Industrial and Commercial Bank of China Limited (1398.HK) stock analysis

In our weekly check, Industrial and Commercial Bank of China Limited is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 0, red flags: 11.

About Industrial and Commercial Bank of China Limited

Industrial and Commercial Bank of China Limited is a Financial Services company (Banks - Diversified) based in China, listed on HKSE as 1398.HK.

What our checks show for 1398.HK

Red flags

• The net margin fell by 17.5 points over 5 years, to 35.4%: the company keeps less of each sale as profit.
• The gross margin fell by 38.2 points, to 61.8%: costs are rising faster than prices.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Analysts expect revenue to shrink about 2.3% a year.
• Free cash flow is negative (-45.6% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 62% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 8.9 years.
• Return on capital (ROCE) is only 3.5%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Strengths

• Analysts expect the net margin to improve by 6.1 points from today's 35.4%.
• Revenue grew 16.6% a year over the last 3 years.
• The company keeps 35.4% of its revenue as net profit.
• The dividend takes 39% of profit: there is a cushion.
• A large company: market value $432 billion.
• Beta 0.14: the stock usually moves less than the market.

Next earnings report: 2026-10-30

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Questions

What grade does Industrial and Commercial Bank of China Limited (1398.HK) have?

In our weekly check, Industrial and Commercial Bank of China Limited is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 0, red flags: 11. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1398.HK stock?

This week's biggest flags for Industrial and Commercial Bank of China Limited: Margins falling, Gross margin falling, Profits not backed by cash. In total 11 of 25 checks show a warning or a red flag.

What does Industrial and Commercial Bank of China Limited do?

Industrial and Commercial Bank of China Limited is a Financial Services company (Banks - Diversified) based in China, listed on HKSE as 1398.HK.

When does Industrial and Commercial Bank of China Limited report earnings next?

The next earnings report is expected on 2026-10-30. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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