China Construction Bank Corporation Class H (HK:0939)
:0939
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China Construction Bank
(0939)
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Rating:77Outperform
Price Target:
HK$9.50
â–²(19.20% Upside)
Action:ReiteratedDate:03/31/26
The score is driven mainly by resilient financials (strong cash generation and solid profitability) and attractive valuation (low P/E and high dividend yield). Technicals are supportive with price above key moving averages and positive MACD, while the earnings call adds moderate confidence via steady guidance but is tempered by modest growth and continued NIM/fee headwinds.
Positive Factors
Strong cash generation and FCF conversion
TTM operating cash flow ~CNY1.0T and free cash flow ~CNY0.98T with ~38% FCF growth and ~96% cash conversion signal durable internal funding. This supports lending, dividends and capital buffers without heavy reliance on volatile wholesale funding over the next several quarters.
Negative Factors
Persisting net interest margin pressure
A low NIM (1.34%) with continued compression is a structural headwind given competitive pricing and macro rates. Prolonged margin pressure reduces interest-income leverage and forces trade-offs between loan growth and asset-yield mix, constraining sustainable profit expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF conversion
TTM operating cash flow ~CNY1.0T and free cash flow ~CNY0.98T with ~38% FCF growth and ~96% cash conversion signal durable internal funding. This supports lending, dividends and capital buffers without heavy reliance on volatile wholesale funding over the next several quarters.
Read all positive factors
China Construction Bank (0939) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.25T
Dividend Yield5.64%
Average Volume (3M)229.16M
Price to Earnings (P/E)5.2
Beta (1Y)0.54
Revenue Growth-4.61%
EPS Growth0.94%
CountryHK
Employees376,847
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.34
Shares Outstanding240,417,310,000
10 Day Avg. Volume261,828,976
30 Day Avg. Volume229,156,537
Financial Highlights & Ratios
PEG Ratio-6.85
Price to Book (P/B)0.49
Price to Sales (P/S)1.30
P/FCF Ratio-33.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$10.39Price Target Upside30.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.31
Revenue Forecast (FY)HK$765.38B
China Construction Bank Business Overview & Revenue Model
Company Description
China 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, Trea...
How the Company Makes Money
China Construction Bank primarily earns money through banking spread and fee-based services. Its largest recurring source of income is net interest income: it collects interest on loans and other interest-earning assets (e.g., corporate and person...
China Construction Bank Earnings Call Summary
Earnings Call Date:Mar 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call emphasized steady, market-leading franchise metrics: asset and loan growth, healthy asset quality, strong capital ratios, large digital and custody franchises, active strategic deployment across technology, green finance and inclusive finance, and continued shareholder returns. Key challenges include modest net profit growth, ongoing NIM pressure, industry fee-cutting headwinds, and some inconsistencies in reported figures. On balance the company presented multiple operational and strategic positives that outweigh the headwinds, while acknowledging areas of vigilance (margins, retail credit, fee pressure).Positive Updates
Net Profit and Operating Income Growth
Net profit of CNY 339 billion, up 1.04% YoY; operating income up 1.69% YoY; profit before provisions up 1.7% YoY — indicates positive but modest top-line and bottom-line expansion.
Negative Updates
Modest Profit Growth
Net profit growth only 1.04% YoY and operating income growth of 1.69% YoY — progress is steady but growth pace is modest, potentially reflecting margin pressures and challenging macro conditions.
Read all updates
Q4-2025 Updates
Positive
Negative
Net Profit and Operating Income Growth
Net profit of CNY 339 billion, up 1.04% YoY; operating income up 1.69% YoY; profit before provisions up 1.7% YoY — indicates positive but modest top-line and bottom-line expansion.
Read all positive updates
Company Guidance
Management guided that CCB will seek a steady, high‑quality start to 2026 by continuing to serve the national strategy and the bank’s five priorities (technology, green, inclusive, pension and digital finance), while balancing scale, pricing and risk and keeping tight cost discipline and three‑line risk controls; they expect NIM pressure to continue to ease (management is confident the NIM decline will slow and remain favorable versus peers) as they pursue active liability management and asset reallocation. Management reiterated 2025 metrics as the baseline for guidance: net profit CNY 339.0bn (+1.04% YoY), operating income +1.69%, profit before provisions +1.7%, NIM 1.34%, ROA 0.79%, ROE 10.04%, capital adequacy ratio 19.69%, cost-to-income 29.44% and non‑interest income ratio 22.69%; asset quality targets remain conservative with NPL 1.31% (down 0.03ppt), SML 1.77% and provision coverage 233.15%. They signaled continued lending and investment support for the real economy — total assets CNY45.63tn (+12%), gross loans CNY27.77tn (+7.47%), financial investments ~CNY12.9tn (+~20%), deposits and liabilities +12% (retail/deposit growth ~7%), tech loans >CNY5tn, green finance CNY6tn (+20.5%), personal consumption loans CNY6.72tn (+29.41%) and loan exposure to manufacturing CNY3.52tn — while maintaining shareholder returns (total dividends CNY106bn; interim RMB1.858/10 shares, final RMB2/10). They also flagged digital and AI scaling (mobile/CCB app users ~546m, customers ~785m, AUC CNY27tn, large‑scale models in ~398–400 scenarios, cloud +12%) and emphasized stronger anti‑fraud, dynamic loan controls and integrated domestic/foreign currency and group‑wide service models as the means to hit these targets.China Construction Bank Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.33T | 607.87B | 622.34B | 821.28B | 822.64B |
| Gross Profit | 616.23B | 749.57B | 1.41T | 821.28B | 822.64B |
| EBITDA | 390.61B | 414.61B | -4.30B | 935.68B | 0.00 |
| Net Income | 330.13B | 335.58B | 332.65B | 324.73B | 302.51B |
Balance Sheet | |||||
| Total Assets | 45.65T | 40.57T | 38.32T | 34.60T | 30.25T |
| Cash, Cash Equivalents and Short-Term Investments | 4.23T | 4.77T | 3.95T | 3.89T | 3.23T |
| Total Debt | 10.08T | 2.87T | 6.61T | 2.00T | 1.62T |
| Total Liabilities | 42.10T | 37.23T | 35.15T | 31.72T | 27.64T |
| Stockholders Equity | 3.52T | 3.32T | 3.01T | 2.86T | 2.59T |
Cash Flow | |||||
| Free Cash Flow | -51.16B | 308.85B | 560.60B | 954.67B | 415.48B |
| Operating Cash Flow | -28.21B | 338.02B | 585.69B | 978.42B | 436.72B |
| Investing Cash Flow | -4.18T | -692.63B | -821.25B | -651.67B | -518.55B |
| Financing Cash Flow | 4.70T | -7.20B | -47.33B | -6.42B | 16.12B |
China Construction Bank Technical Analysis
Positive
7.97
Price Trends
7.97
Positive
7.88
Positive
7.76
Positive
Market Momentum
0.09
Negative
64.21
Neutral
94.87
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 7.97 is below the 20-day moving average (MA) of 8.03, above the 50-day MA of 7.97, and above the 200-day MA of 7.76, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 64.21 is Neutral, neither overbought nor oversold. The STOCH value of 94.87 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$1.16T | 6.94 | 11.95% | 4.26% | -4.57% | 1.77% | |
77 Outperform | HK$2.25T | 5.23 | 9.77% | 5.64% | -4.61% | 0.94% | |
75 Outperform | HK$1.97T | 5.41 | ― | 5.67% | -3.68% | 2.67% | |
71 Outperform | HK$2.61T | 5.58 | 9.18% | 4.81% | -2.85% | 10.49% | |
70 Outperform | HK$2.93T | 5.61 | 9.13% | 5.46% | -3.35% | 0.58% | |
69 Neutral | HK$684.30B | 5.10 | 7.93% | 6.06% | -4.42% | -2.55% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HK:0939
China Construction Bank
8.41
1.89
29.07%
HK:1288
Agricultural Bank of China
5.58
1.18
26.93%
HK:3988
Bank of China
5.01
0.64
14.70%
HK:3328
Bank of Communications Co
7.12
0.52
7.88%
HK:3968
China Merchants Bank Co
49.12
7.08
16.83%
HK:1398
Industrial and Commercial Bank of China
6.88
1.71
33.00%
China Construction Bank Corporate Events
China Construction Bank CFO Sheng Liurong to Step Down in 2026
Mar 31, 2026
China Construction Bank has announced that chief financial officer Sheng Liurong will resign from his role effective 31 March 2026 due to age, and he will not continue to serve in any positions at the bank or its controlled subsidiaries. The board...
China Construction Bank Details Capital and Risk Framework in 2025 Pillar III Report
Mar 27, 2026
China Construction Bank has released its 2025 Capital Management Pillar III Annual Report, detailing its framework for managing key prudential indicators, capital adequacy, and total loss-absorbing capacity in line with regulatory requirements. Th...
CCB Board Backs 2025 Risk, Capital and Outsourcing Management Reports
Mar 27, 2026
China Construction Bank’s board met in Beijing on 27 March 2026 and unanimously approved a suite of 2025 regulatory and risk management reports, including its Capital Management Pillar III report, capital adequacy ratio management report, an...
China Construction Bank Posts Audited 2025 Results and Plans Over RMB100 Billion in Dividends
Mar 27, 2026
China Construction Bank has released its audited consolidated results for 2025, prepared under IFRS and PRC GAAP, with both Ernst Young and Ernst Young Hua Ming issuing unqualified audit opinions. The board and senior management have formally wa...
China Construction Bank Sets March 2026 Webcast for 2025 Results
Mar 20, 2026
China Construction Bank will hold its 2025 annual results presentation via live webcast on 27 March 2026, following the publication of its 2025 annual results on the Hong Kong stock exchange disclosure platform. The event, led by President Zhang Y...
China Construction Bank Sets March Board Meeting to Review 2025 Results and Dividend
Mar 17, 2026
China Construction Bank Corporation has scheduled a board meeting for 27 March 2026 to review and approve its annual financial results for the year ended 31 December 2025. The board will also consider a dividend payment, a decision that will be cl...
China Construction Bank Names President Zhang Yi as Chief Compliance Officer
Feb 27, 2026
China Construction Bank’s board met in Beijing on 27 February 2026 and unanimously approved a resolution to appoint President Zhang Yi as the bank’s chief compliance officer, with Zhang abstaining from the vote. The board confirmed the...
China Construction Bank President Zhang Yi Takes on Dual Role as Chief Compliance Officer
Feb 27, 2026
China Construction Bank has appointed its president, Zhang Yi, to concurrently serve as chief compliance officer with effect from 27 February 2026, following approval by the board of directors. The move consolidates executive leadership and compli...
CCB Board Backs RMB17 Billion 2026 Investment Plan and Tightens Governance
Feb 13, 2026
China Construction Bank’s board met in Beijing on 13 February 2026 and unanimously approved a series of governance and operational resolutions, including a proposed RMB17 billion fixed asset investment budget for 2026 to support the bankR...
China Construction Bank Appoints Shi Jian as Non-executive Director
Jan 28, 2026
China Construction Bank has appointed Mr. Shi Jian as a non-executive director, following approval of his election at the bank’s second extraordinary shareholders’ meeting of 2025 and subsequent confirmation of his qualifications by th...
China Construction Bank Sets Out Board Line-Up and Committee Structure
Jan 28, 2026
China Construction Bank Corporation has announced the current composition of its board of directors, detailing the mix of executive, non-executive and independent non-executive directors, led by chairman Zhang Jinliang and vice chairman and presid...
China Construction Bank Names Tang Shuo Executive Vice President
Jan 28, 2026
China Construction Bank Corporation has appointed Tang Shuo as executive vice president, following approval of his qualifications by the National Financial Regulatory Administration, with his assumption of office now effective. The move, approved ...
China Construction Bank Halts Review of Public Rental-Housing REITs Application
Jan 23, 2026
China Construction Bank has announced that its subsidiary CCB Housing Services Co., Ltd. has withdrawn application materials for the planned CCB Home Rental Housing Property Closed-end Infrastructure Securities Investment Fund, a public REITs prod...
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.