Bank of Communications Co., Ltd. (3328.HK) stock analysis

In our weekly check, Bank of Communications Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 7.

About Bank of Communications Co., Ltd.

Bank of Communications Co., Ltd. is a Financial Services company (Banks - Diversified) based in China, listed on HKSE as 3328.HK.

What our checks show for 3328.HK

Red flags

• The net margin fell by 20.5 points over 5 years, to 22.6%: the company keeps less of each sale as profit.
• The gross margin fell by 41.6 points, to 58.4%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 11.8% a year.
• The stock has fallen as much as 76% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 0.9%.

Warning signs

• Earnings per share fell 1.8% a year over the last 3 years.
• The stock is still below its previous peak.
• The share count grew by 10.5% in 2 years: each shareholder owns a smaller slice.

Strengths

• Operating cash flow is 4.19x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 8.1 points from today's 22.6%.
• Revenue grew 29.7% a year over the last 3 years.
• The company keeps 22.6% of its revenue as net profit.
• Free cash flow is 84.6% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 21% of profit: there is a cushion.

Next earnings report: 2026-10-30

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Questions

What grade does Bank of Communications Co., Ltd. (3328.HK) have?

In our weekly check, Bank of Communications Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 3328.HK stock?

This week's biggest flags for Bank of Communications Co., Ltd.: Margins falling, Gross margin falling, Weak revenue forecast. In total 10 of 25 checks show a warning or a red flag.

What does Bank of Communications Co., Ltd. do?

Bank of Communications Co., Ltd. is a Financial Services company (Banks - Diversified) based in China, listed on HKSE as 3328.HK.

When does Bank of Communications Co., Ltd. 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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