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Dongguan Rural Commercial Bank Co Ltd Class H (HK:9889)
:9889

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

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HK

Dongguan Rural Commercial Bank Co Ltd Class H

(Frankfurt:9889)

Rating:57Neutral
Price Target:
Dongguan Rural Commercial Bank's stock is challenged by declining revenue and cash flow issues, alongside high leverage, which are significant risks. However, its strong profitability margins and attractive valuation with a low P/E ratio and high dividend yield offer some upside potential. The technical indicators suggest a bearish trend, which could limit near-term stock performance.

Dongguan Rural Commercial Bank Co Ltd Class H (9889) vs. iShares MSCI Hong Kong ETF (EWH)

Dongguan Rural Commercial Bank Co Ltd Class H Business Overview & Revenue Model

Company DescriptionDongguan 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 MoneyDongguan Rural Commercial Bank Co Ltd generates revenue through various streams typical of banking institutions. The primary source of income is from interest earned on loans and advances made to customers, which include both individuals and businesses. The bank also earns revenue from fees and commissions associated with its financial services such as wealth management, payment processing, and other ancillary banking services. Additionally, the bank invests in financial markets and may earn income from its investment activities. Partnerships with other financial institutions and local enterprises can also contribute to its revenue, providing diversified income through strategic collaborations and joint financial products.

Dongguan Rural Commercial Bank Co Ltd Class H Financial Statement Overview

Summary
Dongguan Rural Commercial Bank shows strong profitability but faces challenges in revenue growth and cash flow management. High leverage and declining revenue are potential risks, while profitability margins are robust. The company should focus on improving cash flow conversion and managing debt levels to strengthen its financial position.
Income Statement
62
Positive
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
58
Neutral
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
50
Neutral
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
12.63B9.94B13.23B12.94B11.97B
Gross Profit
12.63B9.94B13.23B12.94B11.97B
EBIT
4.23B5.27B17.98B5.88B5.17B
EBITDA
0.00219.49M0.000.000.00
Net Income Common Stockholders
4.62B5.16B5.93B5.59B4.86B
Balance SheetCash, Cash Equivalents and Short-Term Investments
16.62B21.97B53.89B47.77B52.09B
Total Assets
745.90B708.85B657.69B593.36B548.40B
Total Debt
17.13B12.12B64.51B68.32B50.70B
Net Debt
506.23M-9.85B10.62B20.55B-1.39B
Total Liabilities
683.44B651.37B603.87B543.38B509.76B
Stockholders Equity
59.55B54.65B51.13B47.38B36.15B
Cash FlowFree Cash Flow
-47.22B-12.29B28.94B-16.40B19.74B
Operating Cash Flow
-46.97B-12.09B29.28B-16.02B20.31B
Investing Cash Flow
22.22M-22.80B-20.03B-8.69B-2.70B
Financing Cash Flow
40.57B31.59B-7.70B20.66B-11.50B

Dongguan Rural Commercial Bank Co Ltd Class H Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.56
Price Trends
50DMA
3.45
Positive
100DMA
3.60
Negative
200DMA
4.00
Negative
Market Momentum
MACD
0.06
Negative
RSI
55.98
Neutral
STOCH
48.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9889, the sentiment is Neutral. The current price of 3.56 is above the 20-day moving average (MA) of 3.45, above the 50-day MA of 3.45, and below the 200-day MA of 4.00, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 48.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:9889.

Dongguan Rural Commercial Bank Co Ltd Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$12.75B9.767.55%17015.07%12.29%-7.03%
57
Neutral
HK$24.45B4.887.99%8.78%-4.54%-12.93%
$264.63B6.0910.80%7.73%
$212.31B5.679.57%5.75%
$227.29B4.8910.81%6.26%
$154.42B8.0314.86%4.38%
$327.76B5.56
8.62%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9889
Dongguan Rural Commercial Bank Co Ltd Class H
3.56
-1.99
-35.81%
ACGBF
Agricultural Bank of China
0.68
0.25
58.14%
BACHF
Bank of China
0.59
0.17
40.48%
CICHF
China Construction Bank
0.89
0.27
43.55%
CIHHF
China Merchants Bank Co
6.25
1.99
46.71%
IDCBF
Industrial and Commercial Bank of China
0.75
0.24
47.06%

Dongguan Rural Commercial Bank Co Ltd Class H Corporate Events

Dongguan Rural Commercial Bank Reports Q1 2025 Financial Data
Apr 29, 2025

Dongguan Rural Commercial Bank Co., Ltd. has released its unaudited financial and operational data for the first quarter of 2025, showing total assets of RMB 753,789 million and a net profit of RMB 1,724 million. The data, prepared in accordance with Chinese accounting standards, may differ from international standards and is subject to adjustments. Stakeholders are advised to consider potential risks and not rely solely on this announcement for investment decisions.

Dongguan Rural Commercial Bank Announces Board Committee Changes and AGM Schedule
Apr 11, 2025

Dongguan Rural Commercial Bank Co., Ltd. has announced changes in the composition of its board committees, effective April 11, 2025. These changes include new chairpersons and members for various committees such as the Strategic Decision and Sannong Committee, Consumer Rights Protection Committee, and Audit Committee, among others. Notably, the Audit Committee now complies with the Hong Kong Stock Exchange’s requirements for committee composition. Additionally, the bank has scheduled its 2024 annual general meeting for May 30, 2025, and will close its H shares register of members from April 30 to May 30, 2025, to determine eligible shareholders for the meeting.

Dongguan Rural Commercial Bank Announces Board Composition and Roles
Apr 11, 2025

Dongguan Rural Commercial Bank Co., Ltd. has announced the composition of its board of directors and the roles and functions of each member. The board includes executive, non-executive, and independent non-executive directors, and has established six committees to oversee various aspects of the bank’s operations. This announcement clarifies the governance structure and delineates responsibilities, which may enhance operational efficiency and stakeholder confidence.

Dongguan Rural Commercial Bank Announces Director Resignations and Compliance Plans
Mar 31, 2025

Dongguan Rural Commercial Bank Co., Ltd. announced the resignation of three non-executive directors, Mr. Ye Jinquan, Mr. Zhang Qingxiang, and Mr. Chen Weiliang, effective from March 31, 2025. These resignations are due to the expiration of Mr. Ye’s term and work arrangements for Mr. Zhang and Mr. Chen. The bank expressed gratitude for their contributions and confirmed no disagreements with the board. Following Mr. Chen’s resignation, the bank’s audit committee will temporarily not meet the Hong Kong Stock Exchange’s listing requirements, as it will have only two members instead of the required three. The bank plans to appoint a suitable candidate within three months to comply with the listing rules.

Dongguan Rural Commercial Bank Releases 2024 Annual Results
Mar 28, 2025

Dongguan Rural Commercial Bank Co., Ltd. announced its audited consolidated annual results for the year ended 31 December 2024. The results have been reviewed and confirmed by the audit committee of the Board of Directors, and the full annual report will be available by 30 April 2025. This announcement provides insights into the bank’s financial performance and operational strategies, potentially impacting its market positioning and stakeholder interests.

Dongguan Rural Commercial Bank Declares Final Dividend for 2024
Mar 28, 2025

Dongguan Rural Commercial Bank Co., Ltd. announced a final cash dividend of RMB 0.25 per share for the year ended December 31, 2024, with payment scheduled for June 30, 2025. The announcement outlines the withholding tax rates applicable to non-resident shareholders, which vary based on their country of domicile and its tax treaty with the PRC, impacting the net dividend received by these stakeholders.

Dongguan Rural Commercial Bank Announces Director Resignation
Mar 21, 2025

Dongguan Rural Commercial Bank Co., Ltd. announced the resignation of Mr. YIP Tai Him as an independent non-executive director and chairman of the nomination and remuneration committee due to his term of office reaching its limit. Mr. Yip will continue his duties until a new director is appointed. The bank expressed gratitude for Mr. Yip’s contributions and plans to elect a new director promptly, ensuring compliance with relevant regulations.

Dongguan Rural Commercial Bank Schedules Board Meeting to Approve Annual Results
Mar 18, 2025

Dongguan Rural Commercial Bank Co., Ltd. announced that its Board of Directors will hold a meeting on March 28, 2025, to approve the annual results for the year ending December 31, 2024, and to consider the payment of a final dividend. This meeting is significant for stakeholders as it will determine the financial performance of the bank and potential returns for investors.

Dongguan Rural Commercial Bank Announces New Non-Executive Director Appointment
Mar 13, 2025

Dongguan Rural Commercial Bank Co., Ltd. has announced the regulatory approval of Ms. LI Huiqin as a non-executive Director, effective March 13, 2025. Her appointment, which includes membership in the Strategic Decision and Sannong Committee, is expected to influence the bank’s strategic direction and governance. Ms. LI has resigned from multiple positions in other companies to focus on her role at the bank, and her remuneration will be disclosed in the annual report.

Dongguan Rural Commercial Bank Announces Board Composition and Committee Roles
Mar 13, 2025

Dongguan Rural Commercial Bank Co., Ltd. has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board has established six committees, each with specific roles and functions, to enhance governance and operational oversight. This announcement reflects the bank’s commitment to structured governance and strategic oversight, potentially impacting its operational efficiency and stakeholder confidence.

Dongguan Rural Commercial Bank Strengthens Board with New Non-Executive Directors
Feb 25, 2025

Dongguan Rural Commercial Bank Co., Ltd. has announced the approval of qualifications for Mr. WONG Wai Hung and Mr. CHAN Ho Fung as non-executive directors, effective February 24, 2025. Their appointments, including roles on key committees, are expected to strengthen the bank’s governance and strategic oversight, potentially impacting its operational efficiency and stakeholder confidence.

Dongguan Rural Commercial Bank Announces Board Composition and Roles
Feb 25, 2025

Dongguan Rural Commercial Bank Co., Ltd. has announced the composition of its board of directors and the roles they will fulfill. The board consists of executive, non-executive, and independent non-executive directors, each serving on various committees such as the Strategic Decision and Sannong Committee, Comprehensive Risk Management Committee, and others. This announcement provides clarity on the governance structure and decision-making processes within the bank, potentially impacting its strategic direction and stakeholder relations.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.