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BOC Hong Kong (Holdings) Limited (HK:2388)
:2388

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

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HK

BOC Hong Kong (Holdings)

(OTC:2388)

Rating:78Outperform
Price Target:
BOC Hong Kong (Holdings) has strong financial performance with significant revenue growth and profitability, a robust balance sheet with no debt, and a favorable valuation with a low P/E ratio and high dividend yield. However, cash flow management issues due to negative free cash flow are a concern. Technical analysis indicates strong upward momentum, enhancing the stock's attractiveness.
Positive Factors
Analyst Recommendation
Analysts have revised the price target up to HKD36, indicating an expected upside and reaffirming a buy recommendation.
Dividend Yield
The stock remains an attractive yield play, with a dividend yield of over 6% for the fiscal years 2025 and 2026.
Earnings Growth
The company saw a 12.9% year-over-year increase in pre-provision operating profit in the first quarter of 2025, driven by growth in investment and wealth management services.
Negative Factors
Asset Quality
There are some fluctuations expected in asset quality due to risks related to the Hong Kong commercial real estate sector.

BOC Hong Kong (Holdings) (2388) vs. iShares MSCI Hong Kong ETF (EWH)

BOC Hong Kong (Holdings) Business Overview & Revenue Model

Company DescriptionBOC 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 MoneyBOCHK 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
BOC Hong Kong (Holdings) shows strong revenue and profitability growth, with a significant revenue increase of 21.43% and a net profit margin of 53.21% in 2024. The balance sheet is robust with zero debt and a favorable equity ratio of 8.08%. However, negative free cash flow and low operational cash generation relative to profit are concerning, indicating potential cash flow management issues.
Income Statement
75
Positive
The income statement shows a positive trend with a significant revenue growth of 21.43% from 2023 to 2024. The net profit margin increased to 53.21% in 2024, reflecting strong profitability. However, the absence of EBIT and EBITDA data for 2024 limits a complete margin analysis.
Balance Sheet
82
Very Positive
The company maintains a strong equity position with an equity ratio of 8.08% in 2024, indicating a robust capital structure. With zero debt in 2024, the debt-to-equity ratio is highly favorable. The return on equity improved to 11.29%, demonstrating effective utilization of equity.
Cash Flow
60
Neutral
The cash flow statement reveals a decline in free cash flow, turning negative in 2024, which is concerning. The operating cash flow to net income ratio is 0.05, suggesting operational cash generation is low relative to profit. These factors indicate potential cash flow management issues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue71.84B59.16B99.75B76.86B94.50B
Gross Profit71.84B152.42B99.75B76.86B94.50B
EBITDA0.0044.07B36.50B33.22B0.00
Net Income38.23B32.72B27.33B24.35B27.86B
Balance Sheet
Total Assets4.19T3.87T3.69T3.64T3.32T
Cash, Cash Equivalents and Short-Term Investments789.29B418.20B364.93B389.36B314.25B
Total Debt78.68B669.39B630.20B716.53B541.66B
Total Liabilities3.85T3.55T3.38T3.34T3.02T
Stockholders Equity338.72B320.14B303.05B298.00B290.30B
Cash Flow
Free Cash Flow-323.00M68.45B136.84B42.21B16.17B
Operating Cash Flow1.88B69.75B138.10B43.38B17.49B
Investing Cash Flow-2.33B-1.96B-42.97B-265.72B-109.90B
Financing Cash Flow-22.76B138.12B-61.86B293.58B203.23B

BOC Hong Kong (Holdings) Technical Analysis

Technical Analysis Sentiment
Positive
Last Price36.15
Price Trends
50DMA
33.15
Positive
100DMA
30.71
Positive
200DMA
27.68
Positive
Market Momentum
MACD
0.92
Negative
RSI
66.45
Neutral
STOCH
78.41
Neutral
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 36.15 is above the 20-day moving average (MA) of 34.93, above the 50-day MA of 33.15, and above the 200-day MA of 27.68, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 78.41 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$382.21B10.0011.58%1.60%8.61%16.84%
62
Neutral
AU$9.98B8.0610.79%5.19%32.02%38.31%
$33.33B5.867.87%0.78%
$28.54B4.615.54%7.10%
$62.63B6.03
0.66%
$28.29B12.5311.23%4.44%
77
Outperform
HK$580.60B5.9410.41%8.96%-1.43%5.12%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2388
BOC Hong Kong (Holdings)
36.15
13.76
61.48%
CEBCF
China Everbright Bank Co
0.51
0.24
88.89%
CGMBF
China Minsheng Banking
0.46
0.12
35.29%
CHBJF
China CITIC Bank
1.02
0.46
82.14%
HSNGF
Hang Seng Bank
14.98
2.98
24.83%
HK:1658
Postal Savings Bank of China Co., Ltd. Class H
5.55
1.53
38.06%

BOC Hong Kong (Holdings) Corporate Events

BOC Hong Kong Reports Strong Q1 2025 Financial Performance Amid Economic Recovery
Apr 29, 2025

In the first quarter of 2025, BOC Hong Kong (Holdings) Limited reported a 12.9% increase in net operating income before impairment allowances compared to the previous year, driven by a 34.7% rise in net fee and commission income from investment and wealth management services. Despite a narrowing net interest margin due to falling market interest rates, the company managed its assets and liabilities proactively, maintaining solid liquidity and capital ratios. The economic recovery in Hong Kong, supported by increased visitor arrivals and property market stabilization, contributed to improved investor sentiment and a vibrant stock market, enhancing the company’s financial performance.

BOC Hong Kong Announces First Interim Dividend for 2025
Apr 29, 2025

BOC Hong Kong (Holdings) Limited announced its first interim cash dividend for the financial year ending December 31, 2025, at HKD 0.29 per share. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact its market positioning by demonstrating financial stability and shareholder confidence.

BOC Hong Kong Announces 2025 AGM with Key Resolutions on Agenda
Apr 24, 2025

BOC Hong Kong (Holdings) Limited has announced its upcoming hybrid Annual General Meeting (AGM) scheduled for June 26, 2025. Key agenda items include the approval of audited financial statements, declaration of a final dividend, re-election of directors, and re-appointment of Ernst & Young as auditors. The meeting will also consider resolutions to authorize the board to issue additional shares under specified conditions, reflecting the company’s strategic focus on maintaining flexibility in capital management.

BOC Hong Kong Announces Final Dividend for 2024
Apr 24, 2025

BOC Hong Kong (Holdings) Limited announced a final ordinary cash dividend of HKD 1.419 per share for the financial year ending December 31, 2024. This announcement reflects the company’s commitment to returning value to its shareholders and may impact its market positioning by reinforcing investor confidence. The dividend will be paid on July 17, 2025, following shareholder approval on June 26, 2025.

BOC Hong Kong Schedules Board Meeting for Q1 2025 Review
Apr 14, 2025

BOC Hong Kong (Holdings) Limited has announced that its Board of Directors will hold a committee meeting on April 29, 2025. The meeting will focus on reviewing the company’s financial and business performance for the first quarter of 2025 and consider the declaration of the first interim dividend for the year.

BOC Hong Kong Announces Final Dividend for 2024
Apr 2, 2025

BOC Hong Kong (Holdings) Limited has announced a final cash dividend of HKD 1.419 per share for the financial year ending December 31, 2024. The payment date for this dividend is set for July 17, 2025, with further details regarding shareholder approval and record dates yet to be announced. This announcement underscores the company’s commitment to returning value to its shareholders and may influence investor sentiment positively.

BOC Hong Kong Reports Strong 2024 Financial Results
Mar 26, 2025

BOC Hong Kong (Holdings) Limited announced its audited financial results for the year ending December 31, 2024, showing a strong performance with increases in net operating income, operating profit, and profit before taxation compared to the previous year. The company’s robust financial results reflect its solid market positioning and operational efficiency, with improvements in key financial ratios such as return on average total assets and return on average shareholders’ equity, indicating positive implications for shareholders and stakeholders.

BOC Hong Kong Announces Final Dividend for 2024
Mar 26, 2025

BOC Hong Kong (Holdings) Limited has announced a final ordinary cash dividend of HKD 1.419 per share for the financial year ending December 31, 2024. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders, though specific dates for shareholder approval, ex-dividend, and payment are yet to be announced.

BOC Hong Kong Schedules Board Meeting for Financial Review and Dividend Decision
Mar 14, 2025

BOC Hong Kong (Holdings) Limited announced that its Board of Directors will convene a meeting on March 26, 2025, to review and approve the audited consolidated financial statements for the year ended December 31, 2024. The meeting will also consider the declaration of a final dividend, which could impact the company’s financial distribution to shareholders.

BOC Hong Kong Appoints Mr. ZHANG Hui as Vice Chairman
Feb 7, 2025

BOC Hong Kong (Holdings) Limited has announced the appointment of Mr. ZHANG Hui as Vice Chairman and Non-executive Director effective from February 6, 2025. Mr. ZHANG, with extensive experience in financial management and risk control, previously held senior positions at Bank of China and China Development Bank. This strategic appointment is likely to enhance the company’s governance and strategic planning capabilities, potentially strengthening its market position and operational effectiveness.

BOC Hong Kong Announces Board Composition and Roles
Feb 7, 2025

BOC Hong Kong (Holdings) Limited has announced the composition of its Board of Directors and their roles within the company. The Board includes non-executive, executive, and independent non-executive directors, who are appointed to various committees such as the Audit, Nomination and Remuneration, Risk, Strategy and Budget, and Sustainability Committees. This announcement highlights the company’s commitment to governance and strategic oversight, potentially impacting its operational focus and stakeholder confidence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 07, 2025