shares, which will be subscribed by the Ministry of Finance of the People’s Republic of China. The issuance plan includes details such as the type, par value, and pricing of the shares, with the issuance price set at RMB9.27 per share. This move is expected to strengthen CCB’s capital base and enhance its financial stability, potentially impacting its market position positively.

China Construction Bank Approves A Share Issuance and Strategic Investment
Mar 30, 2025

China Construction Bank Corporation’s board of supervisors convened a meeting on March 30, 2025, to approve several resolutions related to the issuance of A shares to specific targets. The resolutions included the fulfillment of conditions for issuance, the issuance plan, feasibility analysis, and strategic investment from the Ministry of Finance of China. The board believes that these steps will protect the rights of the bank and its minority shareholders, enhancing its strategic positioning in the financial sector.

China Construction Bank Plans A Shares Issuance to Bolster Capital
Mar 30, 2025

China Construction Bank has announced its plan to issue A Shares to a specific target, the Ministry of Finance, to raise up to RMB105 billion. This move aims to strengthen the bank’s capital foundation, improve service quality, and enhance its competitiveness and risk resilience. The issuance is subject to approval by shareholders and regulatory authorities, and the proceeds will be used to replenish the bank’s common equity tier 1 capital.

China Construction Bank Announces Investor Briefing on A Shares Issuance
Mar 30, 2025

China Construction Bank Corporation has announced an upcoming investor briefing session scheduled for March 31, 2025, to discuss the issuance of A shares to specific targets. The session will be conducted online, allowing investors to interact with the bank’s executives and address common concerns, potentially impacting investor relations and market confidence.

China Construction Bank Approves Major Financial Bond Issuance for 2025
Mar 28, 2025

China Construction Bank’s board of directors approved several key resolutions during their recent meeting, including a significant financial bond issuance plan for 2025, amounting to RMB745 billion. This strategic move is expected to enhance the bank’s financial flexibility and strengthen its market position. Additionally, the board approved reports on capital adequacy, risk management, and data security measures, reflecting CCB’s commitment to robust financial governance and regulatory compliance.

China Construction Bank Approves Key Resolutions for 2024
Mar 28, 2025

China Construction Bank’s Board of Supervisors convened a meeting on March 28, 2025, in Beijing, where several key resolutions were approved unanimously. These included the 2024 Annual Report, Profit Distribution Plan, Sustainability Report, Internal Control Assessment Report, and various performance assessment reports. The resolutions reflect the bank’s compliance with legal and regulatory standards and its commitment to transparency and accountability in its operations.

China Construction Bank Completes RMB40 Billion Bond Issuance
Mar 28, 2025

China Construction Bank Corporation has successfully completed the issuance of its 2025 tier-2 capital bonds, raising RMB40 billion in the National Interbank Bond Market. This move is part of the bank’s strategy to replenish its tier-2 capital, thereby strengthening its financial position and ensuring compliance with regulatory requirements. The bonds have a fixed rate with a 10-year term and a conditional redemption option after five years, which could enhance the bank’s capital structure and support its growth objectives.

China Construction Bank Announces 2024 Final Dividend
Mar 28, 2025

China Construction Bank Corporation has announced a final ordinary cash dividend of RMB 0.206 per share for the financial year ending December 31, 2024. The announcement outlines the dividend details, with specific dates for shareholder approval, ex-dividend, and payment yet to be disclosed, reflecting the bank’s commitment to shareholder returns.

China Construction Bank Releases 2024 Capital Management Report
Mar 28, 2025

China Construction Bank has released its Capital Management Pillar III Annual Report for 2024, which outlines the bank’s risk management strategies, regulatory capital composition, and key prudential regulatory indicators. The report provides insights into the bank’s approach to managing credit risk, market risk, operational risk, and interest rate risk, as well as its total loss-absorbing capacity (TLAC) composition. This comprehensive disclosure is crucial for stakeholders to understand the bank’s financial health and regulatory compliance, positioning it as a transparent and responsible player in the banking industry.

China Construction Bank Reports Strong 2024 Financial Results with Significant Dividends
Mar 28, 2025

China Construction Bank Corporation announced its audited annual results for 2024, revealing a total cash dividend of approximately RMB100,754 million for the year. The results, which have been reviewed and approved by the bank’s board and audited by Ernst & Young, reflect a strong financial performance with an unqualified audit opinion, indicating robust management of various risks and a commitment to shareholder returns.

China Construction Bank Announces 2024 Annual Results Presentation
Mar 21, 2025

China Construction Bank has announced that it will hold its 2024 Annual Results Presentation on March 28, 2025, via a live webcast. This event aims to provide investors with a comprehensive understanding of the bank’s annual results and business operations, with senior management, including President Zhang Yi, addressing common investor queries.

China Construction Bank to Review Annual Results and Dividends
Mar 18, 2025

China Construction Bank Corporation has announced that its board of directors will hold a meeting on March 28, 2025, to review and approve the bank’s annual financial results for the year ending December 31, 2024, and to consider the payment of dividends. This meeting is significant as it will determine the bank’s financial performance and dividend distribution, impacting stakeholders and potentially influencing the bank’s market position.

China Construction Bank Announces Executive Vice President Resignation
Mar 18, 2025

China Construction Bank Corporation announced the resignation of Mr. Li Yun as Executive Vice President, effective March 18, 2025, due to a job change. During his tenure, Mr. Li Yun significantly contributed to the bank’s transformation and development initiatives, including the ‘New Retail 2.0’ strategy and the promotion of financial services for rural revitalization. His efforts have been praised by the board for enhancing the bank’s market position and supporting its strategic objectives.

China Construction Bank Advances Inclusive Finance Strategy
Feb 27, 2025

China Construction Bank’s Board of Supervisors recently approved the Evaluation Report on the Strategic Development Plan for Inclusive Finance for 2021-2023. This decision, made through a written resolution, highlights the bank’s commitment to advancing its inclusive finance initiatives, which could enhance its market positioning and offer significant benefits to stakeholders.

China Construction Bank Approves Strategic Resolutions for 2025
Feb 21, 2025

China Construction Bank Corporation’s Board of Directors convened in Beijing to approve several key proposals for 2025. These include a fixed asset investment budget of RMB17 billion, updates to donation management measures, measures on product innovation, a risk appetite statement, an annual audit report on business continuity management, and an assessment plan for external auditors. The unanimous approval of these resolutions signals strategic commitments to innovation, risk management, and operational continuity, potentially impacting the bank’s market positioning and stakeholder confidence.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.