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

• Market Cap: HK$13.99B
• Dividend Yield: N/A
• Average Volume (3M): 236.25K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 2.19
• 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: 233,300
• 30 Day Avg. Volume: 236,250
• 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

• Rating: 56 Neutral
• Price Target: ―

Shengjing Bank has a stable balance sheet but faces challenges in revenue growth and cash flow management, leading to a moderate financial performance score. Technical analysis shows a bearish trend, while the P/E ratio indicates fair valuation. The combined factors result in an overall score that reflects the need for operational improvements and cautious market sentiment.

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

Shengjing Bank's financial performance is mixed. The balance sheet is stable with a strong equity base and low debt, but the income statement shows declining revenue and profitability margins. The cash flow statement reveals negative operating and free cash flows, indicating cash management challenges.

Income Statement

Shengjing Bank's income statement shows mixed performance. The gross profit margin is robust due to high gross profit relative to revenue. However, the net profit margin has been declining, indicating profitability challenges. Revenue has decreased over the past few years, with 2024 showing a particularly sharp decline compared to previous years. This decline in revenue growth and profitability suggests potential operational inefficiencies.

Balance Sheet

The balance sheet is relatively stable with a solid equity base. The debt-to-equity ratio is low, indicating conservative leverage usage. The equity ratio remains strong, highlighting a solid capital structure. However, fluctuations in cash and short-term investments could indicate liquidity management issues.

Cash Flow

The cash flow statement reveals significant challenges. Operating cash flow has been negative for several years, indicating potential issues with core business profitability. Free cash flow is also negative, suggesting the company is struggling to generate cash after capital expenditures. The operating cash flow to net income ratio is unfavorable, highlighting a disconnect between reported earnings and cash generation.

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: Negative
• STOCH: Neutral

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 1.57, above the 50-day MA of 1.41, and above the 200-day MA of 1.18, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 75.73 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, 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	$11.58B	5.87	5.63%	6.46%	-1.78%	10.62%
2558	69 Neutral	HK$8.12B	4.23	6.81%	6.30%	-1.76%	-11.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1578	64 Neutral	HK$15.18B	3.68	5.84%	5.89%	-3.34%	-22.01%
2066	56 Neutral	HK$13.99B	24.20	0.69%	―	-6.29%	-6.68%
6190	49 Neutral	HK$6.09B	25.72	0.67%	2.92%	-8.91%	―

Shengjing Bank Co. Ltd. Class H Corporate Events

Shengjing Bank Announces 2024 Annual General Meeting and Strategic Expansion Plans

Shengjing Bank Co., Ltd. has announced its 2024 Annual General Meeting to be held on June 13, 2025, in Shenyang, China. The meeting will address several key resolutions, including the approval of financial reports, profit distribution, and the appointment of auditors. A significant proposal involves the acquisition of shares from other shareholders of several village banks, with plans to restructure them into branches, indicating a strategic move to consolidate and expand its operations.

Shengjing Bank Announces Director Resignation and New Nomination

Shengjing Bank Co., Ltd. announced the resignation of Mr. Wang Jun as a non-executive director and audit committee member due to reaching the statutory retirement age. The bank expressed gratitude for his contributions. Concurrently, Mr. Li Weiming has been nominated as a candidate for non-executive director, bringing extensive experience from various managerial roles in state-owned enterprises. This transition is expected to maintain the bank’s strategic direction and governance stability.

Shengjing Bank Co., Ltd. Announces Board Composition and Committee Roles

Shengjing Bank Co., Ltd. has announced the composition of its board of directors and their respective roles within various committees. The announcement outlines the leadership structure, which includes executive, non-executive, and independent non-executive directors, highlighting the bank’s governance framework. This organizational update may influence the bank’s strategic direction and operational focus, impacting stakeholders and potentially affecting its market positioning.

Shengjing Bank Releases 2024 Annual Results

Shengjing Bank Co., Ltd. has announced its audited annual results for the year ending December 31, 2024, which have been prepared in accordance with IFRS Accounting Standards. The results have been reviewed and confirmed by the bank’s board and audit committee, and are available on the websites of the Hong Kong Stock Exchange and the bank. This announcement reflects the bank’s commitment to transparency and adherence to international accounting standards, potentially impacting its credibility and stakeholder trust.

Shengjing Bank to Review Annual Results and Dividend Proposal

Shengjing Bank Co., Ltd. has announced that its board of directors will hold a meeting on March 28, 2025, to consider and approve the annual results for the year ended December 31, 2024, and to discuss the recommendation of a final dividend. This meeting is significant for stakeholders as it will provide insights into the bank’s financial performance and potential dividend payouts, impacting investor confidence and market positioning.