China Zheshang Profit Margin vs. Book Value Per Share

601916 Stock   2.97  0.02  0.67%   
Considering the key profitability indicators obtained from China Zheshang's historical financial statements, China Zheshang Bank may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess China Zheshang's ability to earn profits and add value for shareholders.
For China Zheshang profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China Zheshang to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China Zheshang Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China Zheshang's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China Zheshang Bank over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between China Zheshang's value and its price as these two are different measures arrived at by different means. Investors typically determine if China Zheshang is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Zheshang's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

China Zheshang Bank Book Value Per Share vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining China Zheshang's current stock value. Our valuation model uses many indicators to compare China Zheshang value to that of its competitors to determine the firm's financial worth.
China Zheshang Bank is number one stock in profit margin category among its peers. It also is number one stock in book value per share category among its peers creating about  15.70  of Book Value Per Share per Profit Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value China Zheshang by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for China Zheshang's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

China Book Value Per Share vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

China Zheshang

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.40 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.

China Zheshang

Book Value per Share

 = 

Common Equity

Average Shares

 = 
6.20 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.

China Book Value Per Share Comparison

China Zheshang is currently under evaluation in book value per share category among its peers.

China Zheshang Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in China Zheshang, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Zheshang will eventually generate negative long term returns. The profitability progress is the general direction of China Zheshang's change in net profit over the period of time. It can combine multiple indicators of China Zheshang, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Net Interest Income47.5 B38.7 B
Interest Income110.3 B89.5 B
Net Income From Continuing Ops15.5 B13.8 B
Income Before Tax17.5 B16.2 B
Net Income Applicable To Common Shares13.6 B12.4 B
Net Income15 B13.6 B
Income Tax Expense1.7 B1.8 B
Change To Netincome11.4 B12 B

China Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on China Zheshang. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of China Zheshang position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the China Zheshang's important profitability drivers and their relationship over time.

Use China Zheshang in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if China Zheshang position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in China Zheshang will appreciate offsetting losses from the drop in the long position's value.

China Zheshang Pair Trading

China Zheshang Bank Pair Trading Analysis

The ability to find closely correlated positions to China Zheshang could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace China Zheshang when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back China Zheshang - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling China Zheshang Bank to buy it.
The correlation of China Zheshang is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as China Zheshang moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Zheshang Bank moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for China Zheshang can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your China Zheshang position

In addition to having China Zheshang in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Non-Metallic and Industrial Metal Mining Thematic Idea Now

Non-Metallic and Industrial Metal Mining
Non-Metallic and Industrial Metal Mining Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Non-Metallic and Industrial Metal Mining theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Non-Metallic and Industrial Metal Mining Theme or any other thematic opportunities.
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Other Information on Investing in China Stock

To fully project China Zheshang's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of China Zheshang Bank at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include China Zheshang's income statement, its balance sheet, and the statement of cash flows.
Potential China Zheshang investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although China Zheshang investors may work on each financial statement separately, they are all related. The changes in China Zheshang's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on China Zheshang's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.