EWBC Intrinsic Stock Value – Li Lu, ‘Warren Buffett of China’, Invests in East West Bancorp
May 23, 2023
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Li Lu, an investor often referred to as the ‘Warren Buffett of China’, recently made an investment in East West Bancorp ($NASDAQ:EWBC). This financial holding company has its headquarters in California and provides banking services for many Asian-American customers. East West Bancorp offers a variety of banking services such as personal banking, commercial banking, and wealth management. They also have a presence in the US, with branches across the country. The reason why Li Lu chose to invest in East West Bancorp is due to its potential for growth. The company has seen a steady rise in revenue and profit in the past few years and has made investments in new technology and products that have kept them competitive. This has allowed East West Bancorp to remain a major player in the banking industry and make gains in the Asian-American market.
In addition, East West Bancorp has been able to maintain a high level of customer satisfaction, which is essential for any financial institution. As a result, Li Lu’s investment in this company could prove to be very profitable and a wise decision. Li Lu’s impressive track record of successful investments makes it clear why he would choose to make this investment in East West Bancorp. Overall, East West Bancorp is a financial holding company with potential for growth. Its services and investments have allowed them to remain competitive and provide excellent customer satisfaction. With Li Lu’s investment, it is likely that this company will continue to grow and thrive in the years to come.
Share Price
Monday was a good day for East West Bancorp, as the stock opened at $49.2 and closed at $49.9, up 2.9% from its previous closing price of 48.5. The uplift in the stock price was further boosted by news that Li Lu, widely known as the “Warren Buffett of China”, has chosen to invest in East West Bancorp. Li Lu, a hedge fund manager and venture capitalist, is a well-respected investor and his investments are often seen as a sign of confidence in the company. This marks an exciting milestone for East West Bancorp and will no doubt encourage other investors to jump on board. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for EWBC. More…
| Total Revenues | Net Income | Net Margin |
| – | 1.21k | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for EWBC. More…
| Operations | Investing | Financing |
| 2.07k | -4.58k | 2.11k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for EWBC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 67.24k | 60.94k | – |
Key Ratios Snapshot
Some of the financial key ratios for EWBC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.7% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – EWBC Intrinsic Stock Value
At GoodWhale, we have analyzed the financials of EAST WEST BANCORP and arrived at an intrinsic value of the company’s share. Our proprietary Valuation Line shows that the intrinsic value of the EAST WEST BANCORP share is around $80.8. Currently, the stock of the company is trading at $49.9, which is considerably lower than its intrinsic value. This means that its stock is currently undervalued by 38.3%. This presents a great opportunity for investors to invest in the stock of EAST WEST BANCORP and benefit from its potential upside. More…
Peers
In the banking industry, East West Bancorp Inc faces stiff competition from Bank of East Asia Ltd, Ping An Bank Co Ltd, and Postal Savings Bank Of China Co Ltd. These companies are all vying for market share in the banking industry, and each has its own strengths and weaknesses. East West Bancorp Inc has to carefully strategize in order to maintain its position in the industry.
– Bank of East Asia Ltd ($SEHK:00023)
Bank of East Asia Ltd is a Hong Kong-based banking and financial services company with a market cap of 22.31B as of 2022. The company provides a range of banking and financial services to retail, corporate, and institutional customers through its network of branches and ATMs in Hong Kong, Macau, Mainland China, Taiwan, the United Kingdom, and the United States.
– Ping An Bank Co Ltd ($SZSE:000001)
As of 2022, Ping An Bank Co Ltd has a market cap of 217.35B. The company is a leading provider of banking and financial services in China. It offers a wide range of products and services, including deposits, loans, credit cards, foreign exchange, and wealth management. The company has a strong presence in both the retail and corporate banking markets. It has a nationwide network of branches and ATMs, and a growing online and mobile banking business. The company is well-positioned to benefit from the continued growth of the Chinese economy.
– Postal Savings Bank Of China Co Ltd ($SEHK:01658)
Postal Savings Bank of China Co., Ltd. operates as a savings bank in China. The Bank offers personal savings, time deposit, and loan products, as well as foreign exchange, settlement, and other related services. Postal Savings Bank of China Co., Ltd. was founded in 2007 and is headquartered in Beijing, China.
Summary
Li Lu, the Chinese equivalent of Warren Buffett, has invested in East West Bancorp as part of his strategy of finding undervalued stocks. Analysis of the bank’s financial metrics and valuation suggest that the stock is attractively priced and has a strong potential for growth. Its return on assets has been steadily increasing, and the bank has shown resilience in navigating through tough economic times. With its strong financials and favorable valuation metrics, East West Bancorp appears to be an attractive investment opportunity for Li Lu.
