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China Merchants Bank

XSSC:600036
Snowflake Description

Flawless balance sheet 6 star dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
600036
XSSC
CN¥902B
Market Cap
  1. Home
  2. CN
  3. Banks
Company description

China Merchants Bank Co., Ltd. provides various wholesale and retail banking products and services in the People’s Republic of China and internationally. The last earnings update was 40 days ago. More info.


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600036 Share Price and Events
7 Day Returns
0.8%
XSSC:600036
0.9%
CN Banks
2%
CN Market
1 Year Returns
28.5%
XSSC:600036
17.6%
CN Banks
17.6%
CN Market
600036 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Merchants Bank (600036) 0.8% -3.6% 4% 28.5% 89.1% 167.3%
CN Banks 0.9% -4% 2.7% 17.6% 9.6% 52.5%
CN Market 2% -1.4% -4% 17.6% -16.9% 7.3%
1 Year Return vs Industry and Market
  • 600036 outperformed the Banks industry which returned 17.6% over the past year.
  • 600036 outperformed the Market in China which returned 17.6% over the past year.
Price Volatility
600036
Industry
5yr Volatility vs Market

600036 Value

 Is China Merchants Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Merchants Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Merchants Bank.

XSSC:600036 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 19 analysts.
= Stable Book Value * Return on Equity
= CN¥26.37 * 16.5%
CN¥4.35
Book Value of Equity per Share Weighted future Book Value estimates from 18 analysts. CN¥26.37
Discount Rate (Cost of Equity) See below 11.2%
Perpetual Growth Rate 10-Year CN Government Bond Rate 3.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for XSSC:600036
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CN Govt Bond Rate 3.2%
Equity Risk Premium S&P Global 6.3%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.61
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.613 (1 + (1- 25%) (136.89%))
1.266
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.2% + (1.266 * 6.33%)
11.22%

Discounted Cash Flow Calculation for XSSC:600036 using Excess Returns Model Model

The calculations below outline how an intrinsic value for China Merchants Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

XSSC:600036 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (16.5% – 11.22%) * CN¥26.37)
CN¥1.40
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥1.40 / (11.22% - 3.2%)
CN¥17.43
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥26.37 + CN¥17.43
CN¥43.8
XSSC:600036 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in XSSC:600036 represents 1.00386x of SHSE:600036
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00386x
Value per Share
(Listing Adjusted, CNY)
= Value per Share (CNY) x Listing Adjustment Factor
= CN¥ 43.80 x 1.00386
CN¥43.97
Value per share (CNY) From above. CN¥43.97
Current discount Discount to share price of CN¥36.41
= -1 x (CN¥36.41 - CN¥43.97) / CN¥43.97
17.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price China Merchants Bank is available for.
Intrinsic value
17%
Share price is CN¥36.41 vs Future cash flow value of CN¥43.97
Current Discount Checks
For China Merchants Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Merchants Bank's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • China Merchants Bank's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Merchants Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Merchants Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
XSSC:600036 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CNY CN¥3.52
SHSE:600036 Share Price ** SHSE (2019-12-06) in CNY CN¥36.27
China Banks Industry PE Ratio Median Figure of 25 Publicly-Listed Banks Companies 7.72x
China Market PE Ratio Median Figure of 2,996 Publicly-Listed Companies 30.32x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Merchants Bank.

XSSC:600036 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SHSE:600036 Share Price ÷ EPS (both in CNY)

= 36.27 ÷ 3.52

10.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Merchants Bank is overvalued based on earnings compared to the CN Banks industry average.
  • China Merchants Bank is good value based on earnings compared to the China market.
Price based on expected Growth
Does China Merchants Bank's expected growth come at a high price?
Raw Data
XSSC:600036 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.3x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
12.9%per year
China Banks Industry PEG Ratio Median Figure of 13 Publicly-Listed Banks Companies 0.67x
China Market PEG Ratio Median Figure of 1,261 Publicly-Listed Companies 1.21x

*Line of best fit is calculated by linear regression .

XSSC:600036 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.3x ÷ 12.9%

0.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Merchants Bank is good value based on expected growth next year.
Price based on value of assets
What value do investors place on China Merchants Bank's assets?
Raw Data
XSSC:600036 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CNY CN¥22.30
SHSE:600036 Share Price * SHSE (2019-12-06) in CNY CN¥36.27
China Banks Industry PB Ratio Median Figure of 25 Publicly-Listed Banks Companies 0.88x
China Market PB Ratio Median Figure of 3,603 Publicly-Listed Companies 2.22x
XSSC:600036 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SHSE:600036 Share Price ÷ Book Value per Share (both in CNY)

= 36.27 ÷ 22.30

1.63x

* Primary Listing of China Merchants Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Merchants Bank is overvalued based on assets compared to the CN Banks industry average.
X
Value checks
We assess China Merchants Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. China Merchants Bank has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

600036 Future Performance

 How is China Merchants Bank expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Merchants Bank expected to grow at an attractive rate?
  • China Merchants Bank's earnings growth is expected to exceed the low risk savings rate of 3.2%.
Growth vs Market Checks
  • China Merchants Bank's earnings growth is positive but not above the China market average.
  • China Merchants Bank's revenue growth is positive but not above the China market average.
Annual Growth Rates Comparison
Raw Data
XSSC:600036 Future Growth Rates Data Sources
Data Point Source Value (per year)
XSSC:600036 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 12.9%
XSSC:600036 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 8.8%
China Banks Industry Earnings Growth Rate Market Cap Weighted Average 10.8%
China Banks Industry Revenue Growth Rate Market Cap Weighted Average 11.8%
China Market Earnings Growth Rate Market Cap Weighted Average 20.8%
China Market Revenue Growth Rate Market Cap Weighted Average 15.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
XSSC:600036 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
XSSC:600036 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 316,313 117,267 18
2020-12-31 289,547 102,477 19
2019-12-31 273,123 91,286 15
2019-12-09
XSSC:600036 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-09-30 207,041 -252,080 88,760
2019-06-30 198,460 -25,120 84,757
2019-03-31 192,966 -233,853 81,467
2018-12-31 187,726 -35,721 78,901
2018-09-30 181,447 81,292 78,725
2018-06-30 174,821 -15,408 75,647
2018-03-31 167,334 178,245 72,847
2017-12-31 160,971 -5,660 70,150
2017-09-30 152,083 -181,102 68,744
2017-06-30 146,471 123,835 66,109
2017-03-31 143,689 -47,926 63,708
2016-12-31 143,561 -120,615 62,081

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Merchants Bank's earnings are expected to grow by 12.9% yearly, however this is not considered high growth (20% yearly).
  • China Merchants Bank's revenue is expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
XSSC:600036 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from China Merchants Bank Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

XSSC:600036 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.64 4.97 4.11 17.00
2020-12-31 4.09 4.28 3.77 19.00
2019-12-31 3.61 3.67 3.52 17.00
2019-12-09
XSSC:600036 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-09-30 3.52
2019-06-30 3.36
2019-03-31 3.23
2018-12-31 3.13
2018-09-30 3.11
2018-06-30 3.01
2018-03-31 2.89
2017-12-31 2.78
2017-09-30 2.72
2017-06-30 2.61
2017-03-31 2.52
2016-12-31 2.46

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China Merchants Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Merchants Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the China market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the China market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Merchants Bank has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

600036 Past Performance

  How has China Merchants Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Merchants Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Merchants Bank's year on year earnings growth rate has been positive over the past 5 years.
  • China Merchants Bank's 1-year earnings growth exceeds its 5-year average (12.7% vs 9.3%)
  • China Merchants Bank's earnings growth has exceeded the CN Banks industry average in the past year (12.7% vs 10.4%).
Earnings and Revenue History
China Merchants Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Merchants Bank Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

XSSC:600036 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 207,041.00 88,760.00 77,112.00
2019-06-30 198,460.00 84,757.00 77,112.00
2019-03-31 192,966.00 81,467.00 77,112.00
2018-12-31 187,726.00 78,901.00 77,112.00
2018-09-30 181,447.00 78,725.00 66,772.00
2018-06-30 174,821.00 75,647.00 66,772.00
2018-03-31 167,334.00 72,847.00 53,228.00
2017-12-31 160,971.00 70,150.00 66,772.00
2017-09-30 152,083.00 68,744.00 58,036.00
2017-06-30 146,471.00 66,109.00 58,036.00
2017-03-31 143,689.00 63,708.00 58,953.00
2016-12-31 143,561.00 62,081.00 58,036.00
2016-09-30 143,280.00 61,338.00 16,537.00
2016-06-30 144,311.00 59,951.00 30,327.00
2016-03-31 143,937.00 58,826.00 56,116.00
2015-12-31 142,204.00 57,696.00 55,741.00
2015-09-30 143,425.00 58,607.00 54,733.00
2015-06-30 141,207.00 58,428.00 53,509.00
2015-03-31 138,742.00 58,186.00 51,757.00
2014-12-31 134,182.00 55,911.00 50,656.00
2014-09-30 136,049.00 58,049.00 49,829.00
2014-06-30 131,231.00 55,931.00 48,004.00
2014-03-31 127,045.00 53,667.00 47,106.00
2013-12-31 122,389.00 51,743.00 45,565.00
2013-09-30 117,162.00 49,980.00 43,539.00
2013-06-30 113,740.00 48,165.00 42,526.00
2013-03-31 110,082.00 46,646.00 41,367.00
2012-12-31 107,784.00 45,268.00 40,801.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China Merchants Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Merchants Bank used its assets more efficiently than the CN Banks industry average last year based on Return on Assets.
  • Unable to establish if China Merchants Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess China Merchants Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Merchants Bank has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

600036 Health

 How is China Merchants Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of China Merchants Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Merchants Bank Company Filings, last reported 2 months ago.

XSSC:600036 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 602,848.00 1,221,585.00 1,280,751.00
2019-06-30 573,995.00 1,153,592.00 787,874.00
2019-03-31 573,036.00 1,118,581.00 1,146,312.00
2018-12-31 543,605.00 1,148,901.00 918,752.00
2018-09-30 528,889.00 1,061,938.00 1,013,273.00
2018-06-30 504,051.00 1,061,285.00 716,250.00
2018-03-31 499,483.00 1,061,146.00 1,551,191.00
2017-12-31 483,392.00 1,131,526.00 551,581.00
2017-09-30 440,640.00 1,180,324.00 403,522.00
2017-06-30 421,824.00 1,090,708.00 582,066.00
2017-03-31 421,824.00 1,120,686.00 427,992.00
2016-12-31 403,362.00 1,037,098.00 726,554.00
2016-09-30 397,434.00 961,876.00 1,026,799.00
2016-06-30 379,188.00 830,647.00 636,899.00
2016-03-31 380,051.00 693,765.00 1,071,122.00
2015-12-31 361,758.00 694,560.00 774,037.00
2015-09-30 349,965.00 569,431.00 1,165,549.00
2015-06-30 332,918.00 417,631.00 770,261.00
2015-03-31 332,115.00 415,459.00 1,149,006.00
2014-12-31 315,060.00 305,120.00 719,084.00
2014-09-30 302,398.00 286,201.00 1,287,513.00
2014-06-30 286,364.00 388,319.00 1,055,989.00
2014-03-31 283,842.00 296,705.00 1,183,974.00
2013-12-31 265,956.00 373,202.00 524,548.00
2013-09-30 257,274.00 265,759.00 451,717.00
2013-06-30 212,498.00 374,715.00 672,150.00
2013-03-31 214,557.00 233,022.00 401,856.00
2012-12-31 200,401.00 351,682.00 493,614.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • China Merchants Bank has an acceptable proportion of non-loan assets held.
  • China Merchants Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at China Merchants Bank are broadly funded by customer deposits.
  • China Merchants Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • China Merchants Bank has a sufficient allowance for bad loans.
  • China Merchants Bank has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess China Merchants Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Merchants Bank has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

600036 Dividends

 What is China Merchants Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.59%
Current annual income from China Merchants Bank dividends. Estimated to be 3.54% next year.
If you bought CN¥2,000 of China Merchants Bank shares you are expected to receive CN¥52 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China Merchants Bank's pays a higher dividend yield than the bottom 25% of dividend payers in China (0.48%).
  • China Merchants Bank's dividend is above the markets top 25% of dividend payers in China (1.96%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
XSSC:600036 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
China Banks Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 3.1%
China Market Average Dividend Yield Market Cap Weighted Average of 2577 Stocks 1.9%
China Minimum Threshold Dividend Yield 10th Percentile 0.2%
China Bottom 25% Dividend Yield 25th Percentile 0.5%
China Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

XSSC:600036 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.46 17.00
2020-12-31 1.25 19.00
2019-12-31 1.12 15.00
2019-12-09
XSSC:600036 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-06-05 0.940 2.623
2018-03-23 0.840 2.872
2017-05-31 0.740 2.720
2016-07-04 0.690 3.740
2015-06-23 0.670 3.920
2014-07-01 0.620 4.748
2013-04-15 0.630 5.834
2012-03-28 0.420 3.730
2011-06-02 0.290 2.384
2010-06-24 0.210 1.531
2009-04-27 0.077 0.491

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of China Merchants Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).
X
Income/ dividend checks
We assess China Merchants Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Merchants Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Merchants Bank has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

600036 Management

 What is the CEO of China Merchants Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Huiyu Tian
COMPENSATION CN¥4,690,000
AGE 54
TENURE AS CEO 6.3 years
CEO Bio

Mr. Huiyu Tian, MPA has been the Chief Executive Officer and President of China Merchants Bank Co., Ltd. since May 2013. Mr. Tian has been an Executive Director at China Merchants Bank Co., Ltd. since August 8, 2013. He served as Controller of retail banking of China Construction Bank Corporation ("CCB") since March 2011. He served as the head of Beijing Branch of CCB from March 2011 to April 2011. He served consecutively as Deputy General Manager of Shanghai Branc of CCB, Head and General Manager of Shenzhen Branch of CCB from December 2006 to Marc 2011, Vice President of Shanghai Bank from July 2003 to December 2006 and Vice President of Trust Investment Branch of China Cinda Asset Management Co., Ltd from July 1998 to July 2003. He served as Vice President of Bank of Shanghai Co., Ltd. Mr. Tian served as Vice President, China Construction Bank, Pudong Branch; Deputy Director, Administrative Department of China Construction Bank; Vice President, China Cinda Trust & Investment Co., Ltd. (and in between as a visiting scholar to Business School of New York University). He served as the Business Executive of retail banking at the head office and General Manager of Beijing Branch of China Construction Bank Corporation (“CCB”) from March 2011 to May 2013. He served as Executive Vice President at Bank of Shanghai from July 2003 to December 2006. He served as Chairman of CMB Wing Lung Bank Limited since May 2015 and Director since May 29, 2015 until 2019. He serves as the Chairman of CMB International Capital Holdings Corporation Limited and CMB International Capital Corporation Limited and the Vice-Chairman of Merchants Union Consumer Finance Company Limited. He is a Senior Economist. Mr. Tian obtained his bachelor's degree in infrastructure finance and credit from Shanghai University of Finance and Economics in 1987 and his master' degree in economic public management from Columbia University in 2002.

CEO Compensation
  • Huiyu's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Huiyu's remuneration is higher than average for companies of similar size in China.
Management Team Tenure

Average tenure and age of the China Merchants Bank management team in years:

0.8
Average Tenure
56.5
Average Age
  • The average tenure for the China Merchants Bank management team is less than 2 years, this suggests a new team.
Management Team

Huiyu Tian

TITLE
President
COMPENSATION
CN¥5M
AGE
54
TENURE
6.3 yrs

Liang Wang

TITLE
Executive VP
AGE
54
TENURE
0.7 yrs

Shunhua Shi

TITLE
Executive Vice President
AGE
57
TENURE
1.6 yrs

Zhihong Tang

TITLE
Executive Vice President
AGE
59
TENURE
13.6 yrs

Jianzhong Wang

TITLE
Executive Vice President
AGE
57
TENURE
0.8 yrs

Jianjun Liu

TITLE
Executive VP
AGE
54
TENURE
0.7 yrs

Cheng Nan

TITLE
Qualified Accountant

Wenjing Jiang

TITLE
Investor relation officer

Dazhan Huang

TITLE
Managing Director of China Merchants Finance Group Co Ltd
AGE
61

Wang Yungui

TITLE
Executive Vice President
AGE
56
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure and age of the China Merchants Bank board of directors in years:

2.1
Average Tenure
54.5
Average Age
  • The average tenure for the China Merchants Bank board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jianhong Li

TITLE
Chairman of the Board
AGE
63
TENURE
5.3 yrs

Huiyu Tian

TITLE
President
COMPENSATION
CN¥5M
AGE
54
TENURE
6.3 yrs

Gangfeng Fu

TITLE
Vice Chairman of the Board
AGE
53
TENURE
1.4 yrs

Liang Wang

TITLE
Executive VP
AGE
54
TENURE
0.3 yrs

Jianjun Liu

TITLE
Executive VP
AGE
54
TENURE
0.3 yrs

Wanqing Wang

TITLE
Business Director of the Head Office
AGE
55
TENURE
1.4 yrs

Xiaoyuan Hong

TITLE
Non-Executive Director
AGE
56
TENURE
12.5 yrs

Yuan Liu

TITLE
Chairman of Board of Supervisors
COMPENSATION
CN¥1M
AGE
57
TENURE
5.3 yrs

David Wong

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥500K
AGE
66
TENURE
2.8 yrs

Menggang Li

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥42K
AGE
52
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by China Merchants Bank individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CN¥) Value (CN¥)
21. Nov 19 Buy Liang Wang Individual 20. Nov 19 20. Nov 19 20,000 CN¥36.75 CN¥735,000
19. Nov 19 Buy Huiyu Tian Individual 18. Nov 19 18. Nov 19 28,300 CN¥37.00 CN¥1,047,100
27. Sep 19 Sell Anbang Insurance Group Co., Ltd. Company 09. Sep 19 09. Sep 19 -18,431,987 CN¥35.53 CN¥-654,886,621
24. Sep 19 Buy Jianjun Liu Individual 23. Sep 19 23. Sep 19 30,000 CN¥34.10 CN¥1,023,000
19. Sep 19 Buy Jianjun Liu Individual 18. Sep 19 18. Sep 19 30,000 CN¥34.83 CN¥1,044,900
29. Aug 19 Buy Xiaoming Liu Individual 28. Aug 19 28. Aug 19 30,000 CN¥34.54 CN¥1,036,200
27. Aug 19 Buy Huiyu Tian Individual 26. Aug 19 26. Aug 19 82,100 CN¥34.84 CN¥2,860,742
09. Jul 19 Buy Wanqing Wang Individual 08. Jul 19 08. Jul 19 21,000 CN¥35.58 CN¥747,180
10. Jul 19 Buy Wanqing Wang Individual 09. Jul 19 09. Jul 19 40,000 CN¥31.18 CN¥1,247,318
26. Jun 19 Buy Yuan Liu Individual 25. Jun 19 25. Jun 19 50,000 CN¥35.27 CN¥1,763,600
14. May 19 Buy Yuan Liu Individual 13. May 19 13. May 19 20,000 CN¥33.03 CN¥660,600
13. May 19 Buy Yuan Liu Individual 10. May 19 10. May 19 20,000 CN¥33.33 CN¥666,600
27. Mar 19 Buy Hao Li Individual 26. Mar 19 26. Mar 19 40,000 CN¥31.33 CN¥1,253,204
26. Mar 19 Buy Hao Li Individual 25. Mar 19 25. Mar 19 60,000 CN¥31.55 CN¥1,893,198
X
Management checks
We assess China Merchants Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Merchants Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

600036 News

Simply Wall St News

600036 Company Info

Description

China Merchants Bank Co., Ltd. provides various wholesale and retail banking products and services in the People’s Republic of China and internationally. It operates in Wholesale Finance Business, Retail Finance Business, and Other Business segments. The company offers time, demand, call, and RMB deposits; deposit, current, capital, and checking accounts; and remittance products. It also provides personal commercial real estate, consumption, housing, and car loans; loans to finance for studying abroad; micro-business, combo, guarantee, and housing mortgage loans; mortgage loans for equipment; bank acceptance, discount, liquid capital, and fixed asset loans; financial leasing, third-party payment, and financial guarantee services; and loans for vessels. In addition, the company offers investment and wealth management, and insurance products; individual forex option and express, and gold trading services; open ended funds; private banking and cash management services; and financial consultation, debt financing underwriting, merger and acquisition financing, and equity financing and enterprise listing services. Further, it provides settlement and trade chain financing services; international business, wealth investment, risk and financial management, cross border RMB financing, international factoring and settlement, oversea financing, and trade finance services; and forfeiting and risk participation, cross border RMB clearing, interbank business, and escrow services. Additionally, the company offers custody and pension services; credit cards; and Internet and mobile banking services. As of December 31, 2018, it had 137 branches; 1,673 sub-branches; 1 branch-level operation center; 1 representative office; 3,259 self-service centers; 10,316 self-service machines, including 1,212 automatic teller machines, and 9,104 deposit-taking and cash withdrawal machines; and 12,897 visual counters. The company was founded in 1987 and is headquartered in Shenzhen, China.

Details
Name: China Merchants Bank Co., Ltd.
600036
Exchange: XSSC
Founded: 1987
CN¥902,288,554,718
25,219,845,601
Website: http://www.cmbchina.com
Address: China Merchants Bank Co., Ltd.
China Merchants Bank Tower,
49th Floor,
Shenzhen,
Guangdong Province, 518040,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SHSE 600036 Domestic Shares Shanghai Stock Exchange CN CNY 09. Apr 2002
XSSC 600036 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 09. Apr 2002
OTCPK CIHK.Y ADR Pink Sheets LLC US USD 09. Jul 2010
SEHK 3968 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 22. Sep 2006
OTCPK CIHH.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 22. Sep 2006
DB M4B Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 22. Sep 2006
SHSC 3968 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 22. Sep 2006
SZSC 3968 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 22. Sep 2006
Number of employees
Current staff
Staff numbers
86,318
China Merchants Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/09 15:38
End of day share price update: 2019/12/06 00:00
Last estimates confirmation: 2019/12/09
Last earnings filing: 2019/10/30
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.