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Zhongyuan Bank Co., Ltd. Class H (HK:1216)
:1216
Hong Kong Market

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

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HK

Zhongyuan Bank Co., Ltd. Class H

(1216)

Rating:74Outperform
Price Target:
Zhongyuan Bank's stock score reflects a solid financial base with effective cost management and attractive valuation. The primary concerns are cash flow volatility and revenue declines, which need addressing to maintain stability. Technical analysis indicates balanced market conditions, further supporting the stock's moderate positive outlook.

Zhongyuan Bank Co., Ltd. Class H (1216) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionZhongyuan 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 MoneyZhongyuan 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
73
Positive
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
78
Positive
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
65
Positive
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
18.75B13.62B23.26B17.75B17.48B
Gross Profit
18.75B13.62B23.26B17.75B17.48B
EBIT
3.02B3.17B26.53B4.53B4.40B
EBITDA
0.000.000.000.000.00
Net Income Common Stockholders
3.45B3.22B2.84B3.57B3.30B
Balance SheetCash, Cash Equivalents and Short-Term Investments
39.84B44.92B129.51B108.68B104.09B
Total Assets
1.37T1.35T1.33T768.23B757.48B
Total Debt
13.42B132.72B146.11B97.57B76.90B
Net Debt
-26.41B-119.32B16.60B-11.11B-27.20B
Total Liabilities
1.26T1.25T1.23T705.85B698.13B
Stockholders Equity
96.56B92.50B89.23B61.21B58.26B
Cash FlowFree Cash Flow
-82.96B7.40B54.17B-37.33B-4.57B
Operating Cash Flow
-81.38B8.25B55.14B-36.71B-3.72B
Investing Cash Flow
-32.89B-15.06B-24.51B19.20B9.06B
Financing Cash Flow
76.65B-18.11B22.18B17.43B-7.99B

Zhongyuan Bank Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.36
Price Trends
50DMA
0.33
Positive
100DMA
0.32
Positive
200DMA
0.33
Positive
Market Momentum
MACD
<0.01
Negative
RSI
66.81
Neutral
STOCH
61.67
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 0.36 is above the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.33, and above the 200-day MA of 0.33, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.81 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$13.16B4.403.19%-5.52%6.15%
64
Neutral
$12.87B9.817.76%16985.65%12.28%-7.83%
$270.09B6.0510.80%7.14%
$208.54B5.779.57%5.59%
$26.50B4.615.54%10.55%
$157.07B8.1514.86%4.31%
$331.44B5.52
8.33%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1216
Zhongyuan Bank Co., Ltd. Class H
0.36
0.04
12.50%
ACGBF
Agricultural Bank of China
0.69
0.28
68.29%
BACHF
Bank of China
0.56
0.14
33.33%
CGMBF
China Minsheng Banking
0.46
0.07
17.95%
CIHHF
China Merchants Bank Co
6.24
1.94
45.12%
IDCBF
Industrial and Commercial Bank of China
0.76
0.24
46.15%

Zhongyuan Bank Co., Ltd. Class H Corporate Events

Zhongyuan Bank Announces Board Changes
Apr 17, 2025

Zhongyuan Bank Co., Ltd. announced the resignation of Ms. Zhang Qiuyun from her role as a non-executive director and member of the strategy and development committee due to a job change. The bank expressed gratitude for her contributions. The board has proposed the appointment of Mr. Li Wenqiang as a new non-executive director, subject to shareholder approval and regulatory clearance. Mr. Li brings extensive experience from various financial and investment roles, and his appointment is expected to strengthen the bank’s strategic direction.

Zhongyuan Bank Announces Board Composition and Committee Roles
Apr 17, 2025

Zhongyuan Bank Co., Ltd. has announced the composition of its board of directors and their respective 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, each with designated members to oversee various aspects of the bank’s operations, including strategy, audit, risk management, and consumer rights protection.

Zhongyuan Bank Announces Resignation of Board of Supervisors Chairman
Apr 17, 2025

Zhongyuan Bank Co., Ltd. announced the resignation of Mr. ZHANG Ke from his position as chairman of the Board of Supervisors due to work adjustments, effective April 17, 2025. The bank has expressed gratitude for his contributions and has elected a supervisor to preside over the meetings of the Board of Supervisors in accordance with its Articles of Association, ensuring continuity in governance.

Zhongyuan Bank Announces Final Dividend and Tax Details for 2024
Apr 10, 2025

Zhongyuan Bank Co., Ltd. has announced an update regarding its final cash dividend for the year ending December 31, 2024. The dividend declared is RMB 0.12 per 10 shares, with the payment date set for August 5, 2025. The announcement includes details about withholding tax rates applicable to non-resident shareholders, emphasizing the bank’s compliance with international tax treaties. This update reflects the bank’s commitment to shareholder returns and adherence to regulatory requirements, potentially impacting investor relations and market perception.

Zhongyuan Bank Proposes Amendments to Governance Documents
Mar 28, 2025

Zhongyuan Bank Co., Ltd. has announced proposed amendments to its Articles of Association and the Rules of Procedures for its Shareholders’ General Meeting. These changes are intended to align with updated laws and regulations, and to reflect the bank’s current operational conditions. The amendments require approval from the bank’s shareholders and the China banking regulatory authority. The bank also seeks to grant its Board the authority to make necessary adjustments and handle procedural requirements with government and regulatory bodies.

Zhongyuan Bank Announces 2024 Annual Results
Mar 28, 2025

Zhongyuan Bank Co., Ltd. announced its audited consolidated annual results for the year ending December 31, 2024, prepared in accordance with International Financial Reporting Standards. The results have been reviewed and confirmed by the Board and its audit committee, and will be published on the websites of the Hong Kong Stock Exchange and the bank. This announcement reflects the bank’s commitment to transparency and adherence to international financial standards, potentially impacting its market positioning and stakeholder confidence.

Zhongyuan Bank Declares Final Dividend for 2024
Mar 28, 2025

Zhongyuan Bank Co., Ltd. has announced a final cash dividend of RMB 0.12 per 10 shares for the year ending December 31, 2024. The announcement includes details on withholding tax rates applicable to non-resident shareholders based on their country of residence and existing tax treaties with the PRC. The specific dates for shareholder approval, exchange rate, ex-dividend date, and payment date are yet to be announced.

Zhongyuan Bank Schedules Board Meeting to Approve Annual Results
Mar 13, 2025

Zhongyuan Bank Co., Ltd. has announced an upcoming board meeting scheduled for March 28, 2025, to discuss and approve the annual results for the year ending December 31, 2024, and to consider the declaration and payment of a final dividend. This meeting is significant as it will determine the financial performance and potential shareholder returns, impacting the bank’s operational strategy and stakeholder interests.

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.