China Construction Bank - H Shares (00939:HKD6.14) offers 15th highest dividend yield 03 July 2020

NEWS BITES - BRIC

Dateline: Friday July 03, 2020

China Construction Bank Corporation (HK:00939), Hong Kong's largest Bank by market cap, is currently the 15th highest dividend yielding stock in the Hang Seng Index. The dividend yield of 5.71% is 9.36 times the triple-A bond yield of 0.61%.

CHINA CONSTRUCTION BANK - H SHARES DIVIDENDS

The shares increased 0.8% in the 1 trading session since the ex-dividend date of July 02. The company paid a dividend of 35.09c per share. Based on dividends of 35.09c per share for the trailing twelve months and the last price of HKD6.14 the dividend yield is 5.7%.

Stock Summary (traded in HKD)

Currency1 USD = 7.75 HKDDividend Yield5.7%
Jul 03 closeHKD6.14SectorBank
Ave Daily Volume337,429,080 sharesShares Outstanding240,417,319,880
52-Week Range5.24 - 6.47Market CapHKD1,476.2 billion [USD190.5 billion]
P/E5.5EPS Growth (FY2018 vs FY2017)4.2%

ADR Summary (traded in USD)

Home ExchangeChina% of shares outstanding1.7%
CodeCICHYRatio1 ADR equals 20 ordinary shares
ISINUS1689191088TypeUnsponsored
CUSIP168919108Jul 02 closeUSD15.66
*No. Held by Institutions2,074,037Ave Daily Volume160,416 ADRs
Number of shares equivalent41,480,74052-Week Range14.10 - 17.73

*Total ADRs Held by Institutions 2,074,037; equivalent to 41,480,740 China Construction Bank Corporation shares on issue. This represents 1.7% of total shares on issue.

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INDEX

SECTION 1 News In The Past Quarter

SECTION 2 Corporate Profile

SECTION 3 Today's Bullish Signals

SECTION 4 Ongoing Bullish Parameters

SECTION 5 Today's Bearish Signals

SECTION 6 Ongoing Bearish Parameters

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SECTION 7 Patents

SECTION 8 News Archives (Oct 2018 - Mar 2020)

Glossary

SECTION 1 News In The Past Quarter

1.1 Meetings

April 16: China Construction Bank - H Shares: Notification of Board Meeting

The board of directors (the "Board") of China Construction Bank Corporation (the "Bank") hereby announces that a meeting of the Board of the Bank will be held on 28 April 2020 for the purpose of, among other things, considering and approving the results of the Bank for the first quarter ended 31 March 2020.

Announcement of the captioned matter is hereby given.

Source: HongKong Stock Exchange

1.2 People's News

Wed Jun 24, 2020

Xu Yiming was appointed CFO of China Construction Bank - H Shares (HK:00939) six years ago on June 24, 2014.

Fri Jun 19, 2020

Graeme Wheeler's performance as Director of China Construction Bank - H Shares (HK:00939) is ranked in the top 14% of BuySellSignals performers for the past ten years; a percentile ranking of 86.5. In the last 10 years the average annualized return to shareholders was 9.5%. The 10-year average return is ranked 5,890 out of 43,495 public companies traded globally. A two-bagger, the present value of US$1,000 (PV1000) invested 10 years ago is now worth USD2,473; a capital gain of USD695 and dividend reinvested of USD779.

SECTION 2 Corporate Profile

2.1 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.

2.2 Contact Details

Websitehttp://www.ccb.com
Physical AddressNo 25 Finance Street Xicheng District Beijing 100032 China
Phone(852) 2532-9637
Fax(852) 2523-8185
Emailir@ccb.cn

2.3 Industry & Sector

Classification LevelName of Sector
Business SectorBanking & Investment Services
Industry GroupBanking Services
IndustryBanks
ActivityBanks - NEC*
Economic SectorFinancials

* NEC: Not elsewhere classified

SECTION 3 Today's Bullish Signals

3.1 Momentum Up 3.7% Past Week

China Construction Bank - H Shares outperformed the Hang Seng index in 3 out of 5 days. The price ranged between a low of 5.82 on Friday, Jun 26 and a high of 6.09 on Thursday, Jul 02.

DayChina Construction Bank - H SharesClose price [HKD]Price change %Relative change %Comment
ThursdayHits four-month high6.092.90.04Week-high of 6.09 Top Rise
TuesdayOffers 15th highest dividend yield5.920.60.1Rises for a second consecutive day
MondayIn top 2% performers of Hang Seng5.881.02.0Price rise on rising relative strength
FridayOffers 17th highest dividend yield5.82-0.8-0.3Week-low of 5.82 Steepest Fall
WednesdayDecreases5.87-0.6-0.1Price/MAP200 below 1

3.2 Momentum Up 2.3% Past Month

The past month witnessed the best 2 weeks in the past quarter. In the past quarter the week beginning Monday June 29 saw the highest weekly rise of 5.4% for a relative price increase of 2.1%.

The Best 3 weeks in the past quarter:

Mon-FriChange %Hang Seng index Change %RPC %Vol Ind [1 is avg]
Jun 29-Jul 035.43.42.11
Jun 01-054.97.9-30.8
May 25-291.20.110.8

3.3 Rank in the top 24% by Price Performance in the Hong Kong market

DescriptionValueRank
Price/MAP2001.03In Top 24%

3.4 Rising open interest with rising price

Open Interest Trend

Same day trend: The price increased 0.8% from HKD6.09 to HKD6.14; Open interest has lifted 3.1% from 65 to 67. A price rise combined with an increase in open interest suggests there is new money coming into the market from existing or new buyers. This is a bullish signal.

DurationOpen Interest change %Price change %Interpretation
1-day3.10.8Strong Market

3.5 Uptrend

Today's Volatility:

The 5.0% discount to 12-month high of HKD6.47 against the 17.2% premium to 12-month low of HKD5.24 suggests the stock continues to push for new highs.

Positive MACD:

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 5.95 minus the 26-day EMA of 5.91 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

Relative Strength (6 months) 71 percentile:

- The stock has a 6-month relative strength of 71 in the Hong Kong market of 2,047 stocks indicating it has outperformed 71% of the market.

3.6 Undervaluation

Price/Earnings:

China Construction Bank - H Shares stock is trading at the eighth lowest P/E multiple in the Hang Seng.

Dividend Yield:

China Construction Bank - H Shares stock is the fifteenth highest dividend yielding stock in the Hang Seng.

Dividend Yield > Bond Yield of 0.61%:

The dividend yield of 5.71% is 9.36 times the triple-A bond yield of 0.61%. The times factor of 9.36 is above the benchmark factor of 0.67 times set by Benjamin Graham.

(All figures in %)

Dividend Yield5.71
Bond Yield0.61
Spread5.1

Dividend Yield of 5.7% > Index avg of 4.3%:

- The relative yield of the stock, defined by its yield of 5.7%, divided by average yield of dividend yielding stocks in the Hang Seng of 4.3% is 131.3%. This suggests the stock is undervalued in dividend yield terms.

SECTION 4 Ongoing Bullish Parameters

4.1 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 9.1%

TSR %1 yr3 yrs5 yrs10 yrs
00939.HK9.2129.29.7

4.2 Present Value of HKD1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Best Periods with PVHKD1000 > 1,091

PVHKD1,0003 mo ago1 yr ago3 yrs ago
00939.HKHKD1,124HKD1,092HKD1,408
Bank sectorHKD1,004HKD800HKD782
Hang SengHKD1,112HKD879HKD984

4.3 The Best Periods [1 Yr, 3 Yrs] with Price Change % > 3

3-Year price change of 19.1% for China Construction Bank - H Shares outperformed the change of -1.5% in the Hang Seng index for a relative price change of 20.6%.

Price Change %Year3 Years
China Construction Bank - H Shares3.119.1
Bank sector-20.4-21.5
Hang Seng index-12.1-1.5

4.4 Moving Annual Return of 9.0% in the past year:

Moving Annual Return was 9.0% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 10.4%. The Moving Annual Return has been positive in 4 of the last 5 years.

00939Close (HKD)Dividends (HKD)Capital Gain / (Loss) %% YieldAnnual Return %
Jul 036.140.353.15.99.0
1 Yr ago5.960.69(3.6)11.27.6
2 Yrs ago6.18-19.8-19.8
3 Yrs ago5.160.3224.37.732.0
4 Yrs ago4.150.32(22.7)6(16.6)

Close 5 years ago HKD5.36

4.5 EPS growth [FY2018 vs FY2017] of 4.2%:

There have been four rises and one decline in the past 5 years. Average Annual Compounded rate of growth in EPS for the 5 years was muted at 3.1%.

FYEPSGrowth %
2018CNY1.04.2
201796.0 fen4.3
201692.0 fen0.7
201591.37 fen-0.6
201491.88 fen6.9

4.6 Increased Volume, up 21% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 20.6% to 337.4 million shares.

Avg. Daily Volume Traded 12 months ended Jul 03, million shares

YearADVT
2020337.4
2019320.4
2018355.5
2017289.8
2016279.8

4.7 Increased VWAP, up 44% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 44.2% to HKD5.86. .

Past five years, 12 months ended Jul 03 (HKD)

YearHigh PriceVWAPLow Price
20206.475.865.24
20196.535.985.39
20188.06.425.04
20175.434.824.03
20165.444.063.39

4.8 Increased share turnover, up 92% in 5 years

In the past five years, average daily share turnover has increased 91.6% to HKD2 billion (US$255.1 million). This suggests increased liquidity.

Past five years, 12 months ended Jul 03 (HKD billion)

YearAverage Daily Turnover
20202.0
20191.9
20182.2
20171.3
20161.0

4.9 Satisfies one criteria of Benjamin Graham

- The P/E of 5.5 multiplied by the P/NTA of 0.7 is 3.7. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

SECTION 5 Today's Bearish Signals

5.1 Rank in the bottom 24% by Price Performance in the Hong Kong market

DescriptionValueRank
1-week Price Change %5.4In Bottom 24%

5.2 Overbought/Bearish/Resistance Signals:

- At HKD6.14 the price has risen above the upper Bollinger band resistance of HKD6.11, indicating a downside risk for it to fall back within the band.

- The stock is overbought according to the Williams % R indicator of -2.6, suggesting the price is close to its 14-day high of HKD6.15.

SECTION 6 Ongoing Bearish Parameters

6.1 Satisfies 2 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Improvement in current ratio from 26.3 to 28.1.

- Total shares on issue unchanged.

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 (%)

Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Current Ratio: Current Assets/Current Liabiliites (times)

Dividend Yield: Dividend Per Share/Share Price (%)

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.

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

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

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