Hang Seng Bank Ltd. (11) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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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.

Chongqing Rural Commercial Bank Co., Ltd.

Hang Seng Bank Ltd.

China Construction Bank Corp.

Bank of Communications Co., Ltd.

Guangzhou Rural Commercial Bank Co. Ltd.

China Minsheng Banking Corp., Ltd.

Why is Hang Seng Bank Ltd. ?

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

Poor long term growth as Net profit has grown by an annual rate of -6.19%
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 0.59% signifying low profitability per unit of total assets

Poor long term growth as Net profit has grown by an annual rate of -6.19%

The company has declared negative results in Dec'2024 after 3 consecutive positive quarters

OPERATING CASH FLOW(Y) Lowest at HKD 19,173 MM
GROSS NPA (%)(Q) Highest at 6.06%
NII(Q) Lowest at HKD 14,344 MM

With ROA of 1.24%, it has a Expensive valuation with a 1.32 Price to Book Value

Over the past year, while the stock has generated a return of 59.04%, its profits have fallen by -13.5%

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 Hang Seng Bank Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Hang Seng Bank Ltd.

59.46%

18.91

33.39%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.80%

EBIT Growth (5y)

-1.64%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

72.91%

Pledged Shares

Institutional Holding

0.00%

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

1.32

EV to EBIT

15.96

EV to EBITDA

13.25

EV to Capital Employed

1.26

EV to Sales

4.32

PEG Ratio

Dividend Yield

0.09%

ROCE (Latest)

7.87%

ROE (Latest)

20.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Bullish

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 77.87%

DIVIDEND PER SHARE(HY)

Highest at HKD 0

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 19,173 MM

GROSS NPA (%)

NII(Q)

Lowest at HKD 14,344 MM

CASH AND EQV(HY)

Lowest at HKD 9,720 MM

NET SALES(Q)

Lowest at HKD 26,686 MM

PRE-TAX PROFIT(Q)

Lowest at HKD 8,460 MM

NET PROFIT(Q)

Lowest at HKD 6,589.26 MM

EPS(Q)

Lowest at HKD 3.34

Here's what is working for Hang Seng Bank Ltd.

Dividend per share

Highest at HKD 0

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Dividend Payout Ratio

Highest at 77.87%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

CASA

Highest at 22.9%

in the last five periods

MOJO 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 Hang Seng Bank Ltd.

Non Performing Loans (%)

Highest at 6.06%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)

NII

Lowest at HKD 14,344 MM

in the last five periods

MOJO Watch

The bank's income from core business is falling

NII (HKD MM)

Operating Cash Flow

Lowest at HKD 19,173 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Net Sales

Lowest at HKD 26,686 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Pre-Tax Profit

Lowest at HKD 8,460 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 6,589.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 3.34

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Cash and Eqv

Lowest at HKD 9,720 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents