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China Construction Bank

XSSC:601939
Snowflake Description

Very undervalued with flawless balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
601939
XSSC
HK$1,642B
Market Cap
  1. Home
  2. CN
  3. Banks
Company description

China Construction Bank Corporation provides various banking and related financial services in the People's Republic of China. The last earnings update was 45 days ago. More info.


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601939 Share Price and Events
7 Day Returns
0.8%
XSSC:601939
1.2%
CN Banks
1.4%
CN Market
1 Year Returns
8.9%
XSSC:601939
20.6%
CN Banks
21.1%
CN Market
601939 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Construction Bank (601939) 0.8% 0.6% 0.8% 8.9% 33.8% 18.2%
CN Banks 1.2% -0.9% 3.4% 20.6% 17.2% 41%
CN Market 1.4% 2.3% -2.1% 21.1% -12.3% 7.4%
1 Year Return vs Industry and Market
  • 601939 underperformed the Banks industry which returned 20.6% over the past year.
  • 601939 underperformed the Market in China which returned 21.1% over the past year.
Price Volatility
601939
Industry
5yr Volatility vs Market

Value

 Is China Construction 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 Construction 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 Construction Bank.

XSSC:601939 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 20 analysts.
= Stable Book Value * Return on Equity
= CN¥9.24 * 12.7%
CN¥1.17
Book Value of Equity per Share Weighted future Book Value estimates from 15 analysts. CN¥9.24
Discount Rate (Cost of Equity) See below 11.4%
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:601939
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 0.65
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.648 (1 + (1- 25%) (128.64%))
1.291
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.29
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.2% + (1.291 * 6.33%)
11.37%

Discounted Cash Flow Calculation for XSSC:601939 using Excess Returns Model Model

The calculations below outline how an intrinsic value for China Construction 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:601939 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.7% – 11.37%) * CN¥9.24)
CN¥0.12
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥0.12 / (11.37% - 3.2%)
CN¥1.50
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥9.24 + CN¥1.50
CN¥10.74
XSSC:601939 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:939)
1.117
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥10.74 x 1.117
HK$11.99
Non-primary Listing Adjustment Factor 1 share in XSSC:601939 represents 1.10599x of SEHK:939
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.10599x
Value per Share
(Listing Adjusted, CNY)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 11.99 x 1.10599
CN¥13.26
Value per share (CNY) From above. CN¥13.26
Current discount Discount to share price of CN¥7.20
= -1 x (CN¥7.20 - CN¥13.26) / CN¥13.26
45.7%

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

Current Discount
Amount off the current price China Construction Bank is available for.
Intrinsic value
46%
Share price is CN¥7.2 vs Future cash flow value of CN¥13.26
Current Discount Checks
For China Construction Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Construction Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China Construction Bank's share price is below the future cash flow value, and 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 Construction Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Construction Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
XSSC:601939 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CNY CN¥1.04
SEHK:939 Share Price ** SEHK (2019-12-13) in HKD HK$6.51
SEHK:939 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.895 CN¥5.83
China Banks Industry PE Ratio Median Figure of 25 Publicly-Listed Banks Companies 8.05x
China Market PE Ratio Median Figure of 3,002 Publicly-Listed Companies 30.97x

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

** Primary Listing of China Construction Bank.

XSSC:601939 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:939 Share Price ÷ EPS (both in CNY)

= 5.83 ÷ 1.04

5.59x

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

  • China Construction Bank is good value based on earnings compared to the CN Banks industry average.
  • China Construction Bank is good value based on earnings compared to the China market.
Price based on expected Growth
Does China Construction Bank's expected growth come at a high price?
Raw Data
XSSC:601939 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
5.9%per year
China Banks Industry PEG Ratio Median Figure of 13 Publicly-Listed Banks Companies 0.7x
China Market PEG Ratio Median Figure of 1,262 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

XSSC:601939 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.59x ÷ 5.9%

0.95x

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

  • China Construction Bank is good value based on expected growth next year.
Price based on value of assets
What value do investors place on China Construction Bank's assets?
Raw Data
XSSC:601939 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CNY CN¥8.23
SEHK:939 Share Price * SEHK (2019-12-13) in HKD HK$6.51
SEHK:939 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.895 CN¥5.83
China Banks Industry PB Ratio Median Figure of 25 Publicly-Listed Banks Companies 0.9x
China Market PB Ratio Median Figure of 3,609 Publicly-Listed Companies 2.26x
XSSC:601939 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:939 Share Price ÷ Book Value per Share (both in CNY)

= 5.83 ÷ 8.23

0.71x

* Primary Listing of China Construction Bank.

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

  • China Construction Bank is good value based on assets compared to the CN Banks industry average.
X
Value checks
We assess China Construction 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 Construction Bank has a total score of 6/6, 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.

Future Performance

 How is China Construction Bank expected to perform in the next 1 to 3 years based on estimates from 20 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
5.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Construction Bank expected to grow at an attractive rate?
  • China Construction Bank's earnings growth is expected to exceed the low risk savings rate of 3.2%.
Growth vs Market Checks
  • China Construction Bank's earnings growth is positive but not above the China market average.
  • China Construction Bank's revenue growth is positive but not above the China market average.
Annual Growth Rates Comparison
Raw Data
XSSC:601939 Future Growth Rates Data Sources
Data Point Source Value (per year)
XSSC:601939 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 5.9%
XSSC:601939 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 7%
China Banks Industry Earnings Growth Rate Market Cap Weighted Average 10.7%
China Banks Industry Revenue Growth Rate Market Cap Weighted Average 11.9%
China Market Earnings Growth Rate Market Cap Weighted Average 20.9%
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:601939 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
XSSC:601939 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 762,532 296,762 18
2020-12-31 719,997 279,466 19
2019-12-31 679,571 264,084 18
2019-12-14
XSSC:601939 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-09-30 512,775 -848,074 261,955
2019-06-30 521,831 -97,103 257,882
2019-03-31 516,334 121,113 253,820
2018-12-31 489,639 -27,652 250,719
2018-09-30 484,130 -848,662 254,085
2018-06-30 506,732 482,243 249,907
2018-03-31 497,398 375,013 245,022
2017-12-31 468,669 -828,211 241,219
2017-09-30 466,354 -414,628 237,800
2017-06-30 464,105 -993,356 235,322
2017-03-31 464,543 -885,667 232,453
2016-12-31 469,582 -959,394 230,393

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Construction Bank's earnings are expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
  • China Construction Bank's revenue is expected to grow by 7% 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:601939 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 20 Analyst Estimates (S&P Global) See Below

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

XSSC:601939 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.19 1.29 1.07 17.00
2020-12-31 1.11 1.17 1.05 20.00
2019-12-31 1.06 1.07 1.04 19.00
2019-12-14
XSSC:601939 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-09-30 1.04
2019-06-30 1.03
2019-03-31 1.01
2018-12-31 1.00
2018-09-30 1.02
2018-06-30 1.00
2018-03-31 0.98
2017-12-31 0.96
2017-09-30 0.94
2017-06-30 0.94
2017-03-31 0.93
2016-12-31 0.92

*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 Construction 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 Construction 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 Construction 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.

Past Performance

  How has China Construction 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 Construction 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 Construction Bank's year on year earnings growth rate has been positive over the past 5 years.
  • China Construction Bank's 1-year earnings growth exceeds its 5-year average (3.1% vs 2.9%)
  • China Construction Bank's earnings growth has not exceeded the CN Banks industry average in the past year (3.1% vs 10.4%).
Earnings and Revenue History
China Construction 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 Construction Bank Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

XSSC:601939 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 512,775.00 261,955.00 166,185.00
2019-06-30 521,831.00 257,882.00 168,149.00
2019-03-31 516,334.00 253,820.00 164,188.00
2018-12-31 489,639.00 250,719.00 166,185.00
2018-09-30 484,130.00 254,085.00 158,933.00
2018-06-30 506,732.00 249,907.00 160,051.00
2018-03-31 497,398.00 245,022.00 156,199.00
2017-12-31 468,669.00 241,219.00 158,933.00
2017-09-30 466,354.00 237,800.00 151,784.00
2017-06-30 464,105.00 235,322.00 218,259.00
2017-03-31 464,543.00 232,453.00 151,784.00
2016-12-31 469,582.00 230,393.00 151,784.00
2016-09-30 482,586.00 230,423.00 155,919.00
2016-06-30 486,662.00 229,660.00 155,919.00
2016-03-31 510,448.00 229,092.00 154,429.00
2015-12-31 495,157.00 228,145.00 155,919.00
2015-09-30 497,363.00 229,089.00 158,550.00
2015-06-30 498,575.00 229,063.00 158,550.00
2015-03-31 489,337.00 229,055.00 158,550.00
2014-12-31 496,640.00 227,830.00 158,550.00
2014-09-30 493,145.00 228,473.00 154,148.00
2014-06-30 487,805.00 225,608.00 154,148.00
2014-03-31 488,365.00 220,857.00 154,148.00
2013-12-31 468,604.00 214,657.00 154,148.00
2013-09-30 456,986.00 211,470.00 138,644.00
2013-06-30 446,061.00 206,607.00 138,644.00
2013-03-31 437,185.00 201,247.00 138,644.00
2012-12-31 422,907.00 193,179.00 138,644.00

*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 Construction Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Construction Bank used its assets more efficiently than the CN Banks industry average last year based on Return on Assets.
  • Unable to establish if China Construction 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 Construction 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 Construction Bank has a total score of 3/6, 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.

Health

 How is China Construction 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 Construction 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 Construction Bank Company Filings, last reported 2 months ago.

XSSC:601939 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 2,152,966.00 1,891,566.00 5,854,085.00
2019-06-30 2,072,038.00 1,741,256.00 1,957,990.00
2019-03-31 2,069,023.00 1,864,220.00 6,512,607.00
2018-12-31 1,991,594.00 1,829,688.00 1,810,320.00
2018-09-30 1,938,849.00 1,812,149.00 6,200,965.00
2018-06-30 1,864,577.00 1,662,608.00 5,919,020.00
2018-03-31 1,853,616.00 1,831,914.00 6,255,060.00
2017-12-31 1,795,827.00 1,681,598.00 1,304,855.00
2017-09-30 1,708,626.00 1,746,359.00 4,450,063.00
2017-06-30 1,644,602.00 1,601,473.00 1,408,812.00
2017-03-31 1,650,607.00 1,509,911.00 4,593,113.00
2016-12-31 1,589,654.00 1,494,352.00 1,374,445.00
2016-09-30 1,571,448.00 1,303,361.00 3,879,711.00
2016-06-30 1,505,960.00 1,103,938.00 1,299,507.00
2016-03-31 1,510,224.00 870,572.00 4,058,102.00
2015-12-31 1,445,083.00 1,075,258.00 1,265,774.00
2015-09-30 1,374,400.00 926,244.00 3,975,591.00
2015-06-30 1,312,450.00 805,573.00 1,031,787.00
2015-03-31 1,316,263.00 801,920.00 4,017,543.00
2014-12-31 1,251,848.00 919,171.00 1,084,057.00
2014-09-30 1,208,179.00 841,944.00 3,963,955.00
2014-06-30 1,147,012.00 728,496.00 1,078,248.00
2014-03-31 1,147,719.00 640,983.00 2,098,077.00
2013-12-31 1,074,329.00 674,359.00 941,937.00
2013-09-30 1,049,612.00 728,752.00 1,504,996.00
2013-06-30 1,000,511.00 583,356.00 1,336,558.00
2013-03-31 1,010,825.00 468,479.00 1,917,447.00
2012-12-31 949,545.00 403,429.00 1,148,784.00
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 Construction Bank has an acceptable proportion of non-loan assets held.
  • China Construction Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at China Construction Bank are broadly funded by customer deposits.
  • China Construction Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • China Construction Bank has a sufficient allowance for bad loans.
  • China Construction Bank has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess China Construction 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 Construction 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.

Dividends

 What is China Construction 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
5.25%
Current annual income from China Construction Bank dividends. Estimated to be 5.96% next year.
If you bought CN¥2,000 of China Construction Bank shares you are expected to receive CN¥105 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 Construction Bank's pays a higher dividend yield than the bottom 25% of dividend payers in China (0.46%).
  • China Construction Bank's dividend is above the markets top 25% of dividend payers in China (1.94%).
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:601939 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 20 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 2579 Stocks 1.8%
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 1.9%

Industry and Market average data is calculated daily.

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

XSSC:601939 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.38 16.00
2020-12-31 0.34 18.00
2019-12-31 0.32 17.00
2019-12-14
XSSC:601939 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-06-21 0.306 5.562
2018-06-29 0.291 5.008
2017-04-28 0.278 4.625
2017-03-29 0.278 5.009
2016-03-30 0.274 5.723
2015-03-27 0.301 6.358
2014-07-02 0.300 6.329
2013-04-22 0.268 5.919
2013-03-25 0.268 5.410
2012-06-07 0.237 5.118
2011-06-09 0.212 4.507
2010-04-29 0.202 3.436
2010-03-29 0.202 3.533
2009-11-09 0.000 0.000
2009-10-23 0.000 0.000
2009-08-31 0.000 0.000
2009-08-21 0.000 0.000
2009-04-24 0.194 4.049
2009-03-27 0.194 4.814

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of China Construction Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x 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 Construction 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 Construction Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Construction Bank has a total score of 5/6, see the detailed checks below.


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

Management

 What is the CEO of China Construction 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
Guiping Liu
AGE 53
TENURE AS CEO 0.6 years
CEO Bio

Mr. Guiping Liu has been President of China Construction Bank Corporation since May 2019 and its Vice Chairman and Director since June 21, 2019. Mr. Liu worked for another leading banking institution, Agricultural Bank of China, for 25 years. Mr. Liu has served as Vice Mayor in Chongqing from June 2016 to March 2019; from May 2014 to June 2016, he served as the deputy general manager of China Investment Corporation; from January 2005 to May 2014, he successively served as the deputy general manager and the general manager of Fujian Branch, the general manager of Shanghai Branch, the head of the Retail Banking Department (Retail Product Department) of Agricultural Bank of China (the “Agricultural Bank”); from May 1994 to January 2005, he successively served as the deputy director of the Executive Office of the Guangdong Branch of the Agricultural Bank, the deputy general manager of Zhaoqing Branch, Dongguan Branch and Shenzhen Branch of the Agricultural Bank in Guangdong. Mr. Liu is a senior economist. He obtained a PhD degree from the Finance Department of Zhongnan University of Economics and Law in 2002.

CEO Compensation
  • Insufficient data for Guiping to compare compensation growth.
  • Insufficient data for Guiping to establish whether their remuneration is reasonable compared to companies of similar size in China.
Management Team Tenure

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

5.5
Average Tenure
58
Average Age
  • The average tenure for the China Construction Bank management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Guoli Tian

TITLE
Chairman of the Board
COMPENSATION
CN¥711K
AGE
59

Yiming Xu

TITLE
Chief Financial Officer
COMPENSATION
CN¥992K
AGE
59
TENURE
5.5 yrs

Zhiling Huang

TITLE
Chief Economist
COMPENSATION
CN¥826K
AGE
58
TENURE
6.3 yrs

Gengsheng Zhang

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥653K
AGE
59
TENURE
6.7 yrs

Yi Huang

TITLE
Executive Vice President
COMPENSATION
CN¥653K
AGE
55
TENURE
5.7 yrs

Guiping Liu

TITLE
Vice Chairman & President
AGE
53
TENURE
0.6 yrs

Guiya Wang

TITLE
Chief Investment & Wealth Management Officer and GM of Investment Banking Dept of the Head Office
COMPENSATION
CN¥870K
AGE
54
TENURE
8.8 yrs

Qiuyue Fang

TITLE
GM of Finance & Accounting Department and Shareholder Representative Supervisor
AGE
59
TENURE
4.9 yrs

Yanmin Jin

TITLE
Chief Risk Officer
AGE
58
TENURE
0.8 yrs

Ji Zhihong

TITLE
Executive Vice President
TENURE
0.5 yrs
Board of Directors Tenure

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

1.6
Average Tenure
59
Average Age
  • The average tenure for the China Construction Bank board of directors is less than 3 years, this suggests a new board.
Board of Directors

Guoli Tian

TITLE
Chairman of the Board
COMPENSATION
CN¥711K
AGE
59
TENURE
2.2 yrs

Gengsheng Zhang

TITLE
Executive VP & Executive Director
COMPENSATION
CN¥653K
AGE
59
TENURE
4.3 yrs

Guiping Liu

TITLE
Vice Chairman & President
AGE
53
TENURE
0.5 yrs

Qiuyue Fang

TITLE
GM of Finance & Accounting Department and Shareholder Representative Supervisor
AGE
59
TENURE
1.5 yrs

Kegui Lu

TITLE
GM of Asset Preservation & Operation Center and Employee Representative Supervisor
AGE
57
TENURE
1.6 yrs

Yuanguo Cheng

TITLE
GM of Corporate Business Department & Employee Representative Supervisor
AGE
56
TENURE
1.6 yrs

Yi Wang

TITLE
GM of Housing Finance & Personal Credit Department and Employee Representative Supervisor
AGE
56
TENURE
1.6 yrs

Carl E. Walter

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥440K
AGE
72
TENURE
4.3 yrs

Callum McCarthy

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥410K
AGE
75
TENURE
2.3 yrs

Kenneth Patrick Chung

TITLE
Independent Non-Executive Director
AGE
62
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CN¥) Value (CN¥)
X
Management checks
We assess China Construction 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 Construction 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.

News

Simply Wall St News

Company Info

Description

China Construction Bank Corporation provides various banking and related financial services in the People's Republic of China. It operates through Corporate Banking, Personal Banking, Treasury Business, and Others segments. The company offers personal banking products and services, such as foreign currency deposits, all in one accounts, and RMB deposits; personal business loans, personal car loans, and personal housing loans; physical gold for personal investment and personal gold accounts; credit cards; foreign exchange services; certificate treasury and savings bonds, securities deposit accounts, and securities services, as well as bank-securities transfer and book-entry treasury bond over the counter services; and wealth management products. It also provides corporate banking products and services, including corporate term, notification, and demand deposits, as well corporate deposits by agreement and statement of deposits; SME, traditional credit, commercial draft, buyer credit, and RMB credit line loans; international settlement and financing services, and FI services for foreign banks; fund settlement services; guarantee-based, consulting and advising, and factoring services; and custody services, as well as e-banking services. In addition, the company offers corporate services comprising institutional services comprising services for government agencies, services for non-banking financial institutions, social security, banks cooperation, bank-securities cooperation, and bank-insurance cooperation. Further, it provides treasury, asset management, trustee, finance leasing, investment banking, and other financial services. As of December 31, 2018, the company operated 14,977 institutions. China Construction Bank Corporation was founded in 1954 and is headquartered in Beijing, the People's Republic of China.

Details
Name: China Construction Bank Corporation
601939
Exchange: XSSC
Founded: 1954
HK$1,470,464,036,766
250,010,977,486
Website: http://www.asia.ccb.com
Address: China Construction Bank Corporation
No. 25, Finance Street,
Xicheng District,
Beijing,
100033,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 939 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 27. Oct 2005
OTCPK CICH.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 27. Oct 2005
DB C6T Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 27. Oct 2005
SHSC 939 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 27. Oct 2005
SZSC 939 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 27. Oct 2005
OTCPK CICH.Y ADR Pink Sheets LLC US USD 24. Oct 2008
SHSE 601939 Domestic Shares Shanghai Stock Exchange CN CNY 25. Sep 2007
XSSC 601939 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 25. Sep 2007
Number of employees
Current staff
Staff numbers
362,071
China Construction Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/14 15:13
End of day share price update: 2019/12/13 00:00
Last estimates confirmation: 2019/12/12
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.