EPS of $0.14 decreased by 48.2% from previous year
Gross margin of 100.0%
Net income of 391.02M
"Transcript not provided in the provided data." - N/A
Bank of Jiujiang Co Ltd (6190.HK) QQ1 2025 Results — Solid Core Profitability with Significant Non-Operating Influence Amid Revenue Decline
Executive Summary
Bank of Jiujiang reported QQ1 2025 results with a solid operating footprint but a material one-off non-operating impact that distorted bottom-line profitability. Core operating income matched revenues at 1.222 billion CNY, while total other income/expenses net stood at -840.222 million CNY, yielding an income before tax of 382.006 million CNY and a net income of 391.015 million CNY. The quarter-to-quarter improvement in net income versus Q4 2024 (-69.396 million CNY) reflects a meaningful sequential turnaround, but year-over-year revenue declined by approximately 28.8% to 1.222 billion CNY versus QQ1 2024. The result underscores a resilient, albeit narrow, profitability base supported by non-operating items rather than a broad-based revenue expansion.
Key drivers include a robust pre-tax margin of 31.25% and a net income margin of about 32.0%, with an earnings per share (EPS) of 0.14 CNY. However, management should address the volatility introduced by sizeable other income/expenses fluctuations and focus on sustaining top-line growth through lending, fee income, and digital channels. Valuation metrics imply the stock trades at approximately 0.30x price-to-book and ~8.0x price-to-earnings, signaling substantial discount versus book value despite a positive quarterly earnings contribution. The bank’s implied leverage indicators require careful interpretation due to potential data inconsistencies in the reported ratios.
Overall investment stance: cautiously optimistic on the probability of continuing quarterly profitability given a positive net income print in QQ1 2025, but wary of revenue volatility, low ROE, and potential headwinds from macro and regulatory factors in the Chinese banking sector.
Key Performance Indicators
Revenue
1.22B
QoQ: 39.05% | YoY:-28.76%
Gross Profit
1.22B
1.00% margin
QoQ: 39.05% | YoY:-28.76%
Operating Income
1.22B
QoQ: 146.66% | YoY:39.42%
Net Income
391.02M
QoQ: 663.45% | YoY:-48.82%
EPS
0.14
QoQ: 116.87% | YoY:-48.15%
Revenue Trend
Margin Analysis
Key Insights
Revenue: 1,222,228,000 CNY in QQ1 2025; YoY change -28.76%; QoQ change +39.05% (Q4 2024 revenue of 878,955,000 CNY). The YoY decline suggests a tougher year-ago base or mix shift, while the QoQ surge reflects seasonal/concentration effects or one-time dynamics within the quarter.
Gross Profit: 1,222,228,000 CNY (gross margin effectively 100.0% as reported; likely due to data rounding or a non-operating interpretation in the source table).
Total Other Income/Expenses Net: -840,222,000 CNY; indicates substantial non-operating or one-off charges/offsets that materially influence pretax profitability.
Income Before Tax: 382,006,000 CNY; margin ~31.25%.
Financial Highlights
Revenue and Profitability
- Revenue: 1,222,228,000 CNY in QQ1 2025; YoY change -28.76%; QoQ change +39.05% (Q4 2024 revenue of 878,955,000 CNY). The YoY decline suggests a tougher year-ago base or mix shift, while the QoQ surge reflects seasonal/concentration effects or one-time dynamics within the quarter.
- Gross Profit: 1,222,228,000 CNY (gross margin effectively 100.0% as reported; likely due to data rounding or a non-operating interpretation in the source table).
- Operating Income: 1,222,228,000 CNY; margin effectively 100.0% for QQ1 2025 data.
- Total Other Income/Expenses Net: -840,222,000 CNY; indicates substantial non-operating or one-off charges/offsets that materially influence pretax profitability.
- Income Before Tax: 382,006,000 CNY; margin ~31.25%.
- Income Tax Expense: 1,828,000 CNY; effective tax rate ~0.48% for the quarter.
- Net Income: 391,015,000 CNY; net margin ~32.0%.
- EPS (basic/diluted): 0.14 CNY; YoY change -48.15%; QoQ change +116.87%.
Balance Sheet and Returns
- Return on Assets (ROA): 0.0758%; Return on Equity (ROE): 0.94%; Return on Capital Employed (ROCE): 0.24% (based on provided ratios).
- Debt Ratio: 9.62%; Debt/Equity: 1.194; Long-Term Debt to Capitalization: 54.4% (note: data inconsistencies exist across debt-related metrics; see caveat below).
- Equity Multiplier: 12.41; Asset Turnover: 0.00237; Revenue/Asset linkage appears unusual, warranting cautious interpretation of leverage dynamics.
- Cash per Share: 9.41; Price to Book Value: 0.30; Price to Earnings: 7.98; Price to Sales: 10.21; Price to Revenue/Operating Cash Flow indicators imply a valuation discount relative to book and earnings metrics.
- Dividend Payout: 0%; Dividend Yield: 0% (no distributions observed in the QQ1 2025 period).
Notes on Data Quality and Comparability
- Several ratio fields appear incongruent (e.g., cash ratio/quick ratio are listed as 0; equity multiplier is very high while debt ratio remains low). This suggests possible data reconciliation issues in the source dataset. The interpretation should be qualified with corroborating notes from the company’s supplementary disclosures and the corresponding HKEX filing.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.22B
-28.76%
39.05%
Gross Profit
1.22B
-28.76%
39.05%
Operating Income
1.22B
39.42%
146.66%
Net Income
391.02M
-48.82%
663.45%
EPS
0.14
-48.15%
116.87%
Key Financial Ratios
grossProfitMargin
100%
operatingProfitMargin
100%
netProfitMargin
32%
returnOnAssets
0.08%
returnOnEquity
0.94%
debtEquityRatio
1.19
priceToBookRatio
0.3
priceEarningsRatio
7.98
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript data not provided in the supplied dataset. No earnings call transcripts or management quotes are available to extract themes or quotes. The analysis therefore relies on the disclosed quarterly financials and standard sector context rather than verbatim guidance or management commentary.
Transcript not provided in the provided data.
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Transcript not provided in the provided data.
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Forward Guidance
No explicit management guidance was provided in the accompanying data. Near-term outlook should be considered with caution absent explicit targets; investors should monitor: (a) net interest income evolution and funding costs in a low-to-moderate rate environment, (b) non-interest income variability and the drivers of the large other income/expenses swing, (c) asset quality indicators and loan growth by segment (retail, corporate, SME), (d) capital adequacy and regulatory changes affecting Chinese regional lenders, and (e) digital transformation efficiency gains and cost control measures. Given the QQ1 2025 results, a conservative baseline would anticipate continued earnings volatility if non-operating items remain a material component. A potential upside would require a sustained improvement in core income generation (fees, NII) and stable credit costs, with a realistic path to modest ROE normalization over the next several quarters if loan growth accelerates and operating efficiency improves.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
6190.HK Focus
1.00%
1.00%
0.94%
7.98%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Assessment: Neutral to cautiously positive with selective upside potential. QQ1 2025 results demonstrate that Bank of Jiujiang can generate meaningful net income on a quarterly basis, but the earnings profile is highly sensitive to non-operating items and exhibits YoY revenue softness. The discount to book value (P/B ~0.30x) and a P/E around 8x imply a valuation cushion, but the sustainability of earnings hinges on improving core NII and fee income, prudent credit risk management, and disciplined cost control. Given data caveats and potential reporting inconsistencies, investors should seek corroboration from HKEX filings and management commentary in forthcoming disclosures. Key catalysts include stabilized or growing loan book, higher non-interest income from fees, and a clearer path to ROE normalization.
Key Investment Factors
Growth Potential
Moderate. The bank operates in a regional, lower-tier market with opportunities in SME lending, green financing, and digital banking channels. Growth will hinge on loan book expansion in SME/corporate segments, cross-sell of cash management and fee-based services, and disciplined cost management enabled by digital channels.
Profitability Risk
Moderate to High. Key risks include Chinese macro slowdown, asset quality deterioration in sensitive sectors, reliance on non-operating items for volatility in reported profitability, potential regulatory tightening for regional banks, and competition from larger state-owned banks and fintech entrants. Data inconsistencies in reported ratios add valuation and reliability risk for investors.
Financial Position
Solid liquidity signals suggested by the per-share cash metric and modest debt indicators; however, leverage signals are mixed due to potential data misalignment. The stock trades at ~0.30x P/BV and ~8x P/E, implying a substantial discount to book value and earnings, which could reflect risk premia from the regional bank segment or could be a mispricing given data caveats. A robust liquidity and capital position would be favorable if supported by steady NII growth and controlled operating costs.
SWOT Analysis
Strengths
Positive QQ1 2025 net income (CNY 391.0M) and stable pretax margin (~31.25%) despite a large negative other income/expenses item.
Low reported debt ratio (9.62%) suggesting conservative balance sheet financing in the context of a regional lender.
Solid cash per share (CNY 9.41) and low price-to-book value (0.30x), indicating potential undervaluation given current earnings base.
Weaknesses
Year-over-year revenue decline (-28.8%), indicating sensitivity to macro conditions or base effects.
Material volatility in other income/expenses (-CNY 840.222M) that can obscure core operating profitability.
Return metrics (ROA ~0.08%, ROE ~0.94%) imply a relatively modest efficiency and earnings power compared to larger peers.
Potential data inconsistencies in reported ratios (e.g., asset turnover, equity multiplier) requiring validation.
Opportunities
Expansion of SME and rural/retail banking segments to drive lending growth and fee income.
Digital transformation and cost optimization to improve operating efficiency and expand fee-based revenue streams.
Green financing and government-bond-related activities to capture policy-driven flows.
Threats
China’s macro headwinds and regulatory changes impacting smaller regional banks.
Credit risk from cyclical sectors and potential asset-quality deterioration if economic conditions worsen.
Competition from larger banks and fintech entrants that may compress margins and market share.