China Minsheng Banking (1988) AI Stock Analysis

• Market Cap: $246.47B
• Dividend Yield: 0.91%
• Average Volume (3M): 60.55M
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.60
• Revenue Growth: -7.94%
• EPS Growth: -13.51%
• Country: HK
• Employees: 63,490
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.32
• Shares Outstanding: 8,320,296,000
• 10 Day Avg. Volume: 83,221,137
• 30 Day Avg. Volume: 60,549,810
• PEG Ratio: -2.76
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.92
• Price Target Upside: -23.19% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ―

China Minsheng Banking's robust profitability and stable balance sheet are major strengths, but challenges in revenue growth and cash flow management present risks. The stock is attractively valued with a strong dividend yield, adding to its investment appeal despite mixed technical indicators.

China Minsheng Banking Business Overview & Revenue Model

Company Description

China Minsheng Banking Corp., Ltd. provides various financial products and services to individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the People's Republic of China. The company operates through Corporate Banking, Retail Banking, and Others segments. Its deposit products include saving accounts, deposit certificates, contracted deposits, agreement deposits, call deposits, corporate term deposits, and corporate current deposits. The company also offers personal housing mortgage, individual automobile purchase, household composite consumption, home, medium and long term, and short-term working capital loans; micro-credit products for individuals; debit and credit cards; and safe deposit boxes. In addition, it provides payment and collection, and clearing services, as well as internet, mobile, and telephone banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; individual forex settlement, forex remittance, travelers promissory notes, collection, individual deposit certificate, and guarantee letter products; and comprehensive credit granting, forex settlement and sale, financial product investment, and trust financing services. Additionally, it provides convenient finance, investment banking, and asset management services, as well as non-financial services in the education, business travel, traveler, art, luxury life, health, club, and isports areas. As of December 31, 2021, the company has approximately 140 branch-level institutions, 1,193 business outlets, 1,078 community sub-branches, and 136 small business sub-branches. China Minsheng Banking Corp., Ltd. was founded in 1996 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

China Minsheng Banking Corporation generates revenue through various streams, with interest income from loans and advances being a significant contributor. The bank earns interest by lending to individuals, SMEs, and large corporations, with the interest rate difference between loans and deposits being a primary source of profit. Additionally, the bank earns fee-based income from services such as wealth management, credit card transactions, and investment banking activities. Treasury operations, including trading and investment in securities, also contribute to the bank's income. Furthermore, strategic partnerships and collaborations with other financial institutions and businesses enhance its service offerings and revenue potential.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	136.29B	140.82B	142.48B	168.80B	184.95B
Gross Profit	136.29B	140.82B	142.48B	168.80B	184.95B
EBITDA	0.00	0.00	0.00	0.00	0.00
Net Income	32.30B	35.82B	35.27B	34.38B	34.31B
Balance Sheet
Total Assets	7.81T	7.67T	7.26T	6.95T	6.95T
Cash, Cash Equivalents and Short-Term Investments	1.08T	721.11B	634.86B	625.80B	682.30B
Total Debt	1.03T	790.82B	753.77B	785.27B	1.13T
Total Liabilities	7.16T	7.04T	753.77B	785.27B	1.13T
Stockholders Equity	642.86B	624.60B	599.93B	574.28B	529.54B
Cash Flow
Free Cash Flow	-241.34B	65.00B	155.56B	145.95B	-90.22B
Operating Cash Flow	-231.64B	73.68B	166.27B	155.42B	-82.40B
Investing Cash Flow	-42.82B	41.76B	-112.33B	117.91B	7.58B
Financing Cash Flow	221.86B	-7.26B	-96.20B	-266.72B	92.05B

China Minsheng Banking Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 5.11 is above the 20-day moving average (MA) of 5.03, above the 50-day MA of 4.52, and above the 200-day MA of 3.66, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 57.49 is Neutral, neither overbought nor oversold. The STOCH value of 16.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1988.

China Minsheng Banking Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1988	72 Outperform	$246.47B	7.49	5.54%	0.91%	-7.94%	-13.51%
Sector *	61 Neutral	C$15.12B	7.06	23.28%	5.39%	33.61%	-23.38%
BNKHF	―	$48.76B	9.82	11.58%	1.21%	―	―
CEBCF	―	$33.17B	6.32	7.87%	15.35%	―	―
CHBJF	―	$61.41B	5.75		5.70%	―	―
HSNGF	―	$29.06B	12.85	11.23%	7.09%	―	―
1658	77 Outperform	HK$600.55B	6.18	10.41%	2.06%	-1.43%	5.12%

China Minsheng Banking Corporate Events

China Minsheng Banking Releases 2025 First Quarterly Report

China Minsheng Banking Corp., Ltd. has released its 2025 First Quarterly Report, emphasizing the truthfulness, accuracy, and completeness of the financial data presented. The report, which is unaudited and prepared according to Chinese accounting standards, highlights the bank’s commitment to transparency and accountability in its financial reporting.

China Minsheng Banking Successfully Issues RMB40 Billion Tier-Two Capital Bonds

China Minsheng Banking Corp., Ltd. has successfully issued RMB40 billion in tier-two capital bonds, approved by the National Financial Regulatory Administration and the People’s Bank of China. The issuance aims to replenish the bank’s tier-two capital and improve its capital adequacy ratio, potentially strengthening its financial position and market competitiveness.

China Minsheng Banking to Announce Q1 2025 Results

China Minsheng Banking Corp., Ltd. has announced that its board of directors will convene on April 29, 2025, to review and approve the first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the bank’s financial performance and strategic direction, potentially impacting investor confidence and market positioning.

China Minsheng Banking Reports Strong Q1 2025 Performance

In the first quarter of 2025, China Minsheng Banking Corp., Ltd. reported a period-on-period increase of over 7% in operating income, driven by steady growth in deposits and loans, and an improvement in net interest margin. The bank’s strategic focus on optimizing its asset-liability structure and refining management has led to positive growth in both net interest and non-interest income, indicating a stable improvement in its operating performance.

China Minsheng Banking Announces Change in Company Secretary

China Minsheng Banking Corp., Ltd. announced a change in its company secretary position, with Ms. Cheung Yuet Fan stepping down and Mr. Wang Honggang being appointed as her successor, effective March 28, 2025. This change is part of the bank’s ongoing governance and operational adjustments, potentially impacting its administrative functions and stakeholder communications in Hong Kong.

China Minsheng Banking Announces 2024 Financial Results and Dividend Plan

China Minsheng Banking Corp., Ltd. has announced its audited financial results for the year ending December 31, 2024. The bank plans to distribute a total cash dividend of RMB8,406 million for 2024, subject to approval at the upcoming Annual General Meeting. This announcement highlights the bank’s financial performance and commitment to shareholder returns, potentially impacting its market positioning and investor relations.

China Minsheng Banking Announces Final Dividend for 2024

China Minsheng Banking Corp., Ltd. has announced a final cash dividend of RMB 0.62 per 10 shares for the financial year ending December 31, 2024. The payment date for this dividend is set for August 15, 2025, with further details on currency exchange rates and withholding tax yet to be disclosed. This announcement reflects the bank’s commitment to returning value to its shareholders and may influence investor sentiment positively.

China Minsheng Banking Schedules Board Meeting for 2024 Results

China Minsheng Banking Corp., Ltd. has announced a board meeting scheduled for March 28, 2025, to discuss and approve the consolidated final results for the year ending December 31, 2024. The meeting will also consider the recommendation of a dividend, reflecting the bank’s ongoing commitment to shareholder returns.

China Minsheng Banking Announces Director Resignation

China Minsheng Banking Corp., Ltd. announced the resignation of Mr. Zhang Hongwei from his roles as vice chairman and director due to personal health reasons, effective March 15, 2025. His departure is amicable, with no disagreements reported with the board or management, and the board expressed gratitude for his contributions.

China Minsheng Banking Announces Board Composition and Committee Roles

China Minsheng Banking Corp., Ltd. has announced the composition of its board of directors, highlighting the roles and functions of each member. The board has established six committees to oversee various aspects of the company’s operations, including strategic development, risk management, and audit processes. This announcement underscores the company’s commitment to robust governance and operational oversight, which is vital for maintaining stakeholder confidence and ensuring the bank’s competitive positioning in the market.

China Minsheng Bank Issues RMB10 Billion Green Finance Bonds

China Minsheng Banking Corp., Ltd. has successfully issued RMB10 billion worth of green finance bonds, approved by the People’s Bank of China. The bonds, intended for green industry projects, were issued in the national inter-bank bond market with a fixed interest rate and a three-year term, reinforcing the bank’s commitment to sustainable financial practices.