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Luzhou Bank Co., Ltd. Class H (HK:1983)
:1983
Hong Kong Market

Luzhou Bank Co., Ltd. Class H (1983) AI Stock Analysis

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HK

Luzhou Bank Co., Ltd. Class H

(1983)

Rating:70Outperform
Price Target:
Luzhou Bank demonstrates strong financial performance with solid revenue and profit growth, enhanced operational efficiency, and improved cash generation. The stock is technically trending positively, and its low valuation metrics make it appealing for investors. However, historical volatility in cash flows and previous leverage levels remain areas to watch.

Luzhou Bank Co., Ltd. Class H (1983) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionLuzhou Bank Co., Ltd. provides corporate and retail banking and financial market services. It operates through four segments: Corporate Banking, Retailing Banking, Financial Markets, and Other. The company offers corporate banking products and services, such as corporate loans, bill discounting, and corporate deposits; and retail banking products and services comprising personal loans, personal deposits, and card services, as well as wealth management, precious metal products and services, and other intermediary services. It is also involved in financial markets business that consists of money market transactions, investment management, and asset management. In addition, the company provides settlement and agency services, guarantees and credit commitments, and investment banking services. It serves customers through 32 branches in Luzhou, as well as a branch located in Chengdu and Meishan. Further, the company provides mobile, telephone, and SMS services. The company was formerly known as Luzhou City Commercial Bank Co., Ltd. and changed its name to Luzhou Bank Co., Ltd. in June 2019. Luzhou Bank Co., Ltd. was incorporated in 1997 and is headquartered in Luzhou, China.
How the Company Makes MoneyLuzhou Bank Co., Ltd. generates revenue primarily through interest income from loans and advances to customers, which is a significant part of its earnings. The bank also earns money through non-interest income streams, including fees and commissions from various banking services, such as account maintenance, transaction processing, and wealth management products. Additionally, Luzhou Bank may engage in interbank lending and investment activities to enhance its income. Partnerships with local businesses and financial institutions could also contribute to its revenue through collaborative financial products or services.

Luzhou Bank Co., Ltd. Class H Financial Statement Overview

Summary
Luzhou Bank shows strong financial health with significant revenue and profit growth, improved operational efficiency, and reduced financial leverage. While cash generation was strong in 2024, historical cash flow volatility and previous high leverage levels pose potential risks.
Income Statement
75
Positive
Luzhou Bank has demonstrated a strong revenue growth from 2023 to 2024 with a 61.8% increase, indicating robust business performance. The gross profit margin remains strong at 100%, reflecting efficient cost management. However, the net profit margin of 26.5% in 2024 suggests room for improvement in controlling non-operating expenses. EBIT margin significantly improved to 62.7%, showcasing enhanced operational efficiency.
Balance Sheet
70
Positive
The bank exhibits a solid equity position with an equity ratio of 7.3%, indicating a stable asset base relative to liabilities. There is a notable decrease in total debt, which was reduced to zero by 2024, lowering financial risk. Return on Equity (ROE) improved to 10.3%, suggesting effective use of equity to generate profits. However, the relatively low equity ratio and high leverage in previous years may pose potential risks.
Cash Flow
68
Positive
The free cash flow has significantly improved to 1,505.1 million in 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.34 suggests healthy cash flow relative to earnings. However, the company experienced volatility in cash flows in previous years, which could indicate potential liquidity management challenges.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.33B4.82B2.98B3.50B3.53B2.69B
Gross Profit
3.33B4.82B4.53B3.50B3.53B2.69B
EBIT
1.46B3.02B1.35B5.25B934.31M740.25M
EBITDA
2.40B0.000.000.000.000.00
Net Income Common Stockholders
1.13B1.28B994.24M807.53M734.26M576.07M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.15B10.76B3.08B11.94B10.45B10.49B
Total Assets
70.88B171.00B157.64B148.63B134.51B118.89B
Total Debt
10.78B0.0014.31B16.58B23.54B16.65B
Net Debt
2.63B-10.76B-9.34B4.64B13.10B6.16B
Total Liabilities
66.54B158.56B146.71B138.43B124.81B109.94B
Stockholders Equity
4.34B12.44B10.93B10.20B9.70B8.95B
Cash FlowFree Cash Flow
0.001.51B-9.09B1.51B-1.03B1.47B
Operating Cash Flow
0.001.71B-8.84B1.73B-789.91M1.75B
Investing Cash Flow
0.00467.78M5.56B6.62B-2.22B-509.85M
Financing Cash Flow
0.00-1.74B538.49M-7.77B2.67B-870.67M

Luzhou Bank Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.45
Price Trends
50DMA
2.56
Negative
100DMA
2.17
Positive
200DMA
2.03
Positive
Market Momentum
MACD
-0.02
Positive
RSI
43.81
Neutral
STOCH
23.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1983, the sentiment is Neutral. The current price of 2.45 is below the 20-day moving average (MA) of 2.60, below the 50-day MA of 2.56, and above the 200-day MA of 2.03, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1983.

Luzhou 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
70
Outperform
HK$6.74B5.2712.21%3.69%2.88%27.89%
64
Neutral
$12.77B9.717.85%78.05%12.07%-7.97%
$74.68B5.77
11.84%
$32.33B5.767.87%0.79%
$28.64B4.615.54%7.10%
$160.11B8.3714.86%4.20%
$6.26B3.039.68%4.65%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1983
Luzhou Bank Co., Ltd. Class H
2.48
0.56
29.17%
BKFCF
Bank of Communications Co
0.94
0.28
42.42%
CEBCF
China Everbright Bank Co
0.50
0.22
78.57%
CGMBF
China Minsheng Banking
0.46
0.09
24.32%
CIHHF
China Merchants Bank Co
6.85
2.71
65.46%
HHSSF
Huishang Bank
0.44
0.13
41.94%

Luzhou Bank Co., Ltd. Class H Corporate Events

Luzhou Bank Strengthens Board with New Independent Director Appointment
Apr 28, 2025

Luzhou Bank Co., Ltd. announced the approval of Mr. FAN Jingdong as an independent non-executive director by the Sichuan Financial Regulatory Bureau, effective from April 27, 2025. This appointment, which includes his role on the consumer rights protection committee, is expected to strengthen the bank’s governance and enhance its focus on consumer rights, potentially impacting its market positioning positively.

Luzhou Bank Co., Ltd. Announces Board Composition and Governance Structure
Apr 28, 2025

Luzhou Bank Co., Ltd. has announced the composition of its board of directors and the roles and functions of each member. The board comprises executive, non-executive, and independent non-executive directors, with various members serving on six established committees, including the Audit Committee and the Risk Management Committee. This announcement provides clarity on the governance structure of the bank, which is crucial for stakeholders to understand the decision-making process and oversight within the organization.

Luzhou Bank Proposes Significant H Share Issuance and Amendments to Articles of Association
Apr 1, 2025

Luzhou Bank Co., Ltd. has announced a proposed non-public issuance of up to 1,000,000,000 new H Shares, which would significantly increase the bank’s share capital. This move, subject to shareholder and regulatory approvals, aims to enhance the bank’s capital base and potentially improve its market position. Additionally, the bank plans to amend its Articles of Association to reflect changes in registered capital and equity structure following the share issue.

Luzhou Bank Declares Final Cash Dividend for 2024
Mar 26, 2025

Luzhou Bank Co., Ltd. has announced a final cash dividend of RMB 1.2 per 10 shares for the financial year ending December 31, 2024. The announcement outlines the withholding tax rates applicable to different categories of shareholders, with a 20% tax for individual residents in China and a 10% tax for non-resident enterprises and individuals. The specific dates for the ex-dividend, record, and payment have yet to be announced, reflecting the bank’s ongoing financial strategy and shareholder engagement.

Luzhou Bank Announces Change of External Auditors for 2025
Mar 26, 2025

Luzhou Bank Co., Ltd. has announced a proposed change of its external auditors following the completion of the 2024 audit. PricewaterhouseCoopers, which has served as the bank’s auditor for eight consecutive years, will be replaced by Deloitte Touche Tohmatsu for the 2025 financial statements. This change is in compliance with regulations limiting the consecutive engagement term of auditors in state-owned financial institutions. The proposed appointment is subject to shareholder approval at the 2024 annual general meeting, and PwC has expressed no objections to this transition.

Luzhou Bank Releases 2024 Annual Financial Results
Mar 26, 2025

Luzhou Bank Co., Ltd. has announced its audited consolidated annual results for the year ending December 31, 2024. The results comply with the listing requirements of the Hong Kong Stock Exchange, and the full annual report will be accessible on the HKEXnews website and the bank’s website. This announcement provides stakeholders with insights into the bank’s financial performance and governance, potentially impacting its market positioning and investor relations.

Luzhou Bank Schedules Board Meeting to Approve Annual Results
Mar 14, 2025

Luzhou Bank Co., Ltd. has announced a board meeting scheduled for March 26, 2025, to review and approve the annual results for the year ending December 31, 2024, and to consider the recommendation of a final dividend. This meeting is a significant event for the bank as it will address key financial outcomes and potential shareholder returns, impacting its financial strategy and stakeholder interests.

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.