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

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HK:6196

Bank of Zhengzhou Co., Ltd. Class H

(6196)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
HK$1.50
▲(27.12% 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 (6196) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionBank of Zhengzhou Co., Ltd. Class H (6196) is a commercial banking institution based in Zhengzhou, China. Established to provide a wide range of financial services, the bank operates primarily in the retail banking, corporate banking, and treasury sectors. Its core products include personal and business loans, savings and current accounts, wealth management services, and financial advisory services, catering to both individual and institutional clients.
How the Company Makes MoneyThe 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
70
Positive
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
75
Positive
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
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.22B24.70B25.36B26.88B25.46B7.40B
Gross Profit4.22B11.71B12.33B14.07B11.82B7.40B
EBITDA0.002.24B2.20B3.28B4.44B0.00
Net Income1.26B1.88B1.85B2.42B3.23B3.17B
Balance Sheet
Total Assets719.74B676.37B630.71B591.51B574.98B547.81B
Cash, Cash Equivalents and Short-Term Investments49.98B44.79B33.80B30.80B40.52B41.93B
Total Debt111.77B110.57B102.52B95.27B90.45B93.51B
Total Liabilities662.36B620.07B576.39B538.89B515.57B501.84B
Stockholders Equity55.49B54.45B52.45B50.77B57.77B44.49B
Cash Flow
Free Cash Flow-36.62B8.49B-10.56B-32.09B-43.32B-11.63B
Operating Cash Flow-36.47B8.77B-10.04B-31.35B-42.62B-11.18B
Investing Cash Flow-20.44B-11.96B-4.03B27.51B40.96B24.61B
Financing Cash Flow60.17B5.10B15.57B-7.07B3.56B-11.48B

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

Technical Analysis Sentiment
Negative
Last Price1.18
Price Trends
50DMA
1.27
Negative
100DMA
1.32
Negative
200DMA
1.15
Positive
Market Momentum
MACD
-0.02
Positive
RSI
27.21
Positive
STOCH
7.87
Positive
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 1.18 is below the 20-day moving average (MA) of 1.24, below the 50-day MA of 1.27, and above the 200-day MA of 1.15, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 27.21 is Positive, neither overbought nor oversold. The STOCH value of 7.87 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$11.15B3.723.11%4.17%-7.58%12.65%
70
Outperform
HK$17.34B7.868.48%3.62%6.65%16.74%
69
Neutral
€17.05B3.575.51%-5.76%18.15%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
66
Neutral
€17.96B7.631.86%-5.02%-3.28%
66
Neutral
HK$15.76B3.917.71%5.17%-1.24%4.34%
64
Neutral
€15.05B3.655.84%5.89%-3.34%-22.01%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6196
Bank of Zhengzhou Co., Ltd. Class H
1.18
0.20
20.29%
HK:9668
China Bohai Bank Co., Ltd. Class H
0.97
0.10
11.49%
HK:1578
Bank of Tianjin Co., Ltd. Class H
2.50
0.99
65.34%
HK:9677
Weihai City Commercial Bank Co., Ltd. Class H
3.02
0.24
8.63%
HK:1216
Zhongyuan Bank Co., Ltd. Class H
0.32
0.03
10.34%
HK:6199
Bank of Guizhou Co. Ltd. Class H
1.06
-0.33
-23.74%

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

Bank of Zhengzhou Restructures Governance Framework
Nov 10, 2025

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
Oct 30, 2025

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
Oct 17, 2025

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
Sep 18, 2025

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.

Bank of Zhengzhou Releases Interim Results for First Half of 2025
Aug 28, 2025

Bank of Zhengzhou Co., Ltd. has announced its unaudited consolidated interim results for the six months ended June 30, 2025. The interim results have been reviewed and confirmed by the Board and audit committee, and the full interim report will be available on the company’s and the Hong Kong Stock Exchange’s websites in September 2025.

Bank of Zhengzhou Proposes Governance Structure Changes
Aug 28, 2025

Bank of Zhengzhou Co., Ltd. has announced proposed amendments to its Articles of Association, which include the abolishment of the Board of Supervisors. The audit committee of the Board of Directors will assume the duties of the Board of Supervisors, streamlining governance in accordance with the Company Law of the People’s Republic of China. These changes aim to enhance corporate governance practices and require approval from shareholders and regulatory authorities.

Bank of Zhengzhou Announces Key Governance Changes at 2025 EGM
Aug 28, 2025

Bank of Zhengzhou Co., Ltd. has announced its first extraordinary general meeting for 2025, scheduled for September 18. The meeting will address significant changes, including amendments to the Articles of Association, the abolishment of the Board of Supervisors, and updates to the Rules of Procedure for both the Shareholders’ General Meeting and the Board of Directors. These changes could impact the governance structure and operational procedures of the bank, potentially affecting stakeholders and the bank’s strategic direction.

Bank of Zhengzhou Announces 2025 H Shareholders Meeting
Aug 28, 2025

Bank of Zhengzhou Co., Ltd. has announced the first H shareholders class meeting for 2025, scheduled for September 18, 2025. The meeting will address significant resolutions such as amendments to the Articles of Association and the abolishment of the Board of Supervisors, which could impact the bank’s governance structure and stakeholder engagement.

Bank of Zhengzhou Schedules Board Meeting to Review Interim Results
Aug 18, 2025

The Bank of Zhengzhou Co., Ltd. has announced a board meeting scheduled for August 28, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the bank’s financial performance and strategic direction, impacting its stakeholders and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 18, 2025