Bank of Lanzhou Co., Ltd.

Market Cap: Large Cap
Industry: Regional Banks
ISIN: CNE1000056L9

CNY

2.05

-0.01 (-0.49%)

Jun 26

SHE

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bank of Lanzhou Co., Ltd.

Why is Bank of Lanzhou Co., Ltd. ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.10% signifying inadequate buffers against its risk based assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 0.98%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.10% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.36% signifying low profitability per unit of total assets

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 0.98%

Flat results in Mar 26

NO KEY NEGATIVE TRIGGERS

With ROA of 0.32%, it has a very expensive valuation with a 0.19 Price to Book Value

Over the past year, while the stock has generated a return of -20.23%, its profits have fallen by -3.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.23% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Bank of Lanzhou Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bank of Lanzhou Co., Ltd.

-20.23%

-1.22

14.25%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.44%

EBIT Growth (5y)

-0.26%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

28.04%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.19

EV to EBIT

74.84

EV to EBITDA

63.84

EV to Capital Employed

0.81

EV to Sales

6.73

PEG Ratio

Dividend Yield

4.81%

ROCE (Latest)

1.08%

ROE (Latest)

5.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

GROSS NPA (%)

NII(Q)

Highest at CNY 1,691.04 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Bank of Lanzhou Co., Ltd.

Non Performing Loans (%)

Lowest at 1.47%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are falling

Non Performing Loans (%)

NII

Highest at CNY 1,691.04 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (CNY MM)