Bank of Zhengzhou Co., Ltd. Class H (6196) AI Stock Analysis

• Market Cap: €17.16B
• Dividend Yield: 1.89%
• Average Volume (3M): 7.21M
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.86
• Revenue Growth: -5.02%
• EPS Growth: -3.28%
• Country: HK
• Employees: 6,180
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.08
• Shares Outstanding: 2,020,458,000
• 10 Day Avg. Volume: 5,881,829
• 30 Day Avg. Volume: 7,209,797
• PEG Ratio: 0.13
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 1.06
• 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: 66 Neutral
• Price Target: HK$1.50 ▲(28.21% Upside)

The overall stock score of 66 reflects strong financial performance and attractive valuation, offset by bearish technical indicators. The bank's solid profitability and financial stability are significant strengths, while the current market momentum suggests caution. The low P/E ratio and reasonable dividend yield enhance the stock's attractiveness, but the declining revenue trend and technical weakness require careful monitoring.

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

Company Description

Bank of Zhengzhou Co., Ltd., together with its subsidiaries, provides various banking products and services in the People's Republic of China. It operates through Corporate Banking, Retail Banking, and Treasury Business segments. The Corporate Banking segment provides deposit products, corporate loans and advances, trade finance products, financial leasing services, agency services, and remittance and settlement services to corporations, government agencies, and financial institutions. The Retail Banking segment offers deposit products, personal loans, bank cards, personal wealth management services, remittance and settlement services, and collection and payment agency services to retail customers. The Treasury Business segment engages in the interbank money market transactions and repurchases transactions, as well as offers investment services. The company also offers short-term, medium-term, and long-term loans; accepts and discounts bills; issues financial bonds; underwrites government bonds; acts as an issuing and cashing agent; foreign exchange deposits and loans; and provides letters of credit, guarantees, safe-deposit box, and foreign currency exchange services, as well as offers online, telephone, and mobile banking services. As of December 31, 2021, it had 14 branches in Nanyang, Xinxiang, Luoyang, Anyang, Xuchang, Shangqiu, Luohe, Xinyang, Puyang, Pingdingshan, Zhumadian, Kaifeng, Zhoukou, and Hebi of Henan Province; and 161 sub-branches, as well as network of 160 internal and 37 external self-service equipment outlets. The company was formerly known as Commercial Bank of Zhengzhou Co., Ltd. and changed its name to Bank of Zhengzhou Co., Ltd. in December 2009. Bank of Zhengzhou Co., Ltd. was incorporated in 1996 and is headquartered in Zhengzhou, China.

How the Company Makes Money

The Bank of Zhengzhou generates revenue primarily through the interest income from loans extended to customers, which constitutes a significant portion of its earnings. Additionally, the bank earns fees from various services such as account management, transaction processing, and advisory services. The bank's treasury operations also contribute to its income by managing its investment portfolio and engaging in foreign exchange activities. Strategic partnerships with local businesses and government entities enhance its corporate lending capabilities and expand its customer base, further bolstering its revenue streams.

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

Summary

Bank of Zhengzhou shows strong profitability and a solid financial position with prudent liability management. Despite revenue declines, profits remain strong, and cash flow generation has improved significantly. The balance sheet is robust, with substantial equity and negligible debt, supporting stability. However, revenue trends and past cash flow volatility warrant close monitoring.

Income Statement

The Bank of Zhengzhou demonstrated stable profitability with a net profit margin of 16.02% in 2024, up from 15.02% in 2023. However, revenue has been declining, with a revenue growth rate of -4.99% in 2024 compared to the previous year. The EBIT margin is not applicable for 2024, indicating potential changes in financial reporting or operational structure. Despite revenue challenges, the net income showed resilience.

Balance Sheet

The company maintains strong equity with an equity ratio of 8.05% in 2024, reflecting a well-capitalized position. The debt-to-equity ratio is effectively zero as all liabilities are covered by equity, showing conservative financial management. Return on equity was 3.44% for 2024, suggesting moderate returns from shareholder investments.

Cash Flow

Operating cash flow improved significantly to 8.77 billion in 2024, from 1.65 billion in 2023, indicating enhanced cash generation capabilities. Free cash flow also grew substantially by 654.33% from 2023 to 2024. The operating cash flow to net income ratio was 4.67, suggesting strong cash flow relative to net income. However, historical volatility in cash flows poses a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.79B	24.70B	25.36B	26.88B	25.46B	7.40B
Gross Profit	4.22B	11.71B	12.33B	14.07B	11.82B	7.40B
EBITDA	1.56B	2.24B	2.20B	3.28B	4.44B	0.00
Net Income	1.97B	1.88B	1.85B	2.42B	3.23B	3.17B
Balance Sheet
Total Assets	812.70B	676.37B	630.71B	591.51B	574.98B	547.81B
Cash, Cash Equivalents and Short-Term Investments	0.00	44.79B	33.80B	30.80B	40.52B	41.93B
Total Debt	242.22B	110.57B	102.52B	95.27B	90.45B	93.51B
Total Liabilities	760.65B	620.07B	576.39B	538.89B	515.57B	501.84B
Stockholders Equity	50.00B	54.45B	52.45B	50.77B	57.77B	44.49B
Cash Flow
Free Cash Flow	-42.45B	8.49B	-10.56B	-32.09B	-43.32B	-11.63B
Operating Cash Flow	-42.33B	8.77B	-10.04B	-31.35B	-42.62B	-11.18B
Investing Cash Flow	-38.54B	-11.96B	-4.03B	27.51B	40.96B	24.61B
Financing Cash Flow	85.33B	5.10B	15.57B	-7.07B	3.56B	-11.48B

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

• Technical Analysis Sentiment: Negative
• Last Price: 1.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6196, the sentiment is Negative. The current price of 1.17 is below the 20-day moving average (MA) of 1.19, below the 50-day MA of 1.23, and above the 200-day MA of 1.17, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.30 is Neutral, neither overbought nor oversold. The STOCH value of 29.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6196.

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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1216	74 Outperform	HK$11.33B	3.79	3.11%	4.24%	-7.58%	12.65%
9677	70 Outperform	HK$18.30B	8.29	8.48%	3.57%	6.65%	16.74%
9668	69 Neutral	HK$16.87B	3.50	5.51%	―	-5.76%	18.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6196	66 Neutral	€17.16B	6.97	―	1.89%	-5.02%	-3.28%
6199	66 Neutral	HK$15.03B	3.73	7.71%	5.32%	-1.24%	4.34%
1578	64 Neutral	HK$14.57B	3.53	5.84%	6.13%	-3.34%	-22.01%

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

Bank of Zhengzhou Restructures Governance Framework

Bank of Zhengzhou Co., Ltd. announced the approval of amendments to its articles of association and the abolishment of its board of supervisors. The Henan Financial Regulatory Bureau has approved these changes, which will see the audit committee of the board taking over the responsibilities previously held by the board of supervisors. This restructuring aims to streamline governance and align with regulatory requirements, with no disagreements reported by the outgoing supervisors.

Bank of Zhengzhou Releases 2025 Q3 Financial Results

Bank of Zhengzhou Co., Ltd. announced its unaudited third quarterly results for 2025, prepared in accordance with IFRSs. The report highlights the financial performance of the bank and its subsidiaries, emphasizing the truthfulness and completeness of the data provided. The announcement is significant for stakeholders as it reflects the bank’s financial health and operational transparency, although it is not subject to Hong Kong’s banking regulations.

Bank of Zhengzhou Schedules Board Meeting to Review Q3 Results

The Bank of Zhengzhou Co., Ltd. has announced a board meeting scheduled for October 30, 2025, to review and approve the third quarterly results for the period ending September 30, 2025. This meeting is significant for the bank’s stakeholders as it will provide insights into the bank’s financial performance and strategic direction.

Bank of Zhengzhou Approves Key Resolutions in 2025 Shareholders Meetings

Bank of Zhengzhou Co., Ltd. recently held its first extraordinary general meeting (EGM) and class meetings for A and H shareholders in 2025, chaired by Mr. Zhao Fei. The meetings resulted in the approval of several special resolutions, including amendments to the Articles of Association, the abolishment of the Board of Supervisors, and changes to the Rules of Procedure for both the Shareholders’ General Meeting and the Board of Directors. The voting process was conducted both onsite and online, with significant participation from shareholders, reflecting the bank’s commitment to transparency and shareholder engagement.