Does Bank of East Asia’s 39% Rally Signal More Upside After Recent AGM Results?

Simply Wall St.

Sep 15

Are you wondering what to do next with Bank of East Asia stock? If you have been keeping an eye on the ticker, you already know this company has made some waves lately. Over the past year, the share ...

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If you have been keeping an eye on the ticker, you already know this company has made some waves lately. Over the past year, the share ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/banks/hkg-23/bank-of-east-asia-shares/news/does-bank-of-east-asias-39-rally-signal-more-upside-after-re\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Does Bank of East Asia’s 39% Rally Signal More Upside After Recent AGM Results?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDoes Bank of East Asia’s 39% Rally Signal More Upside After Recent AGM Results?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-09-15 00:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/banks/hkg-23/bank-of-east-asia-shares/news/does-bank-of-east-asias-39-rally-signal-more-upside-after-re><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Are you wondering what to do next with Bank of East Asia stock? If you have been keeping an eye on the ticker, you already know this company has made some waves lately. Over the past year, the share ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/banks/hkg-23/bank-of-east-asia-shares/news/does-bank-of-east-asias-39-rally-signal-more-upside-after-re\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"00023","symbol_name":"东亚银行","start_time":0,"source_url":"https://simplywall.st/stocks/hk/banks/hkg-23/bank-of-east-asia-shares/news/does-bank-of-east-asias-39-rally-signal-more-upside-after-re","article_id":"2567502311","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/7012000-choice2-main-header/1585186732814"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/banks/hkg-23/bank-of-east-asia-shares/news/does-bank-of-east-asias-39-rally-signal-more-upside-after-re","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2567502311","pubTimestamp":1757866242,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Are you wondering what to do next with Bank of East Asia stock? If you have been keeping an eye on the ticker, you already know this company has made some waves lately. Over the past year, the share price has climbed an impressive 39.0%, blowing past expectations. Year to date, it is up 26.2%, strong progress that’s especially eye-catching if you remember the more modest 2.5% gain seen over five years. Even after a recent 3.3% dip across the past month, momentum has been largely positive,...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"00023":"东亚银行","BK1572":"香港银行股","BK1231":"综合性银行","AGM":"联邦农业抵押贷款公司","BK4229":"商业和住宅抵押贷款融资","BK1601":"香港本地股","BK4195":"互助储蓄与抵押信贷金融服务"},"translate_title":"东亚银行在最近的年度股东大会结果公布后上涨39%是否预示着更多上涨？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00023":0.9,"AGM":1},"content_text":"Are you wondering what to do next with Bank of East Asia stock? If you have been keeping an eye on the ticker, you already know this company has made some waves lately. Over the past year, the share price has climbed an impressive 39.0%, blowing past expectations. Year to date, it is up 26.2%, strong progress that’s especially eye-catching if you remember the more modest 2.5% gain seen over five years. Even after a recent 3.3% dip across the past month, momentum has been largely positive, helped along by broader optimism in Hong Kong’s banking sector and a favorable shift in investor sentiment toward financials. With all this movement, you are probably wondering whether the current price reflects a real bargain or if the upside has already been captured. Interestingly, when we run Bank of East Asia through the usual valuation checks, it comes up undervalued in 0 out of 6 categories, for a value score of 0. What does this mean for investors looking for an undervalued pick? Let’s break down the methods behind these valuation checks, and stick around because by the end, we will discuss an even more insightful way to judge whether this stock deserves a place in your portfolio. Bank of East Asia scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Bank of East Asia Excess Returns Analysis The Excess Returns model focuses on evaluating how effectively a company generates returns above the cost of its equity capital. Instead of considering dividends or cash flows alone, this approach examines whether investments made by Bank of East Asia are expected to create value for shareholders after factoring in the cost of equity. For Bank of East Asia, the key metrics are as follows:  Book Value: HK$41.52 per share Stable EPS: HK$1.67 per share (Source: Weighted future Return on Equity estimates from 6 analysts.)\n   Cost of Equity: HK$3.41 per share Excess Return: HK$-1.74 per share Average Return on Equity: 4.12% Stable Book Value: HK$40.53 per share (Source: Weighted future Book Value estimates from 6 analysts.)\n    Given these figures, the model estimates that Bank of East Asia is not expected to generate returns above its cost of capital, which weighs on its intrinsic value. The analysis puts the stock’s fair value significantly below the current share price, indicating an intrinsic discount of 21.7%. This suggests Bank of East Asia trades well above where the model considers it fairly valued. Result: OVERVALUED Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Bank of East Asia. 23 Discounted Cash Flow as at Sep 2025 Our Excess Returns analysis suggests Bank of East Asia may be overvalued by 21.7%. Find undervalued stocks or create your own screener to find better value opportunities.\nApproach 2: Bank of East Asia Price vs Earnings For profitable companies like Bank of East Asia, the price-to-earnings (PE) ratio is a popular and meaningful valuation metric. The PE ratio tells us how much investors are willing to pay for each dollar of earnings, making it a quick way to gauge whether a stock might be attractively priced relative to its profits. That said, what counts as a \"fair\" PE ratio can change depending on the company’s growth outlook and the risks associated with its business. Fast-growing, lower-risk companies often justify higher PE ratios, while slower growers or riskier firms typically see lower multiples. Currently, Bank of East Asia trades at a PE ratio of 7.3x. How does this stack up? The average for companies in the Hong Kong banking industry is 6.3x, and close peers trade at an average of 5.5x. On the surface, Bank of East Asia appears a bit more expensive than its direct competitors. However, Simply Wall St’s proprietary “Fair Ratio” offers a more complete picture. The Fair Ratio, in this case 5.5x for Bank of East Asia, reflects the PE multiple investors should expect after accounting for the company’s growth prospects, risk profile, profitability, and size, not just industry averages. This makes it a more robust benchmark than simply comparing headline numbers with peers or the broader sector. Comparing Bank of East Asia’s actual PE of 7.3x to its Fair Ratio of 5.5x reveals that the stock is trading somewhat above what our model suggests is appropriate for its fundamentals. Result: OVERVALUED SEHK:23 PE Ratio as at Sep 2025 PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Bank of East Asia Narrative Earlier we mentioned there is an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is simply the story and perspective you, or any investor, has about a company, brought to life by combining your assumptions about its future revenue, profit margins, and fair value. Rather than just relying on raw numbers, Narratives connect the company’s story to a dynamic financial forecast, which then produces a fair value that is tailored to your own outlook. Best of all, Narratives are easily accessible for Bank of East Asia (and thousands of other stocks) on Simply Wall St’s Community page, where millions of investors share and compare their views. Narratives allow you to see at a glance how shifting news, announcements, or results can impact the story behind the numbers, since the forecasts update automatically as fresh information becomes available. This makes it far simpler to know when it may be time to buy or sell. You can simply compare your current fair value with the market price. For example, one investor may see Bank of East Asia’s long-term potential and set a high fair value, while another, more cautious, Narrative might land near the lowest estimated value, reflecting uncertainty about its growth prospects. Do you think there's more to the story for Bank of East Asia? Create your own Narrative to let the Community know! SEHK:23 Earnings & Revenue History as at Sep 2025  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Bank of East Asia might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}