Harbin Bank Co., Ltd. Class H (6138) AI Stock Analysis

• Market Cap: HK$3.90B
• Dividend Yield: N/A
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.20
• Revenue Growth: 0.06%
• EPS Growth: 43.86%
• Country: HK
• Employees: 8,860
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.05
• Shares Outstanding: 3,023,569,800
• 10 Day Avg. Volume: 2,407,900
• 30 Day Avg. Volume: 2,475,566
• PEG Ratio: 0.04
• Price to Book (P/B): 0.05
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -0.11
• 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: 51 Neutral
• Price Target: HK$0.36 ▼(-0.83% Downside)

The score is held back mainly by weaker financial quality (sharp reversal to negative operating/free cash flow, low ROE, and lower net margin) and bearish technical trend signals (below major moving averages with negative MACD). The primary offset is a comparatively low P/E valuation.

Positive Factors

Strategic Expansion

The strategic mergers to convert banks into sub-branches enhance market positioning and operational efficiency, supporting long-term growth.

Asset Optimization

The sale of a loan portfolio to optimize asset structure reflects proactive credit risk management, improving balance sheet quality over time.

Leverage Improvement

Significant reduction in leverage enhances financial stability and reduces risk, providing a stronger foundation for future operations.

Negative Factors

Profitability Weakness

Declining net margin indicates challenges in scaling profitability with revenue growth, potentially impacting long-term earnings quality.

Cash Flow Deterioration

Negative cash flow suggests potential liquidity issues and funding risks, which could hinder operational flexibility and growth initiatives.

Governance Restructuring

Changes in governance structure may affect oversight and operational dynamics, potentially impacting stakeholder confidence and decision-making.

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

Company Description

Harbin Bank Co., Ltd. provides various commercial banking products and services primarily in Mainland China. It operates through four segments: Corporate Financial Business, Retail Financial Business, Interbank Financial Business, and Other Business. The company offers demand and time deposit products, personal loans, collateral loans, corporate loans, and agricultural loans, as well as bank card and credit card products. It also provides settlement and clearing services, as well as other products and services relating to trading business; personal wealth management services; and money market placement, investment and repurchasing, and foreign exchange transaction services. In addition, the company offers online, mobile, and telephone banking services; insurance products; and project financing, financial management and consulting, underwriting and issuing of securities, and asset custody services. As of December 31, 2021, it operated through 311 branch outlets, including 17 branches, 292 sub-branches, 1 branch-level financial service center for small enterprises, and 1 headquarters business department. The company was formerly known as Harbin City Commercial Bank Co., Ltd. and changed its name to Harbin Bank Co., Ltd. in November 2007. Harbin Bank Co., Ltd. was incorporated in 1997 and is headquartered in Harbin, the People's Republic of China.

How the Company Makes Money

Harbin Bank Co., Ltd. generates revenue primarily through interest income and non-interest income. Interest income is derived from loans extended to customers, including personal, corporate, and small business loans. The bank also earns interest from its investment portfolio, which includes government and corporate bonds. Non-interest income comes from fees and commissions related to services such as wealth management, payment processing, and other financial advisory services. Additionally, the bank engages in treasury operations, which involve trading and investment activities that contribute to its earnings. Harbin Bank's strategic partnerships with other financial institutions and its focus on regional economic development also play a role in its revenue generation.

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

Summary

Harbin Bank exhibits strengths in financial stability and improving leverage, but faces challenges with revenue growth and cash flow consistency. While the balance sheet indicates a strong equity position, income statement metrics reveal profitability pressures. Cash flow irregularities could impede future growth unless addressed.

Income Statement

The revenue growth rate has shown volatility, with a recent decline. Gross and net profit margins are moderate, indicating decent profitability, but the decline in revenue impacts overall performance. The EBIT margin is below industry standards, reflecting operational efficiency challenges.

Balance Sheet

The company maintains a solid equity ratio, suggesting financial stability. The debt-to-equity ratio has improved, indicating reduced leverage, which is favorable for risk management. However, stockholders' equity growth is modest, limiting potential expansion capabilities.

Cash Flow

Operating cash flow has been inconsistent, with recent negative cash flow posing liquidity concerns. The free cash flow has also been unstable, although past growth rates were strong. The company needs to stabilize its cash generation to support ongoing operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.26B	13.31B	6.28B	6.29B	5.62B	6.30B
Gross Profit	6.26B	13.31B	6.28B	6.29B	5.62B	6.30B
EBITDA	-650.26M	1.37B	0.00	1.79B	1.30B	0.00
Net Income	1.07B	919.67M	739.99M	554.77M	274.13M	745.68M
Balance Sheet
Total Assets	927.53B	916.23B	813.33B	712.73B	645.05B	598.60B
Cash, Cash Equivalents and Short-Term Investments	0.00	75.87B	37.09B	105.24B	72.02B	68.95B
Total Debt	2.04B	1.14B	46.41B	721.46M	31.90B	9.00B
Total Liabilities	861.92B	850.64B	749.44B	649.41B	582.27B	547.49B
Stockholders Equity	63.09B	63.16B	61.60B	61.17B	60.79B	49.25B
Cash Flow
Free Cash Flow	-61.88B	-30.89B	45.90B	57.50B	36.16B	-2.84B
Operating Cash Flow	-61.56B	-30.50B	46.08B	57.85B	36.70B	-2.04B
Investing Cash Flow	-10.63B	-16.54B	-39.94B	-40.76B	-20.67B	21.42B
Financing Cash Flow	46.69B	66.05B	-6.43B	8.40B	-4.43B	-15.22B

Harbin Bank Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 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:6138, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.38, and below the 200-day MA of 0.39, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6138.

Harbin Bank Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1983	67 Neutral	HK$5.90B	4.29	12.50%	5.84%	-3.25%	22.96%
2558	66 Neutral	HK$8.23B	4.29	6.81%	6.22%	-1.76%	-11.39%
1916	54 Neutral	HK$4.04B	5.96	1.58%	6.21%	-8.55%	539.20%
6138	51 Neutral	HK$3.90B	7.22	2.15%	―	0.06%	43.86%
2139	48 Neutral	HK$3.72B	5.89	1.72%	―	-9.56%	-7.51%

Harbin Bank Co., Ltd. Class H Corporate Events

Harbin Bank Sells RMB574 Million Loan Portfolio to China Cinda to Optimize Asset Structure

Harbin Bank Co., Ltd., a PRC-incorporated joint stock commercial bank listed in Hong Kong, primarily engages in banking and credit-related services, including corporate lending and loan management. The bank has agreed to transfer a loan portfolio with a book balance of approximately RMB573.9 million in principal, interest and related rights to China Cinda Asset Management Co., Ltd. Tianjin Branch for an agreed transfer price of about RMB342.0 million, with an initial payment of roughly RMB233.7 million and a contingent balance dependent on loan recovery. Structured as a discloseable transaction under Hong Kong Listing Rules, the deal is intended to optimize Harbin Bank’s asset structure by offloading the subject loan while the bank continues to assist in recovering the assets under an entrusted disposal arrangement, reflecting ongoing efforts to manage credit risk and clean up its balance sheet in cooperation with an asset management company.

Harbin Bank Restructures Governance with Supervisor Board Cancellation

Harbin Bank Co., Ltd. has received approval from the Heilongjiang Office of the National Financial Regulatory Administration for amendments to its Articles of Association, resulting in the cancellation of its board of supervisors. This change signifies a shift in the company’s corporate governance structure, with the incumbent supervisors stepping down and confirming no disagreements with the board of directors. The move may impact the company’s operational oversight and governance dynamics, potentially affecting stakeholders’ interests.

Harbin Bank Expands Through Strategic Mergers

Harbin Bank Co., Ltd. announced that during its 2025 third extraordinary general meeting held on October 22, 2025, shareholders passed several special resolutions. These resolutions involve the absorption and merger of multiple Chongqing Rongxing Village and Township Banks, converting them into sub-branches, which indicates a strategic move to expand and consolidate its operations. This development could enhance Harbin Bank’s market positioning and operational efficiency, potentially impacting stakeholders positively by streamlining its banking services.