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

• Market Cap: HK$24.73B
• Dividend Yield: 7.53%
• Average Volume (3M): 562.74K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.31
• Revenue Growth: -7.29%
• EPS Growth: -14.37%
• Country: HK
• Employees: 7,859
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.23
• Shares Outstanding: 1,148,091,000
• 10 Day Avg. Volume: 597,300
• 30 Day Avg. Volume: 562,738
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$4.02
• Price Target Upside: 11.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: HK$4.00 ▲(11.11% 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.

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 solid profit margins. However, it faces challenges with declining revenue, high leverage, and negative cash flows. Improvements in cash flow management and debt reduction are necessary.

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	8.45B	8.83B	9.94B	11.00B	10.55B	9.27B
Gross Profit	8.45B	8.83B	9.94B	13.23B	12.94B	9.27B
EBITDA	2.68B	4.53B	5.59B	6.71B	6.38B	0.00
Net Income	4.34B	4.62B	5.16B	5.93B	5.59B	4.86B
Balance Sheet
Total Assets	753.79B	745.90B	708.85B	657.69B	593.36B	548.40B
Cash, Cash Equivalents and Short-Term Investments	0.00	16.62B	21.97B	53.89B	47.77B	52.09B
Total Debt	94.28B	17.13B	12.12B	64.51B	11.70B	11.66B
Total Liabilities	690.72B	683.44B	651.37B	603.87B	543.38B	509.76B
Stockholders Equity	60.17B	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: Negative
• Last Price: 3.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Negative. The current price of 3.6 is below the 20-day moving average (MA) of 3.68, below the 50-day MA of 3.75, and above the 200-day MA of 3.50, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 49.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
9677	70 Outperform	HK$17.22B	7.81	―	3.81%	6.65%	16.74%
9668	69 Neutral	HK$18.29B	3.83	―	―	-5.76%	18.15%
3866	68 Neutral	HK$28.19B	5.71	9.71%	4.10%	4.33%	17.13%
6196	67 Neutral	HK$17.59B	7.75	―	1.73%	-5.02%	-3.28%
9889	58 Neutral	HK$24.73B	5.62	7.20%	7.53%	-7.29%	-14.37%
1551	56 Neutral	HK$24.04B	13.47	―	2.96%	-3.87%	22.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Dongguan Rural Commercial Bank Co Ltd Class H Corporate Events

Dongguan Rural Commercial Bank Releases 2025 Interim Results

Dongguan Rural Commercial Bank Co., Ltd. announced its unaudited consolidated interim results for the first half of 2025, which have been reviewed and confirmed by its audit committee. The announcement, available on the Hong Kong Stock Exchange and the bank’s website, highlights the bank’s operational performance and financial indicators, providing stakeholders with insights into its business operations and future outlook.

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 Schedules Board Meeting for Interim Results

Dongguan Rural Commercial Bank Co., Ltd. has announced that its Board of Directors will meet on August 28, 2025, to approve and publish the interim results for the first half of 2025. This meeting is significant as it will provide insights into the bank’s financial performance and strategic direction, potentially impacting stakeholders’ perceptions and the bank’s positioning in the financial industry.