Huishang Bank (3698) AI Stock Analysis

• Market Cap: $40.70B
• Dividend Yield: 5.63%
• Average Volume (3M): 3.05M
• Price to Earnings (P/E): 2.6
• Beta (1Y): 0.31
• Revenue Growth: 1.22%
• EPS Growth: 1.90%
• Country: HK
• Employees: 12,837
• Sector: Financial
• Sector Strength: 88
• Industry: Banks - Regional
• EPS (TTM): 1.14
• Shares Outstanding: 3,478,750,000
• 10 Day Avg. Volume: 1,587,650
• 30 Day Avg. Volume: 3,054,646
• PEG Ratio: 1.36
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $2.02
• Price Target Upside: -30.57% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

Huishang Bank is performing well with strong financial fundamentals and positive technical signals. While it shows a solid valuation with a low P/E ratio and high dividend yield, concerns about cash flow and high liabilities relative to equity should be monitored. Overall, the stock presents a good investment opportunity, especially for value investors seeking yield and stability.

Huishang Bank Business Overview & Revenue Model

Company Description

Huishang Bank Corporation Limited, together with its subsidiaries, provides various commercial banking products and services in the People's Republic of China. The company operates through four segments: Corporate Banking, Retail Banking, Treasury, and Others. It offers current accounts, deposits, overdrafts, loans, trade related products and other credit facilities, foreign currency, and wealth management products to corporate customers, government authorities, and financial institutions. The company also provides savings deposits, personal loans and advances, credit and debit cards, payments and settlements, wealth management products and funds, and insurance agency services to retail customers. In addition, it conducts securities investment, money market, and repurchase transactions; and offers online and mobile banking services. Further, the company provides Renminbi and foreign currency deposits; and clearing and settlement, assets custody, and finance leasing services. As of December 31, 2021, it had 21 branches; 478 front offices; 609 self-service banks; and 2,002 cash self-service equipment comprising 1,213 cash recycling machines and 789 smart self-service terminals. The company was formerly known as Hefei Commercial Bank Co., Ltd. and changed its name to Huishang Bank Corporation Limited in November 2005. Huishang Bank Corporation Limited was incorporated in 1997 and is headquartered in Hefei, China.

How the Company Makes Money

Huishang Bank primarily generates revenue through interest income from its lending activities, which include loans to individuals and businesses. The bank earns interest on the funds it lends out, which constitutes a significant portion of its income. In addition to interest income, Huishang Bank also generates revenue from non-interest income streams such as service fees, commissions, and wealth management services. These include fees from transaction services, account management, and investment product sales. The bank's treasury operations contribute to its earnings through investments in securities and interbank lending. Partnerships with other financial institutions and government entities can also play a role in expanding its business opportunities and revenue potential.

Huishang Bank Financial Statement Overview

Summary

Huishang Bank exhibits strong financial performance with consistent revenue growth and high profitability as seen in the income statement. The balance sheet shows improved leverage management, but high liabilities compared to equity and cash flow challenges remain concerns.

Income Statement

Huishang Bank shows robust income statement performance with consistent revenue growth and strong profitability. The gross profit margin remains at 100% due to the nature of banking revenue. The net profit margin improved from 51.9% in 2023 to 52.3% in 2024, indicating solid cost control and profit efficiency. Revenue growth from 2023 to 2024 was approximately 5.9%, demonstrating a positive upward trend. EBIT and EBITDA margins are strong, reflecting operational efficiency, though EBITDA data is unavailable.

Balance Sheet

The bank's balance sheet is stable with a debt-to-equity ratio decreasing from 1.28 in 2023 to 0.44 in 2024, showing improved leverage management. The return on equity (ROE) increased from 10.1% in 2023 to 9.8% in 2024, indicating effective use of equity to generate profits. The equity ratio improved to 7.8%, reflecting a solid capital base. However, the high level of total liabilities compared to equity remains a potential risk.

Cash Flow

Cash flow management shows mixed results. Free cash flow turned negative in 2024 due to significant operating cash flow outflows, indicating pressure on liquidity. However, the operating cash flow to net income ratio reflects cash generation challenges. Despite this, the bank maintained positive financing cash flows, indicating reliance on external funding. The decline in free cash flow growth rate is a concern moving forward.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
33.76B	27.80B	29.55B	22.16B	19.68B
	Gross Profit
33.76B	36.95B	29.55B	22.16B	19.68B
	EBIT
23.07B	18.54B	20.39B	13.80B	12.14B
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
15.41B	14.43B	13.40B	11.46B	9.57B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.78B	27.51B	36.57B	19.72B	42.40B
	Total Assets
2.01T	1.81T	1.58T	1.38T	1.27T
	Total Debt
69.41B	182.65B	218.96B	183.83B	182.76B
	Net Debt
44.64B	-148.18B	182.39B	164.11B	140.36B
	Total Liabilities
1.85T	1.66T	1.46T	1.27T	1.17T
	Stockholders Equity
157.45B	142.98B	119.61B	108.56B	103.04B
Cash Flow		Free Cash Flow
-159.44B	89.96B	49.63B	36.19B	-55.57B
	Operating Cash Flow
-158.87B	90.58B	50.19B	37.01B	-54.60B
	Investing Cash Flow
-69.00B	-60.80B	-64.96B	-36.19B	-9.80B
	Financing Cash Flow
227.02B	-33.63B	28.28B	-9.31B	61.33B

Huishang Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3698, the sentiment is Positive. The current price of 2.91 is above the 20-day moving average (MA) of 2.78, above the 50-day MA of 2.68, and above the 200-day MA of 2.43, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 68.87 is Neutral, neither overbought nor oversold. The STOCH value of 49.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3698.

Huishang Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3698	78 Outperform	$40.70B	2.58	9.68%	5.63%	1.22%	1.90%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.55%

Huishang Bank Corporate Events

Huishang Bank Proposes New Non-Executive Director Appointment

Huishang Bank Corporation Limited has proposed the appointment of Mr. Wei Lixiang as a non-executive director. Mr. Wei’s extensive experience in financial management and his current roles at Anhui Guoyuan Financial Holding Group Co., Ltd. and Guoyuan Agricultural Insurance Co., Ltd. are expected to enhance the strategic direction of the bank. The appointment is pending approval from the bank’s general meeting and the National Financial Regulatory Administration Anhui Office.

Huishang Bank Reports Strong Q1 2025 Financial Performance

Huishang Bank Corporation Limited has released its unaudited financial results for the first quarter of 2025, reporting total assets of RMB 2,105,689 million and a net profit of RMB 4,775 million. The bank’s capital adequacy ratios remain compliant with Chinese regulatory standards, with a total capital adequacy ratio of 13.35%. This announcement highlights the bank’s financial stability and its strategic focus on capital management, which is crucial for maintaining investor confidence and supporting future growth.

Huishang Bank Proposes Extension for A Share Offering Validity

Huishang Bank Corporation Limited has announced a proposed extension of the validity period for its A Share Offering Plan and Authorization Resolution. This extension, approved by the board and subject to shareholder approval, aims to ensure the continuation of the bank’s A Share Offering process, which is crucial for its strategic financial initiatives.

Huishang Bank Releases 2024 Annual Results

Huishang Bank Corporation Limited has announced its audited annual results for the year ending December 31, 2024. The announcement complies with the listing rules of the Hong Kong Stock Exchange, and the full annual report will be available online in April 2025. This release may impact the company’s operations and industry positioning by providing stakeholders with insights into the bank’s financial performance and strategic direction.

Huishang Bank Declares Final Dividend for 2024

Huishang Bank Corporation Limited has announced a final ordinary cash dividend of RMB 0.21 per share for the year ending December 31, 2024. This announcement reflects the bank’s financial performance and commitment to returning value to its shareholders, with further details regarding payment dates and tax implications to be announced later.

Huishang Bank Schedules Board Meeting to Approve 2024 Annual Results

Huishang Bank Corporation Limited has announced a board meeting scheduled for March 27, 2025, to discuss and approve the annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend and address other business matters, which could impact the bank’s financial strategy and stakeholder interests.

Huishang Bank Announces Strong Financial Performance for 2024

Huishang Bank Corporation Limited has announced a positive profit alert for the year ended December 31, 2024. The bank reported a significant increase in total assets, operating income, and net profit, with improvements in asset quality and non-performing loan ratios. This performance is attributed to strategic initiatives such as enhancing credit extension and effective liability management, positioning the bank favorably in the financial industry.