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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:2388

BOC Hong Kong (Holdings)

(2388)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
HK$41.00
▲(3.33% Upside)
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) (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
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
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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue119.15B71.84B59.16B51.87B76.86B94.50B
Gross Profit69.62B71.84B152.42B51.87B46.83B51.76B
EBITDA52.03B0.0044.07B37.82B33.55B38.58B
Net Income40.34B38.23B32.72B27.33B24.35B27.86B
Balance Sheet
Total Assets4.40T4.19T3.87T3.69T3.64T3.32T
Cash, Cash Equivalents and Short-Term Investments585.67B789.29B418.20B364.93B389.36B314.25B
Total Debt87.78B78.68B669.39B630.20B716.53B541.66B
Total Liabilities4.05T3.85T3.55T3.38T3.34T3.02T
Stockholders Equity347.06B338.72B320.14B323.26B298.00B290.30B
Cash Flow
Free Cash Flow-113.52B-323.00M69.36B136.84B42.21B16.17B
Operating Cash Flow-113.16B1.88B69.75B138.10B43.38B17.49B
Investing Cash Flow-224.07B-2.33B-1.96B-42.97B-265.72B-109.90B
Financing Cash Flow225.61B-22.76B138.12B-61.86B293.58B203.23B

BOC Hong Kong (Holdings) Technical Analysis

Technical Analysis Sentiment
Positive
Last Price39.68
Price Trends
50DMA
38.49
Positive
100DMA
37.61
Positive
200DMA
35.00
Positive
Market Momentum
MACD
0.37
Positive
RSI
58.11
Neutral
STOCH
49.08
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 39.68 is above the 20-day moving average (MA) of 39.06, above the 50-day MA of 38.49, and above the 200-day MA of 35.00, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 58.11 is Neutral, neither overbought nor oversold. The STOCH value of 49.08 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
HK$224.13B5.025.53%-8.41%-5.52%
68
Neutral
HK$289.37B20.269.20%4.61%4.44%-15.39%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
64
Neutral
HK$438.54B5.029.71%5.76%-5.46%0.33%
62
Neutral
HK$674.19B5.939.30%5.37%-1.54%-3.95%
60
Neutral
HK$407.69B10.1112.04%5.80%1.90%12.81%
57
Neutral
HK$183.35B5.445.16%9.09%-7.28%-5.00%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2388
BOC Hong Kong (Holdings)
39.70
16.85
73.77%
HK:6818
China Everbright Bank Co
3.59
0.85
30.88%
HK:1988
China Minsheng Banking
3.86
0.60
18.55%
HK:0998
China CITIC Bank
6.89
1.98
40.47%
HK:0011
Hang Seng Bank
154.40
67.33
77.33%
HK:1658
Postal Savings Bank of China Co., Ltd. Class H
5.14
0.91
21.51%

BOC Hong Kong (Holdings) Corporate Events

BOC Hong Kong Renews Key Connected Transactions Agreement With Bank of China
Dec 30, 2025

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
Nov 7, 2025

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
Nov 7, 2025

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
Nov 7, 2025

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
Nov 7, 2025

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
Nov 7, 2025

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
Nov 7, 2025

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
Oct 28, 2025

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
Oct 28, 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
Oct 16, 2025

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.

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: Dec 30, 2025