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Jinshang Bank Co., Ltd. Class H (HK:2558)
:2558
Hong Kong Market

Jinshang Bank Co., Ltd. Class H (2558) AI Stock Analysis

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HK:2558

Jinshang Bank Co., Ltd. Class H

(2558)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
HK$1.50
▲(6.38% Upside)
The score is driven by very strong valuation (low P/E and high dividend yield), offset by financial risk from sharply negative 2024 operating/free cash flow and weak revenue growth. Technicals are supportive but overbought signals temper the near-term outlook.
Positive Factors
Leverage Improvement
The significant reduction in leverage enhances financial stability, providing the bank with greater flexibility to navigate economic uncertainties.
Board Stability
The unanimous approval of the new board ensures governance continuity and stability, which is crucial for strategic planning and execution.
Profitability
Consistent profitability with robust margins indicates efficient operations and the ability to generate earnings despite revenue challenges.
Negative Factors
Cash Flow Deterioration
Negative cash flow raises concerns about the bank's ability to sustain operations and invest in growth without external financing.
Revenue Decline
Declining revenue suggests challenges in market positioning and growth, potentially affecting long-term competitiveness and profitability.
Cash Generation Volatility
Inconsistent cash generation undermines financial predictability, complicating long-term planning and investment strategies.

Jinshang Bank Co., Ltd. Class H (2558) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionJinshang Bank Co., Ltd. provides commercial banking services in Shanxi Province, China. The company operates through Corporate Banking, Retail Banking, and Treasury Business segments. The company offers corporate banking services, including deposits and corporate loans and advances; and trade financing, agency, wealth management, consulting and advisory, remittance and settlement, and guarantee services to corporations, government agencies, and financial institutions. It also provides retail banking products and services, such as personal loans, deposit-taking activities, personal wealth management services, and remittance services to retail customers. In addition, the company engages in treasury business operations; and inter-bank money market transactions, repurchases transactions, investments, bond investment, and trading activities, as well as debt issuance activities. Further, it is involved in investment management business, including debt securities investment; debt securities distribution activities; and underwriting debt financing instruments. Additionally, the company provides special purpose vehicle investments to invest in trust plans, asset management plans, wealth management products, and investment funds. The company was formerly known as Taiyuan City Commercial Bank Co., Ltd. and changed its name to Jinshang Bank Co., Ltd. in December 2008. Jinshang Bank Co., Ltd. was founded in 1998 and is headquartered in Taiyuan, China.
How the Company Makes MoneyJinshang Bank Co., Ltd. makes money primarily through its interest income derived from loans and advances extended to individuals and businesses. The bank also generates revenue from non-interest income, such as fees and commissions related to wealth management, transaction services, and other financial advisory services. Additionally, the bank engages in treasury operations, which include trading and investment activities that contribute to its earnings. Strategic partnerships and collaborations with other financial institutions and businesses further enhance its revenue streams by expanding its market reach and product offerings.

Jinshang Bank Co., Ltd. Class H Financial Statement Overview

Summary
Jinshang Bank Co., Ltd. exhibits strong profitability and a solid balance sheet with low leverage. However, declining revenue and negative cash flow present significant challenges. The bank's ability to maintain profitability while addressing these cash flow issues will be crucial moving forward.
Income Statement
Jinshang Bank Co., Ltd. shows strong profitability with a consistent gross profit margin and a decent net profit margin. However, there is a notable decline in total revenue by 5.80% from 2023 to 2024. EBIT margin remains robust, indicating efficient cost management.
Balance Sheet
The bank has a solid equity base with a debt-to-equity ratio of 0.07 in 2024, indicating low leverage. However, the equity ratio has marginally decreased to 7.45% due to high total liabilities. Return on equity remains strong, reflecting efficient use of equity capital.
Cash Flow
Cash flow analysis reveals significant challenges, with negative free cash flow in 2024 and a negative operating cash flow. The free cash flow to net income ratio is concerning, indicating issues in converting earnings into cash. Despite this, positive financing cash flow suggests external financial support.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.12B4.12B4.37B4.02B3.74B3.42B
Gross Profit4.12B5.97B4.37B4.02B3.74B3.42B
EBITDA0.002.13B0.002.18B2.01B0.00
Net Income1.78B1.76B2.00B1.84B1.69B1.57B
Balance Sheet
Total Assets388.26B376.31B361.31B336.42B303.29B270.94B
Cash, Cash Equivalents and Short-Term Investments0.008.64B12.06B20.33B28.65B23.87B
Total Debt15.21B2.00B2.00B33.86B59.30B4.51B
Total Liabilities359.68B348.28B336.49B313.07B281.13B249.90B
Stockholders Equity28.57B28.02B24.80B23.34B22.14B21.01B
Cash Flow
Free Cash Flow-50.84M-9.17B8.00B24.83B2.42B-105.70M
Operating Cash Flow88.68M-9.03B8.26B24.98B2.61B116.07M
Investing Cash Flow-18.29B-14.96B11.67B-8.93B232.42M1.65B
Financing Cash Flow15.08B20.57B19.55B-27.22B4.38B-572.21M

Jinshang Bank Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.41
Price Trends
50DMA
1.37
Positive
100DMA
1.40
Positive
200DMA
1.37
Positive
Market Momentum
MACD
<0.01
Positive
RSI
78.86
Negative
STOCH
90.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2558, the sentiment is Positive. The current price of 1.41 is above the 20-day moving average (MA) of 1.40, above the 50-day MA of 1.37, and above the 200-day MA of 1.37, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 78.86 is Negative, neither overbought nor oversold. The STOCH value of 90.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2558.

Jinshang Bank Co., Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
67
Neutral
HK$5.90B4.2912.50%5.84%-3.25%22.96%
66
Neutral
HK$8.23B4.296.81%6.22%-1.76%-11.39%
54
Neutral
HK$4.04B5.961.58%6.21%-8.55%539.20%
51
Neutral
HK$3.90B7.222.15%0.06%43.86%
50
Neutral
HK$13.90B24.030.69%-6.29%-6.68%
50
Neutral
HK$4.84B20.430.67%3.72%-8.91%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2558
Jinshang Bank Co., Ltd. Class H
1.41
0.03
2.17%
HK:2066
Shengjing Bank Co. Ltd. Class H
1.58
0.49
44.86%
HK:6190
Bank of Jiujiang Co., Ltd. Class H
1.70
-3.27
-65.78%
HK:6138
Harbin Bank Co., Ltd. Class H
0.36
0.02
5.97%
HK:1916
Jiangxi Bank Co., Ltd. Class H
0.67
0.01
1.52%
HK:1983
Luzhou Bank Co., Ltd. Class H
2.17
0.32
17.30%

Jinshang Bank Co., Ltd. Class H Corporate Events

Jinshang Bank Shareholders Approve New Board Line-up at 2025 Extraordinary Meeting
Dec 19, 2025

Jinshang Bank Co., Ltd. held its first extraordinary general meeting of 2025 on 19 December in Taiyuan, Shanxi, with shareholders representing roughly 65% of the bank’s issued share capital in attendance, either in person or by proxy. All resolutions proposed were passed by poll with 100% approval, including the appointment of HAO Qiang, ZHANG Yunfei and WANG Qi as executive directors and GAO Yurong and RONG Changqing as non-executive directors for the seventh session of the board. The meeting complied with PRC company law and the bank’s articles, and while certain shareholders with heavily pledged shares faced voting restrictions, overall participation remained high, reinforcing the bank’s governance continuity and board stability for the next board term.

Jinshang Bank Sets Out Board Line-Up and Committee Roles Amid Pending Approvals
Dec 19, 2025

Jinshang Bank Co., Ltd. has announced the current composition of its board of directors, led by chairwoman Hao Qiang and vice chairman Zhang Yunfei, and comprising executive, non-executive and independent non-executive directors, reflecting a governance structure aligned with regulatory and listed company requirements in mainland China. The bank has also detailed the membership and leadership of its six key board committees—Development and Strategy, Audit, Risk Management, Related Parties Transactions Control, Nomination/Remuneration/HR, and Consumer Rights Protection—along with interim committee arrangements pending regulatory approval of certain directors’ qualifications by the Shanxi Supervision Bureau of the National Financial Regulatory Administration, ensuring continuity of oversight and risk governance during the transition.

Jinshang Bank Announces 2025 Extraordinary General Meeting
Dec 3, 2025

Jinshang Bank Co., Ltd. has announced the convening of its first extraordinary general meeting for 2025, scheduled for December 19, 2025. The meeting will address several key resolutions, including the re-election and appointment of directors for the seventh session of the Board, the determination of the write-off amount for non-performing assets for 2026, and the issuance of sci-tech innovation bonds. These decisions are pivotal for the bank’s strategic direction and financial management, potentially impacting its operational efficiency and market positioning.

Jinshang Bank Announces Closure of H Shares Register for 2025 EGM
Nov 28, 2025

Jinshang Bank Co., Ltd. has announced the closure of its register of members of H shares in preparation for its 2025 first extraordinary general meeting (EGM) scheduled for December 19, 2025. The closure will occur from December 16 to December 19, 2025, during which no share transfers will be processed. This move is to determine the eligible H shareholders who can attend and vote at the EGM. The announcement underscores the bank’s procedural preparations for the upcoming meeting, which may impact shareholder engagement and decision-making processes.

Jinshang Bank Proposes Board Re-Election Amid Governance Updates
Nov 27, 2025

Jinshang Bank Co., Ltd. has announced a proposal for the re-election of its Board of Directors as the current session’s term is nearing expiration. The proposal includes nominations for executive, non-executive, and independent non-executive directors for the seventh session of the Board, which will be subject to shareholder approval at an extraordinary general meeting. Additionally, an employee director will be nominated by the bank’s labor union, pending regulatory approval of the amended Articles of Association. This re-election process is crucial for maintaining governance continuity and aligning with regulatory standards, impacting the bank’s strategic direction and stakeholder relations.

Jinshang Bank Announces Director Appointment and Resignation
Nov 4, 2025

Jinshang Bank Co., Ltd. announced the approval of Mr. Liang Yongming’s qualification as an independent non-executive director by the Shanxi Supervision Bureau, effective October 30, 2025. This approval also marks the effective resignation of Mr. Sai Zhiyi from various roles within the bank, which temporarily affects the composition of certain committees, with plans to rectify this within three months to comply with Hong Kong Stock Exchange rules.

Jinshang Bank Announces Board Composition and Governance Structure
Nov 4, 2025

Jinshang Bank Co., Ltd. has announced the composition of its board of directors, detailing the roles and functions of each member. The board consists of executive, non-executive, and independent non-executive directors, and has established six committees to oversee various aspects of the bank’s operations. This announcement provides clarity on the governance structure of the bank, which could impact its strategic direction and operational oversight.

Jinshang Bank Releases Nine-Month Financial Update
Oct 30, 2025

Jinshang Bank Co., Ltd. has announced its unaudited financial information for the nine months ending September 30, 2025. This disclosure is in compliance with regulations for state-owned enterprises in Shanxi Province. The announcement provides insights into the bank’s shareholder structure, highlighting the significant stakes held by government and industry entities, which may influence the bank’s strategic directions and stakeholder interests.

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