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Postal Savings Bank of China Co., Ltd. Class H (HK:1658)
:1658
Hong Kong Market

Postal Savings Bank of China Co., Ltd. Class H (1658) AI Stock Analysis

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HK

Postal Savings Bank of China Co., Ltd. Class H

(1658)

Rating:77Outperform
Price Target:
Postal Savings Bank of China scores highly due to its strong financial performance, characterized by robust revenue growth, excellent balance sheet stability, and solid cash flow generation. The technical analysis shows a positive trend, although further insight is needed due to missing technical indicators. The attractive valuation, with a high dividend yield and low P/E ratio, positions the stock favorably for value investors.
Positive Factors
Cost Efficiency
Upside surprise from cost side with cost-to-income ratio dropped by 86bps y/y to 64.01%.
Profit Performance
Strong fee income growth and improving cost efficiency resulted in a 6.2% increase in PPOP.
Strategic Growth
PSBC's 'Sannong Business' strategy has stronger growth potential and differentiates it from competitors.
Negative Factors
Asset Quality
Deterioration of asset quality, especially mortgages.
Financial Results
1Q25 results below expectation due to lower NIM and higher impairment cost.
Retail Asset Quality
Retail asset quality deteriorated with the NPL ratio rising from 0.86% to 0.91%.

Postal Savings Bank of China Co., Ltd. Class H (1658) vs. iShares MSCI Hong Kong ETF (EWH)

Postal Savings Bank of China Co., Ltd. Class H Business Overview & Revenue Model

Company DescriptionPostal Savings Bank of China Co., Ltd., together with its subsidiaries, provides various banking products and services for retail and corporate customers in the People's Republic of China. Its Personal Banking segment offers savings products, such as demand, time, personal call, time/demand optional, and foreign currency deposits; passbooks; certificate of deposits; micro, personal pledged, and personal business loans; debit and credit cards; wealth management products and funds; and insurance agency services. This segment is also involved in distribution of fund products, electronic bonds, and precious metals; and provides payment and collection agency, various settlement, domestic remittance and exchange, cross-border remittance, personal exchange settlement and sale, and foreign currency exchange services. The company's Corporate Banking segment provides time, demand, call, and negotiated deposits; working capital, fixed asset, trade finance, stock pledge, land reserve, syndicated, real estate development, property mortgage, and consignment loans; cash management services; negotiable instruments; trade finance and international settlement services; and financial markets services. Its Treasury segment offers interbank lending transactions, repurchase and resale transactions, debt instrument investments, equity instrument investment, investment banking, bond securities, and wealth management products, etc., as well as trades in financial products comprising money market, fixed income, and foreign exchange products, as well as derivatives and precious metals. The company also provides online, mobile, and self-service banking services. As of December 31, 2021, it had 39,603 outlets, including 7,828 directly operated outlets and 31,775 agency outlets. The company was founded in 2007 and is headquartered in Beijing, the People's Republic of China. Postal Savings Bank of China Co., Ltd. is a subsidiary of China Post Group Corporation.
How the Company Makes MoneyPostal Savings Bank of China Co., Ltd. generates its revenue through a diverse array of banking services. The primary source of income is its interest income, which is derived from loans and advances to customers, as well as investments in securities. The bank also earns fees and commissions from its various financial services, including transaction banking, wealth management, and insurance products. Another significant revenue stream comes from its vast deposit base, where it earns the differential between the interest paid to depositors and the interest earned on its lending and investment activities. Partnerships with other financial institutions and government entities, particularly in rural banking initiatives, also contribute to its earnings by expanding its service offerings and customer base.

Postal Savings Bank of China Co., Ltd. Class H Financial Statement Overview

Summary
Postal Savings Bank of China demonstrates strong financial health across all statements, with robust revenue growth, excellent balance sheet stability, and solid cash flow generation. The absence of debt and high equity ratio highlight financial resilience, although careful monitoring of high investing cash flows is advised.
Income Statement
85
Very Positive
Postal Savings Bank of China has shown a steady increase in total revenue over recent years, highlighting a positive revenue growth trajectory. The net profit margin is strong, reflecting efficient cost management and profitability. However, EBIT and EBITDA margins are not available for the latest period, which could provide more insights into operational efficiency.
Balance Sheet
90
Very Positive
The balance sheet displays exceptional stability with a high equity ratio, suggesting strong financial health and low leverage. The absence of total debt in the latest period further strengthens the company's financial position. Return on equity is robust, indicating effective use of equity capital.
Cash Flow
80
Positive
The company exhibits solid free cash flow growth, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating strong cash conversion efficiency. However, the high investing cash flow could indicate significant capital expenditure or investments, which should be monitored for potential impact.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
328.70B234.48B316.75B234.68B216.44B207.63B
Gross Profit
271.83B234.48B226.79B234.68B216.44B207.63B
EBIT
110.18B126.20B240.56B291.88B81.09B68.02B
EBITDA
-1.58B0.000.000.000.000.00
Net Income Common Stockholders
80.20B86.48B86.27B85.22B76.17B64.20B
Balance SheetCash, Cash Equivalents and Short-Term Investments
297.85B1.96T1.83T1.73T1.56T1.51T
Total Assets
8.49T17.08T15.73T14.07T12.59T11.35T
Total Debt
74.92B0.00270.41B111.76B91.11B67.25B
Net Debt
-222.92B-1.96T-1.83T-1.62T-1.47T-1.44T
Total Liabilities
74.92B16.05T14.77T111.76B91.11B67.25B
Stockholders Equity
359.79B1.03T954.87B824.23B794.09B671.80B
Cash FlowFree Cash Flow
-944.99B376.93B250.37B462.51B95.70B154.20B
Operating Cash Flow
-930.19B397.28B263.34B474.91B109.56B161.77B
Investing Cash Flow
-295.27B-480.40B-242.43B-511.51B-182.92B-122.08B
Financing Cash Flow
1.09T-30.78B1.43T-37.74B52.26B16.75B

Postal Savings Bank of China Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.11
Price Trends
50DMA
4.87
Positive
100DMA
4.79
Positive
200DMA
4.51
Positive
Market Momentum
MACD
0.07
Positive
RSI
58.68
Neutral
STOCH
80.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1658, the sentiment is Positive. The current price of 5.11 is above the 20-day moving average (MA) of 5.06, above the 50-day MA of 4.87, and above the 200-day MA of 4.51, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 58.68 is Neutral, neither overbought nor oversold. The STOCH value of 80.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1658.

Postal Savings Bank of China 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
77
Outperform
HK$556.66B5.4710.41%5.52%-1.43%5.12%
64
Neutral
$12.87B9.817.76%16985.65%12.28%-7.83%
$270.23B6.0510.80%7.14%
$208.54B5.779.57%5.59%
$235.04B5.0810.81%6.01%
$157.15B8.1514.86%4.31%
$331.61B5.52
8.33%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1658
Postal Savings Bank of China Co., Ltd. Class H
5.11
1.16
29.37%
ACGBF
Agricultural Bank of China
0.68
0.27
65.85%
BACHF
Bank of China
0.60
0.18
42.86%
CICHF
China Construction Bank
0.93
0.30
47.62%
CIHHF
China Merchants Bank Co
6.42
2.12
49.30%
IDCBF
Industrial and Commercial Bank of China
0.75
0.23
44.23%

Postal Savings Bank of China Co., Ltd. Class H Corporate Events

Postal Savings Bank of China Nominates New Non-executive Director
Apr 29, 2025

Postal Savings Bank of China Co., Ltd. has nominated Ms. Chen Xue as a candidate for the position of Non-executive Director. Her appointment is pending approval by the National Financial Regulatory Administration, with a proposed term of three years. Ms. Chen brings extensive experience in financial management and regulatory roles, having previously worked with the China Securities Regulatory Commission and the National Financial Regulatory Administration. Her nomination reflects the bank’s strategic focus on strengthening its governance and leveraging her expertise to enhance its industry positioning.

Postal Savings Bank of China Reports Q1 2025 Financial Results
Apr 29, 2025

Postal Savings Bank of China Co., Ltd. reported its financial results for the first quarter of 2025, showing a modest increase in total assets and customer deposits, with a slight decline in net profit. The bank’s operating income remained stable, but net cash flows from operating activities saw a significant decrease, which could impact its liquidity management and operational strategies.

Postal Savings Bank of China Concludes Key Shareholder Meetings
Apr 17, 2025

Postal Savings Bank of China Co., Ltd. announced the successful conclusion of its 2024 Annual General Meeting and the 2025 Shareholders’ Class Meetings. The meetings were conducted in compliance with relevant laws and regulations, with significant shareholder participation. Key resolutions were discussed, although certain shareholders, including China Mobile Group and CSSC, abstained from voting on specific proposals related to the issuance of A Shares and strategic cooperation agreements. The outcomes of these meetings are expected to influence the bank’s strategic direction and stakeholder relationships.

Postal Savings Bank of China Updates Final Dividend Details for 2024
Apr 17, 2025

Postal Savings Bank of China Co., Ltd. has announced an update regarding its final dividends for the year ended December 31, 2024. The update includes details on the default currency and amount of the dividend, the exchange rate, and withholding tax information. The dividend will be paid in Hong Kong dollars at a rate of HKD 1.2262079 per 10 shares, with an ex-dividend date of April 23, 2025, and a payment date of May 22, 2025. The announcement also outlines the withholding tax rates applicable to different types of shareholders, which may impact the net dividend received by non-resident shareholders.

Postal Savings Bank of China Schedules Board Meeting for Quarterly Results
Apr 15, 2025

Postal Savings Bank of China Co., Ltd. has announced a board meeting scheduled for April 29, 2025, to review and approve the first quarterly results for the period ending March 31, 2025. This meeting is crucial for stakeholders as it will provide insights into the bank’s financial performance and strategic direction for the upcoming quarters.

China Post Group Boosts Stake in Postal Savings Bank of China
Apr 8, 2025

China Post Group Corporation Limited, the controlling shareholder of Postal Savings Bank of China, has increased its shareholding in the bank by acquiring an additional 19,910,200 A shares, representing 0.02% of the total issued ordinary shares. This move, part of a broader Shareholding Increase Plan, reflects China Post Group’s confidence in the bank’s long-term investment value and aims to boost investor confidence and protect the interests of smaller investors. The plan will be executed over the next 12 months, with further acquisitions to be made through the Shanghai Stock Exchange using China Post Group’s own funds.

Postal Savings Bank of China to Issue A Shares, Strengthening Capital Base
Mar 30, 2025

Postal Savings Bank of China Co., Ltd. announced its plan to issue A Shares to specific subscribers, including the Ministry of Finance, China Mobile Group, and CSSC, aiming to raise RMB130 billion. The proceeds will be used to replenish the bank’s core tier 1 capital, enhancing its financial stability and market position. This strategic move involves entering into equity investment and cooperation agreements, potentially strengthening the bank’s operational capabilities and stakeholder relationships.

Postal Savings Bank of China Announces Additional AGM Resolutions
Mar 30, 2025

Postal Savings Bank of China has announced a supplemental notice for its 2024 Annual General Meeting, where additional resolutions will be considered. These include proposals related to the issuance of A shares to specific subscribers, detailing aspects such as the class and nominal value of securities, issuance method, and use of proceeds. The resolutions aim to enhance the bank’s capital structure and strategic positioning, potentially impacting shareholder returns and related party transactions.

Postal Savings Bank of China Schedules 2025 H Shareholders’ Meeting for A Share Issuance
Mar 30, 2025

Postal Savings Bank of China Co., Ltd. has announced the scheduling of its 2025 first H shareholders’ class meeting to discuss and approve several proposals related to the issuance of A shares to specific subscribers. The meeting will address special resolutions including the issuance plan, related party transactions, and share subscription agreements with entities such as the Ministry of Finance of China and China Mobile Group, potentially impacting the bank’s capital structure and stakeholder interests.

Postal Savings Bank of China Adjusts Deposit Agency Fee Rates
Mar 27, 2025

Postal Savings Bank of China Co., Ltd. has announced adjustments to its deposit agency fee rates for its agency renminbi personal deposit taking business. The adjustments involve a new pricing mechanism that sets scaled fee rates based on deposit types, impacting the bank’s operations by potentially altering its revenue from deposit agency fees. This move is part of a broader framework agreement with China Post Group, which allows the bank to conduct commercial banking businesses through agency outlets, enhancing its market presence and operational flexibility.

Postal Savings Bank of China Announces 2024 AGM Agenda
Mar 27, 2025

Postal Savings Bank of China Co., Ltd. has announced its 2024 Annual General Meeting, scheduled for April 17, 2025, in Beijing. The meeting will address several resolutions, including the approval of work reports, financial accounts, profit distribution, and the election of an independent non-executive director. These resolutions are crucial for the bank’s governance and strategic planning, impacting its operational efficiency and stakeholder engagement.

Postal Savings Bank of China Releases 2024 Pillar 3 Disclosure Report on Capital Management
Mar 27, 2025

The 2024 Pillar 3 Disclosure Report from Postal Savings Bank of China Co., Ltd. outlines the bank’s capital management strategies and risk management practices. It details key prudential regulatory indicators, risk-weighted assets, and the composition of capital and total loss-absorbing capacity. The report highlights the bank’s commitment to maintaining robust financial health and regulatory compliance, which is crucial for its operational stability and stakeholder confidence.

Postal Savings Bank of China Announces Director Nomination and Board Committee Changes
Mar 27, 2025

Postal Savings Bank of China Co., Ltd. has nominated Mr. Pu Yonghao as an Independent Non-executive Director, subject to approval by the National Financial Regulatory Administration. Mr. Pu brings a wealth of experience from various financial institutions and is deemed independent under Hong Kong Listing Rules. Additionally, the bank announced changes in its Board committees, with new appointments to the Nomination and Remuneration Committee and the Audit Committee, effective upon regulatory approval. These changes are expected to enhance the bank’s governance and strategic oversight.

Postal Savings Bank of China Announces Board Composition and Committee Roles
Mar 27, 2025

The Postal Savings Bank of China Co., Ltd. has announced the composition of its Board of Directors, including the roles and functions of each member. This announcement highlights the structure of the Board, which includes a Chairman, Executive Directors, Non-executive Directors, and Independent Non-executive Directors, along with the establishment of six special committees. This organizational update is significant for stakeholders as it outlines the governance framework and leadership structure, which are crucial for the bank’s strategic planning and operational oversight.

Postal Savings Bank of China Declares Final Dividend for 2024
Mar 27, 2025

Postal Savings Bank of China Co., Ltd. announced a final ordinary cash dividend of RMB 1.139 per 10 shares for the financial year ending December 31, 2024. The dividend is subject to shareholder approval on April 17, 2025, with the ex-dividend date set for April 23, 2025, and payment scheduled for May 22, 2025. This announcement reflects the bank’s continued commitment to returning value to shareholders, potentially enhancing its attractiveness to investors.

Postal Savings Bank of China Reports 2024 Financial Results and Dividend Proposal
Mar 27, 2025

Postal Savings Bank of China Co., Ltd. announced its audited annual results for the year ending December 31, 2024, along with a proposed cash dividend distribution totaling approximately RMB25,941 million for the year. The financial statements, audited by KPMG, showed no misappropriation of funds or regulatory violations during the reporting period, indicating a stable financial position and effective risk management strategies. The announcement underscores the bank’s commitment to transparency and compliance with financial regulations.

Postal Savings Bank of China Schedules Board Meeting to Review Annual Results
Mar 17, 2025

Postal Savings Bank of China Co., Ltd. has announced a board meeting scheduled for March 27, 2025, to discuss and approve the annual 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 financial performance of the bank and its subsidiaries, potentially impacting stakeholders and influencing the bank’s strategic direction.

Postal Savings Bank of China Appoints New Chairman Zheng Guoyu
Feb 14, 2025

Postal Savings Bank of China Co., Ltd. has announced the appointment of Mr. Zheng Guoyu as the new Chairman of the Board and Director, following approval from the National Financial Regulatory Administration. His leadership is expected to guide the Bank’s strategic planning, with Mr. Zheng also assuming the role of the Bank’s legal representative.

Postal Savings Bank of China Announces Board Composition and Committee Structure
Feb 14, 2025

Postal Savings Bank of China Co., Ltd. announced the composition of its Board of Directors, chaired by Zheng Guoyu, and detailed the roles and functions of its members. The Board has established six special committees, each with designated chairpersons and members, aimed at overseeing various strategic and operational aspects of the bank, indicating a structured governance framework.

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.