Zhongyuan Bank Co., Ltd. Class H (1216) AI Stock Analysis

• Market Cap: HK$12.24B
• Dividend Yield: 4.24%
• Average Volume (3M): 2.23M
• Price to Earnings (P/E): 4.1
• Beta (1Y): 1.09
• Revenue Growth: -7.58%
• EPS Growth: 12.65%
• Country: HK
• Employees: 18,296
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.06
• Shares Outstanding: 6,945,000,000
• 10 Day Avg. Volume: 1,840,900
• 30 Day Avg. Volume: 2,227,466
• PEG Ratio: -0.53
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.86
• P/FCF Ratio: -0.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: HK$0.32 ▲(3.55% Upside)

The score is primarily held back by financial risks, led by the sharp deterioration in 2024 operating/free cash flow and only modest returns on equity. Technicals also lean bearish with price below key moving averages and a negative MACD. These are partially offset by attractive valuation metrics (low P/E and solid dividend yield).

Positive Factors

Strategic Acquisitions

The acquisition of Jiaxian Guangtian County Bank and Xiangcheng Zhongyuan Rural Bank will consolidate Zhongyuan Bank's regional footprint, potentially enhancing its market position and operational scale in Henan's county-level banking market.

Revenue Rebound

A strong revenue rebound in 2024 indicates effective recovery strategies and market demand, which could support future growth and stability in the bank's financial performance.

Improved Leverage

The significant improvement in the debt-to-equity ratio suggests better financial health and reduced leverage risk, providing Zhongyuan Bank with greater financial flexibility and stability.

Negative Factors

Cash Flow Volatility

The negative cash flow in 2024 raises concerns about Zhongyuan Bank's ability to generate consistent cash, potentially impacting its liquidity and operational funding in the near term.

Modest Profitability

The low return on equity indicates limited profitability relative to the equity base, which may constrain Zhongyuan Bank's ability to generate shareholder value and reinvest in growth opportunities.

Margin Volatility

The decline in net margin reflects pressure on spreads and costs, suggesting challenges in maintaining profitability levels, which could affect Zhongyuan Bank's long-term financial performance.

Zhongyuan Bank Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Zhongyuan Bank Co., Ltd. provides corporate and personal deposits, loans and advances, settlement, financial market and leasing, and other financial services in the Asia Pacific, North America, and internationally. It operates through Corporate Banking, Retail Banking, Financial Markets Business, and Others segments. The Corporate Banking segment provides corporate loans and advances, trade financing and deposit taking, agency, consulting and advisory, remittance and settlement, and guarantee services to corporations, government agencies, and financial institutions. The Retail Banking segment offers a range of financial products and services, including personal loans, deposits, bank cards, personal wealth management services, and remittance services to retail customers. The Financial Markets Business segment provides inter-bank money market transaction, repurchase transaction, investment, and issuance of debt services, as well as trades in debt securities. As of December 31, 2021, the company operated 18 branches, 2 direct sub-branches, and 474 total outlets, including 277 urban sub-branches, 125 county-level sub-branches, and 72 township-level sub-branches. Zhongyuan Bank Co., Ltd. was founded in 2014 and is headquartered in Zhengzhou, the People's Republic of China.

How the Company Makes Money

Zhongyuan Bank Co., Ltd. generates revenue primarily through interest income from its lending activities, which include personal and commercial loans to individuals, SMEs, and large corporations. The bank also earns money through non-interest income streams such as fees and commissions from wealth management services, transaction processing, and other financial services. Additionally, Zhongyuan Bank participates in the financial markets, engaging in activities such as interbank lending and securities trading, which contribute to its income. Key factors influencing its earnings include the bank's ability to manage interest rate spreads, credit risk, and its overall operational efficiency. Partnerships with other financial institutions and local government initiatives also play a role in enhancing its revenue-generating capabilities.

Zhongyuan Bank Co., Ltd. Class H Financial Statement Overview

Summary

Zhongyuan Bank demonstrates a moderate financial performance with a robust balance sheet and effective cost management. However, challenges in cash flow and declining revenues present potential risks.

Income Statement

Zhongyuan Bank has shown a mixed performance in its income statement. The gross and net profit margins are relatively stable despite a decline in revenue over recent years. The revenue growth rate has been negative, indicating a downward trend, but the EBIT margin remains robust, suggesting effective cost management despite revenue challenges.

Balance Sheet

The balance sheet of Zhongyuan Bank reveals a strong equity position with a reasonable debt-to-equity ratio, reflecting prudent financial management. The equity ratio is healthy, indicating a solid capital base relative to total assets. Overall, the bank maintains a stable financial position, but there are concerns about high total liabilities.

Cash Flow

The cash flow statement shows fluctuations, with significant negative free cash flow in the latest period. Operating cash flow to net income ratio suggests operational challenges. However, previous periods indicate positive free cash flow, highlighting potential recovery if cash management improves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.08B	18.75B	13.62B	14.42B	11.64B	11.58B
Gross Profit	9.08B	18.75B	13.62B	14.42B	11.64B	11.58B
EBITDA	0.00	4.27B	0.00	5.74B	5.58B	0.00
Net Income	2.73B	3.45B	3.22B	2.84B	3.57B	3.30B
Balance Sheet
Total Assets	1.41T	1.37T	1.35T	1.33T	768.23B	757.48B
Cash, Cash Equivalents and Short-Term Investments	153.42B	39.84B	44.92B	129.51B	108.68B	104.09B
Total Debt	152.70B	13.42B	132.72B	146.11B	97.57B	10.48B
Total Liabilities	1.31T	1.26T	1.25T	1.23T	705.85B	698.13B
Stockholders Equity	96.88B	96.56B	92.50B	89.23B	61.21B	58.26B
Cash Flow
Free Cash Flow	-86.86B	-82.96B	7.40B	54.17B	-37.33B	-4.57B
Operating Cash Flow	-84.86B	-81.38B	8.25B	55.14B	-36.71B	-3.72B
Investing Cash Flow	-47.44B	-32.89B	-15.06B	-24.51B	19.20B	9.06B
Financing Cash Flow	107.60B	76.65B	-18.11B	22.18B	17.43B	-7.99B

Zhongyuan Bank Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1216, the sentiment is Positive. The current price of 0.31 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.32, and below the 200-day MA of 0.34, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 69.94 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1216.

Zhongyuan Bank Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6196	66 Neutral	€17.26B	6.91	―	1.89%	-5.02%	-3.28%
1578	64 Neutral	HK$14.45B	3.50	5.84%	6.13%	-3.34%	-22.01%
6199	59 Neutral	HK$14.44B	3.58	7.71%	5.32%	-1.24%	4.34%
1216	57 Neutral	HK$12.24B	4.09	3.11%	4.24%	-7.58%	12.65%
9668	55 Neutral	HK$16.16B	3.39	5.51%	―	-5.76%	18.15%
6190	50 Neutral	HK$4.84B	20.43	0.67%	3.72%	-8.91%	―

Zhongyuan Bank Co., Ltd. Class H Corporate Events

Zhongyuan Bank Shareholders Approve Acquisitions of Two Rural Banks at Extraordinary Meeting

Zhongyuan Bank Co., Ltd. reported that its 2025 third extraordinary general meeting was duly convened in Zhengzhou on 24 December 2025, with directors in attendance and the meeting held in compliance with PRC laws, regulations and the bank’s Articles of Association. Shareholders and authorized representatives holding approximately 9.98 billion shares participated, and after applying voting-rights restrictions on heavily pledged shares, 9.38 billion shares were entitled to vote. Two special resolutions were overwhelmingly approved by poll, authorizing the bank’s implementation plans to acquire Jiaxian Guangtian County Bank and Xiangcheng Zhongyuan Rural Bank and to convert each into a branch, moves that consolidate the bank’s regional footprint and are expected to streamline its structure and strengthen its presence in Henan’s county-level banking market.

Zhongyuan Bank Updates Director Biography as Li Wenqiang Takes Additional Board Role

Zhongyuan Bank has provided a supplementary update on the biography of its non-executive director, Mr. Li Wenqiang, whose appointment to the bank’s third-session board has already been approved by shareholders and the Henan Office of the National Financial Regulatory Administration. The bank disclosed that Li has also been appointed as a non-executive director of Central China Securities Co., Ltd., effective 30 June 2025, and confirmed that, aside from this additional role, there are no other changes to his biographical details or required disclosures, signalling continuity in the bank’s board composition while highlighting his expanded influence across the regional financial sector.

Zhongyuan Bank Welcomes New Non-Executive Director

Zhongyuan Bank Co., Ltd. announced the approval of Mr. LI Wenqiang’s qualification as a non-executive Director by the Henan Office of the National Financial Regulatory Administration. This approval allows Mr. LI to commence his term immediately, contributing to the governance of the bank’s board, which may impact its strategic direction and stakeholder confidence.

Zhongyuan Bank Announces Board Composition and Committee Roles

Zhongyuan Bank Co., Ltd. announced the composition of its board of directors and their roles within the company. The board comprises executive, non-executive, and independent non-executive directors, with Mr. Guo Hao serving as the Chairman. The board has also established six special committees to oversee various aspects of the bank’s operations, reflecting a structured approach to governance and management.

Zhongyuan Bank Plans Strategic Acquisitions and Expansion

Zhongyuan Bank Co., Ltd. has announced its 2025 third extraordinary general meeting to discuss and approve the acquisition of Jiaxian Guangtian County Bank and Xiangcheng Zhongyuan Rural Bank, along with the establishment of new branches. This strategic move is aimed at expanding the bank’s operations and market presence, potentially impacting its industry positioning and offering new opportunities for stakeholders.

Zhongyuan Bank Announces Key Resolutions at 2025 EGM

Zhongyuan Bank Co., Ltd. held its 2025 Second Extraordinary General Meeting (EGM) on November 10, 2025, where several significant resolutions were passed. These included amendments to the bank’s Articles of Association, the appointment of an executive director, the dissolution of the Board of Supervisors, and the election of a vice chairman and an employee representative director. The meeting was conducted in compliance with relevant laws and regulations, and the poll results were deemed lawful and valid.

Zhongyuan Bank Announces 2025 Extraordinary General Meeting with Key Resolutions

Zhongyuan Bank Co., Ltd. has announced its 2025 second extraordinary general meeting to discuss significant resolutions, including amendments to its Articles of Association and the acquisition of three county banks with plans to establish branches. This meeting will also address corporate governance changes, such as the dissolution of the Board of Supervisors and amendments to procedural rules, potentially impacting the bank’s operational structure and strategic direction.

Zhongyuan Bank Announces Leadership Change with New President Appointment

Zhongyuan Bank Co., Ltd. announced a change in its executive leadership with the resignation of Mr. Liu Kai as President due to a job reassignment, effective October 17, 2025. Mr. Zhou Feng is set to succeed him as President and is also proposed to be an executive Director, pending regulatory and shareholder approvals. This leadership transition is expected to bring new strategic direction to the bank, potentially impacting its operations and market positioning.

Zhongyuan Bank Relocates Headquarters to Zhengzhou

Zhongyuan Bank Co., Ltd. has received approval from the Henan Financial Regulatory Bureau to change its headquarters’ domicile to Zhengzhou, Henan Province. This move, along with amendments to the Articles of Association, has been completed following the necessary regulatory procedures, potentially impacting the bank’s operational dynamics and strategic positioning within the region.