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Bank of Communications Co (601328) Fair Value & Analysis

Financial Services · CN · Market cap 584B CNY

BO Bank of Communications Co 601328 · SHG
Price¥6.93
Fair Value¥11.75
Upside+69.5%
Quality41/100
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Healthy Growth
Highly profitable · 45.4% net margin
High debt · generates free cash flow
4.99% dividend yield
Ranks above peers (9/15)
Moderate moat 64/100
Evidence: High Range ¥8.81 – ¥14.69 Share as image

Fair value as of: Aug 13, 2026

From 6 valuation models · updated yesterday

Share price +4.8% over the past month.

Below-average quality, screening 70% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (41/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (¥8.81). The market is more pessimistic than our downside scenario.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

¥8.32 ¥3.69 Fair Value ¥11.75 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ¥3.69 – ¥8.32 · fair‑value band ¥8.81 – ¥14.69 · the ¥6.93 price screens below the ¥11.75 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Bank of Communications Co (601328) currently trades at ¥6.93, while our model-based Fair Value estimate is ¥11.75, implying the stock looks roughly 69.5% undervalued today. The Quality Score stands at 41/100 (below-average quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Bank of Communications Co generated revenue of 212B CNY at a net margin of 45.4%. Revenue grew 3.1% year over year. It earns a return on equity of 7.9%. Net debt stands at 3.9T CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥8.81 (bear case) to ¥14.69 (bull case); at ¥6.93, 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 about 17% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -15% fair-value upside, at 70%, 601328 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

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 ¥11.35 ¥12.28 ¥15.07 76
Gordon GGM ¥6.17 ¥13.48 ¥22.67 70
P/E Multiple ¥10.53 ¥14.04 ¥17.55 63
All 6 models by family
Dividend Discount
Gordon GGM ¥6.17 ¥13.48 ¥22.67 70
DDM Multi-Stage ¥6.17 ¥11.04 ¥14.04 61
Multiples
P/E Multiple ¥10.53 ¥14.04 ¥17.55 63
P/B Multiple ¥13.77 ¥18.36 ¥22.95 55
Asset-Based
NCAV (Graham) ¥6.65 ¥8.90 ¥13.29 50
Economic Profit
Residual Income ¥11.35 ¥12.28 ¥15.07 76

Widest divergence: Multiples (¥14.04) versus Asset-Based (¥8.90). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 212B CNY
Revenue growth (YoY) +3.1%
Net margin 45.4%
Return on equity 7.9%
Free cash flow 98.3B CNY FY2025
P/E ratio 6.4 as of Jul 11, 2026
More key figures
Operating margin 53.9%
EPS (TTM) ¥1.04
Dividend yield 5.0%
EPS growth (YoY) -11.8%
Net debt 3.9T CNY FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 41 · Market factors (momentum, volatility) 52

Profitability 33
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 81
Earnings quality: real cash, not paper profit
Fin. Strength 15
Balance sheet, leverage, solvency risk
Investment 54
Disciplined investing over empire-building
Low Volatility 96
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 26
Distance to the 52-week high (market factor)
Net Issuance 8
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.

About the company

Bank of Communications Co., Ltd. provides commercial banking products and services in China and internationally. The company offers savings deposit products, including demand deposits, lump-sum deposits and withdrawal, time deposit of small savings for lump-sum withdrawal, interest withdrawal on principal deposited, time-demand deposit, call deposit, swap …

Full company description

Bank of Communications Co., Ltd. provides commercial banking products and services in China and internationally. The company offers savings deposit products, including demand deposits, lump-sum deposits and withdrawal, time deposit of small savings for lump-sum withdrawal, interest withdrawal on principal deposited, time-demand deposit, call deposit, swap management, and education deposit; personal certificate of deposit; salary financing; and foreign currency deposit. It also provides credit, quasi-credit, and debit cards; new housing and second-hand mortgage loans and unsecured personal loans; personal wealth management advisor services; and precious metal and commodity trading services. In addition, the company offers corporate structured deposit and corporate certificate of deposit; corporate cash management; industrial chain finance program comprising prepayment financing, inventory financing, accounts receivable financing and accounts payable financing; syndicated loans; corporation overdraft; investment banking services; and offshore banking services. Further, the company provides bond account activation, bond distribution, and transaction services; related bond escrow and settlement, pledge registration, and principal and interest payment services; training and consulting services for cooperative banks; cross-border inter-bank payments system services; consignment sales of precious metal products; bond underwriting distribution; third party bond depository services; bank derivatives transfer; b-share transfer; bank-futures transfer; standard warehouse warrant pledged financing; institutional investment consulting, wealth management, and insurance services; and clearing and settlement services for future markets. The company was founded in 1908 and is headquartered in Shanghai, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Bank of Communications Co reported revenue of ¥262B in FY2025 versus ¥203B in FY2021, a compound +6.6%/yr. Reported net income was ¥96.5B in FY2025, compounding +2.5%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
262B CNY
Avg. 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.
+38.6%
Avg. 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.
+24.5%
Avg. growth/yr (22Y) 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.
+14.5%
Revenue +6.6%/yr
FY21 ¥203B
FY22 ¥196B
FY23 ¥552B
FY24 ¥540B
FY25 ¥262B
Net income +2.5%/yr
FY21 ¥87.6B
FY22 ¥92.1B
FY23 ¥92.7B
FY24 ¥93.6B
FY25 ¥96.5B
Character of growth · EPS growth decomposed (2014-2025) +3.2 % p.a.
Revenue per share +11.2 pp

of which total revenue +12.0 pp · buybacks/dilution −0.8 pp

EBIT margin −11.6 pp
Tax rate +1.9 pp
Residual (interest, one-offs) +1.7 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Bank of Communications Co Fair Value". https://www.fairvalue-calculator.com/stock/601328

Peer Group

Banks - Diversified · 47 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 43 · Bottom 25%
Fair Value upside +70% · Top 25%
Return on equity (TTM) 8% · Bottom 25%
Return on assets 1% · Below median
Net margin (TTM) 45% · Top 25%
Operating margin (TTM) 54% · Top 25%
Revenue growth 3% · Below median
Dividend yield (TTM) 5.0% · Top 25%
Debt / equity 1.94× · Higher than median

Valuation Multiples vs Banks - Diversified median · lower = cheaper

P/E (TTM) 6.4× · Cheaper than 75% of peers
P/B 0.49× · Cheaper than 75% of peers
P/S (TTM) 2.75× · Cheaper than 75% of peers
P/FCF 0.9× · Cheaper than median
EV/EBITDA 21.1× · Pricier than 75% of peers
PEG 1.48× · Cheaper than median

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.

VALUE 100 · sector 19
FUTURE 16 · sector 25
PAST 31 · sector 42
HEALTH 3 · sector 52
DIVIDEND 100 · sector 67

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Banks - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
JPMorgan Chase & Co JPM $365.18 $217.97 -40%
Bank of America Corporation BAC $64.81 $50.87 -22%
China Construction Bank Corporation 601939 ¥10.24 ¥18.21 +78%
Industrial and Commercial Bank of China Limited 601398 ¥7.52 ¥14.44 +92%
HSBC Holdings HBCN 1,610 MXN 1,364 MXN -15%
Agricultural Bank of China Limited 601288 ¥6.56 ¥12.94 +97%
Bank of China Limited 601988 ¥5.83 ¥11.24 +93%
Banco Santander, S.A SAN 55.29 PLN 31.78 PLN -43%
UBS Group UBSN 939.75 MXN 565.49 MXN -40%
Barclays PLC BCSN 475.00 MXN 332.60 MXN -30%

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Frequently asked questions

Is Bank of Communications Co (601328) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥11.75 versus a price of ¥6.93, about +70% (undervalued).
What is the fair value of 601328?
Our model-based fair value for Bank of Communications Co is ¥11.75 (as of Aug 13, 2026), built from audited fundamentals. The current price is ¥6.93.
What is the quality score of 601328?
Bank of Communications Co has a Quality Score of 41/100. 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 Bank of Communications Co (601328)?
Bank of Communications Co reported trailing-twelve-month revenue of about 212B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 601328?
The net profit margin of Bank of Communications Co is about 45.4%, meaning it keeps roughly 45.4% of revenue as net income. Based on the latest reported figures.
Does Bank of Communications Co pay a dividend?
Bank of Communications Co currently shows a dividend yield of about 4.84% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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