Bank of Suzhou Co., Ltd. (002966) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

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 Suzhou Co., Ltd.

Why is Bank of Suzhou Co., Ltd. ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.81% 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 15.31%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.81% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.66% signifying low profitability per unit of total assets

Positive results in Mar 26

NII(Q) Highest at CNY 2,564.58 MM
CASH AND EQV(HY) Highest at CNY 64,470.38 MM
NET SALES(Q) Highest at CNY 5,440.83 MM

With ROA of 0.61%, it has a expensive valuation with a 0.68 Price to Book Value

Over the past year, while the stock has generated a return of -11.30%, its profits have risen by 6%
At the current price, the company has a high dividend yield of 2.2

Below par performance in long term as well as near term

Along with generating -11.30% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Bank of Suzhou 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 Suzhou Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bank of Suzhou Co., Ltd.

-11.3%

0.15

20.10%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.12%

EBIT Growth (5y)

12.80%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

31.59%

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

0.68

EV to EBIT

39.60

EV to EBITDA

37.14

EV to Capital Employed

0.94

EV to Sales

11.81

PEG Ratio

Dividend Yield

2.17%

ROCE (Latest)

2.37%

ROE (Latest)

10.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly 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

9What is working for the Company

NII(Q)

Highest at CNY 2,564.58 MM

CASH AND EQV(HY)

Highest at CNY 64,470.38 MM

NET SALES(Q)

Highest at CNY 5,440.83 MM

OPERATING PROFIT(Q)

Highest at CNY 1,653.28 MM

OPERATING PROFIT MARGIN(Q)

Highest at 30.39 %

PRE-TAX PROFIT(Q)

Highest at CNY 2,042.03 MM

NET PROFIT(Q)

Highest at CNY 1,682.22 MM

EPS(Q)

Highest at CNY 0.38

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 3,802.49 MM

GROSS NPA (%)

CREDIT DEPOSIT RATIO(HY)

Lowest at 92.26%

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

NII

Highest at CNY 2,564.58 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (CNY MM)

Net Sales

Highest at CNY 5,440.83 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 1,653.28 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 30.39 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 2,042.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1,682.22 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.38

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 64,470.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Bank of Suzhou Co., Ltd.

Operating Cash Flow

Lowest at CNY 3,802.49 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Non Performing Loans (%)

Highest at 0.68%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)

Credit Deposit Ratio

Lowest at 92.26%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets

Credit Deposit Ratio (%)

Capital Adequacy Ratio

Lowest at 10.87%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is deteriorating.

CAR (%)