China Everbright Bank Co (6818) AI Stock Analysis

• Market Cap: $233.44B
• Dividend Yield: 5.79%
• Average Volume (3M): 14.61M
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.66
• Revenue Growth: -8.41%
• EPS Growth: -5.52%
• Country: HK
• Employees: 47,982
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.17
• Shares Outstanding: 12,678,735,000
• 10 Day Avg. Volume: 14,635,755
• 30 Day Avg. Volume: 14,610,726
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 10.59
• Enterprise Value/Revenue: 16.10
• Enterprise Value/Gross Profit: 20.09
• Enterprise Value/Ebitda: 47.22
• 1Y Price Target: $3.98
• Price Target Upside: 12.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: HK$3.50 ▼(-1.41% Downside)

The overall stock score is primarily driven by strong valuation metrics, indicating potential undervaluation and income potential. However, technical analysis suggests bearish momentum, which could pose short-term risks. Financial performance is solid but hampered by high leverage and operational efficiency concerns.

China Everbright Bank Co Business Overview & Revenue Model

Company Description

China Everbright Bank Company Limited provides a range of financial products and services to corporations and government agencies, retail customers, and individuals in Mainland China, Hong Kong, Luxembourg, Seoul, and Sydney. The company operates through Corporate Banking, Retail Banking, Financial Market Business, and Others segments. It offers demand, time, pledged, notice, RMB general and intelligent agreement, structured, and other deposits, as well as certificates of deposit; working capital, fixed asset, project financing, syndicated, entrusted, auto, and other loans; personal loans and advances; overdraft facilities; and credit and debit cards. The company also provides bills acceptance, investment banking, trade finance, agency, cash management, financial consulting and advisory, remittance and settlement, guarantee, wealth management, securities agency, inter-bank money market transactions and investment, repurchase transactions, equity investment and related, leasing, capital market, asset management, treasury, custody, and other financial services, as well as online, mobile, and private banking services. In addition, it trades in debt securities, derivatives, and foreign currency accounts. As of December 31, 2021, it operated 1,304 branches and outlets covering 150 economic center cities across the country. The company was founded in 1992 and is headquartered in Beijing, China.

How the Company Makes Money

China Everbright Bank generates revenue primarily through interest income from loans and advances to customers, which constitutes a significant portion of its earnings. It charges interest on various loan products, including personal loans, mortgages, and corporate loans. Additionally, the bank earns fee-based income from services such as account management, credit card transactions, and wealth management advisory services. Investment income from trading securities and structured products also contributes to the bank's revenue. Strategic partnerships with other financial institutions and participation in government-sponsored programs further enhance its earning potential. The bank's focus on digital banking solutions and technological innovations may also play a role in attracting new customers and retaining existing ones, thereby boosting overall profitability.

China Everbright Bank Co Financial Statement Overview

Summary

Overall, China Everbright Bank shows a stable financial base with strong equity and asset growth. However, challenges in revenue growth and cash flow generation need attention. The bank's ability to adjust financing and investing strategies reflects its adaptability, but sustaining profitability and improving cash flows are essential for long-term success.

Income Statement

China Everbright Bank has shown a mixed performance in terms of revenue and profitability. The gross profit margin remains healthy as it equals the total revenue, indicating no cost of goods sold. However, the net profit margin has fluctuated slightly, with a decrease in net income from 2022 to 2023. The revenue growth rate also shows inconsistency over the years, with a notable drop in 2023 compared to 2022. EBIT margin is unavailable for the latest period, which limits the analysis.

Balance Sheet

The bank maintains a solid equity base with a strong equity ratio, indicating financial stability. The debt-to-equity ratio has been effectively zero in the latest report, showing excellent leverage management. However, the return on equity has seen some decline, reflecting challenges in generating profits from equity. The bank's asset size has grown consistently, indicating positive growth trajectory.

Cash Flow

The cash flow analysis indicates potential challenges with negative free cash flow in recent years, particularly in 2023. The operating cash flow to net income ratio is negative, highlighting issues in cash generation from operating activities. Despite this, the bank has managed substantial cash and equivalents, showing its ability to maintain liquidity. Positive changes in investing and financing cash flows suggest strategic adjustments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.51B	94.66B	93.35B	100.93B	97.94B	142.48B
Gross Profit	123.03B	94.66B	145.65B	100.93B	97.94B	85.66B
EBITDA	52.34B	57.93B	0.00	61.93B	58.39B	165.18B
Net Income	41.83B	41.70B	40.79B	44.81B	43.41B	37.84B
Balance Sheet
Total Assets	7.24T	6.96T	6.77T	6.30T	5.90T	5.37T
Cash, Cash Equivalents and Short-Term Investments	621.98B	517.56B	538.28B	525.66B	574.23B	484.99B
Total Debt	1.40T	293.05B	1.30T	1.07T	953.89B	613.51B
Total Liabilities	6.64T	6.37T	6.22T	5.79T	5.42T	4.91T
Stockholders Equity	594.53B	587.70B	552.39B	507.88B	482.49B	453.45B
Cash Flow
Free Cash Flow	145.06B	-214.20B	-8.77B	-61.06B	-117.59B	110.30B
Operating Cash Flow	154.61B	-204.80B	-3.61B	-56.40B	-112.24B	117.16B
Investing Cash Flow	-64.72B	123.68B	-205.82B	-103.09B	-93.41B	-173.56B
Financing Cash Flow	-8.96B	85.00B	196.02B	70.57B	286.04B	86.76B

China Everbright Bank Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.55
• 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:6818, the sentiment is Negative. The current price of 3.55 is below the 20-day moving average (MA) of 3.61, below the 50-day MA of 3.77, and above the 200-day MA of 3.26, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 49.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6818.

China Everbright Bank Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.78B	11.94	9.89%	3.74%	9.69%	1.17%
6818	63 Neutral	$233.44B	5.02		5.79%	-8.41%	-5.52%
BNKHF	―	$50.60B	9.93	12.04%	5.08%	―	―
CGMBF	―	$26.87B	5.65	5.44%	4.84%	―	―
CHBJF	―	$58.09B	5.33		5.85%	―	―
HSNGF	―	$27.49B	15.69	9.20%	5.78%	―	―
1658	77 Outperform	HK$759.15B	6.39	9.63%	4.98%	-1.72%	2.83%

China Everbright Bank Co Corporate Events

China Everbright Bank Releases Q1 2025 Financial Results

China Everbright Bank Company Limited announced its unaudited financial results for the first quarter of 2025, prepared under International Financial Reporting Standards. The report was approved by the Board of Directors, ensuring the authenticity and completeness of the financial statements, which are expressed in Renminbi.

China Everbright Bank Co. Announces Board Committee Changes

China Everbright Bank Co. announced a change in the composition of its Board of Directors’ committees, with Mr. Huang Zhenzhong being appointed to several key committees. This strategic move, effective immediately, is part of the bank’s ongoing efforts to strengthen its governance and enhance its focus on social responsibility and consumer rights, potentially impacting its operational efficiency and stakeholder relations.

China Everbright Bank Announces Board Composition and Roles

China Everbright Bank Co has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides insights into the governance structure of the bank, which is crucial for stakeholders to understand the strategic direction and management oversight within the company.

China Everbright Bank Appoints New Independent Director

China Everbright Bank Co. announced the approval of Mr. Huang Zhenzhong’s appointment as an Independent Non-executive Director by the National Financial Regulatory Administration. This appointment, effective as of April 10, 2025, is expected to enhance the governance structure of the bank, potentially impacting its strategic direction and stakeholder confidence positively.

China Everbright Bank to Review Q1 2025 Financial Results

China Everbright Bank Co has announced that its board of directors will meet on April 25, 2025, to review and potentially approve the company’s first-quarter results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction for the year, impacting stakeholders and potentially influencing the bank’s market positioning.

China Everbright Bank Completes Shareholding Increase Plan

China Everbright Bank Co. announced the completion of a shareholding increase plan by its controlling shareholder, Everbright Group. The plan, which aimed to enhance the group’s stake in the bank, resulted in an increase of 121,943,100 A shares, representing 0.21% of the total share capital. This move is intended to demonstrate confidence in the bank’s future prospects and support its high-quality development. The shareholding increase plan was executed in compliance with relevant laws and regulations and did not alter the controlling shareholder or the listing conditions of the company’s shares.

China Everbright Bank Announces Final Dividend for 2024

China Everbright Bank Co. has announced a final ordinary cash dividend of RMB 0.85 per 10 shares for the financial year ending December 31, 2024. The payment date for this dividend is set for August 15, 2025, with further details regarding the exchange rate, ex-dividend date, and other related information to be announced. This announcement reflects the company’s commitment to returning value to its shareholders and may influence investor sentiment and market positioning.

China Everbright Bank Announces 2024 Financial Results and Dividend Plan

China Everbright Bank Co. has announced its audited results for the year ending December 31, 2024, with the full annual report to be published in April 2025. The company plans to distribute final cash dividends amounting to RMB5.022 billion, subject to approval at the 2024 AGM, with payments expected around August 15, 2025.

China Everbright Bank Schedules Board Meeting to Discuss Annual Results and Dividend

China Everbright Bank Co. has announced a board meeting scheduled for March 28, 2025, to discuss and potentially approve the company’s annual results for the year ending December 31, 2024, and to consider the recommendation of a final dividend. This meeting is significant as it will address the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.