BOC Hong Kong (Holdings) (2388) AI Stock Analysis

• Market Cap: $437.50B
• Dividend Yield: 5.8%
• Average Volume (3M): 11.80M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.54
• Revenue Growth: 1.90%
• EPS Growth: 12.81%
• Country: HK
• Employees: 15,309
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 10,572,780,000
• 10 Day Avg. Volume: 10,350,373
• 30 Day Avg. Volume: 11,804,734
• PEG Ratio: 0.41
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 3.67
• P/FCF Ratio: -816.69
• Enterprise Value/Market Cap: -0.13
• Enterprise Value/Revenue: -0.47
• Enterprise Value/Gross Profit: -0.81
• Enterprise Value/Ebitda: -1.09
• 1Y Price Target: $41.50
• Price Target Upside: -0.58% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$41.00 ▼(-1.77% Downside)

The score is held back primarily by financial volatility in the latest period (sharp revenue decline and a large drop in operating/free cash flow, with FCF turning negative). Offsetting this, technicals show an established uptrend and valuation is supportive with a moderate P/E and strong dividend yield.

Positive Factors

Governance Enhancement

The establishment of new governance committees strengthens the company's strategic oversight and risk management, enhancing its competitive position and operational efficiency in the financial services industry.

Sustainability Initiatives

The formation of a Sustainability Committee underscores a commitment to integrating ESG factors into business operations, which can improve long-term stakeholder relationships and corporate value.

Stable Financial Position

Despite global uncertainties, maintaining solid liquidity and capital ratios indicates robust financial health, supporting long-term operational stability and growth potential.

Negative Factors

Revenue Volatility

Significant revenue decline indicates potential challenges in maintaining consistent top-line growth, which could impact long-term profitability and market confidence.

Cash Flow Deterioration

The negative shift in free cash flow suggests weakened cash generation ability, potentially affecting the company's ability to fund operations and investments sustainably.

Leverage Volatility

Unusual swings in leverage ratios raise concerns about balance sheet stability, which could undermine confidence in financial resilience and strategic flexibility.

BOC Hong Kong (Holdings) Business Overview & Revenue Model

Company Description

BOC Hong Kong (Holdings) Limited, an investment holding company, provides banking and related financial services to corporate and individual customers in Hong Kong, China, and internationally. The company operates through four segments: Personal Banking, Corporate Banking, Treasury, and Insurance. It offers savings, current, and time deposit accounts; mortgage plans; payrolls, corporate deposits, and E-cheques services. The company also offers cross-border financial and remittance services for individual and corporate customers. In addition, the company offers investment services in securities, funds, foreign exchange, precious metals and FX margin, bonds, and structured products, as well as business and personal loans. Further, the company provides business and accident protection, medical, travel, leisure, family protection, and personal life insurance. Additionally, the company offers safe deposit box, e-Bill, and payment services. Furthermore, it provides wealth management, overdraft, private banking services, as well as account opening, payment and collection, digital banking, loan, and cross border services. BOC Hong Kong (Holdings) Limited was founded in 1917 and is based in Central, Hong Kong. The company is a subsidiary of BOC Hong Kong (BVI) Limited.

How the Company Makes Money

BOCHK generates revenue primarily through its core banking activities, which include interest income from loans and advances to customers, as well as fee and commission income from a suite of financial services. The company benefits from its extensive network in Hong Kong and its strategic position as a key player in facilitating cross-border trade and investment between Hong Kong and mainland China. BOCHK also earns income through its treasury operations, which involve the management of the bank's investment portfolio, trading activities, and the provision of foreign exchange services. Strategic partnerships and collaborations with other financial institutions further enhance its revenue streams, particularly in areas like insurance and wealth management.

BOC Hong Kong (Holdings) Financial Statement Overview

Summary

Profitability is a strength (high net margins and steady ROE), but the latest period shows meaningful deterioration and volatility: revenue declined sharply in 2024 and operating/free cash flow weakened materially with free cash flow turning negative. Balance sheet leverage also shows an unusual swing in 2024 versus prior years, reducing confidence in stability.

Income Statement

Profitability is a clear strength: net profit margins are consistently high (roughly ~27% to ~55% from 2022–2024), and net income has generally trended upward into 2024. However, top-line performance is volatile—2024 revenue fell sharply (-56.59% year over year), and revenue has been inconsistent across the period. EBIT margin data also appears inconsistent across years (including negative values in 2020 and 2024 despite positive net margins), which adds uncertainty around operating profitability quality in the dataset.

Balance Sheet

Capital returns are steady, with return on equity holding around ~8%–12% across the period, indicating consistent earnings generation on shareholder capital. The main concern is leverage volatility: debt-to-equity is high in most years (~1.7x–2.4x from 2019–2023), then drops sharply in 2024 (~0.23x), suggesting either a major balance sheet shift or data inconsistency. Total assets have grown over time, but the large leverage swing reduces confidence in balance sheet stability year-to-year.

Cash Flow

Cash generation deteriorated materially in 2024: operating cash flow fell to ~1.9B and free cash flow turned negative (-0.3B), versus strong positive free cash flow in prior years (e.g., ~69B in 2023 and ~137B in 2022). Free cash flow relative to net income was healthy in 2019–2023 (roughly ~0.92–0.99), but flipped negative in 2024, signaling weaker cash conversion and higher near-term uncertainty.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.15B	71.84B	59.16B	51.87B	76.86B	94.50B
Gross Profit	69.62B	71.84B	152.42B	51.87B	46.83B	51.76B
EBITDA	52.03B	0.00	44.07B	37.82B	33.55B	38.58B
Net Income	40.34B	38.23B	32.72B	27.33B	24.35B	27.86B
Balance Sheet
Total Assets	4.40T	4.19T	3.87T	3.69T	3.64T	3.32T
Cash, Cash Equivalents and Short-Term Investments	585.67B	789.29B	418.20B	364.93B	389.36B	314.25B
Total Debt	87.78B	78.68B	669.39B	630.20B	716.53B	541.66B
Total Liabilities	4.05T	3.85T	3.55T	3.38T	3.34T	3.02T
Stockholders Equity	347.06B	338.72B	320.14B	323.26B	298.00B	290.30B
Cash Flow
Free Cash Flow	-113.52B	-323.00M	69.36B	136.84B	42.21B	16.17B
Operating Cash Flow	-113.16B	1.88B	69.75B	138.10B	43.38B	17.49B
Investing Cash Flow	-224.07B	-2.33B	-1.96B	-42.97B	-265.72B	-109.90B
Financing Cash Flow	225.61B	-22.76B	138.12B	-61.86B	293.58B	203.23B

BOC Hong Kong (Holdings) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2388, the sentiment is Positive. The current price of 41.74 is above the 20-day moving average (MA) of 40.22, above the 50-day MA of 39.09, and above the 200-day MA of 36.04, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 64.45 is Neutral, neither overbought nor oversold. The STOCH value of 90.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2388.

BOC Hong Kong (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6818	72 Outperform	HK$217.33B	4.56	―	5.53%	-8.41%	-5.52%
0011	68 Neutral	HK$288.99B	20.23	9.20%	4.61%	4.44%	-15.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0998	64 Neutral	$444.26B	5.24	9.71%	5.76%	-5.46%	0.33%
1658	62 Neutral	HK$657.49B	6.01	9.30%	5.37%	-1.54%	-3.95%
2388	60 Neutral	$437.50B	10.84	12.04%	5.80%	1.90%	12.81%
1988	57 Neutral	HK$183.64B	5.47	5.16%	9.09%	-7.28%	-5.00%

BOC Hong Kong (Holdings) Corporate Events

BOC Hong Kong Renews Key Connected Transactions Agreement With Bank of China

BOC Hong Kong (Holdings) has entered into a new Services and Relationship Agreement with its controlling shareholder Bank of China Group to govern a suite of continuing connected transactions, including general, investment and referral, and inter-bank dealings, for the period from 1 January 2026 to 31 December 2028. Under Hong Kong’s Listing Rules, the general connected transactions will be subject to reporting, annual review and announcement requirements but will not require independent shareholders’ approval, while the larger investment, referral and inter-bank transactions will require such approval; to that end, an Independent Board Committee and independent financial adviser Gram Capital have been appointed, and a circular and AGM resolutions will be issued in 2026, underscoring regulatory scrutiny and governance over the group’s extensive intra-group dealings with Bank of China.

The most recent analyst rating on (HK:2388) stock is a Buy with a HK$43.20 price target. To see the full list of analyst forecasts on BOC Hong Kong (Holdings) stock, see the HK:2388 Stock Forecast page.

BOC Hong Kong (Holdings) Enhances Governance with New Committee Mandate

BOC Hong Kong (Holdings) Limited announced the mandate of its Nomination and Remuneration Committee, which is tasked with overseeing the human resources and remuneration strategies for the Group. The Committee’s responsibilities include ensuring effective recruitment, development, and training of staff, aligning remuneration and incentive strategies with shareholder interests, and maintaining the effectiveness of the Board and its committees. This announcement underscores the company’s commitment to maintaining a robust governance framework that supports its strategic goals and enhances its competitive position in the financial services industry.

The most recent analyst rating on (HK:2388) stock is a Buy with a HK$42.30 price target. To see the full list of analyst forecasts on BOC Hong Kong (Holdings) stock, see the HK:2388 Stock Forecast page.

BOC Hong Kong Strengthens Governance with New Committee Mandate

BOC Hong Kong (Holdings) Limited has outlined the mandate of its Nomination and Remuneration Committee, which plays a crucial role in overseeing the company’s human resources and remuneration strategies. The committee is tasked with ensuring that the Group’s directors and senior management are suitably skilled and experienced, while also setting and reviewing remuneration policies to align with shareholder interests. This initiative is aimed at enhancing the effectiveness of the Board and its committees, ensuring the Group’s continued competitiveness in the market.

The most recent analyst rating on (HK:2388) stock is a Buy with a HK$42.30 price target. To see the full list of analyst forecasts on BOC Hong Kong (Holdings) stock, see the HK:2388 Stock Forecast page.

BOC Hong Kong Enhances Risk Management Oversight

BOC Hong Kong (Holdings) Limited has outlined the mandate of its Risk Committee, which is responsible for overseeing the risk management strategies of the company and its subsidiaries. The committee’s role includes establishing risk appetite, monitoring compliance with risk management policies, and ensuring effective risk management practices are in place to maximize shareholder value. This initiative is expected to enhance the company’s operational efficiency and strengthen its position in the financial industry by fostering a robust risk management culture.

The most recent analyst rating on (HK:2388) stock is a Buy with a HK$42.30 price target. To see the full list of analyst forecasts on BOC Hong Kong (Holdings) stock, see the HK:2388 Stock Forecast page.

BOC Hong Kong Establishes Strategy and Budget Committee Mandate

BOC Hong Kong (Holdings) Limited has outlined the mandate of its Strategy and Budget Committee, which is tasked with guiding the company’s strategic and budgetary planning. The committee is responsible for developing and recommending medium- to long-term strategic plans, ensuring robust processes for strategy formulation, and monitoring the implementation of these plans. Additionally, the committee oversees the annual business plan and financial budget, ensuring alignment with the company’s strategic goals. This initiative aims to strengthen the company’s market positioning and operational efficiency.

The most recent analyst rating on (HK:2388) stock is a Buy with a HK$42.30 price target. To see the full list of analyst forecasts on BOC Hong Kong (Holdings) stock, see the HK:2388 Stock Forecast page.

BOC Hong Kong Forms Sustainability Committee to Enhance ESG Efforts

BOC Hong Kong (Holdings) Limited has established a Sustainability Committee to oversee and guide the company’s sustainability efforts. This committee will focus on integrating sustainability into business operations, enhancing corporate culture, and addressing environmental, social, and governance (ESG) issues to create lasting corporate value and strengthen stakeholder relationships.

The most recent analyst rating on (HK:2388) stock is a Buy with a HK$42.30 price target. To see the full list of analyst forecasts on BOC Hong Kong (Holdings) stock, see the HK:2388 Stock Forecast page.

BOC Hong Kong Enhances Financial Oversight with Audit Committee Mandate

BOC Hong Kong (Holdings) Limited has outlined the mandate of its Audit Committee, which is tasked with overseeing the integrity of financial statements, internal controls, and the performance of internal and external audits. The committee plays a crucial role in maintaining compliance with accounting standards and enhancing the corporate governance framework, ensuring transparency and accountability in financial reporting, which is vital for stakeholders and the company’s market positioning.

The most recent analyst rating on (HK:2388) stock is a Buy with a HK$42.30 price target. To see the full list of analyst forecasts on BOC Hong Kong (Holdings) stock, see the HK:2388 Stock Forecast page.

BOC Hong Kong Reports Growth Amid Global Economic Uncertainty

BOC Hong Kong (Holdings) Limited reported a 6.3% increase in net operating income before impairment allowances for the first nine months of 2025 compared to the previous year, despite a 13.9% decrease in the third quarter from the previous quarter. The company faced challenges due to global economic uncertainties and varying monetary policies but managed to grow its wealth management services and customer deposits. The Group’s net interest margin narrowed slightly, while its liquidity and capital ratios remained solid, reflecting a stable financial position.

The most recent analyst rating on (HK:2388) stock is a Buy with a HK$44.50 price target. To see the full list of analyst forecasts on BOC Hong Kong (Holdings) stock, see the HK:2388 Stock Forecast page.

BOC Hong Kong Declares Third Interim Dividend for 2025

BOC Hong Kong (Holdings) Limited announced a third interim cash dividend of HKD 0.29 per share for the financial year ending 31 December 2025. The dividend will be paid on 26 November 2025, with the record date set for 20 November 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact investor confidence.

The most recent analyst rating on (HK:2388) stock is a Buy with a HK$44.50 price target. To see the full list of analyst forecasts on BOC Hong Kong (Holdings) stock, see the HK:2388 Stock Forecast page.

BOC Hong Kong Schedules Board Meeting to Review Q3 Financials and Dividend

BOC Hong Kong (Holdings) Limited announced that a Board Committee meeting is scheduled for October 28, 2025. The meeting will focus on reviewing and approving the company’s financial and business performance for the third quarter of 2025 and considering the declaration of a third interim dividend for the year. This meeting is significant as it will provide insights into the company’s financial health and potential returns for stakeholders, reflecting its strategic positioning and operational progress.

The most recent analyst rating on (HK:2388) stock is a Buy with a HK$42.80 price target. To see the full list of analyst forecasts on BOC Hong Kong (Holdings) stock, see the HK:2388 Stock Forecast page.