Bank of Qingdao Co., Ltd. Class H (3866) AI Stock Analysis

• Market Cap: HK$26.46B
• Dividend Yield: 4.58%
• Average Volume (3M): 13.27M
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.55
• Revenue Growth: 4.33%
• EPS Growth: 17.13%
• Country: HK
• Employees: 5,312
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.13
• Shares Outstanding: 2,291,945,600
• 10 Day Avg. Volume: 4,312,850
• 30 Day Avg. Volume: 13,266,455
• PEG Ratio: 0.12
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 0.70
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: HK$4.50 ▲(15.38% Upside)

The stock's overall score is primarily driven by its solid financial performance and attractive valuation. Despite some inconsistencies in revenue growth and cash flow, the company's profitability and strong equity position are significant strengths. The technical analysis suggests moderate bullish momentum, supporting a positive outlook. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Strong Profit Margins

High profit margins indicate effective cost management and pricing power, providing a buffer against economic fluctuations and enhancing long-term profitability.

Robust Equity Position

A strong equity position enhances financial stability and provides a solid foundation for future growth and investment opportunities.

Positive Cash Flows

Consistent positive cash flows support ongoing operations and strategic investments, ensuring the company can meet its financial obligations and pursue growth initiatives.

Negative Factors

Inconsistent Revenue Growth

Fluctuating revenue growth can signal challenges in market demand or competitive positioning, potentially impacting long-term growth prospects and investor confidence.

Debt Management Challenges

Variable debt levels can strain financial resources and limit flexibility, posing risks to financial health and the ability to capitalize on growth opportunities.

Cash Flow Volatility

Inconsistent cash flow generation can hinder strategic planning and investment, affecting the company's ability to sustain operations and fund expansion efforts.

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

Company Description

Bank of Qingdao Co., Ltd. is a commercial bank based in Qingdao, China, primarily engaged in providing a range of financial services including corporate banking, personal banking, and treasury operations. The bank serves small and medium-sized enterprises (SMEs) and individual customers, offering products such as loans, deposits, wealth management, and payment services. As a regional player, it focuses on supporting local economic development while expanding its service offerings to meet the diverse needs of its clientele.

How the Company Makes Money

Bank of Qingdao generates revenue primarily through interest income derived from its lending activities, where it provides loans to businesses and individuals at interest rates higher than the rates it pays on deposits. Additionally, the bank earns non-interest income from fees charged for various services including account maintenance, transaction processing, and wealth management products. Significant partnerships with local businesses and government initiatives also contribute to its earnings by enhancing its lending portfolio and expanding its customer base. Furthermore, the bank invests in financial markets and engages in treasury operations, adding to its revenue streams.

Bank of Qingdao Co., Ltd. Class H Financial Statement Overview

Summary

The company demonstrates solid profitability with strong net and EBIT margins. However, inconsistencies in revenue growth and cash flow raise some red flags. The balance sheet is robust with a strong equity position, but challenges in debt management and missing asset data in recent years could impact future stability.

Income Statement

The company shows a strong gross and net profit margin, with the latest net margin at 31.6%. Revenue growth has been inconsistent, with a notable increase in 2024 over the previous year, but a decline in 2023. EBIT margins have been solid, reflecting efficient cost management. Overall, the income statement suggests profitability but with some variability in growth.

Balance Sheet

The bank maintains a stable equity base with a high equity ratio. However, the debt-to-equity ratio has fluctuated over the years, and total assets information is missing for 2024. Despite these challenges, the bank has a strong stockholder equity position, indicating a solid financial footing.

Cash Flow

Operating cash flows have been positive and significant, especially in earlier years, but there is a lack of data for 2024. Free cash flow showed robust growth in 2020 but has been inconsistent since. The absence of cash flow data for 2024 and prior volatility poses some concerns regarding cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.16B	24.81B	22.88B	21.87B	21.00B	18.63B
Gross Profit	10.16B	12.27B	11.03B	10.33B	10.44B	9.60B
EBITDA	0.00	5.59B	4.50B	3.68B	3.72B	3.16B
Net Income	4.69B	4.26B	3.55B	3.08B	2.92B	2.39B
Balance Sheet
Total Assets	743.03B	689.96B	607.99B	529.61B	522.25B	459.83B
Cash, Cash Equivalents and Short-Term Investments	63.89B	67.18B	46.98B	38.33B	60.47B	49.78B
Total Debt	106.21B	99.75B	89.56B	75.13B	92.20B	72.95B
Total Liabilities	695.94B	645.06B	568.05B	493.02B	488.92B	428.92B
Stockholders Equity	46.08B	43.93B	39.06B	35.82B	32.64B	30.29B
Cash Flow
Free Cash Flow	60.31B	22.58B	9.73B	-2.17B	2.38B	44.56B
Operating Cash Flow	60.63B	22.95B	10.14B	-1.67B	3.01B	45.29B
Investing Cash Flow	-33.82B	-13.28B	-17.05B	-10.27B	-4.45B	-30.37B
Financing Cash Flow	-34.33B	5.83B	10.99B	-19.45B	15.03B	-8.11B

Bank of Qingdao Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3866, the sentiment is Negative. The current price of 3.9 is below the 20-day moving average (MA) of 3.93, below the 50-day MA of 4.11, and below the 200-day MA of 3.93, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 44.86 is Neutral, neither overbought nor oversold. The STOCH value of 30.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3866.

Bank of Qingdao Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1963	83 Outperform	HK$35.60B	4.63	9.11%	5.57%	5.30%	9.05%
9677	70 Outperform	HK$18.30B	8.29	8.48%	3.57%	6.65%	16.74%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
3866	67 Neutral	HK$26.46B	5.07	―	4.58%	4.33%	17.13%
6196	66 Neutral	HK$17.05B	6.97	―	1.87%	-5.02%	-3.28%
9889	58 Neutral	HK$23.35B	5.31	7.20%	8.04%	-7.29%	-14.37%
1551	56 Neutral	HK$22.45B	12.58	―	3.20%	-3.87%	22.34%

Bank of Qingdao Co., Ltd. Class H Corporate Events

Bank of Qingdao Announces Governance Restructuring with Regulatory Approval

Bank of Qingdao Co., Ltd. announced the approval of amendments to its Articles of Association by the Qingdao Bureau of National Financial Regulatory Administration. As a result, the bank will dissolve its Board of Supervisors, with the audit committee assuming its functions. This move reflects a strategic shift in the bank’s governance structure, potentially impacting its operational oversight and aligning with regulatory requirements.

Bank of Qingdao Updates Nomination Committee Terms to Strengthen Governance

Bank of Qingdao Co., Ltd. has revised its Terms of Reference for the Nomination Committee of the Board of Directors to enhance corporate governance and optimize board composition. The Committee is tasked with formulating selection procedures and criteria for directors and senior management, conducting reviews, and making recommendations to the Board, thereby strengthening the bank’s governance framework.

Bank of Qingdao Enhances Corporate Governance with Revised Remuneration Committee Terms

Bank of Qingdao Co., Ltd. has revised the Terms of Reference for its Remuneration Committee to enhance its compensation management system and corporate governance. This revision is expected to streamline the assessment and remuneration processes for directors and senior management, thereby potentially improving the bank’s operational efficiency and governance standards.

Bank of Qingdao Enhances Audit Committee Governance

Bank of Qingdao Co., Ltd. has revised the Terms of Reference for its Audit Committee to enhance decision-making and corporate governance. The committee, composed mainly of independent directors with expertise in finance and auditing, is tasked with reviewing financial information, supervising audits, and making recommendations to the Board, thereby strengthening oversight and transparency in the bank’s operations.

Bank of Qingdao’s Major Shareholder to Increase Stake

Bank of Qingdao Co., Ltd. announced the results of a plan to increase shareholding by its major shareholder, Qingdao Guoxin Industrial and Financial Holdings. The plan aims to support the bank’s long-term development by increasing Guoxin’s shareholding to between 19.00% and 19.99% through secondary market transactions. This strategic move is expected to enhance the bank’s market position and stability, with a lock-up arrangement preventing the transfer of shares for five years.

Bank of Qingdao Reports Steady Growth in Q3 2025

Bank of Qingdao Co., Ltd. announced its 2025 third quarterly report, highlighting a steady financial performance with a slight increase in net profit and earnings per share. The report indicates a year-on-year growth in operating income and net profit attributable to shareholders, reflecting the bank’s stable market positioning and operational efficiency.

Bank of Qingdao Completes Issuance of 2025 Undated Capital Bonds

Bank of Qingdao Co., Ltd. has successfully completed the issuance of its 2025 Undated Capital Bonds in the national interbank bond market, with a total issuing size of RMB2 billion and a coupon rate of 2.45% for the first five years. The proceeds from this issuance will be used to supplement the Bank’s other tier-one capital, potentially strengthening its financial position and operational capabilities.

Bank of Qingdao Announces Upcoming Board Meeting to Review Quarterly Results

Bank of Qingdao Co., Ltd. has announced a board meeting scheduled for October 28, 2025, to review and approve the third quarterly results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the bank’s financial performance and strategic direction, potentially impacting stakeholders’ perceptions and the bank’s market positioning.

Bank of Qingdao Successfully Concludes 2025 Extraordinary General Meetings

Bank of Qingdao Co., Ltd. successfully conducted its 2025 first extraordinary general meeting, along with separate class meetings for A and H Shareholders, on September 26, 2025. The meetings, which were held both on-site and online, saw significant shareholder participation, with over 73% of shares with voting rights represented. The meetings complied with relevant legal and corporate governance standards, and were overseen by legal and shareholder representatives, ensuring transparency and adherence to procedural norms.

Bank of Qingdao Completes Issuance of 2025 Sci-tech Innovation Bonds

Bank of Qingdao Co., Ltd. has successfully completed the issuance of its 2025 Sci-tech Innovation Bonds in the national inter-bank bond market in China, with a total issuing size of RMB1 billion and a fixed coupon rate of 1.87%. The proceeds from these bonds will be used to support sci-tech innovation businesses, enhancing the bank’s role in fostering technological advancements and potentially strengthening its position in the financial industry.

Bank of Qingdao Announces 2025 First Extraordinary General Meeting

Bank of Qingdao Co., Ltd. has announced its 2025 First Extraordinary General Meeting to be held on September 26, 2025, in Qingdao, China. The meeting will address several resolutions, including the election of a new independent non-executive director, amendments to the Articles of Association, and the issuance of financial bonds. These decisions could significantly impact the bank’s governance structure and financial strategy, potentially affecting its market positioning and stakeholder interests.

Bank of Qingdao Announces 2025 H Share Class Meeting for Governance Amendments

Bank of Qingdao Co., Ltd. has announced the 2025 First H Share Class Meeting to be held on September 26, 2025, in Qingdao, China. The meeting aims to consider and approve special resolutions regarding amendments to the Articles of Association and the Rules of Procedure for Shareholders’ General Meetings. This meeting is significant for shareholders as it involves key governance changes that could impact the bank’s operational framework and shareholder engagement.

Bank of Qingdao Delays Convertible Bond Issuance Amid Uncertainty

Bank of Qingdao Co., Ltd. announced an update regarding its proposed issuance of A Share Convertible Corporate Bonds to non-specific investors in the PRC, with a total amount not exceeding RMB4.8 billion. The Board has decided not to submit the relevant resolutions for approval at the upcoming EGM and Class Meetings, opting to delay the submission to a more appropriate time based on the actual situation. This decision introduces uncertainty regarding the issuance, prompting the Board to advise investors and shareholders to exercise caution when dealing with the Bank’s securities.