Weihai Bank Co Ltd Class (9677.HK) Q2 2025 Earnings Report

Weihai Bank’s QQ2 2025 quarter demonstrates a robust operating earnings profile, with revenue and operating income both amounting to 2.5318 billion CNY. The notable caveat is a substantial negative other income/expenses line (-1.0871 billion CNY), which drives a pre-tax profit of 1.4447 billion CNY and a net income of 1.1276 billion CNY, translating to a net margin of 44.54%. Year-over-year metrics show notable improvements: revenue +114.8%, operating income +337.7%, net income +145.9%, and EPS +223.7%. On the balance sheet and liquidity side, the bank exhibits marked funding stress with liquidity ratios reported at 0.147x (current and quick) and a cash ratio of 0.086x, signaling funding and concentration risks despite the strong quarterly earnings print. Valuation remains attractive on conventional multiples (P/E ~3.55x, P/B ~0.525x), yet the market appears to price in liquidity and earnings durability risk. Absent a material improvement in non-operating income stability and balance sheet liquidity, the sustainability of the earnings stream and the earnings multiple remain a key area of focus for investors.