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China Construction Bank Corp (0939) Fair Value & Analysis

Financial Services · HK · Market cap HK$2.1T (≈ $273B) · ISIN CNE1000002H1

What is China Construction Bank Corp really worth?

CC China Construction Bank Corp 0939 · HK
PriceHK$9.76
Fair ValueHK$18.35
Upside+88.0%
Quality46/100

Below-average quality, trading 47% below our fair value of HK$18.35.

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Strengths

Highly profitable · 55.6% net margin
Ranks above peers (11/13)

Risks

!Expensive Growth (revenue 5y +11.9 %/yr)
!Low debt · negative free cash flow
!Moderate moat 64/100
!Evidence only medium, so the estimate is less certain
!Weak on future: 25 out of 100

For context

·6.55% dividend yield
Evidence: Medium Range HK$13.76 – HK$22.94

Fair value as of: Aug 25, 2026

From 6 valuation models · updated 11 days ago

Fair value updated Aug 25, 2026, revised from HK$17.50 to HK$18.35 (+4.9%) since Aug 13, 2026. Share price +10.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (HK$13.76). The market is more pessimistic than our downside scenario.
  • Solid quality (46/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

HK$9.76 HK$3.11 Fair Value HK$18.35 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 25, 2026.

How to read this chart

60‑month range HK$3.11 – HK$9.76 · fair‑value band HK$13.76 – HK$22.94 · the HK$9.76 price screens below the HK$18.35 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 25, 2026.

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Analysis

China Construction Bank Corp (0939) currently trades at HK$9.76, while our model-based Fair Value estimate is HK$18.35, implying the stock looks roughly 46.8% undervalued today. The Quality Score stands at 46/100 (below-average quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of HK$17.85 per share, and 4 of the 6 models we run sit above the HK$9.76 price. Bear case: the Dividend Discount group reads lowest at HK$7.54, and 2 of the 6 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, China Construction Bank Corp generated revenue of HK$614B at a net margin of 55.6%. Revenue grew 5.0% year over year. It earns a return on equity of 9.6%. Net debt stands at HK$7.0T. Fundamentals as of Aug 25, 2026

Our scenario range runs from HK$13.76 (bear case) to HK$22.94 (bull case); at HK$9.76, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 39% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −10% fair-value upside, at 88%, 0939 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly HK$0.4469 per share, which is 2.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence HK$12.88 HK$14.25 HK$22.34 75
DDM Multi-Stage HK$4.22 HK$7.54 HK$9.59 66
Gordon GGM HK$4.22 HK$9.20 HK$15.49 65
All 6 models by family
Dividend Discount
Gordon GGM HK$4.22 HK$9.20 HK$15.49 65
DDM Multi-Stage HK$4.22 HK$7.54 HK$9.59 66
Multiples
P/E Multiple HK$13.39 HK$17.85 HK$22.31 63
P/B Multiple HK$15.39 HK$20.53 HK$25.66 55
Asset-Based
NCAV (Graham) HK$7.33 HK$9.82 HK$14.66 54
Economic Profit
Residual Income best evidence HK$12.88 HK$14.25 HK$22.34 75

Widest divergence: Multiples (HK$17.85) versus Dividend Discount (HK$7.54). Highest evidence: Residual Income (75).

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Key figures & financial health

P/E ratio 5.4 as of Jul 16, 2026
P/S ratio 1.36 P/E × margin
EPS (TTM) HK$1.30 price ÷ EPS = P/E 5.4
Dividend yield 6.6% payout 49.2%
Net margin 24.9% FY2025
Return on equity 9.6% TTM
More key figures
Profitability
Return on assets (EBIT) 1.3% avg 5y
Operating margin 68.4% TTM
Growth
Revenue (TTM) HK$614B TTM
Revenue growth (YoY) +5.0% 3y avg +17.3%
Balance sheet & cash flow
Free cash flow −HK$51.2B FY2025
Net debt HK$7.0T FY2025

Figures from reported company fundamentals · as of Aug 25, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 39 · Market factors (momentum, volatility) 80

Profitability 34
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 22
Balance sheet, leverage, solvency risk
Investment 72
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 68
Price trend over the last 3–12 months (market factor)
52W Momentum 87
Distance to the 52-week high (market factor)
Net Issuance 92
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

China Construction Bank Corporation engages in the provision of various banking and related financial services to individuals and corporate customers in the People's Republic of China and internationally. It operates through Corporate Finance Business, Personal Finance Business, Treasury and Asset Management Business, and Others segments.

Full company description

China Construction Bank Corporation engages in the provision of various banking and related financial services to individuals and corporate customers in the People's Republic of China and internationally. It operates through Corporate Finance Business, Personal Finance Business, Treasury and Asset Management Business, and Others segments. The company offers corporate and personal loans; trade financing; deposit taking and wealth management, agency, financial consulting and advisory, cash management, remittance and settlement, guarantee, and investment banking services to individuals, corporations, government agencies, and financial institutions. It is also involved in inter-bank deposit and placement transactions, repurchase and resale transactions, and invests in debt securities; trades in derivatives and foreign currencies; precious metal trading; and custody services. In addition, the company provides finance leasing, transfer and purchase of finance lease assets, and fixed-income investment; motor vehicle, business and household property, construction and engineering, liability insurance, hull and cargo, and short-term health and accidental injury insurance, as well as reinsurance; and cost consulting, whole-process engineering consulting, project management, investment consulting, and bidding agency services; and debt-to-equity swaps and relevant supporting businesses. Further, it engages in private equity investment and management of development funds and other private equity funds; investment banking related services, such as sponsoring and underwriting of public offerings, corporate merger and acquisition and restructuring, direct investment, asset management, and securities brokerage and market research; house rental business; raising and selling of funds; management of annuity and pension funds; and pension advisory service. China Construction Bank Corporation was founded in 1954 and is headquartered in Beijing, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Construction Bank Corp reported revenue of 1.3T CNY in FY2025 versus 823B CNY in FY2021, a compound +12.7%/yr. Reported net income was 330B CNY in FY2025, compounding +2.2%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$1.3T
Latest YoY
+118.1%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.3%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.9%
Avg. revenue growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+10.6% (4.0 + 6.6)
Revenue +12.7%/yr
FY21 823B CNY
FY22 821B CNY
FY23 622B CNY
FY24 608B CNY
FY25 1.3T CNY
Net income +2.2%/yr
FY21 303B CNY
FY22 325B CNY
FY23 333B CNY
FY24 336B CNY
FY25 330B CNY
Character of growth · EPS growth decomposed (2014-2025) +4.1 % p.a.
Revenue per share +4.0 %

of which total revenue +4.1 % · buybacks/dilution −0.1 %

EBIT margin −8.2 %
Tax rate +1.4 %
Residual (interest, one-offs) +7.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "China Construction Bank Corp Fair Value". https://www.fairvalue-calculator.com/stock/0939

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Banks - Diversified · 48 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 46 · Bottom 25%
Fair Value upside +88% · Top 25%
Return on equity (TTM) 10% · Below median
Return on assets 1% · Above median
Net margin (TTM) 56% · Top 25%
Operating margin (TTM) 68% · Top 25%
Revenue growth 5% · Above median
Dividend yield (TTM) 6.6% · Top 25%
Debt / equity 0.24× · Lower than 75% of peers

Valuation Multiples vs Banks - Diversified median · lower = cheaper

P/E (TTM) 5.4× · Cheaper than 75% of peers
P/B 0.61× · Cheaper than 75% of peers
P/S (TTM) 3.48× · Cheaper than median
PEG 0.97× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 14
FUTURE25 · sector 25
PAST38 · sector 42
HEALTH88 · sector 48
DIVIDEND100 · sector 70

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Banks - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 25, 2026).

Stock Price Fair Value vs Fair Value
JPMorgan Chase & Co JPM $354.22 $217.97 −38%
Bank of America Corporation BAC $61.17 $50.87 −17%
Industrial and Commercial Bank of China Limited 601398 ¥7.86 ¥14.44 +84%
HSBC Holdings HSBC $103.14 $75.89 −26%
Agricultural Bank of China Limited 601288 ¥6.79 ¥12.94 +91%
Royal Bank of Canada RY C$283.11 C$151.80 −46%
Bank of China Limited 601988 ¥6.14 ¥11.24 +83%
Wells Fargo & Company WFC $86.69 $79.60 −8%
Mitsubishi UFJ Financial Group MUFG $22.90 $20.50 −10%
Citigroup Inc C $132.90 $117.65 −11%

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Frequently asked questions

Is China Construction Bank Corp (0939) overvalued or undervalued?
As of Aug 25, 2026, our model estimates a fair value of HK$18.35 versus a price of HK$9.76, about +88% upside (undervalued).
What is the fair value of 0939?
Our model-based fair value for China Construction Bank Corp is HK$18.35 (as of Aug 25, 2026), built from audited fundamentals. The current price: HK$9.76.
What is the quality score of 0939?
China Construction Bank Corp has a Quality Score of 46/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of China Construction Bank Corp (0939)?
China Construction Bank Corp reported trailing-twelve-month revenue of about HK$614B (latest available figure, as of Aug 25, 2026).
What is the net profit margin of 0939?
The net profit margin of China Construction Bank Corp is about 55.6%, meaning it keeps roughly 55.6% of revenue as net income. Based on the latest reported figures.
Does China Construction Bank Corp pay a dividend?
China Construction Bank Corp currently shows a dividend yield of about 6.55% relative to its recent price (as of Aug 25, 2026).
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