Chongqing Rural Commercial Bank Co Ltd

Chongqing Rural Commercial Bank maintains a capital structure characterized by high leverage typical of the banking industry, with total liabilities of CNY 1,528.6 billion against total equity of CNY 137.6 billion. The debt-to-equity ratio stands at 2.84, reflecting the deposit-funded nature of its operations. Liquidity risk is assessed as medium, with a key flag noting that net cash is negative after subtracting total debt. The bank generates operating cash flow of CNY 372.3 million and free cash flow of CNY 7.85 billion, supported by capital expenditures of CNY -1.73 billion.

Profitability metrics indicate a return on equity of 8.53% and a return on assets of 0.70%. The bank reports net income of CNY 12.13 billion on revenue of CNY 24.26 billion, demonstrating a net margin of approximately 50%. While specific cohort medians are not provided for direct comparison, the valuation multiples suggest a discounted market view, with a price-to-earnings ratio of 1.3 and a price-to-book ratio of 0.11. The price-to-tangible book value is also 0.11, indicating the market values the bank at a significant discount to its book value.

Revenue concentration and segment details are not explicitly broken down in the available data, limiting specific analysis of geographic or product mix exposure. The company operates primarily within the commercial banking activity space, serving the Chongqing region and broader Chinese markets as implied by its name and classification. Without detailed segment data, the revenue base is treated as a consolidated whole, driven by core banking activities.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The current financial snapshot provides a single-period view of revenue and net income, preventing year-over-year or multi-year trend analysis. Consequently, the growth narrative relies on the current profitability levels and market valuation rather than historical performance trends.

Risk factors include medium liquidity risk and low dilution risk. The key flag regarding negative net cash after debt subtraction highlights the inherent leverage risk in the banking model. Dilution risk is low, with basic and diluted shares outstanding both at 2,513.3 million, indicating no significant options or convertible securities impacting share count. The absence of specific geopolitical or regulatory risk scores in the narrative data limits further risk elaboration.

Recent events and market sentiment are reflected in analyst estimates, with a mean price target of CNY 8.10 and a median target of CNY 8.38. The mean recommendation is 1.83, leaning towards a buy, with three strong-buy and two buy ratings, and no hold ratings. The high price target of CNY 9.57 and low of CNY 5.10 suggest a range of analyst expectations, but the consensus remains positive relative to the current market price of CNY 6.06.

Net income grew at a 6.1% CAGR over four years, reaching CNY 12.1 billion in FY2026.

The stock trades at a deep 0.11x price-to-book ratio, suggesting significant undervaluation relative to tangible assets.

Analysts project 22.3% upside to a mean price target of HKD 8.10 from current levels.

Revenue declined at a 1.9% CAGR over four years, indicating persistent top-line contraction.

Long-term debt surged to CNY 346.7 billion in FY2025, up from CNY 290.2 billion in FY2024.

The debt-to-equity ratio of 2.84 places the bank in the bottom quartile of its cohort.

Revenue ¥24.26B, +7,8% YoY; Net income +5,3% YoY.

• ▍Revenue ¥24.26B, +7,8% YoY
• ▍Net income +5,3% YoY
• ▍Free cash flow −9,3% YoY
• ▍Net margin 50.0%

Revenue ¥22.49B, −4,2% YoY; Net income +5,6% YoY.

• ▍Revenue ¥22.49B, −4,2% YoY
• ▍Net income +5,6% YoY
• ▍Free cash flow +13,6% YoY
• ▍Net margin 51.2%

Revenue ¥23.49B, −7,5% YoY; Net income +6,1% YoY.

• ▍Revenue ¥23.49B, −7,5% YoY
• ▍Net income +6,1% YoY
• ▍Free cash flow −0,4% YoY
• ▍Net margin 46.4%

Revenue ¥25.40B, −3,2% YoY; Net income +7,5% YoY.

• ▍Revenue ¥25.40B, −3,2% YoY
• ▍Net income +7,5% YoY
• ▍Free cash flow +6,9% YoY
• ▍Net margin 40.4%

Revenue ¥26.23B; Net margin 36.4%.

• ▍Revenue ¥26.23B
• ▍Net margin 36.4%