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Guangzhou Rural Commercial Bank Co. Ltd. Class H (HK:1551)
:1551

Guangzhou Rural Commercial Bank Co. Ltd. Class H (1551) AI Stock Analysis

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HK:1551

Guangzhou Rural Commercial Bank Co. Ltd. Class H

(1551)

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Neutral 53 (OpenAI - 5.2)
Rating:53Neutral
Price Target:
HK$1.50
▼(-2.60% Downside)
The score is held back primarily by persistently negative cash flow and weakening/volatile revenue, alongside weak technical momentum (below key moving averages with negative MACD). A more conservative leverage profile and reasonable valuation (moderate P/E and ~3.2% yield) provide partial offset.
Positive Factors
Asset Disposal
The disposal of low-efficiency assets can improve financial health by enhancing asset quality and focusing resources on more profitable areas.
Bond Issuance
The bond issuance strengthens the capital structure, providing funds for growth initiatives and improving financial stability.
Shareholder Support
Strong shareholder support for strategic decisions indicates confidence in management and alignment with long-term goals.
Negative Factors
Negative Cash Flow
Consistently negative cash flow can strain liquidity and limit the bank's ability to invest in growth or weather economic downturns.
Revenue Decline
A declining revenue trend can indicate weakening market position and challenges in maintaining growth momentum.
Low Return on Equity
Low return on equity suggests inefficiency in using equity to generate profits, potentially affecting investor confidence and capital efficiency.

Guangzhou Rural Commercial Bank Co. Ltd. Class H (1551) vs. iShares MSCI Hong Kong ETF (EWH)

Guangzhou Rural Commercial Bank Co. Ltd. Class H Business Overview & Revenue Model

Company DescriptionGuangzhou Rural Commercial Bank Co., Ltd. provides banking services. It operates through Corporate Banking, Retail Banking, Financial Market Business, and Others segments. The company offers demand and time deposits; personal consumption and mortgage loans; residential mortgage loans; credit cards overdraft; and personal finance products. It also provides corporate financing products, such as working capital, fixed assets, and trade and SME financing services, as well as finance leasing services. In addition, the company offers investment banking services; short, medium, and long-term loans; and domestic and international settlements, and bill acceptance and discounting services. Further, it provides money market placements, investments and repurchasing, and foreign exchange services; inter-bank placements; debit and credit cards; payment collection and insurance agency, safe locker, advisory and attestation, fund and insurance assets trusteeship, and cash management services; and agency services for issuing and underwriting government bonds. Additionally, the company trades in government and financial bonds; and provides discounted bill, wealth management, and private banking services, as well as Internet, telephone, SMS, mobile, and WeChat banking services. As of December 31, 2021, it had 635 outlets; 5 branches in Foshan, Qingyuan, Heyuan, Zhaoqing, and Zhuhai province, as well as 12 sub-branches and 1 sub-office; 1,597 ATM's; and 578 self-service inquiry terminals, 324 smart service terminals, and 250 smart banking outlets. The company was formerly known as Guangzhou Rural Credit Cooperative Unions and changed its name to Guangzhou Rural Commercial Bank Co., Ltd. The company was founded in 1952 and is headquartered in Guangzhou, the People's Republic of China.
How the Company Makes MoneyGuangzhou Rural Commercial Bank Co. Ltd. generates revenue primarily through interest income from its loan portfolio, which includes loans to individuals, small and medium enterprises, and agricultural businesses. The bank also earns revenue from non-interest income sources such as fees and commissions from wealth management services, foreign exchange transactions, and other financial services. Additionally, the bank's strategic partnerships and investments contribute to its earnings, supporting its mission to drive rural and regional economic growth.

Guangzhou Rural Commercial Bank Co. Ltd. Class H Financial Statement Overview

Summary
The financial performance of Guangzhou Rural Commercial Bank Co. Ltd. presents a mixed picture. The income statement shows strong gross profit margins, but a decline in net profit margins highlights decreased profitability. The balance sheet indicates a stable equity base and improved leverage management, although high liabilities pose a risk. Cash flow analysis reveals negative free cash flow and liquidity issues, signaling potential challenges in cash management.
Income Statement
The income statement shows a mixed performance. The gross profit margin remains strong at 100% due to the nature of the banking industry where total revenue equals gross profit. However, the net profit margin declined from 15.06% in 2023 to 25.80% in 2024, indicating decreased profitability. Revenue growth has been inconsistent, with a significant drop in 2024. EBIT and EBITDA margins are solid but have shown some fluctuations, reflecting operational efficiency challenges.
Balance Sheet
The balance sheet reflects a stable equity base with equity ratio improving to 6.96% in 2024, indicating a stronger capital position compared to previous years. The debt-to-equity ratio decreased to 0.40, showing improved leverage management. ROE is robust, increasing to 21.93% in 2024, indicating effective use of equity. However, the high level of liabilities remains a potential risk.
Cash Flow
Cash flow analysis reveals challenges, with negative free cash flow and operating cash flow across periods, indicating liquidity constraints. The free cash flow growth rate is negative, showing cash usage troubles. The operating cash flow to net income ratio is unfavorable, highlighting inefficiencies in converting income into cash. Despite positive financing cash flow, the reliance on external financing raises concerns.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.23B8.06B42.91B11.92B10.94B13.29B
Gross Profit4.23B8.06B9.75B11.92B10.94B13.29B
EBITDA0.006.93B0.000.000.000.00
Net Income1.37B2.08B2.63B3.49B3.18B5.08B
Balance Sheet
Total Assets1.41T1.36T1.31T1.23T1.16T1.03T
Cash, Cash Equivalents and Short-Term Investments0.0035.61B44.90B42.29B51.12B54.14B
Total Debt36.58B38.23B136.98B23.94B119.85B22.90B
Total Liabilities1.30T1.26T1.22T1.15T1.07T951.99B
Stockholders Equity94.74B94.86B88.83B81.08B80.03B69.49B
Cash Flow
Free Cash Flow13.07B-63.84B-9.97B-19.19B-54.47B-79.56B
Operating Cash Flow13.18B-62.97B-9.47B-18.44B-54.02B-79.09B
Investing Cash Flow-24.89B-15.85B-43.66B-49.98B-43.63B-12.47B
Financing Cash Flow9.83B67.68B4.06B64.20B101.71B101.21B

Guangzhou Rural Commercial Bank Co. Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.54
Price Trends
50DMA
1.58
Negative
100DMA
1.64
Negative
200DMA
1.62
Negative
Market Momentum
MACD
-0.02
Positive
RSI
39.39
Neutral
STOCH
22.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1551, the sentiment is Negative. The current price of 1.54 is above the 20-day moving average (MA) of 1.53, below the 50-day MA of 1.58, and below the 200-day MA of 1.62, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.39 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1551.

Guangzhou Rural Commercial Bank Co. Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
66
Neutral
HK$17.26B6.911.89%-5.02%-3.28%
59
Neutral
HK$14.44B3.587.71%5.32%-1.24%4.34%
58
Neutral
HK$23.35B5.317.20%7.99%-7.29%-14.37%
58
Neutral
HK$16.09B7.298.48%3.57%6.65%16.74%
55
Neutral
HK$16.16B3.395.51%-5.76%18.15%
53
Neutral
HK$21.87B12.263.20%-3.87%22.34%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1551
Guangzhou Rural Commercial Bank Co. Ltd. Class H
1.51
-0.06
-3.82%
HK:9889
Dongguan Rural Commercial Bank Co Ltd Class H
3.39
-0.22
-6.17%
HK:6196
Bank of Zhengzhou Co., Ltd. Class H
1.15
0.25
27.49%
HK:9668
China Bohai Bank Co., Ltd. Class H
0.91
0.03
3.41%
HK:9677
Weihai City Commercial Bank Co., Ltd. Class H
2.69
-0.09
-3.24%
HK:6199
Bank of Guizhou Co. Ltd. Class H
0.99
-0.10
-9.17%

Guangzhou Rural Commercial Bank Co. Ltd. Class H Corporate Events

Guangzhou Rural Commercial Bank Completes Major Asset Disposal
Dec 1, 2025

Guangzhou Rural Commercial Bank Co., Ltd. has completed a significant asset disposal, selling low-efficiency assets to Guangzhou Asset Management Co., Ltd. for RMB12.25 billion. The transaction, approved by shareholders, involves a payment plan spread over nine years and is expected to enhance the bank’s financial position by selling assets at a price slightly above book value, while maintaining manageable default risk.

Guangzhou Rural Commercial Bank Completes RMB5 Billion Bond Issuance
Nov 25, 2025

Guangzhou Rural Commercial Bank Co., Ltd. announced the successful issuance and listing of RMB5 billion in ordinary financial bonds with a fixed coupon rate of 1.85%, maturing in three years. This strategic financial move is likely to enhance the bank’s capital structure and support its future growth initiatives, potentially impacting its market positioning and stakeholder interests positively.

Guangzhou Rural Commercial Bank Approves Asset Transfer Proposal at EGM
Nov 21, 2025

Guangzhou Rural Commercial Bank Co., Ltd. held its 2025 first extraordinary general meeting, where a significant asset transfer proposal was overwhelmingly approved. The resolution was passed with 99.8915% of the votes in favor, reflecting strong shareholder support and potentially impacting the bank’s strategic positioning and operational focus.

Guangzhou Rural Commercial Bank Announces 2025 EGM to Discuss Asset Transfer
Nov 6, 2025

Guangzhou Rural Commercial Bank Co., Ltd. has announced the convening of its first extraordinary general meeting (EGM) for 2025, scheduled to take place on November 21, 2025. The primary agenda for this meeting is to consider and approve a proposal for asset transfer in 2025, which could have significant implications for the bank’s operational strategy and stakeholder interests.

Guangzhou Rural Commercial Bank Announces Closure of Register for 2025 EGM
Nov 4, 2025

Guangzhou Rural Commercial Bank Co., Ltd. has announced the closure of its register of members to determine the holders of H shares eligible to attend and vote at its first extraordinary general meeting in 2025. The meeting is scheduled for November 21, 2025, and the register will be closed from November 18 to November 21, 2025. Shareholders wishing to participate must ensure their share transfers are lodged by November 17, 2025. This move is part of the bank’s governance process to ensure proper shareholder participation in its decision-making.

Guangzhou Rural Commercial Bank Reports Stable Financial Performance for 2025
Oct 31, 2025

Guangzhou Rural Commercial Bank Co., Ltd. released its unaudited financial results for the nine months ending September 30, 2025. The bank reported total assets of RMB 141,642.49 million and a net profit of RMB 17,222.34 million. The capital adequacy ratios all met regulatory requirements, indicating a stable financial position. However, the figures are unaudited and may be subject to adjustments, urging investors to exercise caution.

Guangzhou Rural Commercial Bank Plans Major Asset Disposal
Oct 9, 2025

Guangzhou Rural Commercial Bank Co., Ltd. has announced a potential very substantial disposal of assets, subject to shareholder approval. The bank’s board has approved the transaction and is seeking a mandate to proceed with the disposal, which could involve Guangzhou Asset Management Co., Ltd. as the transferee. This move is significant as it exceeds 75% of applicable percentage ratios under the Listing Rules, requiring compliance with reporting and approval processes. The outcome of this transaction could impact the bank’s financial structure and stakeholder interests, with further announcements to follow as details are finalized.

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: Dec 30, 2025