
Shengjing Bank Co., Ltd. (2066.HK)
ValueMarkers Composite Index
83% below intrinsic value ($1)
Shengjing Bank Co., Ltd. (2066.HK) — VMCI valuation read
Headline read on 2066.HK: VMCI of 47/100 versus a Financial Services sector median of 50. The 3-point below-median position is what makes Shengjing Bank Co., Ltd. a relative-value laggard in the mid-cap cohort, before any pillar-level review.
Form 4 filings on 2066.HK: zero in the trailing 30 days. The absence of insider transactions is itself a data point, just a low-information one. The thesis runs on financials and price action until that changes.
**Investor frame.** Three reads on 2066.HK: value (2066.HK trades at 23.0x earnings, 28% above the Financial Services median of 18.0x), quality (ROIC of 11.0% sits 1.0pp above the Financial Services median (10.0%)), and risk (net debt to EBITDA of 0.2x leaves covenant headroom). The value read also implies an EV/EBITDA gap of +4.0x against the Financial Services 12.0x baseline.
2066.HK rose 3.4% over the trailing 7 days, with a -17.0% read on a 30-day basis.
Shengjing Bank Co., Ltd., together with its subsidiaries, provides banking products and related financial services in Mainland China. Its Corporate Banking segment offers corporate loans and advances, trade financing and deposit taking services, agency services, and remittance and settlement services to corporations and government agencies. The company's Retail Banking segment provides financial products and services to retail customers, including personal loans and deposit taking services, bank cards, wealth management services, remittance and settlement services, and collection and payment agency services. Its Treasury Business segment is involved in the inter-bank money market transactions, repurchases transactions, and investment activities, as well as trading in debt securities. The company also provides online and mobile banking services; and invests in equities. As of December 31, 2021, it operated 212 institutional outlets, including 1 head office, 3 branch-level specialized institutions, 18 branches, 5 small sub-branches, and 185 traditional sub-branches; and 1,852 self-service terminals, such as self-service deposit and withdrawal machines, inquiry and payment machines, mobile card opening machines, VTM teller machines, smart counters, high-speed deposit and withdrawal all-in-one machines, interactive desktops, and other self-service terminal equipment. The company was formerly known as Shenyang Commercial Bank Co., Ltd. and changed its name to Shengjing Bank Co., Ltd. in February 2007. Shengjing Bank Co., Ltd. was incorporated in 1997 and is headquartered in Shenyang, the People's Republic of China.
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