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

(Stuttgart:1551)

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Neutral 56 (OpenAI - 4o)
Rating:56Neutral
Price Target:
Guangzhou Rural Commercial Bank Co. Ltd. receives an overall stock score of 56, reflecting a combination of stable financial performance and moderate valuation offset by bearish technical indicators. The company's financials show strong equity and profitability metrics, but cash flow challenges and high liabilities remain concerns. Technical analysis points to a downward trend, suggesting potential near-term headwinds. The valuation is reasonable, but not compelling enough to offset technical weaknesses.

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. Class H (1551) is a financial institution based in Guangzhou, China, primarily focusing on providing comprehensive banking services to rural and urban customers. The bank offers a wide array of products including personal and corporate banking, wealth management, and financial services, with a strong emphasis on supporting local agricultural and rural development. It operates through a network of branches and leverages digital banking to enhance customer convenience and accessibility.
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
65
Positive
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
72
Positive
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
50
Neutral
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
EBITDA0.002.08B0.000.000.000.00
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 Price1.66
Price Trends
50DMA
1.71
Negative
100DMA
1.67
Negative
200DMA
1.61
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
45.69
Neutral
STOCH
51.47
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 1.66 is below the 20-day moving average (MA) of 1.68, below the 50-day MA of 1.71, and above the 200-day MA of 1.61, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 51.47 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
78
Outperform
HK$2.65T5.206.07%-3.35%0.58%
77
Outperform
HK$1.98T5.1410.10%5.86%-3.01%0.90%
74
Outperform
HK$1.12T7.314.70%-3.23%1.81%
73
Outperform
HK$2.49T5.899.09%5.06%-1.70%11.36%
72
Outperform
HK$189.38B5.958.74%-7.28%-5.00%
56
Neutral
€24.04B14.202.96%-3.87%22.34%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1551
Guangzhou Rural Commercial Bank Co. Ltd. Class H
1.66
-0.18
-9.83%
HK:9889
Dongguan Rural Commercial Bank Co Ltd Class H
3.60
-0.89
-19.84%
HK:6196
Bank of Zhengzhou Co., Ltd. Class H
1.27
-0.10
-7.57%
HK:9668
China Bohai Bank Co., Ltd. Class H
1.03
-0.26
-20.16%
HK:9677
Weihai City Commercial Bank Co., Ltd. Class H
2.87
0.24
9.13%
HK:6199
Bank of Guizhou Co. Ltd. Class H
1.09
-0.36
-24.83%

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

Guangzhou Rural Commercial Bank Reports Q1 2025 Financial Results
Apr 30, 2025

Guangzhou Rural Commercial Bank Co., Ltd. announced its unaudited financial results for the first quarter of 2025, reporting total assets of RMB 136,654,068.09 and a net profit of RMB 121,388.812. The bank’s capital adequacy ratios met regulatory requirements, indicating a stable financial position. Stakeholders are advised to exercise caution as the figures are unaudited and may be subject to adjustments.

Guangzhou Rural Commercial Bank Releases 2024 Annual Results
Mar 28, 2025

Guangzhou Rural Commercial Bank Co., Ltd. has released its audited consolidated annual results for the year ended December 31, 2024. The results, prepared in accordance with IFRS Accounting Standards, have been reviewed by the Board and the audit committee. The announcement is available on the Hong Kong Stock Exchange and the bank’s website, with the full annual report to be dispatched to shareholders in due course. This release provides stakeholders with a comprehensive overview of the bank’s financial performance and governance for the year.

Guangzhou Rural Commercial Bank Announces Final Dividend for 2024
Mar 28, 2025

Guangzhou Rural Commercial Bank Co., Ltd. announced a proposed final cash dividend of RMB 0.45 per 10 shares for the financial year ending December 31, 2024. The payment date is set for July 25, 2025, with details on the exchange rate and Hong Kong dollar amount to be announced. The announcement includes information on withholding tax rates for non-resident shareholders, which vary based on tax agreements between China and other countries. This dividend declaration reflects the bank’s financial performance and commitment to returning value to its shareholders.

Guangzhou Rural Commercial Bank Proposes New Executive Director Appointment
Mar 28, 2025

Guangzhou Rural Commercial Bank Co., Ltd. has announced the proposed appointment of Mr. Tan Bo as an executive director for its fourth board session. Mr. Tan, who holds a doctoral degree in economics and has extensive experience in the banking sector, currently serves as the deputy secretary of the Party Committee and assistant to the president of the Bank. His appointment is subject to approval at the general meeting and by the Guangdong Bureau of National Financial Regulatory Administration. If approved, Mr. Tan will not receive director’s fees, but his remuneration will include a basic salary, performance remuneration, and other benefits, which will be disclosed in the Bank’s annual report.

Guangzhou Rural Commercial Bank Announces Financial Bond Issuance Plan
Mar 28, 2025

Guangzhou Rural Commercial Bank Co., Ltd. has announced plans to issue financial bonds to optimize its asset and liability maturity structure and increase stable medium-and long-term liabilities. The proposed issuance will not exceed RMB40 billion, with an annual cap of RMB15 billion, targeting institutional investors in the national interbank bond market. The proceeds will be used to support the bank’s medium-and long-term asset business, with the board seeking authorization to manage the issuance process and related matters.

Guangzhou Rural Commercial Bank Schedules Board Meeting for Annual Results
Mar 18, 2025

Guangzhou Rural Commercial Bank Co., Ltd. has announced a board meeting scheduled for March 28, 2025, to discuss and approve the annual financial results for the year ending December 31, 2024, and to consider the recommendation for a final dividend. This meeting is significant for stakeholders as it will provide insights into the bank’s financial performance and potential shareholder returns.

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: Apr 22, 2025