Jinshang Bank Co Ltd (2558.HK) Q4 2024 Earnings Report

Jinshang Bank reported QQ4 2024 revenue of 1,081,140,500 CNY, flat QoQ and down 9.71% YoY. The quarterly result featured operating income of 416,541,500 CNY and net income of 362,346,000 CNY, yielding an operating margin of 38.53% and a net margin of 33.52%. Earnings per share (EPS) stood at 0.0621 CNY (diluted EPS 0.0600 CNY) on a weighted‑average diluted share count of 5.84–6.04 billion. While profitability is clearly positive on an isolated quarter basis, the YoY decline reflects softer topline momentum amid a challenging macro backdrop for Chinese regional banks in late 2024.

Balance‑sheet and cash‑flow dynamics underline a notably conservative risk posture. The bank’s liquidity profile is robust, with cash and cash equivalents of 8.64 billion CNY and a net debt position of −6.64 billion CNY, indicating excess liquidity versus Å total indebtedness of ~1.999 billion CNY. Total assets stood at ~376.31 billion CNY against total liabilities of ~348.28 billion CNY and equity of ~28.02 billion CNY. However, operating cash flow was negative (−991.64 million CNY) and free cash flow was negative (−1,038.36 million CNY) for the quarter, driven largely by working capital movements and other investing/financing cash flows. Cash flow from financing activities was positive at ~4,256.21 million CNY, aided by sizable financing activities and dividends paid (~295.73 million CNY), highlighting a capital‑deployment dynamic that supports balance sheet resilience but requires ongoing attention to cash‑generation discipline.

Valuation remains modest by traditional bank metrics, with price‑to‑book around 0.29 and price‑to‑sales near 7.55, along with a dividend yield of ~3.62%. Relative to regional peers, Jinshang Bank demonstrates positive current profitability with a low leverage footprint, but it faces YoY margin pressure and a cautious near‑term cash‑flow trajectory. The combination of a strong liquidity base, modest leverage, and improving but still evolving revenue mix suggests a cautious to neutral stance with a focus on efficiency improvements, capital allocation discipline, and the ability to translate fee‑based and cross‑selling opportunities into sustainable earnings growth.