Chongqing Rural Commercial Bank (SEHK:3618) Stock Trades Cheap On Strong Profitability

Chongqing Rural Commercial Bank stock closed at HK$6.525 after a flat few weeks, with the 30 day return slightly in the red and the 90 day move only modestly positive. In the short term, the market looks undecided.

The headline from these Q2 numbers is earnings power. Basic earnings per share came in at ¥0.360 for the quarter and ¥1.088 on a trailing twelve month basis, with net profit margin over the past year at 51.3%. That profitability sits against a P/E of 5.1x and a discounted cash flow estimate that is far above the current share price. This frames the investment case as one that may be more relevant over a multi year horizon.

Is Chongqing Rural Commercial Bank trading at a genuine discount, or does the low P/E simply reflect the level of risk investors are pricing in? Compare the market price to the detailed cash flow based fair value in our valuation analysis for Chongqing Rural Commercial Bank.

Q2 2026 Earnings Summary

• Revenue, Q2 2026 vs. Q2 2025: ¥7,320.764m vs. ¥6,812.131m (up about 7.5%)
• Net Income, Q2 2026 vs. Q2 2025: ¥4,233.297m vs. ¥3,954.111m (up about 7.1%)
• Basic EPS, Q2 2026 vs. Q2 2025: ¥0.360 vs. ¥0.340 (up about 5.9%)
• Non Performing Loans, Q2 2026 vs. Q2 2025: ¥8,840.4m vs. ¥8,948.0m (slightly lower balance)

Prefer clean charts instead of scrolling through more tables and raw figures? See Chongqing Rural Commercial Bank's full valuation picture laid out in a simple visual format in our company report for Chongqing Rural Commercial Bank.

Chongqing Rural Commercial Bank earnings lean to the upside

For investors leaning positive on Chongqing Rural Commercial Bank, the latest quarter gives some support. Revenue and net income both moved higher year on year, and basic EPS also improved. This fits a story of a core franchise that is still producing incremental growth. Net profit margin over the past year at 51.3% backs the idea that this is a bank with strong earnings power rather than a marginal lender struggling for scale.

Balance sheet signals keep risk debate alive

The bear case around Chongqing Rural Commercial Bank often centres on asset quality for a regional and rural focused lender. Here, non performing loans edged lower in absolute terms compared with last year, which softens the most pessimistic credit concerns. However, the overall level of non performing loans remains material in yuan terms. Caution around concentrated regional and SME exposure still appears reasonable rather than alarmist.

After an unstable dividend track record and ongoing concerns around non performing loans, you may want to review our risk analysis for Chongqing Rural Commercial Bank which shows 1 important warning sign

Stay Ahead With Chongqing Rural Commercial Bank

If the mix of strong recent profitability and a low P/E on Chongqing Rural Commercial Bank has caught your attention, register for free with Simply Wall St and add it to your Watchlist to track price moves against fair value estimates and watch for a more attractive entry point. Once you own the stock, use the Portfolio Command Center to cut through market noise and focus on key updates that matter to your thesis. For a longer term view, tap into the collective experience of other investors through the Community and see how sentiment and insights evolve over time. By spotting potential catalysts and risks early, you give yourself a better chance of staying one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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