Bank Of Tianjin (SEHK:1578) Stock Still Looks Cheap As Margins Thin

Bank of Tianjin stock closed at HK$2.165, with recent returns barely positive and still down over the past quarter, even though the latest half year shows solid profitability on paper. The market is treating this as a low growth regional lender with a low 3x P/E, yet the new numbers underline a different tension. The headline is margin pressure. Net profit margin over the past 12 months is 40.3%, below the prior 41.2%, and trailing earnings are softer, which helps explain why the valuation gap to some fair value estimates remains wide.

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H1 2026 Earnings Summary

• Revenue (H1 2026 vs. H1 2025): C¥4,134.4m vs. C¥4,198.5m (slight decline year on year)
• Net Income (Excl. Extra Items, H1 2026 vs. H1 2025): C¥1,828.3m vs. C¥1,987.8m (decline year on year)
• Basic EPS (H1 2026 vs. H1 2025): C¥0.30 vs. C¥0.33 (lower earnings per share year on year)
• Net Interest Margin (NIM, H1 2025 vs. prior period disclosed): 1.47% vs. 1.53% on a trailing twelve month basis (pressure on lending margin already visible in prior year)

Prefer clear visuals instead of another dense page of banking numbers and margin figures? Get a full visual picture of Bank of Tianjin, including its valuation setup, in the company report for Bank of Tianjin.

Bank of Tianjin: Where The Bullish Story Still Holds

For investors looking at Bank of Tianjin as a steady regional lender, these H1 2026 numbers partly support that idea. Revenue is almost flat year on year and net income is still solid in absolute terms, even if it is lower than H1 2025. Earnings per share remain positive. Net interest margin at 1.47% confirms that the core lending engine is still working, albeit under pressure, which is broadly consistent with a stable but low growth banking profile.

Margin Pressure Keeps The Bearish Concerns Alive

The bearish angle around margin and earnings pressure finds clear support here. Revenue, net income and EPS all declined versus H1 2025, and the trailing net profit margin has eased from 41.2% to 40.3%. Net interest margin slipped from 1.53% to 1.47%. Those trends fit the view that a regional bank like Bank of Tianjin faces profitability headwinds. Recent share price performance, slightly positive over 7 and 30 days but down over 90 days, also reflects that cautious tone rather than a strong relief rally.

After margin compression and an unstable dividend track record, are these issues isolated or early signs of deeper fragility? Review the risk analysis for Bank of Tianjin which shows 1 important warning sign

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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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