Bank of Communications Co (3328) AI Stock Analysis

• Market Cap: $613.57B
• Dividend Yield: 6.17%
• Average Volume (3M): 21.02M
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.58
• Revenue Growth: N/A
• EPS Growth: -1.13%
• Country: HK
• Employees: 95,746
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.23
• Shares Outstanding: 30,457,863,000
• 10 Day Avg. Volume: 18,257,903
• 30 Day Avg. Volume: 21,020,451
• 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: 5.37
• Enterprise Value/Revenue: 10.61
• Enterprise Value/Gross Profit: 13.35
• Enterprise Value/Ebitda: 32.08
• 1Y Price Target: $8.08
• Price Target Upside: 21.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: HK$7.50 ▲(12.44% Upside)

The overall stock score is driven primarily by strong financial performance and attractive valuation. Despite weak technical indicators suggesting bearish trends, the stock's low P/E ratio and high dividend yield make it appealing for value investors. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Negative Factors

Bank of Communications Co Business Overview & Revenue Model

Company Description

Bank of Communications Co., Ltd. provides commercial banking products and services. The company offers personal banking products and services, including demand, time, call, withdrawal, foreign currency, swap management, and education deposits, as well as certificate of deposits; credit and debit cards; housing and personal loans; and wealth management products, and wealth management advisory and consulting services. It also provides corporate banking products and services, such as corporate time and demand structured deposits; cash management services, such as accounts receivable/accounts payable management, account management, liquidity management, and investment and financing management; financing, settlement, and risk management services; financing services; syndicated loans; overdrafts; investment banking services; offshore banking services, including forex deposit and loan, inter-bank loan, international settlement, forex trading and guarantee, business advisory, and other services; and precious metal leasing and commodity trading services. In addition, the company offers international banking services comprising corporate foreign exchange wealth management, import and export settlement, document settlement, remittance and bill, trade finance, and offshore banking services. Further, it provides treasury, asset management, trustee, insurance, financial leasing, debt-to-equity swap, and other financial services; trust investment, fund management, securities dealing and brokerage, and reinsurance services; and e-banking services. It has 245 branches and 3,025 banking outlets in Mainland China; 22 overseas branches and 68 overseas banking outlets, as well as representative offices in 17 countries. Bank of Communications Co., Ltd. was founded in 1908 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Bank of Communications generates revenue primarily through interest income from loans and advances to customers, which constitutes a significant portion of its earnings. The bank charges interest on various types of loans, including personal loans, corporate loans, and mortgages. Additionally, it earns fees and commissions from services such as transaction banking, wealth management, and investment banking activities. The bank also generates income through the management of assets and investments. Significant partnerships with corporations and government entities enhance its service offerings and contribute to revenue growth. Furthermore, the bank's diversified financial services portfolio allows it to capitalize on various market opportunities, thereby stabilizing its income streams.

Bank of Communications Co Financial Statement Overview

Summary

Bank of Communications Co shows strong revenue growth and efficient cost management, with high gross profit margins. The balance sheet reflects a balanced leverage position, though there is a slight decline in return on equity. Cash flow metrics indicate improved cash generation, despite challenges in converting income to cash.

Income Statement

The income statement shows strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 26.69%. The gross profit margin is high at 80.24%, indicating efficient cost management. However, the net profit margin has decreased from 45.20% in 2024 to 29.19% in TTM, suggesting increased expenses or reduced profitability. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.92 in TTM, showing a balanced approach to leveraging. Return on equity is slightly lower at 7.97% compared to previous years, indicating a slight dip in profitability relative to equity. The equity ratio remains stable, suggesting a strong capital structure.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 27.23% in TTM, indicating better cash generation capabilities. The operating cash flow to net income ratio is low, suggesting potential challenges in converting income to cash. However, the free cash flow to net income ratio is healthy at 80.62%, reflecting good cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	310.68B	207.03B	200.62B	196.38B	202.74B	184.49B
Gross Profit	246.81B	207.03B	200.62B	196.38B	202.74B	184.49B
EBITDA	102.71B	122.85B	0.00	114.27B	108.80B	0.00
Net Income	94.31B	93.59B	92.73B	92.10B	87.58B	78.27B
Balance Sheet
Total Assets	15.44T	14.90T	14.06T	12.99T	11.67T	10.70T
Cash, Cash Equivalents and Short-Term Investments	1.51T	1.44T	1.56T	1.44T	1.29T	1.35T
Total Debt	1.19T	641.92B	1.07T	955.47B	970.54B	482.89B
Total Liabilities	14.13T	13.75T	12.96T	11.96T	10.69T	9.82T
Stockholders Equity	1.29T	1.14T	1.09T	1.02T	964.65B	866.61B
Cash Flow
Free Cash Flow	176.21B	-99.52B	89.73B	336.57B	-57.72B	125.25B
Operating Cash Flow	218.57B	-57.35B	137.32B	368.22B	-34.77B	149.40B
Investing Cash Flow	-298.43B	-98.09B	-116.62B	-284.90B	-75.55B	-94.59B
Financing Cash Flow	146.86B	42.52B	4.89B	-32.98B	1.31B	88.28B

Bank of Communications Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.67
• 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:3328, the sentiment is Negative. The current price of 6.67 is below the 20-day moving average (MA) of 6.79, below the 50-day MA of 7.00, and above the 200-day MA of 6.64, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 38.45 is Neutral, neither overbought nor oversold. The STOCH value of 23.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3328.

Bank of Communications Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1398	78 Outperform	2.63T	5.34	0.00%	5.89%	-3.35%	0.58%
1658	77 Outperform	740.89B	6.24	0.00%	5.05%	-1.72%	2.83%
1288	77 Outperform	2.48T	5.99	9.09%	4.96%	-1.70%	11.36%
0939	77 Outperform	2.04T	5.29	10.10%	5.68%	-3.01%	0.90%
3988	77 Outperform	1.58T	4.99	0.00%	6.04%	-1.13%	2.56%
3328	73 Outperform	$613.57B	5.25	8.80%	6.17%	―	-1.13%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Bank of Communications Co Corporate Events

Bank of Communications Announces Key Governance Meeting

Bank of Communications Co., Ltd. has announced an extraordinary general meeting to be held on September 25, 2025, in Shanghai. The meeting will address the re-election and appointment of various executive, non-executive, and independent non-executive directors, as well as proposed amendments to the bank’s procedural rules. These decisions are expected to impact the bank’s governance structure and align its operations with regulatory requirements, potentially influencing its strategic direction and stakeholder engagement.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$8.20 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Announces Interim Dividend for 2025

Bank of Communications Co., Ltd. has announced a proposed interim dividend distribution for the six months ending June 30, 2025. The dividend declared is RMB 1.563 per 10 shares, with the option for payment in Hong Kong dollars. Details such as the exchange rate, ex-dividend date, and payment date are yet to be announced. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may impact its market positioning by potentially attracting more investors.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$8.20 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Withdraws Proposed Interim Dividend

Bank of Communications Co., Ltd. announced the withdrawal of its proposed interim dividend for the six months ended June 30, 2025. The announcement, initially declared at RMB 1.563 per 10 shares, has been superseded by a new form, indicating potential changes in the company’s dividend distribution strategy. This decision may impact shareholder expectations and reflects ongoing adjustments in the company’s financial planning.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$8.20 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Addresses Director’s Reprimand by AFRC

The Bank of Communications Co., Ltd. announced that the Accounting and Financial Reporting Council (AFRC) reprimanded Mr. Wong Tin Chak, an Independent Non-Executive Director, for audit deficiencies related to revenue recognition from over a decade ago. Despite the reprimand and fines imposed on Mr. Wong, the bank’s Board of Directors believes this will not impact his ability to fulfill his duties, as the misconduct was not found to be intentional or dishonest.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$8.20 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Co. Proposes New Board Appointments

Bank of Communications Co., Ltd. announced the proposed appointment of Ms. Liu Ruixia as an independent non-executive director and the re-election of several directors at its upcoming extraordinary general meeting. This move is part of the bank’s ongoing efforts to strengthen its board with experienced professionals, potentially impacting its strategic direction and governance. The appointments are subject to shareholder approval and regulatory review, indicating a focus on compliance and strategic leadership.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$8.20 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Announces 2025 Interim Profit Distribution Plan

Bank of Communications Co., Ltd. announced its 2025 interim profit distribution plan, which was approved by its board of directors. The plan proposes a cash dividend of RMB1.563 per 10 shares, totaling RMB13,811 million, to be distributed to registered shareholders. The distribution plan is subject to approval at the general meeting and does not involve issuing bonus shares or increasing share capital. The bank will maintain the total cash dividends unchanged if the number of ordinary shares changes due to various corporate actions, with specific adjustments to be announced separately.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$8.20 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Announces Interim Dividend for 2025

Bank of Communications Co., Ltd. has announced a proposed distribution of an interim dividend for the six months ending 30 June 2025, with a declared dividend of RMB 1.563 per 10 shares. This announcement reflects the company’s financial performance and commitment to returning value to shareholders, although specific details such as the ex-dividend date and payment date are yet to be announced.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$8.20 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Proposes Amendments to Procedural Rules

Bank of Communications Co., Ltd. has announced proposed amendments to its Procedural Rules, which include the Shareholders’ General Meeting and the Board’s Procedural Rules. These amendments are intended to align with the amended articles of association and regulatory requirements, and are subject to approval by the shareholders and the National Financial Regulatory Administration. The changes aim to enhance the governance framework of the bank, potentially impacting its operational efficiency and regulatory compliance.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$8.20 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.

Bank of Communications Announces Dividend Distribution for Preference Shares

Bank of Communications Co., Ltd. has announced the approval and implementation of a dividend distribution plan for its RMB45 billion Non-Cumulative Perpetual Domestic Preference Shares, known as BOCOM PREF1. The dividend, set at a rate of 4.07%, will be distributed to shareholders on September 8, 2025, with a total payout of RMB1.8315 billion. This move underscores the bank’s commitment to providing returns to its investors and maintaining its position in the financial market.

The most recent analyst rating on (HK:3328) stock is a Buy with a HK$8.20 price target. To see the full list of analyst forecasts on Bank of Communications Co stock, see the HK:3328 Stock Forecast page.