BACHY - Bank of China

[frommi]

This looks pretty cheap, but i haven`t found an analysis or something else that could back up the numbers except an article in the dividend section of Forbes.

 

Numbers:

P/E: 4.9

P/B: 0.8 (lowest Point in recent history was 0.79)

Op. Margin: 51%

Net-Margin: 38%

EPS Growth: 15% (constant, only small variantions, has even grown in 2008)

Div. Yield: 6.9% (growing by around 10% per year)

 

Its one of the largest banks in china, and is 66% state owned.

 

Forbes article: http://www.forbes.com/sites/johndobosz/2014/02/12/into-the-belly-of-beijing-with-bank-of-china/

 

The RMB looks pretty stable, but i have found an article about the shadow banking system in china. I think that and the emerging crisis are the reasons the stock is that cheap, but it seems that the government is working on the problem of the shadow banking system. I will not put a great amount of my capital in here, but i think 5% are worth the risk.

 

Has anyone more infos, better insight or sees a reason not to invest here?

[frommi]

Dividend of $0.784 is anounced for June 17. This is a raise of 10%, and yield is 7.2% at the current price.