Bank of Gansu Co., Ltd. Class H (2139) AI Stock Analysis

• Market Cap: HK$3.92B
• Dividend Yield: N/A
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.61
• Revenue Growth: -7.44%
• EPS Growth: -11.97%
• Country: HK
• Employees: 4,595
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.04
• Shares Outstanding: 3,793,800,000
• 10 Day Avg. Volume: 2,822,200
• 30 Day Avg. Volume: 1,436,100
• PEG Ratio: -0.31
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.16
• 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: 61 Neutral
• Price Target: ―

Bank of Gansu Co., Ltd.'s stock score of 61 reflects a stable financial position with a strong balance sheet and low debt, which is undermined by declining revenue growth and negative cash flow. The technical analysis suggests a bearish trend, as the stock trades below key moving averages. A low P/E ratio suggests undervaluation, but the absence of a dividend yield may deter some investors.

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

Company Description

Bank of Gansu Co., Ltd., together with its subsidiary, Pingliang Jingning Chengji Rural Bank Co., Ltd., provides various banking services in the People's Republic of China. It operates through three segments: Corporate Banking, Retail Banking, and Financial Market Operations. The company's Corporate Banking segment offers a range of financial products and services, including deposits, corporate loans and advances, agency services, consulting and advisory services, remittance and settlement services, and guarantee services to corporations and government agencies. Its Retail Banking segment provides deposits, personal loans, bank cards, personal wealth management services, and remittance services to retail customers. The company's Financial Market Operations segment engages in the inter-bank money market transactions, repurchases transactions, and investments; and trades in debt securities, as well as issues debts. As of December 31, 2021, the company had 1 operational department, 12 branches, 183 sub-branches, 5 micro-to-small sub-branches, and 2 community sub-branches. Bank of Gansu Co., Ltd. was incorporated in 2011 and is headquartered in Lanzhou, China.

How the Company Makes Money

Bank of Gansu Co., Ltd. generates revenue primarily through interest income from its loan portfolio, which includes loans to SMEs, individual customers, and rural enterprises. The bank also earns money from non-interest income sources, such as fees and commissions from payment services, wealth management products, and other financial services. Additionally, the bank may benefit from strategic partnerships with other financial institutions to enhance its product offerings and expand its customer base. Effective risk management and a strong focus on customer relationships contribute to the bank's financial performance.

Bank of Gansu Co., Ltd. Class H Financial Statement Overview

Summary

Bank of Gansu Co., Ltd. presents a mixed financial outlook. The income statement reveals stable, albeit declining, margins with concerns about revenue growth. The balance sheet is strong with no debt and a reasonable equity position, suggesting financial resilience. However, the cash flow statement raises red flags with negative free cash flow and operational cash challenges. Overall, the company shows stability but faces growth and cash generation challenges.

Income Statement

The company exhibits a fluctuating revenue trend with a decrease in revenue from 2023 to 2024. Gross profit margin is stable at 100% as expected for a bank. The net profit margin for 2024 is approximately 20.42%, showing a slight decline from the previous year. EBIT margin is at 20.57% for 2024, indicating operational profitability. The revenue growth rate has been negative from 2023 to 2024, raising concerns about future growth prospects.

Balance Sheet

The company's balance sheet is robust with zero total debt in 2024, indicating no financial leverage. The equity ratio for 2024 is approximately 8.15%, reflecting a moderate reliance on equity financing. Return on Equity (ROE) is 1.72% for 2024, which suggests limited profitability relative to shareholder equity. Overall, the balance sheet seems stable with adequate equity backing.

Cash Flow

Cash flow analysis reveals negative free cash flow in 2024, which is concerning. The operating cash flow to net income ratio is negative, indicating operational challenges. The free cash flow to net income ratio is also negative, highlighting issues in generating cash from operations. Despite a significant inflow from financing activities, the overall cash flow position signals financial constraints.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.85B	2.96B	5.59B	4.33B	5.86B
	Gross Profit
2.85B	5.20B	5.59B	4.33B	5.86B
	EBIT
586.60M	682.06M	9.29B	547.71M	416.33M
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
582.35M	644.56M	601.43M	570.65M	558.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.31B	10.09B	22.74B	29.44B	30.38B
	Total Assets
414.71B	388.59B	377.20B	358.50B	342.36B
	Total Debt
0.00	22.36B	180.07M	29.12B	23.83B
	Net Debt
-13.31B	-24.52B	-22.56B	-323.29M	-6.55B
	Total Liabilities
380.87B	355.41B	344.60B	326.45B	310.90B
	Stockholders Equity
33.79B	33.14B	32.56B	32.02B	31.43B
Cash Flow		Free Cash Flow
-14.16B	10.44B	3.32B	-8.61B	12.31B
	Operating Cash Flow
-13.94B	10.61B	3.56B	-8.29B	12.58B
	Investing Cash Flow
-9.49B	-681.38M	-11.03B	2.23B	1.81B
	Financing Cash Flow
24.99B	-4.60B	-3.81B	4.28B	-11.07B

Bank of Gansu Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2139, the sentiment is Positive. The current price of 0.26 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.24, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 90.63 is Negative, neither overbought nor oversold. The STOCH value of 81.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2139.

Bank of Gansu Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%
2139	61 Neutral	HK$3.92B	6.44	1.74%	―	-7.44%	-11.97%
ACGBF		$270.63B	6.28	10.80%	4.60%	―	―
BKFCF		$74.88B	5.77		11.74%	―	―
CGMBF		$28.53B	4.61	5.54%	7.10%	―	―
CIHHF		$160.37B	8.37	14.86%	4.15%	―	―
IDCBF		$334.88B	5.67		5.18%	―	―

Bank of Gansu Co., Ltd. Class H Corporate Events

Bank of Gansu Announces 2024 Annual Results

Bank of Gansu Co., Ltd. has announced its audited annual results for the year ending December 31, 2024. The report complies with the listing requirements of the Hong Kong Stock Exchange and will be available on relevant websites in April 2025, impacting stakeholders by providing insights into the bank’s financial performance and strategic direction.

Bank of Gansu Proposes Governance Changes and Articles Amendments

Bank of Gansu Co., Ltd. has announced proposed amendments to its Articles of Association and adjustments to its corporate governance structure. These changes aim to align with the Company Law of the People’s Republic of China and improve corporate governance by abolishing the Board of Supervisors and transferring its functions to an audit committee under the Board of Directors. This move is subject to shareholder approval and reflects a strategic shift in governance practices, potentially impacting the company’s operational oversight and stakeholder engagement.

Bank of Gansu Nominates New Board Candidates

Bank of Gansu Co., Ltd. has announced the nomination of candidates for non-employee representative directors for the fourth session of its Board of Directors. The move follows the expiration of the third session’s term and includes a mix of executive, non-executive, and independent non-executive directors. This restructuring is part of the Bank’s governance process, aiming to ensure a diverse and experienced leadership team to guide its strategic direction.

Bank of Gansu Schedules Board Meeting to Discuss Annual Results and Dividend Proposal

Bank of Gansu Co., Ltd. has announced a board meeting scheduled for March 28, 2025, to discuss and approve the annual results for the year ending December 31, 2024, and to consider a final dividend proposal. This meeting is significant for the company’s stakeholders as it will provide insights into the financial health and future plans of the bank.