China Construction Bank Corp. :CICHY-US: Earnings Analysis: Q2, 2017 By the Numbers : October 2, 2017

China Construction Bank Corp. reports financial results for the quarter ended June 30, 2017.

Highlights

  • Summary numbers: Revenues of USD 22,136.07 million, Net Earnings of USD 10,000.34 million.
  • Change in operating cash flow of -428.42% compared to same period last year is about the same as change in earnings, likely no significant movement in accruals or reserves.
  • Earnings growth from operating margin improvements as well as from one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2017-06-30 2017-03-31 2016-12-31 2016-09-30 2016-06-30
Relevant Numbers (Quarterly)
Revenues (mil) 22136.07 25027.79 19497.59 21087.34 22412.06
Revenue Growth (%YOY) -1.23 -13.93 -17.1 -9.48 -7.35
Earnings (mil) 10000.34 10176.94 5478.2 9062.54 9962.71
Earnings Growth (%YOY) 0.38 -2.19 -4.14 -4.1 -4.8
Net Margin (%) 45.18 40.66 28.1 42.98 44.45
EPS 0.79 0.81 0.44 0.72 0.79
Return on Equity (%) 4.15 4.35 2.36 3.92 4.33
Return on Assets (%) 1.26 1.32 0.72 1.2 1.34

Access our Ratings and Scores for China Construction Bank Corp.

Market Share Versus Profits

Revenues History
Earnings History

Compared to the same period last year, CICHY-US’s change in revenue was close to the amount of its change in earnings. It remains to be seen how the rest of its peer group’s results will turn out and if CICHY-US’s performance is a sign of any major shift in the composition of market share in this sector. Also, for comparison purposes, revenues changed by -11.55% and earnings by -1.74% compared to the previous period.

Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

CICHY-US’s year-on-year change in operating cash flow of -428.42% is around its change in earnings. This suggests that there are likely no significant movement in accruals or reserves for managing earnings this period.

Margins

The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating margins from 54.96% to 55.18% and (2) one-time items. The company’s pretax margins are now 55.76%, compared to 55.57% for the same period last year.

EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for China Construction Bank Corp.

Company Profile

China Construction Bank Corp. engages in the provision of commercial banking products and services. Its business consists of corporate banking, personal banking, and treasury operations. It offers infrastructure loans, residential mortgage, and bank cards. The company was founded in October 1954 and is headquartered in Beijing, China.

CapitalCube does not own any shares in the stocks mentioned and focuses solely on providing unique fundamental research and analysis on approximately 50,000 stocks and ETFs globally. Try any of our analysis, screener or portfolio premium services free for 7 days. To get a quick preview of our services, check out our free quick summary analysis of CICHY-US.

Disclaimer

The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any of our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.