This Chinese Bank Has Received A-Rating From Shenzhen Stock Exchange for 9 Consecutive Years

Chinese Bank A-rated on information disclosure for 9 years now

Bank of Ningbo (002142) is a full-service private Chinese bank. The Bank is among the 222 Chinese stocks (FXI) (YINN) (MCHI) that are a part of the MSCI’s simulated list of constituents for inclusion into its Emerging Markets Index (EEM) (VWO), in 2018. Recently the Shenzhen Stock Exchange (SZSE) finished the appraisal of listed companies based on information disclosure for 2016. Bank of Ningbo has been receiving an A-rating from the SZSE for 9 consecutive years now, setting a strong example for the market with the quality of their work in information disclosing.

Security NameTickerMkt Cap ($bn)Fwd EPSFwd P/EAnalyst RatingSector- IndustryYTD Return
Bank of Ningbo Co., Ltd. A002142       77.222.208.14.0Financials- Banks16.6%
Data as of date June 19, 2017, Returns as of July 3

 

Seeking to raise its capital ratio

The bank is currently looking towards a $1.45 billion (10 billion yuan) private share sale to raise its capital ratio. The move comes amid the CBRC’s (China Banking Regulatory Commission) call for the banking industry to boost capital.

Valuations

The Shenzhen-listed stock 002142 is up 16.6% YTD (as of July 3). Over a 5-year period, the stock has returned 18.4% on average. On a relative basis, its blended forward P/E stands at 8.1x, while the mean of blended forward P/E’s of its competitor group (including Bank of Ningbo) equals 6.3x. The latest filing P/BV of the stock is 1.7x when the group average stood at 1.0x. Nonetheless, consensus analyst ratings hold the company at a 4 score with 73.3% of analysts with a BUY recommendation, 13.3% with a HOLD recommendation, and 13.3% with a SELL recommendation on the stock.

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