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Chongqing Rural Commercial Bank Co., Ltd.

3618.HKHKSE
Financial Services
Banks - Regional
HK$7.05
HK$0.11(1.59%)
Hong Kong Market is Open • 13:24

Chongqing Rural Commercial Bank Co., Ltd. Fundamental Analysis

Chongqing Rural Commercial Bank Co., Ltd. (3618.HK) shows strong financial fundamentals with a PE ratio of 5.81, profit margin of 37.46%, and ROE of 8.98%. The company generates $36.7B in annual revenue with strong year-over-year growth of 25.74%.

Key Strengths

Operating Margin42.88%
Cash Position170.22%

Areas of Concern

ROE8.98%
We analyze 3618.HK's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 41.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.

Fundamental Health Score

D
41.4/100

We analyze 3618.HK's fundamental strength across five key dimensions:

Efficiency Score

Weak

3618.HK struggles to generate sufficient returns from assets.

ROA > 10%
0.73%

Valuation Score

Excellent

3618.HK trades at attractive valuation levels.

PE < 25
5.81
PEG Ratio < 2
1.11

Growth Score

Moderate

3618.HK shows steady but slowing expansion.

Revenue Growth > 5%
25.74%
EPS Growth > 10%
5.32%

Financial Health Score

Moderate

3618.HK shows balanced financial health with some risks.

Debt/Equity < 1
3.39
Current Ratio > 1
1.42

Profitability Score

Weak

3618.HK struggles to sustain strong margins.

ROE > 15%
8.98%
Net Margin ≥ 15%
37.46%
Positive Free Cash Flow
No

Key Financial Metrics

Is 3618.HK Expensive or Cheap?

P/E Ratio

3618.HK trades at 5.81 times earnings. This suggests potential undervaluation.

5.81

PEG Ratio

When adjusting for growth, 3618.HK's PEG of 1.11 indicates fair valuation.

1.11

Price to Book

The market values Chongqing Rural Commercial Bank Co., Ltd. at 0.51 times its book value. This may indicate undervaluation.

0.51

EV/EBITDA

Enterprise value stands at -33.74 times EBITDA. This is generally considered low.

-33.74

How Well Does 3618.HK Make Money?

Net Profit Margin

For every $100 in sales, Chongqing Rural Commercial Bank Co., Ltd. keeps $37.46 as profit after all expenses.

37.46%

Operating Margin

Core operations generate 42.88 in profit for every $100 in revenue, before interest and taxes.

42.88%

ROE

Management delivers $8.98 in profit for every $100 of shareholder equity.

8.98%

ROA

Chongqing Rural Commercial Bank Co., Ltd. generates $0.73 in profit for every $100 in assets, demonstrating efficient asset deployment.

0.73%

Following the Money - Real Cash Generation

Operating Cash Flow

Chongqing Rural Commercial Bank Co., Ltd. generates limited operating cash flow of $-81.15B, signaling weaker underlying cash strength.

$-81.15B

Free Cash Flow

Chongqing Rural Commercial Bank Co., Ltd. generates weak or negative free cash flow of $-83.12B, restricting financial flexibility.

$-83.12B

FCF Per Share

Each share generates $-6.44 in free cash annually.

$-6.44

FCF Yield

3618.HK converts -91.45% of its market value into free cash.

-91.45%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

5.81

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

1.11

vs 25 benchmark

P/B Ratio

Price to book value ratio

0.51

vs 25 benchmark

P/S Ratio

Price to sales ratio

2.47

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

3.39

vs 25 benchmark

Current Ratio

Current assets to current liabilities

1.42

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.09

vs 25 benchmark

ROA

Return on assets percentage

0.007

vs 25 benchmark

ROCE

Return on capital employed

0.009

vs 25 benchmark

How 3618.HK Stacks Against Its Sector Peers

Metric3618.HK ValueSector AveragePerformance
P/E Ratio5.8118.59 Better (Cheaper)
ROE8.98%801.00% Weak
Net Margin37.46%-498.00% (disorted) Strong
Debt/Equity3.390.98 Weak (High Leverage)
Current Ratio1.42661.40 Neutral
ROA0.73%-21324.00% (disorted) Weak

3618.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.

Historical Growth Performance

5-Year Growth Trajectory

This section reviews Chongqing Rural Commercial Bank Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.

Revenue CAGR

-5.77%

Industry Style: Value, Dividend, Cyclical

Declining

EPS CAGR

6.76%

Industry Style: Value, Dividend, Cyclical

Growing

FCF CAGR

-82.55%

Industry Style: Value, Dividend, Cyclical

Declining

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