BOC Hong Kong (Holdings) Limited (2388.HK) stock analysis

In our weekly check, BOC Hong Kong (Holdings) Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 1, red flags: 8.

About BOC Hong Kong (Holdings) Limited

BOC Hong Kong (Holdings) Limited is a Financial Services company (Banks - Regional) based in Hong Kong, listed on HKSE as 2388.HK.

What our checks show for 2388.HK

Red flags

• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Free cash flow is negative (-129% of revenue): the business spends more cash than it brings in.
• The dividend takes 473% of profit: little cushion if profit falls.
• The stock has fallen as much as 73% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1.3%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect the net margin to shrink by 1.8 points from today's 58.4%.

Strengths

• The net margin rose by 26.7 points over 5 years, to 58.4%.
• The gross margin is 129% and has risen by 68.4 points: pricing power is holding.
• Earnings per share grew 15.7% a year over the last 3 years.
• Net profit grew 13.7% a year over the last 3 years.
• The company keeps 58.4% of its revenue as net profit.
• A large company: market value $65.89 billion.

Similar companies

SCB-R.BK · CPI.JO · SBK.JO · KBANK-R.BK · NDA-SE.ST

Questions

What grade does BOC Hong Kong (Holdings) Limited (2388.HK) have?

In our weekly check, BOC Hong Kong (Holdings) Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 1, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 2388.HK stock?

This week's biggest flags for BOC Hong Kong (Holdings) Limited: Profits not backed by cash, Weak free cash flow, Dividend stretched. In total 9 of 25 checks show a warning or a red flag.

What does BOC Hong Kong (Holdings) Limited do?

BOC Hong Kong (Holdings) Limited is a Financial Services company (Banks - Regional) based in Hong Kong, listed on HKSE as 2388.HK.

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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