ScoreWhy is Bank of Lanzhou Co., Ltd. ?
1
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 4.68%
- 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
2
Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 4.68%
3
Flat results in Sep 25
- NET SALES(HY) At CNY 7,701.37 MM has Grown at -10.09%
4
With ROA of 0.27%, it has a fair valuation with a 0.44 Price to Book Value
- Over the past year, while the stock has generated a return of -2.59%, its profits have risen by 2.5% ; the PEG ratio of the company is 2.8
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -2.59% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Bank of Lanzhou Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Regional Banks should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Bank of Lanzhou Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Bank of Lanzhou Co., Ltd.
-2.59%
-0.52
17.06%
China Shanghai Composite
16.1%
1.26
12.73%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-5.50%
EBIT Growth (5y)
-3.23%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
0
Dividend Payout Ratio
30.48%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
0.44
EV to EBIT
69.15
EV to EBITDA
55.94
EV to Capital Employed
0.85
EV to Sales
6.06
PEG Ratio
2.82
Dividend Yield
1.04%
ROCE (Latest)
1.23%
ROE (Latest)
6.19%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
GROSS NPA (%)
(Q
NII(Q)
Highest at CNY 1,615.06 MM
-4What is not working for the Company
NET SALES(HY)
At CNY 7,701.37 MM has Grown at -10.09%
Here's what is working for Bank of Lanzhou Co., Ltd.
Non Performing Loans (%)
Lowest at 1.49%
in the last four Semi-Annual periodsMOJO Watch
Proportion of stressed loans given by the bank are falling
Non Performing Loans (%)
NII
Highest at CNY 1,615.06 MM
in the last five periodsMOJO Watch
The bank's income from core business is increasing
NII (CNY MM)
CASA
Highest at 11.12%
in the last five periodsMOJO Watch
The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.
CAR (%)
Here's what is not working for Bank of Lanzhou Co., Ltd.
Net Sales
At CNY 7,701.37 MM has Grown at -10.09%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
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