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Agricultural Bank of China Limited Class H (HK:1288)
:1288
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Agricultural Bank of China (1288) AI Stock Analysis

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HK:1288

Agricultural Bank of China

(OTC:1288)

Rating:77Outperform
Price Target:
HK$6.00
▲(6.57% Upside)
Agricultural Bank of China's stock is supported by strong financial performance and an attractive valuation, with a low P/E ratio and high dividend yield. The earnings call further reinforces the bank's growth potential, particularly in rural and digital financing. However, technical indicators suggest short-term weakness, and challenges in cash flow management and net interest margin need to be addressed.

Agricultural Bank of China (1288) vs. iShares MSCI Hong Kong ETF (EWH)

Agricultural Bank of China Business Overview & Revenue Model

Company DescriptionThe Agricultural Bank of China (ABC) is one of the largest commercial banks in China, primarily focused on providing financial services to the agricultural sector, rural areas, and urban customers. The bank operates in various sectors, including corporate banking, personal banking, and treasury operations. Core products and services include loans, deposits, wealth management, credit card services, and trade finance, catering to both agricultural and non-agricultural clients.
How the Company Makes MoneyThe Agricultural Bank of China generates revenue primarily through interest income from loans and advances extended to its customers, which constitutes a significant portion of its earnings. The bank offers various types of loans, including personal loans, corporate loans, and agricultural loans, with interest rates that contribute to its overall income. Additionally, ABC earns fee-based income from services such as wealth management, credit card transactions, and trade finance services. The bank also engages in treasury operations, including foreign exchange transactions and investment securities, which further bolster its revenue streams. Strategic partnerships with agricultural enterprises and government initiatives aimed at rural development enhance its customer base and market penetration, contributing positively to its financial performance.

Agricultural Bank of China Earnings Call Summary

Earnings Call Date:Aug 29, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, significant growth in rural and green financing, and advancements in digital and SME support. However, challenges remain with the decline in NIM and risks in the real estate market and local government loans. Overall, the positive aspects of growth and financial stability outweigh the challenges.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
ABC reported a net profit increase of 5.3% year-on-year for the first half of 2025. Operating revenue also showed positive growth, with an increase of 0.7% and 0.4 percentage points compared to Q1 2025.
Improvement in Asset Quality
The Non-Performing Loan (NPL) ratio decreased by 2 basis points from the beginning of the year, with a special mention decrease of 1 basis point and a low overdue loan level maintained at 2.2%.
Significant Growth in Rural Financing
The credit investment in rural areas increased by RMB 900 million, totaling RMB 1 trillion. Loans for inclusive farming grew by 12.9%, and food security loan growth was 23.7% year-on-year.
Advancements in Green Financing
ABC issued green bonds and securities with a total green financing balance of RMB 572 million. The bank has incorporated green financing into its corporate structure.
Expansion in Digital Financing
Digital financing loans grew by 13.7% year-on-year, with the monthly average increment of retail consumers ranking #1 among peers.
Record Personal Loan Growth
Personal loans increased by 9.3%, with significant growth in personal mortgage loans and operational loans. Retail loans saw an increase of over RMB 100 billion.
Strong Support for SMEs
Inclusive financing services for SMEs reached RMB 4.24 trillion, leading in industry coverage and service strength.
Negative Updates
Decline in Net Interest Margin (NIM)
The NIM for the first half of 2025 was 1.32%, down 10 basis points from the previous year, attributed to the environment of low interest rates.
Concerns in Real Estate Market
Despite a decrease in NPLs by 0.05 percentage points, the real estate market remains a focus for risk management and potential challenges.
Pressure from Local Government Loans
There is ongoing pressure to mitigate risks associated with local government loans, with an emphasis on reducing exposure and adhering to market principles.
Company Guidance
During the 2025 mid-annual results conference for the Agricultural Bank of China (ABC), key metrics highlighted include a net profit increase of 5.3% year-on-year for the first half of 2025. Operating revenue and income showed positive growth, with growth rates climbing by 0.7% and 0.4 percentage points compared to Q1 2025. The non-performing loan (NPL) ratio decreased by 2 basis points (bps) since the start of the year, while overdue loans remained low at 2.2%. ABC's provision coverage maintained over RMB 10 billion with a 95% coverage ratio, leading among peers. New loans totaled RMB 129 million, showing a 9.3% growth, and personal loans increased by 7.8% year-on-year. ABC's digital financing efforts led to a 13.7% year-on-year loan growth. The bank plans to continue focusing on rural projects, risk management, and supporting the real economy in the second half of the year.

Agricultural Bank of China Financial Statement Overview

Summary
Agricultural Bank of China exhibits robust financial performance with significant revenue growth and high profitability. The balance sheet is strong with zero debt and a stable equity position. Cash flow management is efficient, despite some fluctuations in free cash flow. Overall, the bank is well-positioned for future growth.
Income Statement
85
Very Positive
The Agricultural Bank of China shows a strong financial performance with significant revenue growth from 2023 to 2024 at 26.93%. The net profit margin for 2024 is 39.71%, indicating high profitability. Despite the absence of EBIT and EBITDA data for 2024, the historical EBIT margins have been robust. Overall, the income statement demonstrates a trend of increasing revenue and strong profitability.
Balance Sheet
90
Very Positive
The balance sheet is solid with a strong equity position, as evidenced by a healthy equity ratio of 7.15% in 2024. The bank has managed to operate with zero debt in 2024, highlighting excellent financial health. The consistent increase in stockholders' equity indicates stability and growth potential.
Cash Flow
80
Positive
Operating cash flow remains strong at 1.35 trillion in 2024, with a high free cash flow to net income ratio. Although there is a decline in free cash flow from 2023 to 2024, the cash flow from operations comfortably supports net income, showing efficient cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue871.82B579.72B559.76B550.02B555.86B494.63B
Gross Profit656.26B579.72B694.64B550.02B555.86B494.63B
EBITDA322.27B342.40B0.00326.68B315.24B0.00
Net Income285.70B282.08B269.36B259.23B241.18B215.93B
Balance Sheet
Total Assets46.86T43.24T39.87T33.93T29.07T27.21T
Cash, Cash Equivalents and Short-Term Investments4.41T3.35T4.57T3.76T3.08T3.51T
Total Debt3.47T692.88B2.68T2.20T1.80T452.30B
Total Liabilities43.71T40.14T36.98T31.25T26.65T24.99T
Stockholders Equity3.14T3.09T2.89T2.67T2.41T2.20T
Cash Flow
Free Cash Flow2.04T1.33T1.80T1.30T213.58B-83.78B
Operating Cash Flow2.07T1.35T1.83T1.32T239.62B-60.94B
Investing Cash Flow-1.14T-2.24T-1.33T-1.05T-331.24B-469.26B
Financing Cash Flow270.57B225.63B5.20T298.22B54.00B269.80B

Agricultural Bank of China Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.63
Price Trends
50DMA
5.39
Positive
100DMA
5.21
Positive
200DMA
4.73
Positive
Market Momentum
MACD
0.03
Negative
RSI
62.29
Neutral
STOCH
80.65
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1288, the sentiment is Positive. The current price of 5.63 is above the 20-day moving average (MA) of 5.41, above the 50-day MA of 5.39, and above the 200-day MA of 4.73, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 62.29 is Neutral, neither overbought nor oversold. The STOCH value of 80.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1288.

Agricultural Bank of China Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$2.72T6.3910.80%4.65%-1.70%11.36%
68
Neutral
$17.85B11.549.95%3.76%9.70%1.08%
$208.23B5.129.20%5.81%
$81.85B5.079.33%5.84%
$273.19B5.6110.81%5.46%
$150.57B7.6914.86%4.59%
$344.45B5.309.68%5.54%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1288
Agricultural Bank of China
5.63
2.33
70.71%
BACHF
Bank of China
0.58
0.17
41.46%
BKFCF
Bank of Communications Co
0.89
0.26
41.27%
CICHF
China Construction Bank
1.02
0.36
54.55%
CIHHF
China Merchants Bank Co
6.24
2.51
67.29%
IDCBF
Industrial and Commercial Bank of China
0.78
0.27
52.94%

Agricultural Bank of China Corporate Events

Agricultural Bank of China Approves Key Governance Proposals
Apr 29, 2025

The Agricultural Bank of China Limited held a board meeting on April 29, 2025, where several key proposals were approved unanimously by all 13 directors. These proposals include revisions to the Articles of Association, Rules of Procedure for both the Shareholders’ Meeting and the Board of Directors, matters related to the dissolution of the Board of Supervisors, and the external donation quota for 2025. These proposals will be presented at the shareholders’ general meeting for further consideration and approval, indicating a strategic move to streamline governance and enhance operational efficiency.

Agricultural Bank of China Releases Q1 2025 Pillar 3 Report
Apr 29, 2025

The Agricultural Bank of China has released its Pillar 3 report for the first quarter of 2025, highlighting its risk management strategies and regulatory compliance. The report outlines key prudential regulatory metrics and risk-weighted assets, emphasizing the bank’s commitment to maintaining financial stability and liquidity. This release is crucial for stakeholders as it provides insights into the bank’s operational resilience and adherence to macroprudential regulatory measures, which are vital for its industry positioning and future growth.

Agricultural Bank of China Reports Q1 2025 Financial Results
Apr 29, 2025

Agricultural Bank of China Limited announced its unaudited financial results for the first quarter of 2025, showing a slight increase in operating income and net profit compared to the same period in 2024. However, the bank experienced a significant decrease in net cash flows from operating activities. The total assets of the bank increased by 3.66% from the end of 2024, indicating a growth in its financial position.

Agricultural Bank of China to Review Q1 2025 Financial Results
Apr 15, 2025

The Agricultural Bank of China Limited has announced that its board of directors will hold a meeting on April 29, 2025, to review and approve the financial results for the first quarter ending March 31, 2025. This meeting is crucial as it will provide insights into the bank’s financial performance and strategic direction, potentially impacting stakeholders and the bank’s market positioning.

Agricultural Bank of China Releases 2024 Pillar 3 Report on Risk Management
Mar 28, 2025

Agricultural Bank of China has released its 2024 Pillar 3 Report, highlighting its robust risk management strategies and adherence to regulatory metrics. The report underscores the bank’s commitment to maintaining a strong capital composition and managing various risks, including credit, market, and liquidity risks, which are crucial for its operational stability and industry positioning.

Agricultural Bank of China Announces Final Dividend for 2024
Mar 28, 2025

Agricultural Bank of China Limited has announced a proposed distribution of a final cash dividend for the year ended December 31, 2024, amounting to RMB 1.255 per 10 shares. The dividend’s payment date is set for August 27, 2025, with the ex-dividend date on July 9, 2025, and the record date on July 16, 2025. This announcement reflects the bank’s continued commitment to providing shareholder returns and may impact investor sentiment positively.

Agricultural Bank of China Approves Key Resolutions in Board Meeting
Mar 28, 2025

The Agricultural Bank of China Limited’s board of directors recently held a meeting to approve key resolutions, including the profit distribution plan for 2024 and the appointment of Mr. Zhang Qi to several special committees. These decisions reflect the bank’s strategic focus on governance and shareholder value, with the profit distribution plan aligning with legal and regulatory requirements, and Mr. Zhang’s appointment enhancing the board’s expertise in critical areas.

Agricultural Bank of China Reports Strong 2024 Financial Results
Mar 28, 2025

The Agricultural Bank of China announced its audited financial results for 2024, reporting a net profit of RMB282,671 million and a capital adequacy ratio of 18.19%. With total assets of RMB43,238,135 million, the bank continues to strengthen its position in the financial sector, supported by its extensive domestic and international branch network. The announcement underscores the bank’s commitment to high-quality development and its strategic focus on rural and inclusive finance, green finance, and digitalization, which are expected to enhance its market positioning and stakeholder value.

Agricultural Bank of China to Present 2024 Annual Results
Mar 20, 2025

Agricultural Bank of China Limited has announced that it will publish its 2024 annual results on March 28, 2025, and will host a webcast presentation to discuss these results with investors, analysts, and media. The presentation aims to provide a comprehensive understanding of the bank’s business operations and financial performance for 2024, with senior management and independent directors available to address common concerns and questions.

Agricultural Bank of China Schedules Board Meeting for Annual Results and Dividend Decision
Mar 18, 2025

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

Agricultural Bank of China Appoints New Executive Vice President
Mar 4, 2025

Agricultural Bank of China Limited has appointed Mr. MENG Fanjun as an executive vice president, following the approval of his qualification by the National Financial Regulatory Administration. This appointment is expected to strengthen the bank’s executive team and potentially enhance its strategic operations and market positioning.

Agricultural Bank of China’s EGM Approves Key Resolutions
Feb 21, 2025

Agricultural Bank of China Limited held its 2025 first extraordinary general meeting (EGM) where shareholders approved an ordinary resolution to elect Mr. ZHANG Qi as an independent non-executive director and a special resolution to issue capital instruments and total loss-absorbing capacity non-capital bonds. These approvals reflect the bank’s ongoing efforts to strengthen its governance structure and enhance its financial stability, positioning it to better respond to market challenges and regulatory requirements.

Agricultural Bank of China Announces Key Resolutions Including Executive Appointment and Dividend Scheme
Feb 14, 2025

The Agricultural Bank of China Limited held a board meeting where three major resolutions were approved: the fixed assets investment budget for 2025, the appointment of Mr. Meng Fanjun as an executive vice president, and the dividend payment scheme for the second tranche of preference shares. These decisions indicate the bank’s strategic focus on strengthening its executive team and rewarding shareholders, potentially impacting its operational efficiency and shareholder value.

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.Date of analysis: Sep 04, 2025