Shengjing Bank Co. Ltd. Class H (2066) AI Stock Analysis

• Market Cap: HK$13.90B
• Dividend Yield: N/A
• Average Volume (3M): 120.40K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 2.16
• Revenue Growth: -6.29%
• EPS Growth: -6.68%
• Country: HK
• Employees: 8,555
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.06
• Shares Outstanding: 2,340,742,400
• 10 Day Avg. Volume: 34,600
• 30 Day Avg. Volume: 120,400
• PEG Ratio: -1.05
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 1.31
• P/FCF Ratio: -0.17
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$1.50 ▼(-5.06% Downside)

Overall score is constrained primarily by weak and highly volatile cash generation (including deeply negative 2024 operating/free cash flow) and very low returns on equity, despite moderate leverage. Technicals are mildly supportive with price above longer-term moving averages and a slightly positive MACD, but high beta adds risk. Valuation is a secondary headwind due to the elevated P/E and lack of dividend-yield data.

Positive Factors

Revenue Growth

The revenue rebound indicates potential stabilization in the bank's core business operations, suggesting improved market conditions and strategic positioning.

Moderate Leverage

Moderate leverage provides financial flexibility, allowing the bank to manage its capital structure effectively without excessive debt burdens.

Leadership Stability

The appointment of a new non-executive director enhances governance and strategic oversight, potentially leading to improved decision-making and long-term growth.

Negative Factors

Negative Cash Flow

Persistent negative cash flow raises concerns about the bank's ability to sustain operations and fund growth, impacting long-term financial health.

Low Profitability

Low return on equity indicates inefficient use of capital, which may hinder the bank's ability to generate shareholder value and compete effectively.

Delisting of H Shares

The delisting of H Shares could reduce market visibility and liquidity, potentially limiting the bank's access to capital and affecting investor confidence.

Shengjing Bank Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Shengjing Bank Co., Ltd., together with its subsidiaries, provides banking products and related financial services in Mainland China. Its Corporate Banking segment offers corporate loans and advances, trade financing and deposit taking services, agency services, and remittance and settlement services to corporations and government agencies. The company's Retail Banking segment provides financial products and services to retail customers, including personal loans and deposit taking services, bank cards, wealth management services, remittance and settlement services, and collection and payment agency services. Its Treasury Business segment is involved in the inter-bank money market transactions, repurchases transactions, and investment activities, as well as trading in debt securities. The company also provides online and mobile banking services; and invests in equities. As of December 31, 2021, it operated 212 institutional outlets, including 1 head office, 3 branch-level specialized institutions, 18 branches, 5 small sub-branches, and 185 traditional sub-branches; and 1,852 self-service terminals, such as self-service deposit and withdrawal machines, inquiry and payment machines, mobile card opening machines, VTM teller machines, smart counters, high-speed deposit and withdrawal all-in-one machines, interactive desktops, and other self-service terminal equipment. The company was formerly known as Shenyang Commercial Bank Co., Ltd. and changed its name to Shengjing Bank Co., Ltd. in February 2007. Shengjing Bank Co., Ltd. was incorporated in 1997 and is headquartered in Shenyang, the People's Republic of China.

How the Company Makes Money

Shengjing Bank Co. Ltd. generates its revenue primarily through interest income from its lending activities, which include loans to individuals, businesses, and government entities. The bank also earns money from fees and commissions associated with various financial services, such as wealth management, payment processing, and trade finance. Additionally, Shengjing Bank engages in treasury operations, which involve managing the bank's own funds and investments to generate returns. The bank's performance is influenced by factors such as interest rate fluctuations, regulatory policies, and the economic environment in its operational areas.

Shengjing Bank Co. Ltd. Class H Financial Statement Overview

Summary

Financials are mixed: revenue rebounded in 2024 (+9.7% YoY), but net margin and net income declined. Balance-sheet leverage looks moderate (debt-to-equity ~0.14 in 2024), yet profitability is weak with ROE below 1%. The largest risk is cash-flow quality—operating and free cash flow were deeply negative in 2024 and volatile across years, raising sustainability and funding-risk concerns.

Income Statement

Revenue recovered in 2024 (+9.7% YoY) after modest declines in 2022–2023, showing some top-line stabilization. However, profitability is mixed: net margin fell to ~8.2% in 2024 from ~10.6% in 2023, and net income also declined (2024: ~RMB 621M vs 2023: ~RMB 732M). Longer-term results are volatile versus 2019’s much higher earnings base, suggesting an uneven earnings trajectory.

Balance Sheet

Leverage appears moderate in recent years with debt-to-equity at ~0.14 in 2024 (improving from ~0.22 in 2023), and equity is large relative to reported debt. Total assets have been relatively steady to modestly higher over time. The key weakness is low shareholder returns: return on equity remains below 1% in 2024 (and low single-digits across 2021–2023), indicating limited profitability generated from the capital base.

Cash Flow

Cash generation is the primary pressure point: operating cash flow and free cash flow were sharply negative in 2024 (operating cash flow about -RMB 57.7B; free cash flow about -RMB 58.1B) and also negative in several prior years (2020, 2021, 2023). While 2022 and 2019 showed strong positive operating and free cash flow, the pattern is inconsistent and the recent magnitude of outflows raises sustainability and funding-risk concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.65B	7.54B	6.92B	6.98B	5.96B	5.64B
Gross Profit	6.65B	7.54B	6.92B	6.98B	5.96B	5.64B
EBITDA	0.00	0.00	0.00	1.83B	702.51M	0.00
Net Income	537.99M	621.05M	732.43M	979.90M	401.96M	1.20B
Balance Sheet
Total Assets	1.13T	1.12T	1.08T	1.08T	1.01T	1.04T
Cash, Cash Equivalents and Short-Term Investments	87.42B	33.04B	93.17B	88.67B	82.39B	98.02B
Total Debt	24.11B	11.00B	17.59B	17.66B	9.05B	6.00B
Total Liabilities	1.05T	1.04T	1.00T	1.00T	925.62B	957.91B
Stockholders Equity	80.04B	79.61B	79.33B	80.77B	79.88B	79.45B
Cash Flow
Free Cash Flow	-24.31B	-58.13B	-8.10B	22.12B	-27.81B	-51.52B
Operating Cash Flow	-23.89B	-57.74B	-7.66B	22.34B	-27.61B	-50.89B
Investing Cash Flow	-8.93B	27.93B	6.44B	-15.69B	41.38B	64.24B
Financing Cash Flow	35.43B	41.29B	-1.00B	7.82B	-38.35B	-38.99B

Shengjing Bank Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.58
• 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:2066, the sentiment is Positive. The current price of 1.58 is above the 20-day moving average (MA) of 1.58, above the 50-day MA of 1.58, and above the 200-day MA of 1.35, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 58.68 is Neutral, neither overbought nor oversold. The STOCH value of 0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2066.

Shengjing Bank Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0440	77 Outperform	HK$12.08B	6.13	5.63%	6.53%	-1.78%	10.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
2356	67 Neutral	HK$15.66B	6.98	6.58%	6.54%	―	―
2558	66 Neutral	HK$7.82B	4.08	6.81%	6.22%	-1.76%	-11.39%
1578	64 Neutral	HK$14.57B	3.53	5.84%	6.13%	-3.34%	-22.01%
2066	50 Neutral	HK$13.90B	24.03	0.69%	―	-6.29%	-6.68%
6190	50 Neutral	HK$4.98B	21.03	0.67%	3.72%	-8.91%	―

Shengjing Bank Co. Ltd. Class H Corporate Events

Shengjing Bank Concludes Share Acquisition Offers, Delists H Shares

Shengjing Bank Co. Ltd. announced the closure of voluntary conditional general cash offers made by China International Capital Corporation Hong Kong Securities Limited on behalf of Shenyang Shengjing Financial Holding Investment Group Co., Ltd. to acquire all issued H Shares and Domestic Shares not already held by the Offeror and its concert parties. The offers, which closed on November 18, 2025, resulted in the acquisition of approximately 99.86% of the H Shares and 37.31% of the Domestic Shares held by independent shareholders, leading to the withdrawal of the listing of the H Shares from the stock exchange. This move significantly increases the Offeror’s control over Shengjing Bank, potentially impacting its market strategy and stakeholder interests.

Shengjing Bank Secures Regulatory Approval for New Non-Executive Director

Shengjing Bank Co., Ltd. announced the approval of Mr. LI Weiming’s qualification as a non-executive director by the Liaoning Financial Regulatory Bureau. His term commenced on 28 October 2025 and he will also serve as a member of the audit committee. This approval solidifies the bank’s leadership structure and may impact its governance and strategic direction.

Shengjing Bank Announces Board Composition and Committee Roles

Shengjing Bank Co., Ltd. has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board is structured into five committees: Strategic Development and ESG, Nomination and Remuneration, Risk Control and Consumers’ Rights Protection, Related Party Transactions Control, and Audit. This announcement provides clarity on the governance structure and roles within the bank, which is crucial for stakeholders to understand the bank’s strategic and operational oversight.

Shengjing Bank Announces Successful Resolutions and Share Acquisition Offers

Shengjing Bank Co., Ltd. and Shenyang Shengjing Financial Holding Investment Group Co., Ltd. announced the successful passing of proposed resolutions at their Extraordinary General Meeting and H Share Class Meeting held on October 21, 2025. The meetings, conducted in compliance with applicable laws and regulations, confirmed the acceptance of voluntary conditional general cash offers to acquire all issued H shares and domestic shares not already held by the Offeror and its concert parties, marking a significant step towards the proposed withdrawal of the bank’s H shares from listing.