Dongguan Rural Commercial Bank Co., Ltd. () 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

Dah Sing Financial Holdings Ltd.

Dah Sing Banking Group Ltd.

China Merchants Bank Co., Ltd.

Bank of Qingdao Co., Ltd.

Dongguan Rural Commercial Bank Co., Ltd.

Hang Seng Bank Ltd.

Chongqing Rural Commercial Bank Co., Ltd.

Bank of Communications Co., Ltd.

China Construction Bank Corp.

Guangzhou Rural Commercial Bank Co. Ltd.

China Minsheng Banking Corp., Ltd.

Why is Dongguan Rural Commercial Bank Co., Ltd. ?

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 0% signifying inadequate buffers against its risk based assets

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 0% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.51% signifying low profitability per unit of total assets

Weak Long Term Fundamental Strength with an average Return on Assets (ROA) of 0.51%

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD -37,941.49 MM
OPERATING PROFIT(Q) Lowest at HKD -372.4 MM
OPERATING PROFIT MARGIN(Q) Lowest at -3.4 %

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.63% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong 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 Dongguan Rural Commercial Bank Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dongguan Rural Commercial Bank Co., Ltd.

-1.63%

-2.17

19.42%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.40%

EBIT Growth (5y)

-5.39%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

41.52%

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

0.36

EV to EBIT

51.74

EV to EBITDA

44.21

EV to Capital Employed

0.78

EV to Sales

6.48

PEG Ratio

Dividend Yield

ROCE (Latest)

1.50%

ROE (Latest)

13.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

6What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 129.39%

PRE-TAX PROFIT(Q)

At HKD 1,072.89 MM has Grown at 186.43%

CASH AND EQV(HY)

Highest at HKD 41,575.57 MM

CREDIT DEPOSIT RATIO(HY)

Highest at 79.78%

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD -37,941.49 MM

OPERATING PROFIT(Q)

Lowest at HKD -372.4 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.4 %

EPS(Q)

Lowest at HKD 0.19

Here's what is working for Dongguan Rural Commercial Bank Co., Ltd.

Pre-Tax Profit

At HKD 1,072.89 MM has Grown at 186.43%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Dividend Payout Ratio

Highest at 129.39% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Cash and Eqv

Highest at HKD 41,575.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Credit Deposit Ratio

Highest at 79.78%

in the last four Semi-Annual periods

MOJO Watch

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

Credit Deposit Ratio (%)

Depreciation

Highest at HKD 245.75 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Here's what is not working for Dongguan Rural Commercial Bank Co., Ltd.

Operating Cash Flow

Lowest at HKD -37,941.49 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Operating Profit

Lowest at HKD -372.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at -3.4 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at HKD 0.19

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Capital Adequacy Ratio

Lowest at 13.33%

in the last five periods

MOJO Watch

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

CAR (%)