China Everbright Bank Company Limited (601818.SS) stock analysis

In our weekly check, China Everbright Bank Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7.

About China Everbright Bank Company Limited

China Everbright Bank Company Limited is a Financial Services company (Banks - Regional) based in China, listed on SHH as 601818.SS.

What our checks show for 601818.SS

Red flags

• Operating cash flow is only 0.35x net profit: part of the reported profit does not arrive as cash.
• Analysts expect revenue to shrink about 21% a year.
• Revenue fell 5.3% a year over the last 3 years.
• The dividend takes 126% of profit: little cushion if profit falls.
• Return on capital (ROCE) is only 0.8%.

Warning signs

• The net margin fell by 2.2 points over 5 years, to 13.9%: the company keeps less of each sale as profit.
• Earnings per share fell 11.8% a year over the last 3 years.
• Net profit fell 9.8% a year over the last 3 years.
• Free cash flow is only 1.9% of revenue.
• The stock has fallen as much as 59% from a peak. Would you have held through that?

Strengths

• Analysts expect the net margin to improve by 11.7 points from today's 13.9%.
• The price is 6.1 times earnings (P/E), reasonable for its growth.
• A large company: market value $27.57 billion.
• The price moves calmly: 15.5% annual volatility.
• Beta 0.16: the stock usually moves less than the market.
• Actively traded: about 198 million shares a day.

Similar companies

ABG.JO · EMIRATESNBD.AE · 2834.TW · SAHOL.IS · 1180.SR · 000001.SZ

Questions

What grade does China Everbright Bank Company Limited (601818.SS) have?

In our weekly check, China Everbright Bank Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 601818.SS stock?

This week's biggest flags for China Everbright Bank Company Limited: Profits not backed by cash, Weak revenue forecast, Weak revenue growth. In total 12 of 25 checks show a warning or a red flag.

What does China Everbright Bank Company Limited do?

China Everbright Bank Company Limited is a Financial Services company (Banks - Regional) based in China, listed on SHH as 601818.SS.

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 2026-10-31

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