It is the oldest bank in mainland China still in existence.<\/p>\n\n\n\n
![\"\"](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2019\/07\/Bank_of_China_logo.jpg\"){kind=logo}
<\/figure><\/div>\n\n\n\nAs of 31 December 2009, it was the second largest lender in China overall, and the 5th largest bank in the world by market capitalization value.<\/p>\n\n\n\n
As of end 2017, it was the fourth largest bank in the world in terms of assets, ranked after the other 3 Chinese banks.<\/p>\n\n\n\n
The company has its headquarter in Beijing, China and by the end of 2018, the it had 311,000 employees.<\/p>\n\n\n\n
The shares of the company are trading on the shanghai stock exchange (SSE) under the symbol 601988 and on the Hong Kong Exchange under the symbol 3988.<\/p>\n\n\n\n
FUNDAMENTAL ANALYSIS:<\/h3>\n\n\n\n
In this chapter we want find answer to the question whether Bank of China’s at its closing price of Friday July 19, is currently undervalued, providing a great entry point for value investor to buy it or add more to their portfolio.<\/p>\n\n\n\n
What is Bank of China worth?<\/h4>\n\n\n\n
Based on its financial report of Q1-2019<\/a>, the company’s equity was 1,817,655 million CNY. According with the information provided by Simply Wall St<\/a>, the total amount of outstanding shares are 294.34 billion. <\/p>\n\n\n\n A simple calculation shows us that the intrinsic value of the company’s share are CNY 6. 17, which is equivalent to HKD 6,978 a share, for which the closing price of the company shares were HKD 3.29 on at the close of the market on Friday July 19, as can be seen from below 2-year chart.<\/p>\n\n\n\n Future outlook is an important aspect when you\u2019re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let\u2019s also take a look at the company’s future expectations. <\/p>\n\n\n\n Bank of China\u2019s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.<\/p>\n\n\n\n As can be seen from above chart is, Bank of China\u2019s share price currently is hovering around at its support level of HKD 3.26 a share, this combined with an P\/E ratio of 4.90, a dividend yield of 6.37 percent with a dividend payout ratio of 31 percent, we have a STRONG BUY<\/strong> rating on the shares of the company.<\/p>\n\n\n\n Above fundamental analysis clearly shows that “The Bank of China” is currently undervalued, this combined with the fact that technically it is at its support level, may be a great time to Buy the stock or increase your holdings in the stock.<\/p>\n\n\n\n With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price yet. <\/p>\n\n\n\n But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.<\/p>\n\n\n\n We own shares of The Bank of China in our personal portfolio.<\/p>\n\n\n\n Last but not least, before taking any investment decision, always take your investment horizon and risk tolerance into consideration. Keep in mind that share prices do not move in a straight line. Past Performance Is Not Indicative Of Future Results.<\/p>\n\n\n\n Yours sincerely,<\/p>\n\n\n\n Eric Panneflek Dear PGM Capital blog reader, In this weekend\u2019s blog article, we want to take the opportunity to discuss with you why Investing in the Bank of China , can be lucrative for value investors. INTRODUCTION: Bank of China is one of the four biggest state-owned commercial banks in China. It was founded in 1912 by[…]<\/a><\/p>\n","protected":false},"author":2,"featured_media":18876,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-18868","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pgm-capital-blog"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/18868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=18868"}],"version-history":[{"count":25,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/18868\/revisions"}],"predecessor-version":[{"id":18927,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/18868\/revisions\/18927"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media\/18876"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=18868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=18868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=18868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2019\/07\/Screen-Shot-2019-07-19-at-11.12.53-AM-1024x491.png\")
<\/figure><\/div>\n\n\n\nPGM CAPITAL\u2019s ANALYSIS & COMMENTS:<\/h3>\n\n\n\n
Can we expect growth from Bank of China?<\/h4>\n\n\n\n
![\"\"](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2019\/07\/Screen-Shot-2019-07-14-at-12.19.15-PM.png\")
<\/figure><\/div>\n\n\n\nWhat this means for you:<\/h4>\n\n\n\n
Disclosure:<\/h4>\n\n\n\n
![\"\"](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg\")
<\/a><\/figure>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"