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China Zheshang Bank Co (601916) Fair Value & Analysis

Financial Services · CN · Market cap 77.7B CNY

CZ China Zheshang Bank Co 601916 · SHG
Price¥2.93
Fair Value¥5.66
Upside+93.2%
Quality39/100
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Expensive Growth
Highly profitable · 34.0% net margin
negative free cash flow
4.58% dividend yield
Ranks above peers (7/11)
Moderate moat 61/100
Evidence: High Range ¥4.25 – ¥7.08 Share as image

Fair value as of: Jul 16, 2026

From 17 valuation models · updated 22 days ago

Fair value updated Jul 16, 2026, revised from ¥5.39 to ¥5.66 (+5.0%) since Jul 5, 2026. Share price +6.5% over the past month.

Below-average quality, screening 93% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (39/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (¥4.25). 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)

¥3.62 ¥2.08 Fair Value ¥5.66 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range ¥2.08 – ¥3.62 · fair‑value band ¥4.25 – ¥7.08 · the ¥2.93 price screens below the ¥5.66 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

China Zheshang Bank Co (601916) currently trades at ¥2.93, while our model-based Fair Value estimate is ¥5.66, implying the stock looks roughly 93.2% undervalued today. We read business quality at 39/100 (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 Zheshang Bank Co generated revenue of 38.2B CNY at a net margin of 34.0%. Revenue grew 0.2% year over year. It earns a return on equity of 6.5%. Net debt stands at 306B CNY. Fundamentals as of Jul 16, 2026

Our scenario range runs from ¥4.25 (bear case) to ¥7.08 (bull case); at ¥2.93, 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 24% 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 93%, 601916 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 ¥5.90 ¥6.14 ¥6.36 76
Gordon GGM ¥1.76 ¥3.67 ¥5.82 70
Growth-Adj P/E ¥6.36 ¥9.09 ¥11.81 68
All 17 models by family
DCF Models
Owner Earnings ¥10.85 ¥13.69 ¥18.75 31
Earnings-Based
Graham-Dodd ¥3.20 ¥15.74 ¥21.69 54
Lynch FV ¥4.23 ¥6.05 ¥7.86 50
PEG = 1.0 ¥4.23 ¥6.05 ¥7.86 46
EPV ¥13.46 ¥14.44 ¥15.31 59
Dividend Discount
Gordon GGM ¥1.76 ¥3.67 ¥5.82 70
DDM Multi-Stage ¥1.76 ¥3.09 ¥3.85 61
Multiples
P/E Multiple ¥7.06 ¥9.42 ¥11.77 63
P/S Multiple ¥4.12 ¥5.49 ¥6.86 58
P/B Multiple ¥6.00 ¥8.00 ¥10.01 55
EV/EBIT ¥16.86 ¥19.96 ¥23.07 53
EV/EBITDA ¥15.37 ¥17.97 ¥20.58 54
EV/Revenue ¥11.39 ¥13.03 ¥14.68 43
Asset-Based
NCAV (Graham) ¥3.69 ¥4.95 ¥7.39 50
Economic Profit
Residual Income ¥5.90 ¥6.14 ¥6.36 76
ROIC Compounder ¥13.46 ¥14.44 ¥15.31 67
Growth Earnings
Growth-Adj P/E ¥6.36 ¥9.09 ¥11.81 68

Widest divergence: DCF Models (¥13.69) versus Dividend Discount (¥3.09). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 38.2B CNY
Revenue growth (YoY) +0.2%
Net margin 34.0%
Return on equity 6.5%
Free cash flow −21.9B CNY FY2025
P/E ratio 6.4
More key figures
Operating margin 63.6%
EPS (TTM) ¥0.4400
Dividend yield 4.6%
Net debt 306B CNY FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 39/100

Of which business quality 27 · Market factors (momentum, volatility) 51

Profitability 29
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 20
Balance sheet, leverage, solvency risk
Investment 47
Disciplined investing over empire-building
Low Volatility 97
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 28
Distance to the 52-week high (market factor)
Net Issuance 46
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 Zheshang Bank Co., Ltd. provides corporate and retail banking services in Mainland China. The company operates through Corporate Banking, Retail Banking, and Treasury Business segments.

Full company description

China Zheshang Bank Co., Ltd. provides corporate and retail banking services in Mainland China. The company operates through Corporate Banking, Retail Banking, and Treasury Business segments. The Corporate Banking segment offers corporate loans and advances, trade financing, corporate deposits, credit commitments and financial guarantees, debt instrument underwriting and other corporate, and intermediary banking services to corporate clients, governments, and other institutions. The Retail Banking segment provides personal loans and advances, personal deposits, wealth management, bank card business, and other types of retail banking services to individual customers. The Treasury Business segment is involved in money market transactions, repurchase transactions, debt instrument investments, equity instrument investments, and proprietary business. It also engages in the financial derivatives business. China Zheshang Bank Co., Ltd. was incorporated in 1993 and is headquartered in Hangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Zheshang Bank Co reported revenue of ¥60.3B in FY2025 versus ¥29.6B in FY2021, a compound +19.4%/yr. Reported net income was ¥12.9B in FY2025, compounding +0.6%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
60.3B CNY
Latest YoY
+53.0%
Avg. growth/yr (3Y)
+21.9%
Avg. growth/yr (5Y)
+16.9%
Avg. growth/yr (13Y)
+15.4%
Revenue +19.4%/yr
FY21 ¥29.6B
FY22 ¥33.3B
FY23 ¥37.2B
FY24 ¥39.4B
FY25 ¥60.3B
Net income +0.6%/yr
FY21 ¥12.6B
FY22 ¥13.6B
FY23 ¥15.0B
FY24 ¥15.2B
FY25 ¥12.9B

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Cite: Fair Value Calculator (2026). "China Zheshang Bank Co Fair Value". https://www.fairvalue-calculator.com/stock/601916

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 38 · Bottom 25%
Fair Value upside +93% · Top 25%
Return on equity (TTM) 7% · Below median
Return on assets 0% · Bottom 25%
Net margin (TTM) 34% · Above median
Operating margin (TTM) 64% · Top 25%
Revenue growth 0% · Below median
Dividend yield (TTM) 4.6% · Top 25%

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 6.4× · Cheaper than 75% of peers
P/B 0.38× · Cheaper than 75% of peers
P/S (TTM) 2.03× · Cheaper 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 1 · sector 44
PAST 26 · sector 41
HEALTH 0 · sector 85
DIVIDEND 92 · sector 49

Insider activity: 40/100

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 16, 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 Zheshang Bank Co (601916) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of ¥5.66 versus a price of ¥2.93, about +93% (undervalued).
What is the fair value of 601916?
Our model-based fair value for China Zheshang Bank Co is ¥5.66 (as of Jul 16, 2026), built from audited fundamentals. The current price is ¥2.93.
What is the quality score of 601916?
China Zheshang Bank Co has a Quality Score of 39/100. 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 Zheshang Bank Co (601916)?
China Zheshang Bank Co reported trailing-twelve-month revenue of about 38.2B CNY (latest available figure, as of Jul 16, 2026).
What is the net profit margin of 601916?
The net profit margin of China Zheshang Bank Co is about 34.0%, meaning it keeps roughly 34.0% of revenue as net income. Based on the latest reported figures.
Does China Zheshang Bank Co pay a dividend?
China Zheshang Bank Co currently shows a dividend yield of about 4.28% relative to its recent price (as of Jul 16, 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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