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

• Market Cap: €17.89B
• Dividend Yield: 1.71%
• Average Volume (3M): 7.21M
• Price to Earnings (P/E): 7.6
• 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): 0.20
• 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): 1.57
• 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

• Rating: 67 Neutral
• Price Target: ―

The overall score reflects strong financial performance and solid valuation, indicating that the stock is potentially undervalued. Nonetheless, the bearish technical indicators and revenue decline pose risks. The absence of earnings call data and significant corporate events left more weight on financials and valuation, emphasizing their current stability and potential value.

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

Company Description

Bank of Zhengzhou Co., Ltd. Class H (6196) is a regional commercial bank based in Zhengzhou, China. It primarily operates in the banking and financial services sector, offering a comprehensive range of financial products and services. The bank caters to both individual and corporate clients, providing services such as personal banking, corporate banking, and financial market operations. With a focus on serving the local community, Bank of Zhengzhou aims to support economic development in the region.

How the Company Makes Money

Bank of Zhengzhou Co., Ltd. generates revenue primarily through interest income from loans and advances made to individual and corporate clients. This includes personal loans, corporate loans, and mortgages. The bank also earns income from fees and commissions associated with various banking services, such as account management, transaction processing, and wealth management services. Additionally, the bank engages in treasury operations, which involve activities like investment in securities and interbank lending, contributing to its overall earnings. Significant partnerships with local businesses and financial institutions also play a role in expanding its customer base and enhancing 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	5.69B	5.71B	25.36B	26.88B	7.55B	7.40B
Gross Profit	5.69B	5.71B	5.62B	14.07B	11.82B	7.40B
EBITDA	0.00	0.00	0.00	3.28B	4.44B	0.00
Net Income	1.91B	1.88B	1.85B	2.42B	3.23B	3.17B
Balance Sheet
Total Assets	719.74B	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	40.53B	41.93B
Total Debt	2.00B	7.00B	13.00B	14.50B	90.45B	8.40B
Total Liabilities	662.36B	620.07B	576.39B	538.89B	515.57B	501.84B
Stockholders Equity	55.49B	54.45B	52.45B	50.77B	57.77B	44.49B
Cash Flow
Free Cash Flow	-36.62B	8.49B	-10.56B	-32.09B	-43.32B	-11.63B
Operating Cash Flow	-36.47B	8.77B	-10.04B	-31.35B	-42.62B	-11.18B
Investing Cash Flow	-20.44B	-11.96B	-4.03B	27.51B	40.96B	24.61B
Financing Cash Flow	60.17B	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: 1.28
• 50DMA: Negative
• 100DMA: Negative
• 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:6196, the sentiment is Negative. The current price of 1.28 is below the 20-day moving average (MA) of 1.29, below the 50-day MA of 1.33, and above the 200-day MA of 1.11, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 52.22 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$12.06B	4.03	3.11%	4.04%	-7.58%	12.65%
9677	70 Outperform	HK$17.16B	7.78	8.48%	3.78%	6.65%	16.74%
9668	69 Neutral	HK$18.29B	3.83	5.51%	―	-5.76%	18.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6196	67 Neutral	€17.89B	7.63	―	1.71%	-5.02%	-3.28%
6199	66 Neutral	HK$14.88B	3.76	7.71%	5.22%	-1.24%	4.34%
1578	64 Neutral	HK$15.18B	3.68	5.84%	5.84%	-3.34%	-22.01%

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

Bank of Zhengzhou Releases First Quarter 2025 Financial Results

Bank of Zhengzhou Co., Ltd. has released its unaudited first quarterly report for 2025, prepared in accordance with International Financial Reporting Standards. The report, which covers the financial performance of the bank and its subsidiaries for the first three months of the year, emphasizes the accuracy and completeness of the financial data. The announcement is significant for stakeholders as it provides insights into the bank’s financial health and operational performance, although it has not been audited.

Bank of Zhengzhou Schedules Board Meeting to Review Q1 2025 Results

Bank of Zhengzhou Co., Ltd. has announced a board meeting scheduled for April 29, 2025, to discuss and approve the first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the bank’s financial performance and could impact its market positioning and stakeholder interests.

Bank of Zhengzhou Announces 2024 Final Dividend

Bank of Zhengzhou Co., Ltd. announced a final ordinary cash dividend of RMB 0.2 per 10 shares for the financial year ending December 31, 2024. The payment, expected by July 31, 2025, underscores the company’s financial health and commitment to shareholder returns, although specific details such as the HKD amount and key dates are yet to be announced.

Bank of Zhengzhou Releases 2024 Annual Results

Bank of Zhengzhou Co., Ltd. announced its audited consolidated annual results for the year ended December 31, 2024. The announcement, which complies with the listing rules of the Hong Kong Stock Exchange, indicates that the bank’s board and audit committee have reviewed and confirmed the results. The full annual report will be available online in April 2025, potentially impacting stakeholders by providing insights into the bank’s financial health and strategic direction.

Bank of Zhengzhou Schedules Board Meeting to Review 2024 Financials

The Bank of Zhengzhou Co., Ltd. has announced a board meeting scheduled for March 27, 2025, to discuss and approve the audited annual results for 2024 and consider dividend payments. This meeting is significant for stakeholders as it will provide insights into the bank’s financial performance and potential returns on investment.