Bank of China Ltd (HKG:3988) Trading Outlook

Bank of China Ltd (HKG:3988) Trading Outlook

Bank of China Ltd (HKG:3988) Trading Outlook

BANK OF CHINA closed unchanged at 3.810. Volume was 98% below average (consolidating) and Bollinger Bands were 42% wider than normal.

Open High Low Close Volume___
3.830 3.830 3.800 3.810 4,752,524

Technical Outlook
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 3.91 3.65 3.43
Volatility: 20 22 26
Volume: 324,548,480 302,074,464 289,275,840

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

BANK OF CHINA is currently 11.0% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into 3988.HK (mildly bullish). Our trend forecasting oscillators are currently bullish on 3988.HK and have had this outlook for the last 29 periods.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 15.1515. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 11 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.71. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 7 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -130.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 10 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.

Consensus Estimates Analysis

# of Estimates Mean High Low 1 Year Ago
SALES (in millions)
Year Ending Dec-17 19 505,020.00 571,992.00 439,674.00 539,244.00
Earnings (per share)
Quarter Ending Mar-17 1 0.15 0.15 0.15
Quarter Ending Jun-17 1 0.15 0.15 0.15
Year Ending Dec-17 25 0.58 0.61 0.48 0.59
Sales and Profit Figures in China Yuan Renminbi (CNY);

Valuation Ratios

Company industry sector
P/E Ratio (TTM) 5.97 16.68 19.28
P/E High – Last 5 Yrs. 6.02 16.30 26.22
P/E Low – Last 5 Yrs. 5.14 10.73 11.00
Beta 1.15 1.56 1.53
Price to Sales (TTM) 2.70 4.43 4.58
Price to Book (MRQ) 0.77 2.25 2.18
Price to Tangible Book (MRQ) 0.97 2.33 2.30
Price to Cash Flow (TTM) 6.66 13.43 14.29
% Owned Institutions 0.31 0.44

Dividends

Company industry sector
Dividend Yield 5.46 2.14 2.10
Dividend Yield – 5 Year Avg 6.24 0.62 0.69
Dividend 5 Year Growth Rate 3.69 3.86 4.14
Payout Ratio(TTM) 30.75 3.64 5.20

Growth Rates

Company industry sector
Sales (MRQ) vs Qtr. 1 Yr. Ago -8.93 8.64 16.44
Sales (TTM) vs TTM 1 Yr. Ago -1.35 8.91 11.11
Sales – 5 Yr. Growth Rate 15.06 15.13 15.28
EPS (MRQ) vs Qtr. 1 Yr. Ago 0.00 -14.39 -5.05
EPS (TTM) vs TTM 1 Yr. Ago 0.68
EPS – 5 Yr. Growth Rate 7.76 9.84 10.92
Capital Spending – 5 Yr. Growth Rate 9.02 24.82 23.92

BANK OF CHINA LIMITED is a China-based commercial bank. The Bank is mainly engaged in the provision of banking and related financial services, including commercial banking, investment banking, insurance business, direct investments and investment management business, fund management business and aircraft leasing business, as well as others. The Bank mainly operates its businesses in China mainland, Hong Kong, Macau and Taiwan, as well as other countries.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.