China Minsheng Banking (600016.SS)
Financials · Shanghai · China
Fundamentals
Valuation and ratings
China Minsheng Banking trades at CN¥3.46, which is 112% below the CN¥7.35 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 42 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 5.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About China Minsheng Banking
China Minsheng Banking Corp., Ltd. provides banking products and services in the People's Republic of China. The company operates through Corporate Banking, Retail Banking, and Others segments. Its deposit products include saving accounts, deposit books and certificates, contracted and agreement deposits, call deposits, and corporate term and current deposits. The company also offers personal housing mortgage, individual automobile purchase, and household composite; corporate loans; medium and long term, and short-term working capital loans, as well as debit and credit cards. In addition, it provides appointed and domestic remittance, payment and collection agent, clearing, safe deposit box, VIP, and salary and welfare agent card services, as well as internet, mobile, telephone, and self-serve banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; international credit; and comprehensive credit granting and financial product investment services. It operates through branch-level institutions, business outlets, general sub-branches, community sub-branches, and small business sub-branches. The company serves individuals, corporate customers, government agencies, and financial institutions, as well as micro-, small-, and medium-sized enterprises. China Minsheng Banking Corp., Ltd. was incorporated in 1996 and is headquartered in Beijing, the People's Republic of China.
600016.SS passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is China Minsheng Banking (600016.SS) undervalued?
Against our discounted cash flow estimate of CN¥7.35, 600016.SS at CN¥3.46 is 112% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 600016.SS's P/E ratio?
600016.SS trades at 5.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.