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China Minsheng Banking Corp (600016) Fair Value & Analysis

Financial Services · CN · Market cap 151B CNY

CM China Minsheng Banking Corp 600016 · SHG
Price¥3.52
Fair Value¥6.92
Upside+96.6%
Quality43/100
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Weak Growth
Highly profitable · 35.1% net margin
Low debt · negative free cash flow
5.48% dividend yield
Mixed vs. peers (7/13)
Moderate moat 55/100
Evidence: High Range ¥5.20 – ¥8.65 Share as image

Fair value as of: Jul 19, 2026

From 17 valuation models · updated 19 days ago

Fair value updated Jul 19, 2026, revised from ¥6.56 to ¥6.92 (+5.5%) since Jul 7, 2026. Share price +6.3% over the past month.

Below-average quality, screening 97% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (43/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (¥5.20). 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)

¥5.55 ¥3.10 Fair Value ¥6.92 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range ¥3.10 – ¥5.55 · fair‑value band ¥5.20 – ¥8.65 · the ¥3.52 price screens below the ¥6.92 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

China Minsheng Banking Corp (600016) currently trades at ¥3.52, while our model-based Fair Value estimate is ¥6.92, implying the stock looks roughly 96.6% undervalued today. We read business quality at 43/100 (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, China Minsheng Banking Corp generated revenue of 83.7B CNY at a net margin of 35.1%. Revenue declined 7.8% year over year. It earns a return on equity of 4.3%. Net debt stands at 428B CNY. Fundamentals as of Jul 19, 2026

Our scenario range runs from ¥5.20 (bear case) to ¥8.65 (bull case); at ¥3.52, 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 38% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 97%, 600016 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 BearBaseBull Evidence
Highest evidence
Residual Income ¥5.93 ¥5.99 ¥5.60 76
ROIC Compounder ¥8.30 ¥9.33 ¥10.74 72
Gordon GGM ¥2.02 ¥4.21 ¥6.68 70
All 17 models by family
DCF Models
Owner Earnings ¥8.85 ¥11.33 ¥15.27 31
Earnings-Based
Graham-Dodd ¥2.35 ¥8.34 ¥11.22 54
Lynch FV ¥1.95 ¥2.79 ¥3.63 50
PEG = 1.0 ¥1.95 ¥2.79 ¥3.63 46
EPV ¥8.17 ¥8.72 ¥9.21 59
Dividend Discount
Gordon GGM ¥2.02 ¥4.21 ¥6.68 70
DDM Multi-Stage ¥2.02 ¥3.55 ¥4.42 61
Multiples
P/E Multiple ¥5.19 ¥6.92 ¥8.65 63
P/S Multiple ¥3.03 ¥4.04 ¥5.06 58
P/B Multiple ¥4.41 ¥5.88 ¥7.35 55
EV/EBIT ¥10.08 ¥11.81 ¥13.55 53
EV/EBITDA ¥9.58 ¥11.15 ¥12.72 54
EV/Revenue ¥7.70 ¥8.91 ¥10.12 43
Asset-Based
NCAV (Graham) ¥3.91 ¥5.23 ¥7.81 50
Economic Profit
Residual Income ¥5.93 ¥5.99 ¥5.60 76
ROIC Compounder ¥8.30 ¥9.33 ¥10.74 72
Growth Earnings
Growth-Adj P/E ¥3.66 ¥5.22 ¥6.79 68

Widest divergence: DCF Models (¥11.33) versus Earnings-Based (¥2.79). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 83.7B CNY
Revenue growth (YoY) -7.8%
Net margin 35.1%
Return on equity 4.3%
Free cash flow −167B CNY FY2025
P/E ratio 6.0
More key figures
Operating margin 54.4%
EPS (TTM) ¥0.6000
Dividend yield 5.4%
EPS growth (YoY) -10.3%
Net debt 428B CNY FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 43/100

Of which business quality 40 · Market factors (momentum, volatility) 41

Profitability 28
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 29
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 97
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 8
Distance to the 52-week high (market factor)
Net Issuance 82
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

China Minsheng Banking Corp., Ltd. provides banking products and services in the People's Republic of China. The company operates through Corporate Banking, Retail Banking, and Others segments.

Full company description

China Minsheng Banking Corp., Ltd. provides banking products and services in the People's Republic of China. The company operates through Corporate Banking, Retail Banking, and Others segments. Its deposit products include saving accounts, deposit books and certificates, contracted and agreement deposits, call deposits, and corporate term and current deposits. The company also offers personal housing mortgage, individual automobile purchase, and household composite; corporate loans; medium and long term, and short-term working capital loans, as well as debit and credit cards. In addition, it provides appointed and domestic remittance, payment and collection agent, clearing, safe deposit box, VIP, and salary and welfare agent card services, as well as internet, mobile, telephone, and self-serve banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; international credit; and comprehensive credit granting and financial product investment services. It operates through branch-level institutions, business outlets, general sub-branches, community sub-branches, and small business sub-branches. The company serves individuals, corporate customers, government agencies, and financial institutions, as well as micro-, small-, and medium-sized enterprises. China Minsheng Banking Corp., Ltd. was incorporated in 1996 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 Minsheng Banking Corp reported revenue of ¥143B in FY2025 versus ¥321B in FY2021, a compound −18.3%/yr. Reported net income was ¥30.6B in FY2025, compounding −2.9%/yr from FY2021.

Growth Quality 19/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
143B CNY
Latest YoY
−50.5%
Avg. growth/yr (3Y)
−21.7%
Avg. growth/yr (5Y)
−15.7%
Avg. growth/yr (28Y)
+20.3%
Revenue −18.3%/yr
FY21 ¥321B
FY22 ¥298B
FY23 ¥306B
FY24 ¥289B
FY25 ¥143B
Net income −2.9%/yr
FY21 ¥34.4B
FY22 ¥35.3B
FY23 ¥35.8B
FY24 ¥32.3B
FY25 ¥30.6B

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Cite: Fair Value Calculator (2026). "China Minsheng Banking Corp Fair Value". https://www.fairvalue-calculator.com/stock/600016

Recent news

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

Peer Group

Banks - Regional · 1082 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 45 · Bottom 25%
Fair Value upside +97% · Top 25%
Return on equity (TTM) 4% · Bottom 25%
Return on assets 0% · Bottom 25%
Net margin (TTM) 35% · Above median
Operating margin (TTM) 54% · Top 25%
Revenue growth -8% · Bottom 25%
Dividend yield (TTM) 5.5% · Top 25%
Debt / equity 0.37× · Higher than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 5.8× · Cheaper than 75% of peers
P/B 0.22× · Cheaper than 75% of peers
P/S (TTM) 1.81× · Cheaper than 75% of peers
PEG 8.43× · Pricier than 75% of peers

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 39
FUTURE 0 · sector 44
PAST 17 · sector 41
HEALTH 82 · sector 85
DIVIDEND 100 · sector 49

Insider activity: 45/100

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 - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is China Minsheng Banking Corp (600016) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of ¥6.92 versus a price of ¥3.52, about +97% (undervalued).
What is the fair value of 600016?
Our model-based fair value for China Minsheng Banking Corp is ¥6.92 (as of Jul 19, 2026), built from audited fundamentals. The current price is ¥3.52.
What is the quality score of 600016?
China Minsheng Banking Corp has a Quality Score of 43/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of China Minsheng Banking Corp (600016)?
China Minsheng Banking Corp reported trailing-twelve-month revenue of about 83.7B CNY (latest available figure, as of Jul 19, 2026).
What is the net profit margin of 600016?
The net profit margin of China Minsheng Banking Corp is about 35.1%, meaning it keeps roughly 35.1% of revenue as net income. Based on the latest reported figures.
Does China Minsheng Banking Corp pay a dividend?
China Minsheng Banking Corp currently shows a dividend yield of about 5.40% relative to its recent price (as of Jul 19, 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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