BOC Hong Kong (Holdings) (BHKLY) AI Stock Analysis

• Market Cap: $51.68B
• Dividend Yield: 4.94%
• Average Volume (3M): 354.00
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.08
• Revenue Growth: 2.28%
• EPS Growth: 13.23%
• Country: US
• Employees: 15,309
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 528,639,000
• 10 Day Avg. Volume: 185
• 30 Day Avg. Volume: 354
• PEG Ratio: 0.41
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 3.66
• P/FCF Ratio: -814.53
• Enterprise Value/Market Cap: 2.01
• Enterprise Value/Revenue: 4.02
• Enterprise Value/Gross Profit: 4.02
• Enterprise Value/Ebitda: -3.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ―

BOC Hong Kong (Holdings) demonstrates strong financial health with significant revenue growth and profitability, supported by a robust balance sheet. The positive technical trend and attractive valuation further enhance its stock appeal. However, the negative free cash flow and lack of detailed earnings call insights are areas to monitor.

BOC Hong Kong (Holdings) Business Overview & Revenue Model

Company Description

BOC Hong Kong (Holdings) Limited (BHKLY) is a leading commercial banking group in Hong Kong. It operates as a subsidiary of Bank of China (BOC) and offers a wide range of financial products and services. These include retail banking, corporate banking, treasury operations, and investment management, catering to individual, corporate, and institutional clients. The bank is known for its extensive network of branches and its strong presence in the Hong Kong banking sector.

How the Company Makes Money

BOC Hong Kong makes money primarily through interest income, which is earned from loans and advances to customers. The bank also generates non-interest income from fees and commissions related to its retail and corporate banking services, such as account management, credit card services, trade finance, and wealth management. Additionally, the bank earns revenue through its treasury operations, which involve trading and investment activities in the money and capital markets. BOC Hong Kong's earnings are further supported by strategic partnerships and its relationship with its parent company, Bank of China, which enhances its ability to offer competitive banking solutions and expand its client base.

BOC Hong Kong (Holdings) Financial Statement Overview

Summary

BOC Hong Kong (Holdings) exhibits a robust financial position with strong revenue growth and profitability margins. The balance sheet is healthy with no debt, but cash flow management needs attention due to negative free cash flow and declining operating cash flows. However, the company maintains a strong equity position and solid return on equity.

Income Statement

BOC Hong Kong (Holdings) showed a strong income statement performance with a notable increase in total revenue from 2023 to 2024. The net profit margin for 2024 was approximately 53.22%, which is robust, indicating effective cost management despite a decrease in reported EBIT and EBITDA. Revenue growth from 2023 to 2024 was approximately 21.44%, highlighting strong performance in generating sales.

Balance Sheet

The balance sheet is solid, characterized by zero total debt in 2024, reflecting strong financial stability. The equity ratio stands at approximately 8.07%, indicating that a smaller portion of the company's assets is financed by equity. However, the return on equity (ROE) is strong at approximately 11.28% for 2024, reflecting efficient utilization of shareholders' equity.

Cash Flow

Cash flow analysis reveals some challenges, as the operating cash flow significantly decreased from 2023 to 2024. The negative free cash flow is a concern, driven by higher capital expenditures. The operating cash flow to net income ratio is low, suggesting potential cash generation issues relative to net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.88B	71.84B	59.16B	51.87B	46.83B	94.50B
Gross Profit	25.88B	71.84B	152.42B	53.00B	65.28B	51.76B
EBITDA	-26.24B	0.00	44.07B	36.50B	33.22B	0.00
Net Income	40.34B	38.23B	32.72B	27.33B	24.35B	27.86B
Balance Sheet
Total Assets	4.40T	4.19T	3.87T	3.69T	3.64T	3.32T
Cash, Cash Equivalents and Short-Term Investments	0.00	683.00B	418.20B	364.93B	389.36B	314.25B
Total Debt	85.26B	77.06B	669.39B	630.20B	716.53B	541.66B
Total Liabilities	4.05T	3.85T	3.55T	3.38T	3.34T	3.02T
Stockholders Equity	347.06B	338.72B	320.14B	323.26B	298.00B	290.30B
Cash Flow
Free Cash Flow	-239.96B	-323.00M	15.21B	136.84B	42.21B	16.17B
Operating Cash Flow	-239.07B	1.88B	15.60B	138.10B	43.38B	17.49B
Investing Cash Flow	-1.51B	-2.33B	-1.96B	-42.97B	-265.72B	-109.90B
Financing Cash Flow	28.41B	-22.76B	138.12B	-61.86B	293.58B	203.23B

BOC Hong Kong (Holdings) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 99.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHKLY, the sentiment is Positive. The current price of 99.05 is above the 20-day moving average (MA) of 94.83, above the 50-day MA of 94.95, and above the 200-day MA of 81.77, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 65.48 is Neutral, neither overbought nor oversold. The STOCH value of 99.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BHKLY.

BOC Hong Kong (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BHKLY	―	$51.68B	9.98	12.04%	4.94%	2.28%	13.23%
ITUB	―	$73.10B	10.16	20.49%	5.90%	5.44%	2.81%
HDB	―	$175.28B	22.45	14.17%	0.19%	-1.78%	0.65%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LYG	―	$69.03B	15.56	7.85%	3.62%	-20.94%	-18.71%
MFG	―	$81.47B	14.20	8.69%	1.44%	-2.22%	24.37%
WF	―	$13.09B	6.97	8.90%	3.39%	-3.55%	1.59%