To The Moon

🌟🌟🌟Bank of China SDR $Bank of CN HK SDR 1to1(HBND.SI)$ has just started trading in the SGX on October 30 together with 4 other Hong Kong SDRs.

A SDR stands for Singapore Depository Receipt which is a financial instrument that allows investors to trade stocks from overseas exchanges on the Singapore Stock Exchange.  SDR is a great way for Singapore investors to access regional market without dealing with the complexities of cross border trading.

Bank of China (BOC) is one of the Big 4 Chinese Banks and is a state owned multinational bank with more than 550 overseas branches in over 60 countries.   BOC is also one of the world's largest banks and is considered to be China's most international and diversified bank.  Founded in 1912, BOC is state owned  and provides a comprehensive range of financial, investment and wealth management services to personal, corporate and institutional customers.

In its Q3 24 Earnings report, BOC reported Revenue of RMB 135.96 billion, up 12.6% compared to previous year quarter.  Net Income was RMB 57.16 billion, up 4.38% year over year.  Earnings per share was RMB 0.24 compared to RMB 0.18 expected by analysts.  Operating income rose by 6.58% year over year.

Key financial highlights include a 5.05% increase in total assets, reaching RMB 34,068,988 million.

BOC's strategic focus remains on improving non interest income which saw a 21% increase, offsetting the decline in net interest income.   BOC's net interest income for the quarter was RMB 109,237 million compared to RMB 118,980 a year ago.

Looking ahead, BOC maintains a cautious yet optimistic outlook, aiming to leverage its solid financial foundation and strategic initiatives to navigate the dynamic economic environment.

BOC pays an annual dividend.  The current dividend yield is 6.82%.

Performance wise BOC has risen 1.5% on Friday to SGD 0.64 per share.  However since it has just started trading, I would like to use BOC's Hong Kong share price to compare.  $BANK OF CHINA(03988)$  closed up 1.9% on Friday and is up 27% year todate.  In 2023, BOC has risen 33%.

Wall Street Analysts are bullish on BOC with a Buy rating, Target price of HKD 4.20, an upside potential of 11%.

Why buy  BOC in SGX versus HKSE?

One of the main advantages is that $Bank of CN HK SDR 1to1(HBND.SI)$ is denominated in Singapore dollars, so no conversion is required.   Another great reason is that dividends will be paid in Singapore dollars too.

 BOC's minimum lot size in HKSE is 1000 shares, while in SGX, the minimum lot size, is 100 shares.  So an investment in BOC on the SGX  would only require a SGD 64 outlay versus a HKD 3760 outlay (SGD 641).

With the new massive string of stimulus by the Chinese authorities, BOC will certainly play a pivotal role in helping to stimulate the Chinese economy. 

I believe that Bank of China has lots of exponential growth ahead and great upside potential in capital growth.  It ticks all the core fundamentals of a quality stock and has a rock solid balance sheet.  That is why I believe that $Bank of CN HK SDR 1to1(HBND.SI)$ is a great buy at the current price of just SGD 0.64 per share.

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