Sunday, August 25, 2013

Bank of Communication

Can look at this company for investment. Strong fundamental with 5.6% Dividend, dividend growth 13%. PE ratio 4.8x
Bank of Communications Co., Ltd. provides various commercial and retail banking products and services in the People’s Republic of China. The company’s personal banking products and services include time deposits, education savings, current deposits, personal call deposits, integrated current and time deposits, hypothecated loans, and local and foreign currency time deposits; credit, quasi-credit, and debit cards; housing, vehicle, and shop loans; and wealth management services. Its corporate banking products and services comprise corporate time, corporate current, and contracted deposits; transfer of receivables, account overdrafts, bill discounts, re-lending of foreign government loans, re-purchase of inter-bank credit assets, and buy-out of inter-bank credit assets; online tax payment, agent salary payment, agent collection and payment, and transfer settlement; corporate cash management, wealth management, entrusted loans, and agent settlement for bonds; and agent transfer of various government-approved payments and investment banking services. The company’s international banking services include foreign exchange wealth management, import and export document settlement, trade finance, offshore banking, and remittance and bill services. It also provides treasury, asset management, trustee, insurance, finance lease, and other financial services. It operates approximately 182 branches and 2,701 banking outlets in 202 cities and 144 counties; and 12 international branches in Hong Kong, New York, San Francisco, Tokyo, Singapore, Seoul, Frankfurt, Sydney, Macau, and Ho Chi Minh City, as well as a representative office in Taipei. Bank of Communications Co., Ltd. was founded in 1908 and is headquartered in Shanghai, the People’s Republic of China.

Timing: Currently BankComm price is close to the Long term supporting trendline. In the last few year there is a few time this stock fall badly and latter bounce off touching this trend line. During the recovery in 2009 this stock move up to $9, we see this as an upside potential for long term investing if China Market were to recover. Stoploss can be place below the $5 support if you are "trading" this counter.

Key Statistics for 3328

Current P/E Ratio (ttm)4.7696
Estimated P/E(12/2013)5.1897
Relative P/E vs. HSI0.4550
Earnings Per Share (CNY) (ttm)0.8890
Est. EPS (CNY) (12/2013)0.8170
Est. PEG Ratio1.1795
Market Cap (M HKD)385,852.75
Shares Outstanding (M)35,011.86
30 Day Average Volume26,021,530
Price/Book (mrq)0.8148
Price/Sale (ttm)1.0069
Dividend Indicated Gross Yield5.65%
Cash Dividend (CNY)0.2160
Last Dividend06/28/2013
5 Year Dividend Growth13.27%
Next Earnings Announcement08/21/2013