China Minsheng Banking (1988) AI Stock Analysis

• Market Cap: $192.09B
• Dividend Yield: 8.78%
• Average Volume (3M): 27.84M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.56
• Revenue Growth: -7.28%
• EPS Growth: -5.00%
• Country: HK
• Employees: 63,490
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.15
• Shares Outstanding: 8,320,296,000
• 10 Day Avg. Volume: 24,097,640
• 30 Day Avg. Volume: 27,835,867
• PEG Ratio: -1.65
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 1.64
• P/FCF Ratio: -0.61
• Enterprise Value/Market Cap: 14.17
• Enterprise Value/Revenue: 9.75
• Enterprise Value/Gross Profit: 19.24
• Enterprise Value/Ebitda: 81.51
• 1Y Price Target: $4.98
• Price Target Upside: 21.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ―

China Minsheng Banking's overall stock score is driven by its strong valuation metrics, including a low P/E ratio and high dividend yield, which make it attractive to value and income investors. While the financial performance is solid, recent revenue declines and negative cash flow pose challenges. Technical indicators suggest cautious optimism with short-term bullish momentum.

China Minsheng Banking Business Overview & Revenue Model

Company Description

China Minsheng Banking Corporation (CMBC), established in 1988, is one of China's largest commercial banks, primarily focused on providing comprehensive financial services. The bank serves a diverse clientele that includes individual customers, small and medium-sized enterprises (SMEs), and large corporations. CMBC operates across various sectors, including retail banking, corporate banking, investment banking, and wealth management, offering core products such as loans, deposits, credit cards, and various financial advisory services.

How the Company Makes Money

China Minsheng Banking generates revenue primarily through interest income from loans and advances, which constitutes a significant portion of its earnings. The bank issues loans to individuals and businesses, charging interest that varies based on risk assessments and market conditions. Additionally, CMBC earns fees from various banking services, including account maintenance, transaction processing, and advisory services in investment banking. The bank also benefits from its wealth management services, where it charges management fees on investment products. Significant partnerships with corporations and financial institutions enhance its ability to cross-sell services, further contributing to its revenue streams. Additionally, CMBC's investments in financial products and securities provide another layer of income, leveraging market movements to increase profitability.

China Minsheng Banking Financial Statement Overview

Summary

China Minsheng Banking demonstrates strong profitability and a stable balance sheet with low leverage, positioning it well in the regional banking industry. However, a decline in revenue and negative cash flow indicate potential challenges.

Income Statement

China Minsheng Banking has shown a stable gross profit margin, maintaining 100% as expected for a bank. The net profit margin slightly decreased year-over-year to 23.7% from 25.4%. Revenue growth has been negative, with a decrease of 3.2% from 2022 to 2023, indicating a challenging environment. EBIT and EBITDA margins are missing for the latest period, and past trends indicate variability in EBIT contributions. Overall, the income statement reflects a strong profitability profile but highlights pressures on revenue growth.

Balance Sheet

The bank maintains a solid equity base with an equity ratio of 8.2%. The debt-to-equity ratio has improved significantly, dropping to 0, indicating no debt, although previous years showed higher leverage. Return on Equity (ROE) has been consistent, with a slight dip to 5.0% from 5.7% in the prior year. These metrics showcase a stable financial position with low leverage risks and adequate equity backing, supporting the bank's resilience.

Cash Flow

Operating cash flow has experienced fluctuations, turning significantly negative in the latest year, with free cash flow also negative, indicating potential liquidity challenges. The operating cash flow to net income ratio is negative due to the negative operating cash flow, reflecting operating difficulties. Historical free cash flow showed positive trends but has reversed recently. These factors suggest potential short-term liquidity risks, although past performance was more stable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	279.34B	288.69B	305.51B	297.95B	320.71B	336.32B
Gross Profit	141.55B	136.29B	140.82B	142.48B	168.80B	184.95B
EBITDA	33.40B	42.80B	45.67B	44.98B	43.01B	44.30B
Net Income	31.20B	32.30B	35.82B	35.27B	34.38B	34.31B
Balance Sheet
Total Assets	7.77T	7.81T	7.67T	7.26T	6.95T	6.95T
Cash, Cash Equivalents and Short-Term Investments	664.53B	1.08T	721.11B	634.86B	625.80B	682.30B
Total Debt	1.13T	1.03T	790.82B	753.77B	785.27B	1.13T
Total Liabilities	7.07T	7.16T	7.04T	6.64T	6.37T	6.41T
Stockholders Equity	688.54B	642.86B	624.60B	599.93B	574.28B	529.54B
Cash Flow
Free Cash Flow	-173.83B	-241.34B	65.00B	155.56B	145.95B	-90.22B
Operating Cash Flow	-166.84B	-231.64B	73.68B	166.27B	155.42B	-82.40B
Investing Cash Flow	30.34B	-42.82B	41.76B	-112.33B	117.91B	7.58B
Financing Cash Flow	222.04B	221.86B	-7.26B	-96.20B	-266.72B	92.05B

China Minsheng Banking Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1988, the sentiment is Negative. The current price of 4.09 is below the 20-day moving average (MA) of 4.26, below the 50-day MA of 4.20, and below the 200-day MA of 4.11, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.68 is Neutral, neither overbought nor oversold. The STOCH value of 9.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1988.

China Minsheng Banking Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2388	78 Outperform	$408.11B	10.12	12.04%	6.02%	1.90%	12.81%
1658	77 Outperform	HK$678.75B	6.16	9.30%	5.41%	-1.54%	-3.95%
0011	76 Outperform	$284.12B	19.89	9.20%	4.64%	4.44%	-15.39%
1988	72 Outperform	$192.09B	6.02	5.16%	8.78%	-7.28%	-5.00%
6818	72 Outperform	$217.60B	4.68	―	5.62%	-8.41%	-5.52%
0998	69 Neutral	$452.95B	5.32	9.71%	5.63%	-5.46%	0.33%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

China Minsheng Banking Corporate Events

China Minsheng Banking Successfully Issues RMB6 Billion Financial Bonds

China Minsheng Banking Corp., Ltd. has successfully issued RMB6 billion worth of financial bonds in the national inter-bank bond market, with the issuance completed on December 4, 2025. The proceeds from this issuance are intended to enhance the bank’s asset and liability management, diversify funding sources, and support the sustainable growth of its business operations.

China Minsheng Bank Appoints New Non-Executive Director

China Minsheng Banking Corp., Ltd. announced the approval of Zheng Haiyang as a non-executive director by the National Financial Regulatory Administration, effective from November 6, 2025. This appointment is expected to strengthen the bank’s board, particularly in risk management, as Mr. Zheng will also join the Risk Management Committee, potentially impacting the bank’s strategic direction and governance.

China Minsheng Banking Announces Board Composition and Roles

China Minsheng Banking Corp., Ltd. has announced the composition of its board of directors and their respective roles within the company. The board consists of non-executive, independent non-executive, and executive directors, with Gao Yingxin serving as Chairman and Wang Xiaoyong as Vice Chairman and President. The board has established six committees, including strategic development and consumer rights protection, nomination, compensation and remuneration, risk management, audit, and related party transactions supervision. This announcement reflects the company’s commitment to strong governance and strategic oversight, which is crucial for its operations and stakeholder confidence.

China Minsheng Banking Releases 2025 Q3 Report

China Minsheng Banking Corp., Ltd. has released its 2025 Third Quarterly Report, highlighting the unaudited financial data prepared according to Chinese accounting standards. The report assures stakeholders of the accuracy and completeness of the information, with the Board of Directors and senior management assuming responsibility for its truthfulness. This announcement underscores the bank’s commitment to transparency and regulatory compliance, potentially strengthening its position in the financial market.

China Minsheng Banking Announces Upcoming Board Meeting to Review Financial Results

China Minsheng Banking Corp., Ltd. has announced that its board of directors will meet on October 30, 2025, to discuss and approve the financial results for the nine months ended September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

China Minsheng Banking Announces Dividend Distribution for Preference Shares

China Minsheng Banking Corp., Ltd. has announced the approval and implementation of a dividend distribution plan for its domestic preference shares, known as Minsheng Preference 1. The dividend period spans from October 18, 2024, to October 17, 2025, with a cash dividend of RMB3.17 per share, amounting to a total of RMB634 million. The dividend payment date is set for October 20, 2025, due to a statutory holiday. This move reflects the company’s ongoing commitment to rewarding its shareholders and maintaining a stable financial strategy.

China Minsheng Banking Restructures Corporate Governance

China Minsheng Banking Corp., Ltd. has received approval from the National Financial Regulatory Administration for amendments to its Articles of Association, which include the abolition of its Board of Supervisors. This change, effective immediately, shifts the supervisory responsibilities to the Audit Committee under the Board of Directors, aligning with regulatory requirements. The dissolution of the Board of Supervisors marks a significant shift in the bank’s corporate governance structure, potentially impacting its operational oversight and stakeholder engagement.