Bank of China (601988)

The leader in the internationalization of Chinese commercial banks

Text: Wu Levi, Pengrun Consulting Analyst (formerly KGI Securities, Hong Kong)< /p>

Bank of China (601988) stock price expectation: 10 yuan. Reason for selection: One of the four major commercial banks, it has the advantage of unified services on domestic and overseas platforms and is undervalued.

Bank of China is one of the four major state-owned commercial banks in China. It was founded in 1912. After the founding of the People's Republic of China, it gradually transformed from a full-time foreign exchange bank into a joint-stock commercial bank with a comprehensive business structure such as commercial banking, investment banking and insurance. . It has the most extensive network of overseas branches and is a leader in business fields such as foreign exchange deposits and loans, international settlement, foreign exchange funds and bank cards.

The British "Banker" magazine released the 2007 ranking report of the world's 1,000 largest banks. In terms of tier one capital, Bank of China ranked 9th. It ranked 215th in the 2007 Fortune Global 500 rankings in the United States. Awarded "China's Well-known Trademark" by the State Administration for Industry and Commerce. "Bank of China" is one of China's top ten international brands and has also been designated as the banking partner of the Beijing 2008 Olympic Games.

Having a global business network, this resource constitutes an important weight for the company to attract high-quality domestic customers. It is the company's most distinctive and obvious competitive advantage compared with its peers.

The company’s comprehensive and diversified financial platform has further increased the contribution of intermediary business income. The company directly controls BOC Hong Kong, BOC Insurance, BOC Group Investment, BOC Aviation and other companies, and operates comprehensive businesses such as investment banking, insurance, and leasing.

Bank of China's overall development strategy from 2006 to 2008: With the goal of building China's "best bank", it is committed to becoming a Chinese financial services company mainly chosen by large enterprises and wealthy individual customers, and becoming a leading global company. Financial services company.

The market predicts that the company’s earnings per share from 2007 to 2009 will be 0.24 yuan, 0.32 yuan, and 0.43 yuan respectively, with a compound growth rate of 33.86% from 2007 to 2009. We are optimistic about the overall development prospects of the banking industry and the strong Bank of China The performance growth potential brought by the diversified financial platform, but reminds us of the risks that foreign currency assets bring to the company's future operations.