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Huishang Bank
(3698)
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Rating:69Neutral
Price Target:
HK$5.50
▲(10.00% Upside)
Action:Downgraded
Date:08/06/26
The score is supported primarily by very strong valuation (low P/E and high dividend yield). This is tempered by moderate financial-performance risk, driven by leverage and cash-flow volatility despite solid long-term earnings growth, while technicals are neutral-to-mildly positive and do not materially change the view.
Positive Factors
Diversified revenue mix
Huishang derives earnings from net interest income, fee/commission services and other non-interest income. This multi-channel revenue mix reduces reliance on a single income stream, improving resilience to interest-cycle swings and supporting steadier medium-term cash flows and strategic flexibility.
Negative Factors
Elevated leverage spike
A sharp rise in debt-to-equity to ~3.36 in 2025 signals a more aggressive funding profile and higher balance-sheet risk. Elevated leverage increases sensitivity to funding-cost shocks, may heighten regulatory capital scrutiny, and constrains strategic flexibility for lending or absorbing credit stress over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue mix
Huishang derives earnings from net interest income, fee/commission services and other non-interest income. This multi-channel revenue mix reduces reliance on a single income stream, improving resilience to interest-cycle swings and supporting steadier medium-term cash flows and strategic flexibility.
Read all positive factors
Huishang Bank (3698) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$66.88B
Dividend Yield5.87%
Average Volume (3M)6.09M
Price to Earnings (P/E)3.7
Beta (1Y)0.53
Revenue Growth1.22%
EPS Growth10.58%
CountryHK
Employees13,727
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.14
Shares Outstanding3,478,750,000
10 Day Avg. Volume6,506,176
30 Day Avg. Volume6,085,794
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)0.24
Price to Sales (P/S)0.53
P/FCF Ratio1.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.69Price Target Upside13.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.26
Revenue Forecast (FY)HK$39.81B
Huishang Bank Business Overview & Revenue Model
Company Description
Huishang Bank Corporation Limited, along with its associated entities, delivers a comprehensive suite of commercial banking services throughout the People's Republic of China. Its operations are structured into four main divisions: Corporate Banki...
How the Company Makes Money
Huishang Bank primarily earns money through (1) net interest income, generated by collecting interest on loans and other interest-earning assets while paying interest on customer deposits and other funding sources; profitability depends on loan gr...
Huishang Bank Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 54.16B | 75.91B | 33.76B | 27.80B | 29.36B | 22.16B |
| Gross Profit | 33.15B | 39.29B | 33.76B | 27.80B | 29.36B | 22.16B |
| EBITDA | 20.29B | 19.14B | 19.07B | 18.64B | 18.35B | 14.54B |
| Net Income | 16.49B | 16.10B | 15.41B | 14.43B | 13.40B | 11.46B |
Balance Sheet | ||||||
| Total Assets | 2.49T | 2.33T | 2.01T | 1.81T | 1.58T | 1.38T |
| Cash, Cash Equivalents and Short-Term Investments | 95.23B | 89.06B | 24.78B | 27.51B | 36.57B | 19.72B |
| Total Debt | 589.58B | 564.91B | 69.41B | 182.65B | 218.96B | 32.42B |
| Total Liabilities | 2.33T | 2.16T | 1.85T | 1.66T | 1.46T | 1.27T |
| Stockholders Equity | 154.52B | 167.95B | 157.45B | 142.98B | 119.61B | 108.56B |
Cash Flow | ||||||
| Free Cash Flow | 30.34B | 27.96B | -159.44B | 89.96B | 49.63B | 36.19B |
| Operating Cash Flow | 31.23B | 28.82B | -158.87B | 90.58B | 50.19B | 37.01B |
| Investing Cash Flow | -189.13B | -313.75B | -69.00B | -60.80B | -64.96B | -36.19B |
| Financing Cash Flow | 213.00B | 278.90B | 227.02B | -33.63B | 28.28B | -9.31B |
Huishang Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | HK$86.36B | 6.11 | 9.36% | 5.66% | 2.14% | 10.77% | |
71 Outperform | HK$37.34B | 6.51 | 13.77% | 4.00% | 7.03% | 27.69% | |
71 Outperform | HK$40.01B | 6.66 | 10.10% | 6.03% | 12.49% | 14.77% | |
69 Neutral | HK$66.88B | 3.68 | 10.23% | 5.87% | 1.22% | 10.58% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | HK$15.97B | 8.33 | 4.01% | 2.41% | ― | ― | |
55 Neutral | HK$22.04B | 2.88 | 10.77% | 7.87% | 0.12% | 2.46% |
* Financial Sector Average
HK:3698
Huishang Bank
4.90
1.62
49.53%
HK:3618
Chongqing Rural Commercial Bank Co
6.37
0.47
8.03%
HK:9889
Dongguan Rural Commercial Bank Co Ltd Class H
3.20
-0.31
-8.73%
HK:3866
Bank of Qingdao Co., Ltd. Class H
5.16
0.92
21.84%
HK:1963
Bank of Chongqing Co., Ltd. Class H
8.41
1.23
17.08%
HK:6196
Bank of Zhengzhou Co., Ltd. Class H
0.92
-0.43
-31.72%
Huishang Bank Corporate Events
Huishang Bank Shareholders Approve 2025 Results and Final Dividend at AGM
Jun 30, 2026
Huishang Bank held its 2025 annual general meeting in Hefei on June 30, 2026, where shareholders representing about 78% of voting shares participated either in person or by proxy. All resolutions were approved by poll except a supplemental resolut...
Huishang Bank Refines Audit Committee Mandate to Strengthen Governance
Jun 29, 2026
Huishang Bank has formalized updated terms of reference for its Board Audit Committee to strengthen corporate governance and internal supervision. The committee is defined as a specialized body overseeing internal controls, financial reporting and...
Huishang Bank Faces Competing Dividend Proposals at 2025 AGM
Jun 14, 2026
Huishang Bank has issued a supplemental notice for its 2025 annual general meeting after receiving an additional dividend proposal from three shareholder entities holding about 1.62% of its share capital. The new proposal will be put to a vote alo...
Huishang Bank Sets Alternative Dividend Plans for 2025, Warns of Shareholder Deadlock Risk
Jun 14, 2026
Huishang Bank has updated its final dividend announcement for the year ended 31 December 2025, outlining alternative cash distribution plans subject to shareholder approval at its upcoming annual general meeting. Shareholders will vote separately ...
Huishang Bank Sets 2025 AGM to Vote on Results, Capital Plans and A-Share IPO Extension
May 14, 2026
Huishang Bank has scheduled its 2025 annual general meeting for June 30, 2026, in Hefei, where shareholders will vote on its 2025 financial accounts, profit distribution plan, 2026 capital expenditure budget, and the appointment of external audito...
Huishang Bank Updates Final 2025 Dividend Timetable and Key Details
May 14, 2026
Huishang Bank Corporation Limited has updated details of its final cash dividend for the financial year ended 31 December 2025, declaring a payout of RMB 2.5 per 10 shares, inclusive of tax. The update confirms shareholder approval is scheduled fo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.