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

• Market Cap: HK$3.77B
• Dividend Yield: N/A
• Average Volume (3M): 692.90K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.92
• Revenue Growth: -9.56%
• EPS Growth: -7.51%
• Country: HK
• Employees: 4,595
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.03
• Shares Outstanding: 3,793,800,000
• 10 Day Avg. Volume: 429,600
• 30 Day Avg. Volume: 692,900
• PEG Ratio: -0.62
• Price to Book (P/B): 0.10
• Price to Sales (P/S): 1.24
• P/FCF Ratio: -0.25
• 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): 0.36
• Revenue Forecast (FY): HK$57.88B

• Rating: 48 Neutral
• Price Target: HK$0.24 ▲(0.42% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is held back primarily by mixed financial quality (especially volatile/negative operating cash flow and very low ROE) and weak price momentum below key moving averages. A low P/E provides some offsetting support on valuation.

Positive Factors

Net Margin Improvement

The improvement in net margin to over 20% indicates enhanced profitability, which strengthens the bank's ability to generate earnings relative to its revenue, supporting long-term financial health.

Asset Quality Management

The sale of non-performing assets helps improve asset quality, reducing risk and potentially enhancing financial stability, which is crucial for long-term sustainability.

Capital Base Strengthening

Strengthening the capital base through convertible deposits enhances financial stability and supports the bank's ability to withstand economic fluctuations, improving its competitive position.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow indicates challenges in converting earnings to cash, which can strain liquidity and limit investment capacity, impacting long-term growth prospects.

Revenue Decline

Declining revenue limits growth potential and operating leverage, posing challenges to scaling operations and maintaining profitability over the long term.

Low Return on Equity

Low ROE suggests inefficient use of equity capital, limiting shareholder value creation and potentially affecting investor confidence in the bank's long-term performance.

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

Mixed fundamentals: income statement profitability improved to ~20%+ net margin recently, but revenue is flat-to-down and ROE remains very low (~1.7%–2.1%). The biggest drag is cash-flow quality—operating cash flow is negative in 2023–2024 with highly volatile free cash flow—raising risk around earnings-to-cash conversion.

Income Statement

Revenue has been essentially flat-to-down in recent years (down ~3% in 2024 and ~0.5% in 2023 after modest growth in 2022), which limits operating leverage. Profitability is still reasonable for a regional bank, with net margin improving versus earlier years (about 20%+ in 2023–2024 vs. ~8% in 2019). However, the overall growth trajectory is weak and operating profitability metrics show volatility across periods, suggesting earnings quality and/or cost/income dynamics are not consistently improving.

Balance Sheet

The balance sheet shows a large asset base with modest reported returns on equity (roughly 1.7%–2.1% historically), indicating limited value creation relative to capital. Leverage looks manageable in the most recent year (debt-to-equity ~0.82 in 2024), but it has swung materially over time (notably higher in 2019 and 2021, and unusually low in 2022), which adds uncertainty around balance-sheet structure consistency. Equity has been relatively stable, supporting solvency, but low returns remain the key constraint.

Cash Flow

Cash generation is the weakest area: operating cash flow has been highly volatile and negative in multiple years (including 2024 and 2023), and free cash flow swung from strongly positive (2023) to deeply negative (2024). The sharp decline in free cash flow in 2024 (down ~36%) alongside negative operating cash flow suggests working-capital/flow timing pressure and reduces confidence in near-term cash conversion. While some years show strong positive cash flow (e.g., 2020 and 2022), consistency is lacking.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.84B	2.85B	2.96B	2.87B	2.82B	2.73B
Gross Profit	2.84B	2.85B	2.96B	2.87B	2.82B	2.73B
EBITDA	0.00	887.45M	0.00	1.01B	951.02M	0.00
Net Income	586.73M	582.35M	644.56M	601.43M	570.65M	558.16M
Balance Sheet
Total Assets	427.48B	414.71B	388.59B	377.20B	358.50B	342.36B
Cash, Cash Equivalents and Short-Term Investments	33.87B	13.31B	10.09B	22.74B	29.44B	30.38B
Total Debt	32.19B	27.68B	22.36B	180.07M	29.12B	1.50B
Total Liabilities	393.36B	380.87B	355.41B	344.60B	326.45B	310.90B
Stockholders Equity	34.08B	33.79B	33.14B	32.56B	32.02B	31.43B
Cash Flow
Free Cash Flow	1.22B	-14.16B	10.44B	3.32B	-8.61B	12.31B
Operating Cash Flow	1.42B	-13.94B	-992.70M	3.56B	-8.29B	12.58B
Investing Cash Flow	1.65B	-9.49B	-681.38M	-11.03B	2.23B	1.81B
Financing Cash Flow	-5.93B	24.99B	7.00B	-3.81B	4.28B	-11.07B

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

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2139, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.25, and below the 200-day MA of 0.26, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 41.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1983	67 Neutral	HK$5.44B	3.96	12.50%	5.84%	-3.25%	22.96%
2558	66 Neutral	HK$7.88B	4.11	6.81%	6.22%	-1.76%	-11.39%
1916	54 Neutral	HK$4.28B	6.31	1.58%	6.21%	-8.55%	539.20%
6138	51 Neutral	HK$4.12B	7.62	2.15%	―	0.06%	43.86%
2139	48 Neutral	HK$3.77B	5.97	1.72%	―	-9.56%	-7.51%

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

Bank of Gansu Secures Regulatory Approval for Amended Articles of Association

Bank of Gansu Co., Ltd. announced that amendments to its Articles of Association, which were approved as a special resolution at the bank’s 2024 annual general meeting held on 27 June 2025, have now received official approval from the National Financial Regulatory Administration Gansu Office. The regulator’s consent, granted on 28 December 2025, means the revised Articles are formally in effect, marking a completed step in the bank’s ongoing corporate governance and regulatory compliance framework, and the updated version has been made available on both the Hong Kong stock exchange disclosure platform and the bank’s own website for stakeholders’ reference.

Bank of Gansu Sells RMB175 Million Non-Performing Assets to Connected Party

Bank of Gansu Co., Ltd. has agreed to transfer a portfolio of non-performing creditor’s rights assets, with principal and interest totaling about RMB175.33 million as of 20 November 2025, to Gansu Assets Management Co., Ltd. for a consideration of RMB101.75 million, following a public bidding process. The deal, signed on 29 December 2025, is intended to ease the bank’s pressure from non-performing assets and forms part of its ongoing asset quality management, while also constituting a connected transaction under Hong Kong Listing Rules because the buyer is a subsidiary of a substantial shareholder; as the relevant ratios fall between 0.1% and 5%, the transaction is subject to reporting and announcement requirements but is exempt from circular and independent shareholders’ approval obligations.

Bank of Gansu Extends Property Management Contract with Changhong for 2026

Bank of Gansu Co., Ltd. has announced the continuation of its property management contract with Changhong Property Management for the year 2026. This agreement, which involves the management of the bank’s office premises, is classified as a continuing connected transaction under Hong Kong’s Listing Rules due to the relationship between the bank’s substantial shareholder and Changhong Property Management. The transaction is subject to certain regulatory requirements but is exempt from others, reflecting its moderate scale and impact on the bank’s operations.

Bank of Gansu Announces Board of Directors and Roles

Bank of Gansu Co., Ltd. has announced the list of its board of directors and their respective roles within the company’s committees. This announcement provides clarity on the leadership structure, which could impact the company’s strategic direction and governance, potentially affecting stakeholders’ interests.

Bank of Gansu Appoints New Non-Executive Director

Bank of Gansu Co., Ltd. has announced the approval of Mr. LI Chun as a non-executive director by the Gansu Office of the National Financial Regulatory Administration. Mr. LI Chun will serve on the board from December 4, 2025, and will also be a member of the consumer rights protection committee. This appointment is part of the bank’s ongoing efforts to strengthen its board with experienced professionals, potentially impacting its governance and strategic direction.