Dongguan Rural Commercial Bank Co Ltd Class H (9889) AI Stock Analysis

• Market Cap: HK$23.77B
• Dividend Yield: 7.99%
• Average Volume (3M): 133.59K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.37
• Revenue Growth: -7.29%
• EPS Growth: -14.37%
• Country: HK
• Employees: 7,859
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 1,148,091,000
• 10 Day Avg. Volume: 173,100
• 30 Day Avg. Volume: 133,590
• PEG Ratio: -0.58
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 3.23
• P/FCF Ratio: -0.60
• 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: 58 Neutral
• Price Target: HK$4.00 ▲(14.29% Upside)

Dongguan Rural Commercial Bank's overall stock score is primarily influenced by its strong valuation, offering a low P/E ratio and high dividend yield. However, financial performance challenges, including declining revenue and negative cash flows, along with weak technical indicators, weigh down the score.

Positive Factors

Profit Margins

Strong profit margins indicate efficient cost management and pricing power, which can sustain profitability even in challenging market conditions.

Local Market Knowledge

Local market expertise allows the bank to tailor services effectively, enhancing customer loyalty and competitive positioning in its regional market.

Strategic Partnerships

Strategic partnerships can expand service offerings and customer base, driving long-term growth and resilience against market fluctuations.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests challenges in market expansion and customer acquisition, potentially impacting future profitability and market share.

High Leverage

High leverage increases financial risk, limiting the company's ability to invest in growth opportunities and withstand economic downturns.

Negative Cash Flows

Negative cash flows indicate difficulties in converting profits to cash, which can strain liquidity and hinder operational and strategic flexibility.

Dongguan Rural Commercial Bank Co Ltd Class H Business Overview & Revenue Model

Company Description

Dongguan Rural Commercial Bank Co., Ltd. provides various commercial banking products and services in Dongguan. It operates through Corporate Banking, Personal Banking, Treasury, and Others segments. Its Corporate Banking segment offers various corporate banking products and services, including corporate loans and advances, corporate deposits, and trade finance; and engages in other corporate intermediary businesses. The company's Personal Banking segment provides banking products and services to individual customers comprising personal loans and advances, personal deposits, and bank cards; and engages in various other individual intermediary businesses. The Treasury segment includes money market transactions, repurchase transactions, debt instrument investments, wealth management products, and precious metals. As of December 31, 2021, the company operated 504 branches and sub-branches, as well as 1,072 automatic teller machines, 365 self-service enquiry terminals, 53 self-service card issuing terminals, and 319 intelligent service terminals. Dongguan Rural Commercial Bank Co., Ltd. was founded in 1952 and is headquartered in Dongguan, the People's Republic of China.

How the Company Makes Money

Dongguan Rural Commercial Bank Co Ltd generates revenue primarily through interest income from its lending activities, which include personal loans, corporate loans, and mortgages. The bank also earns money from non-interest income sources such as fees and commissions from wealth management services, transaction services, and other financial products. Additionally, the bank benefits from its extensive network and local market knowledge, which helps in forming strategic partnerships and alliances to enhance its service offerings and customer base, further boosting its revenue streams.

Dongguan Rural Commercial Bank Co Ltd Class H Financial Statement Overview

Summary

Dongguan Rural Commercial Bank shows strong profitability with robust profit margins. However, it faces significant challenges with declining revenue growth and negative cash flows. High leverage also poses risks, necessitating improvements in cash flow conversion and debt management.

Income Statement

Dongguan Rural Commercial Bank's income statement shows mixed results. The gross profit margin and net profit margin are strong, indicating profitability. However, the revenue has been declining over the past two years, with a revenue growth rate of -11.15% from 2023 to 2024. The EBIT margin remains healthy, but the lack of EBITDA data is a shortcoming.

Balance Sheet

The balance sheet presents a stable equity base with an equity ratio of 7.98% in 2024. However, the debt-to-equity ratio is high, with total debt significantly exceeding stockholders' equity, posing potential leverage risks. Return on equity is decent but has decreased from the previous year.

Cash Flow

The cash flow statement indicates challenges with negative operating and free cash flows in 2024. The operating cash flow to net income ratio is negative, suggesting issues in converting profits to cash. Despite this, the company has managed its financing activities to raise cash, which is a positive aspect.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.97B	8.83B	9.94B	11.00B	10.55B	9.27B
Gross Profit	7.97B	8.83B	9.94B	13.23B	12.94B	9.27B
EBITDA	0.00	4.53B	5.59B	6.71B	6.38B	0.00
Net Income	4.08B	4.62B	5.16B	5.93B	5.59B	4.86B
Balance Sheet
Total Assets	760.45B	745.90B	708.85B	657.69B	593.36B	548.40B
Cash, Cash Equivalents and Short-Term Investments	56.94B	53.07B	21.97B	54.00B	47.73B	52.41B
Total Debt	105.31B	84.04B	12.12B	64.51B	68.32B	50.70B
Total Liabilities	697.81B	683.44B	651.37B	603.87B	543.38B	509.76B
Stockholders Equity	59.83B	59.55B	54.65B	51.13B	47.38B	36.15B
Cash Flow
Free Cash Flow	0.00	-47.22B	-12.29B	28.94B	-16.40B	19.74B
Operating Cash Flow	0.00	-46.97B	-12.09B	29.28B	-16.02B	20.31B
Investing Cash Flow	0.00	22.22M	-22.80B	-20.03B	-8.69B	-2.70B
Financing Cash Flow	0.00	40.57B	31.59B	37.64B	20.66B	-11.50B

Dongguan Rural Commercial Bank Co Ltd Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.50
• 50DMA: Positive
• 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:9889, the sentiment is Positive. The current price of 3.5 is above the 20-day moving average (MA) of 3.44, above the 50-day MA of 3.43, and below the 200-day MA of 3.50, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.30 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9889.

Dongguan Rural Commercial 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%
3866	67 Neutral	HK$30.35B	5.61	―	4.45%	4.33%	17.13%
6196	66 Neutral	HK$17.09B	6.79	―	1.89%	-5.02%	-3.28%
9889	58 Neutral	HK$23.77B	5.40	7.20%	7.99%	-7.29%	-14.37%
9677	58 Neutral	HK$15.19B	6.89	8.48%	3.57%	6.65%	16.74%
9668	55 Neutral	HK$16.16B	3.39	5.51%	―	-5.76%	18.15%
1551	53 Neutral	HK$21.87B	12.26	―	3.20%	-3.87%	22.34%

Dongguan Rural Commercial Bank Co Ltd Class H Corporate Events

Dongguan Rural Commercial Bank Overhauls Governance, Dissolves Supervisory Board and Appoints New INEDs

Dongguan Rural Commercial Bank Co., Ltd. announced that its 2026 first extraordinary general meeting, alongside separate domestic and H share class meetings held on 8 January 2026 in Dongguan, successfully passed all proposed resolutions by poll, with shareholders representing about 29.57% of total issued shares in attendance. The resolutions included dissolving the Bank’s Board of Supervisors, amending the working rules for independent directors and the remuneration system for directors and supervisors, and appointing Mr. Chan Kwok Fung, Dennis and Mr. Li Yanwen as independent non-executive directors to the fifth session of the Board, signaling a significant reshaping of the Bank’s governance structure and potentially strengthening its oversight and board independence for stakeholders.

The most recent analyst rating on (HK:9889) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Dongguan Rural Commercial Bank Co Ltd Class H stock, see the HK:9889 Stock Forecast page.

Dongguan Rural Commercial Bank Calls 2026 EGM to Overhaul Governance and Board Structure

Dongguan Rural Commercial Bank Co., Ltd. has convened its first extraordinary general meeting of 2026 for January 8 in Dongguan, where shareholders will vote on a broad package of corporate governance and organizational changes. The agenda includes dissolving the board of supervisors, revising the working rules for independent directors and the remuneration system for directors and supervisors, appointing four new independent non-executive directors to the fifth board, adjusting 2025 caps for related-party transactions and recurring related-party dealings involving directors, supervisors and senior management, and amending the bank’s articles of association, procedural rules for the shareholders’ meeting and board, and the authorization framework from shareholders to the board. The resolutions, if approved, will reshape oversight structures, update governance documentation and refine controls over connected transactions, signaling an effort to tighten governance and board accountability as the lender heads into 2025 and beyond.

The most recent analyst rating on (HK:9889) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Dongguan Rural Commercial Bank Co Ltd Class H stock, see the HK:9889 Stock Forecast page.

Dongguan Rural Commercial Bank Calls 2026 H Shareholders Meeting to Amend Governance Documents

Dongguan Rural Commercial Bank has called its first 2026 H shareholders class meeting for January 8, 2026 in Dongguan, immediately following its extraordinary general meeting and domestic shareholders class meeting, to seek approval from H shareholders for special resolutions to amend its Articles of Association and the Rules of Procedure for shareholders’ general meetings. The bank has set a register closure period from December 9, 2025 to January 8, 2026 to determine H shareholders’ eligibility to attend and vote, and has detailed proxy and voting arrangements, underscoring its intention to refine corporate governance structures and formal meeting procedures, with potential implications for how shareholder rights and bank oversight are exercised going forward.

The most recent analyst rating on (HK:9889) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Dongguan Rural Commercial Bank Co Ltd Class H stock, see the HK:9889 Stock Forecast page.

Dongguan Rural Commercial Bank Announces Governance Changes

Dongguan Rural Commercial Bank Co., Ltd. has announced the proposed appointment of four independent non-executive directors, which will be subject to shareholder and regulatory approval. This move is part of a broader strategy involving amendments to the Articles of Association and the dissolution of the Board of Supervisors, potentially impacting the bank’s governance structure and stakeholder relations.

The most recent analyst rating on (HK:9889) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Dongguan Rural Commercial Bank Co Ltd Class H stock, see the HK:9889 Stock Forecast page.

Dongguan Rural Commercial Bank Elects New Employee Director

Dongguan Rural Commercial Bank Co., Ltd. announced the election of Mr. Chen Sheng as the employee director for its fifth session of the Board of Directors, pending regulatory approval. Mr. Chen, who has a strong background in the banking sector and has held various leadership roles, will not receive additional remuneration for his director role but will be compensated for his other positions within the bank.

The most recent analyst rating on (HK:9889) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Dongguan Rural Commercial Bank Co Ltd Class H stock, see the HK:9889 Stock Forecast page.

Dongguan Rural Commercial Bank Announces Key Resignations and Plans for New Appointments

Dongguan Rural Commercial Bank Co., Ltd. announced the resignation of several independent non-executive directors and the chairman of the board of supervisors due to the completion of their terms and organizational work arrangements. The bank expressed gratitude for their contributions and plans to elect new directors in compliance with relevant regulations, ensuring continuity in its governance structure.

The most recent analyst rating on (HK:9889) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Dongguan Rural Commercial Bank Co Ltd Class H stock, see the HK:9889 Stock Forecast page.

Dongguan Rural Commercial Bank Releases Q3 2025 Financial Data

Dongguan Rural Commercial Bank Co., Ltd. has released its unaudited financial and operational data for the third quarter of 2025, reporting total assets of RMB 7,697.05 million and a net profit of RMB 37.04 million. The announcement highlights that the data is prepared according to China Accounting Standards and may not be directly comparable to international standards, indicating potential risks for stakeholders relying solely on this information for investment decisions.

The most recent analyst rating on (HK:9889) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Dongguan Rural Commercial Bank Co Ltd Class H stock, see the HK:9889 Stock Forecast page.