NEWS BITES - BRIC
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China Construction Bank Corporation's (HK: 00939 HKD4.40) stock price dropped 6.0c (1.3%) from its previous trading session to close at HKD4.40.
Compared with the Hang Seng which fell 328.2 points (1.8%) in the day, the relative price increase was 0.5%.
China Construction Bank Corporation is Hong Kong's largest Bank by market cap.
It posted the steepest fall in MCap of HKD14.4 billion ($1.8 billion) with the most influence on the Bank sector. Its MCap is HKD1,057.8 billion ($135.3 billion).
There were 200,490,000 shares worth HKD882.2 million ($112.8 million) traded today. The volume was 0.7 times the average daily trading volume of 291.5 million shares.
Bullish Turning Point
Dividend Yield increases to 9.6%
Based on dividends of 42.23c per share for the trailing twelve months and the last price of HKD4.40 the dividend yield is 9.6%, a significant improvement from 9.5% on the previous day.
CHINA CONSTRUCTION BANK - H SHARES (00939) Stock Dashboard [traded in Hong Kong Dollars, HKD] End-of-Day
| Exchange | HONG KONG [Hong Kong] | EPS Growth (FY2022 vs FY2021) | 7.6% |
| Currency | 1.000 USD = 7.82 Hong Kong Dollar (HKD) | Ave Daily Volume | 291,466,600 shares |
| Sep 25, 2023 | HKD4.40 | Sector | Bank |
| EPS (FY2022) | HKD1.28 | Market Cap | HKD1,058 billion [US$135 billion] |
| 00939 P/E | 3.2 | Shares Outstanding | 240,417,319,880 |
| 00939 Dividend Yield % (TTM) | 9.6 | 00939 in Indices | HSI [of 73 stocks] |
| DPS (past 12 months) | 42c | PVHKD1000 (1 yr) PVUS$1000 (1 yr) | HKD1,124 US$1,128* |
*If You Invested $1,000 in China Construction Bank - H Shares a year ago, This is How Much You Would Have Today: $1,128. USD1000 would have bought HKD545 for 1,835.9 shares (@the then price of 4.28) worth HKD1,124 @4.4 today. Dividends reinvested are worth $95.
INDEX
SECTION 1 RECENT NEWS AND RESEARCH
SECTION 2 TODAY'S BEARISH SIGNALS
SECTION 3 ONGOING BEARISH PARAMETERS
SECTION 4 TODAY'S BULLISH SIGNALS
SECTION 5 ONGOING BULLISH PARAMETERS
SECTION 6 CORPORATE PROFILE
SECTION 7 BANK METRICS
APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER
APPENDIX II STOCK IDENTIFIERS
GLOSSARY
SECTION 1 RECENT NEWS AND RESEARCH
Press Releases and Corporate Wire
June 30: China Construction Bank: Final Dividend for the year ended 31 December 2022 (Updated)
Issuer name China Construction Bank Corporation Stock code 00939 Multi-counter stock code and currency Not applicable
Other related stock code(s) and name(s)
05802 CCB B2902
40284 CCB B3006
04432 CCB B3201
Title of announcement Final Dividend for the year ended 31 December 2022 (Updated)
Announcement date 29 June 2023
Status Update to previous announcement
Reason for the update / change Update of dividend amount in HKD, exchange rate and information relating to withholding tax
Source: HongKong Stock Exchange
September 20: China Construction Bank: Monthly Return of Equity Issuer on Movements in Securities
Monthly Return for Equity Issuer and Hong Kong Depositary Receipts listed under Chapter 19B of the Exchange Listing Rules on Movements in Securities
For the month ended: 31 August 2023 Status: New Submission
To : Hong Kong Exchanges and Clearing Limited
I. Movements in Authorised / Registered Share Capital
II. Movements in Issued Shares
III. Details of Movements in Issued Shares
(A). Share Options (under Share Option Schemes of the Issuer)
(B). Warrants to Issue Shares of the Issuer which are to be Listed Not applicable
(C). Convertibles (i.e. Convertible into Issue Shares of the Issuer which are to be Listed) Not applicable
(D). Any other Agreements or Arrangements to Issue Shares of the Issuer which are to be listed, including Options (other than Share Options Schemes) Not applicable
(E). Other Movements in Issued Share Not applicable
Source: HongKong Stock Exchange
July 13: China Construction Bank - H Shares: Monthly Return of Equity Issuer on Movements in Securities
Monthly Return for Equity Issuer and Hong Kong Depositary Receipts listed under Chapter 19B of the Exchange Listing Rules on Movements in Securities
For the month ended: 30 June 2023 Status: New Submission
To : Hong Kong Exchanges and Clearing Limited
I. Movements in Authorised / Registered Share Capital
II. Movements in Issued Shares
III. Details of Movements in Issued Shares
Source: HongKong Stock Exchange
June 30: CHINA CONSTRUCTION BANK: VOTING RESULTS OF THE 2022 ANNUAL GENERAL MEETING
The board of directors (the "Board") of China Construction Bank Corporation (the "Bank") announces that the 2022 Annual General Meeting (the "Meeting") was held on 29 June 2023 at Regent Hong Kong, 18 Salisbury Road, Tsim Sha Tsui, Kowloon, Hong Kong and No. 25, Financial Street, Xicheng District, Beijing.
The Meeting was convened by the Board of the Bank and was chaired and presided over by Mr. Tian Guoli, chairman of the Board. All directors, all supervisors and some of the senior management of the Bank attended the Meeting in person. The convening and procedures of the Meeting and the voting method were in compliance with the requirements of laws and regulations, including the Company Law of the People's Republic of China and the Articles of Association of China Construction Bank Corporation (the "Articles of Association").
Source: HongKong Stock Exchange
June 30: China Construction Bank: List of Directors and Their Roles and Functions
The members of the board of directors (the "Board") of China Construction Bank Corporation (the "Bank") are set out below.
Source: HongKong Stock Exchange
SECTION 2 TODAY'S BEARISH SIGNALS
2.1 Short Selling
+ The current short volume is 1.6 times its own historical average of 0.02%.
2.2 Rising open interest with falling price
Open Interest Trend
Same day trend: The price fallen 1.3% from HKD4.46 to HKD4.40; Open interest has been up 11.2% from 2,671 to 2,970. A fall in price combined with an increase in open interest suggests there is new money coming into the market from short sellers. This is a bearish signal.
| Duration | Open Interest change % | Price change % | Interpretation |
| 1-day | 11.2 | -1.3 | Weak Market |
2.3 Downtrend
Beta < 1 combined with price fall. The Beta of the stock is 0.4.
Past Quarter:
- The shares had their worst quarter in a year since the quarter ended September 23, 2022.
2.4 Overbought/Bearish Signals:
- The Stochastic indicator of 80.9 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.
SECTION 3 ONGOING BEARISH PARAMETERS
3.1 Rank in the bottom 20% by Growth in the Hong Kong market
| Description | Value | Rank |
| EPS Growth % | 7.6 | In Bottom 20% |
3.2 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Period with TSR < 2.6%
| TSR % | 5 yrs |
| 00939.HK | 2.5 |
3.3 Declining Volume, down 11% in 5 years
In the past five years, Average Daily Volume of Trading (ADVT) has decreased 11.4% to 291.5 million shares.
Avg. Daily Volume Traded 12 months ended Sep 25, million shares
| Year | ADVT |
| 2023 | 291.5 |
| 2022 | 247.8 |
| 2021 | 300.5 |
| 2020 | 317.1 |
| 2019 | 328.8 |
3.4 Declining VWAP, down 16% in 5 years
In the past five years Volume Weighted Average Price (VWAP) has decreased by 16.3% to HKD4.48.
Past five years, 12 months ended Sep 25 (HKD)
| Year | High Price | VWAP | Low Price |
| 2023 | 5.22 | 4.48 | 3.75 |
| 2022 | 5.7 | 5.0 | 4.23 |
| 2021 | 6.17 | 5.47 | 4.51 |
| 2020 | 6.1 | 5.42 | 4.59 |
| 2019 | 5.91 | 5.35 | 4.8 |
3.5 Declining share turnover, down 25% in 5 years
In the past five years, average daily share turnover has decreased 25.3% to HKD1.3 billion ($165.6 million). This suggests decreased liquidity.
Past five years, 12 months ended Sep 25 (HKD billion)
| Year | Average Daily Turnover |
| 2023 | 1.3 |
| 2022 | 1.2 |
| 2021 | 1.6 |
| 2020 | 1.7 |
| 2019 | 1.7 |
3.6 Satisfies 4 out of 9 criteria of Joseph Piotroski [pass mark 5]:
- Positive net income.
- Positive operating cashflow.
- Good quality of earnings [operating cashflow exceeds net income].
- Total shares on issue unchanged.
But does not meet the following 5 criteria of Joseph Piotroski:
- Return on Assets improvement.
- Improvement in long-term debt to total assets.
- Improvement in current ratio.
- Improvement in gross margin.
- Improvement in asset turnover.
SECTION 4 TODAY'S BULLISH SIGNALS
Price/Earnings:
China Construction Bank - H Shares stock is trading at the lowest P/E multiple in the Hang Seng.
Earnings Yield
- The earnings yield of 31.3% is 7.8 times the 10-year bond yield of 3.99%.China Construction Bank - H Shares stock is the fifth highest dividend yielding stock in the Hang Seng.
4.1 Relative Value Indicators: Undervaluation compared with Index averages and bond yield
Dividend Yield > Bond Yield of 3.99%:
The dividend yield of 9.6% is 2.41 times the triple-A bond yield of 3.99%. The times factor of 2.41 is above the benchmark factor of 0.67 times set by Benjamin Graham.
(All figures in %)
| Dividend Yield | 9.6 |
| Bond Yield | 3.99 |
| Spread | 5.61 |
The Dividend Yield of 9.6% is better than the Index average of 5.6%
- The relative yield of the stock, defined by its yield of 9.6%, divided by average yield of dividend yielding stocks in the Hang Seng of 5.6% is 171.1%. This suggests the stock is undervalued in dividend yield terms.
4.2 PAST WEEK: WEAK MOMENTUM UP
00939 strengthens 0.9% on below average volume 0.9 times average. Compared with the Hang Seng which fell 201.3 points (or 1.1%) in the week, the relative price increase was 2.0%.
China Construction Bank - H Shares (00939) outperformed the Hang Seng Index in 4 out of 5 days. The price ranged between a low of HKD4.40 on Monday Sep 25 and a high of HKD4.46 on Friday Sep 22.
| Sep | China Construction Bank - H Shares | Close [HKD] | Change % | Comment |
| Mon 25 | Loses HKD14 billion ($2 billion) (1.3%) in MCap, steepest heavyweight fall in Bank sector | 4.4 | -1.3 | Steepest Fall |
| Fri 22 | Closes at 4.3% above VWAP | 4.46 | 1.1 | Price rise on rising relative strength |
| Thu 21 | Decreases on average volume | 4.41 | -0.7 | Price/MAP200 below 1 |
| Wed 20 | Offers dividend yield of 9.5%, hits 50-day high | 4.44 | 0.2 | Price rise on rising relative strength |
| Tue 19 | Adds HKD17 billion ($2 billion) (1.6%) in MCap, top heavyweight rise in Bank sector | 4.43 | 1.6 | Top Rise; RPC=1.2% |
* RPC - Relative Price Change is % price change of stock less % change of the Hang Seng Index.
4.3 Rank in the top 17% by Relative Valuation in the Hong Kong market
| Description | Value | Rank |
| P/E * P/NTA | 1.12 | In Top 3% |
| Price/Earnings | 3.2 | In Top 12% |
| Dividend Yield % | 9.6% | In Top 17% |
4.4 Rank in the top 22% by Price Performance in the Hong Kong market
| Description | Value | Rank |
| 1-month Price Change % | 7.6 | In Top 20% |
| Price/MAP50 | 1.02 | In Top 22% |
4.5 Uptrend
Positive MACD:
- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 4.38 minus the 26-day EMA of 4.33 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.
Past Quarter:
The Best 3 weeks in the past quarter
In the past quarter the week beginning Monday July 24 saw the highest weekly rise of 3.2% for a relative price increase of -1.2%. The rise was propped up by volume of 1.2 times average.
| Mon-Fri | Change % | Hang Seng Index Change % | Vol Ind [1 is avg] |
| Jul 24-28 | 3.2 | 4.4 | 1.2 |
| Sep 11-15 | 2.8 | -0.1 | 1 |
| Jun 26-30 | 1.4 | 0.1 | 1.2 |
4.6 Other Bullish Signals
- Return on Equity of 11.2% versus sector average of 9.6% and market average of 8.1%.
- Net profit margin has averaged 40.2% in the last 3 years. This is considered superior and suggests a high margin of safety.
- As per the Du Pont analysis, Return on Equity of 11.2% is better than sector average of 9.6%. This is computed as net profit margin of 42.6% times asset turnover [sales/assets] of 0.02 times leverage factor [total assets/shareholders' equity] of 12.0.
SECTION 5 ONGOING BULLISH PARAMETERS
5.1 Rank in the top 9% by Performance in the Hong Kong market
| Description | Value | Rank |
| Net Profit Margin % | 42.6 | In Top 8% |
| EBITDA Margin % | 50.4 | In Top 9% |
5.2 Present Value of HKD1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Best Periods with PVHKD1000 > 1,049
| PVHKD1,000 | 3 mo ago | 1 yr ago | 3 yrs ago |
| 00939.HK | HKD1,050 | HKD1,124 | HKD1,175 |
| Bank sector | HKD934 | HKD1,053 | HKD1,156 |
| Hang Seng | HKD963 | HKD989 | HKD763 |
5.3 Past year: price rise of 2.9%
1-Year price change of 2.9% for China Construction Bank - H Shares outperformed the change of -1.1% in the Hang Seng Index for a relative price change of 4%.
| Price Change % | Year |
| China Construction Bank - H Shares | 2.9 |
| Bank sector | 5.3 |
| Hang Seng Index | -1.1 |
5.4 EPS growth [FY2022 vs FY2021] of 7.6%:
| FY | EPS (CNY) | Growth % |
| 2022 | 1.28 | 7.6 |
| 2021 | 1.19 | 12.3 |
5.5 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 5.4%
| TSR % | 1 yr | 3 yrs | 10 yrs |
| 00939.HK | 12.4 | 5.5 | 5.8 |
5.6 P/E/G < 1
The price earnings ratio of 3.2 divided by trailing twelve months eps growth of 7.6% corresponds to an attractive P/E/G of 0.4 times; being less than the value benchmark of 1.0.
| EPS Growth (%) | 7.56 |
| P/E/G | 0.42 |
| P/E | 3.2 |
5.7 Improved EBIT Margins:
EBIT margin is positive and has increased from 49.5% to 50.4% in the past year.
| FY | EBIT Margins (%) |
| 2022 | 50.4 |
| 2021 | 49.5 |
| 2020 | 47.1 |
5.8 Satisfies one criterion of Benjamin Graham
- The P/E of 3.2 multiplied by the P/NTA of 0.3 is 1.1. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.
SECTION 6 CORPORATE PROFILE
6.1 Activities
China Construction Bank is a leading commercial bank in China providing a comprehensive range of commercial banking products and services. Their business consists of three principal business segments: corporate banking, personal banking, and treasury operations. It is Hong Kong's largest Bank by market capitalisation.
6.2 Contact Details
| Website | http://www.ccb.com |
| Physical Address | No 25 Finance Street Xicheng District Beijing 100032 China |
| Phone | (852) 2532-9637 |
| Fax | (852) 2523-8185 |
| ir@ccb.cn |
6.3 Industry & Sector [of 352 stocks]
| Classification Level | Name of Sector |
| Business Sector | Banking & Investment Services |
| Industry Group | Banking Services |
| Industry | Banks |
| Activity | Banks - NEC* |
| Economic Sector | Financials |
* NEC: Not elsewhere classified
SECTION 7 BANK METRICS
7.1 Bank Metrics (FY2022)
All values are in CNY billion
| Description | FY2022 | FY2021 | Change |
| Interest Income | 1,169.9 | 1,057.3 | Up 10.6% |
| Interest Expense | 526.8 | 451.9 | Up 16.6% |
| Net Interest Income | 643.1 | 605.4 | Up 6.2% |
| Bank Other Revenue | 61.3 | 68 | Down 9.8% |
Favourable Changes:
- Interest Income up 10.6% from CNY1,057.3b to CNY1,169.9b
- Net Interest Income up 6.2% from CNY605.4b to CNY643.1b
Unfavourable Changes:
- Interest Expense up 16.6% from CNY451.9b to CNY526.8b
- Bank Other Revenue down 9.8% from CNY68b to CNY61.3b
APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER
00939: EXCEL TABLES ARE AVAILABLE TO EXPORT DATA:
+ PRICE VOLUME - 5-YEAR HISTORY
+ PEER COMPARISON - STOCK IN BANK SECTOR AND STOCK IN INDICES
+ PATENTS - CATEGORISED LIST OF 5-YEAR HISTORY OF 1 :
00939: LINKS IN HTML TO FURTHER INFORMATION:
+ NEWS ARCHIVES - 00939 PAST 4 YEARS IN HTML:
+ USD vs HKD EXCHANGE RATE CHARTS IN HTML
APPENDIX II STOCK IDENTIFIERS
ISIN: CNE1000002H1
PermID: 55838741041
RIC: 0939.HK
GLOSSARY
ADVT: Average Daily Volume of shares Traded
Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Current Ratio: Current Assets/Current Liabilities (times)
Dividend Yield: Dividend Per Share/Share Price (%)
EBIT Margin : Earnings Before Interest and Tax/Revenue (%)
Earnings Yield: Earnings Per Share/Share Price (%)
Income during the n years (3/2/1): Dividends received during the Period
Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods
PV1000: Present value of 1000 invested 1 year/'n' years ago
Price Close/Moving Avg Price: Latest Price/Moving Average Price
Price/Earnings: Share Price/Earnings Per Share (times)
Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index
Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.
Return on Assets: Net Profit/Total Assets (%)
Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)
TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend
TTM: Trailing 12 Months
Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.
Disclaimer: While this document is based on information sources which are considered reliable, it has been prepared without consideration of your specific investment objectives, financial situation or needs, so you should carry out your own analysis or seek professional investment advice before an investment decision is made. The document contains unbiased, independent equities data and analysis from Jupiter International (Australia) Pty Ltd trading as BuySellSignals (AFS Licence 222756), who provide round the clock analysis on every stock, every sector, every market, every day. BuySellSignals is not a broker, and does not have executing, corporate advisory or investment banking functions. Jupiter International (Australia) Pty Ltd, its directors, employees and contractors do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.
Data for the BuySellSignals algorithms is drawn from annual reports, company websites and similar sources of publicly available data. It should be used as a guide only.
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