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China Development Bank Financial Leasing Co Ltd Class H
(1606)
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Rating:63Neutral
Price Target:
HK$1.50
â–¼(-12.28% Downside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by constrained financial quality: very high leverage and the swing to deeply negative free cash flow in 2024–2025 offset otherwise improving revenue and steady profitability. Valuation is a key positive (low P/E and high dividend yield), while technical indicators are neutral-to-slightly positive but not strong enough to outweigh the financial risk.
Positive Factors
Revenue & profit momentum
Sustained top-line acceleration and rising net income across 2023–2025, with ROE around 11%, indicate improving core underwriting and asset deployment. Over a 2–6 month horizon this supports durable earnings capacity and the ability to finance leases organically as portfolios scale.
Negative Factors
Very high leverage
Extremely elevated leverage materially reduces the capital buffer and increases sensitivity to funding stress or rate moves. With debt-to-equity near 9x, credit tightening or asset performance weakness could quickly force costly refinancing, covenant pressure, or asset fire-sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & profit momentum
Sustained top-line acceleration and rising net income across 2023–2025, with ROE around 11%, indicate improving core underwriting and asset deployment. Over a 2–6 month horizon this supports durable earnings capacity and the ability to finance leases organically as portfolios scale.
Read all positive factors
China Development Bank Financial Leasing Co Ltd Class H (1606) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$19.09B
Dividend Yield7.6%
Average Volume (3M)1.62M
Price to Earnings (P/E)2.9
Beta (1Y)0.84
Revenue Growth-5.07%
EPS Growth14.20%
CountryHK
Employees612
SectorIndustrials
Sector Strength72
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.44
Shares Outstanding2,769,594,000
10 Day Avg. Volume2,891,600
30 Day Avg. Volume1,616,933
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)0.44
Price to Sales (P/S)0.73
P/FCF Ratio-1.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$1.70Price Target Upside-0.58% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.43
Revenue Forecast (FY)HK$25.19B
China Development Bank Financial Leasing Co Ltd Class H Business Overview & Revenue Model
Company Description
China Development Bank Financial Leasing Co., Ltd. engages in the leasing business in the People’s Republic of China. It operates through Aircraft Leasing, Regional Development Leasing, Ship Leasing, Inclusive Finance, and Green Energy and High-en...
How the Company Makes Money
The company makes money primarily through interest-like income and fees generated from financial leasing and related financing activities. Key revenue streams typically include: (1) Lease income from finance leases and operating leases: under fina...
China Development Bank Financial Leasing Co Ltd Class H Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.36B | 26.62B | 25.44B | 15.53B | 15.11B | 12.18B |
| Gross Profit | 9.78B | 11.33B | 25.39B | 15.53B | 7.89B | 5.30B |
| EBITDA | 23.57B | 22.69B | 26.08B | 21.88B | 18.55B | 11.51B |
| Net Income | 5.50B | 4.90B | 4.50B | 4.15B | 3.35B | 3.92B |
Balance Sheet | ||||||
| Total Assets | 431.88B | 433.66B | 405.85B | 409.69B | 354.72B | 341.84B |
| Cash, Cash Equivalents and Short-Term Investments | 71.71B | 61.85B | 10.36B | 69.44B | 29.76B | 36.83B |
| Total Debt | 361.78B | 365.76B | 343.68B | 342.87B | 298.95B | 294.95B |
| Total Liabilities | 386.47B | 389.66B | 365.59B | 372.41B | 320.43B | 311.73B |
| Stockholders Equity | 45.41B | 43.99B | 40.26B | 37.28B | 34.28B | 30.11B |
Cash Flow | ||||||
| Free Cash Flow | -8.93B | -12.06B | -22.54B | 46.67B | 3.06B | -842.62M |
| Operating Cash Flow | 14.00B | 6.34B | 582.68M | 66.83B | 17.00B | 23.71B |
| Investing Cash Flow | -2.60B | -11.52B | -32.53B | -35.32B | -8.79B | -24.12B |
| Financing Cash Flow | 8.72B | 26.15B | -7.16B | -7.49B | -14.47B | -3.12B |
China Development Bank Financial Leasing Co Ltd Class H Technical Analysis
Positive
1.71
Price Trends
1.43
Positive
1.43
Positive
1.45
Positive
Market Momentum
0.02
Negative
59.04
Neutral
76.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1606, the sentiment is Positive. The current price of 1.71 is above the 20-day moving average (MA) of 1.47, above the 50-day MA of 1.43, and above the 200-day MA of 1.45, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.04 is Neutral, neither overbought nor oversold. The STOCH value of 76.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1606.
China Development Bank Financial Leasing Co Ltd Class H Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | HK$1.15B | 3.86 | 7.80% | 9.48% | 0.45% | -20.53% | |
66 Neutral | HK$8.56B | 5.93 | 6.19% | 9.58% | -19.73% | -12.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | HK$19.09B | 2.93 | 12.30% | 7.60% | -5.07% | 14.20% | |
60 Neutral | HK$32.68B | 7.27 | 7.47% | 8.25% | 0.51% | -7.18% | |
42 Neutral | HK$119.80M | -44.38 | -0.77% | ― | 24.04% | 96.40% |
* Industrials Sector Average
HK:1606
China Development Bank Financial Leasing Co Ltd Class H
1.51
-0.10
-6.35%
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Zhongguancun Science-Tech Leasing Co. Ltd. Class H
0.72
-0.11
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Haitong Unitrust International Financial Leasing Co., Ltd Class H
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0.16
19.37%
HK:3360
Far East Horizon Limited
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China Ever Grand Financial Leasing Group Co., Ltd.
0.07
>-0.01
-7.79%
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Lufax Holding Ltd Class A
10.90
0.00
0.00%
China Development Bank Financial Leasing Co Ltd Class H Corporate Events
China Development Bank Financial Leasing Seals RMB1.5 Billion Solar Asset Lease Deal
Jul 21, 2026
China Development Bank Financial Leasing Co., Ltd. has entered into a major finance lease arrangement with Fuping Zhongrui New Energy Co., Ltd. involving photovoltaic power station equipment and ancillary assets in Hebei Province. The deal undersc...
China Development Bank Financial Leasing Sells Ten Aircraft to ORIX Aviation
Jul 15, 2026
China Development Bank Financial Leasing Co., Ltd. has agreed to dispose of ten aircraft from its leasing portfolio via wholly owned subsidiaries of CDB Aviation Lease Finance DAC, selling nine Boeing 737‑8 and one Airbus A321‑200NX ai...
China Development Bank Leasing to Acquire Three Bulk Carriers in USD138 Million Deal
Jul 14, 2026
China Development Bank Financial Leasing Co., Ltd. has expanded its shipping portfolio through three wholly owned subsidiaries that agreed to take over an existing shipbuilding contract for three multi-purpose bulk carriers. The deal underscores t...
China Development Bank Financial Leasing to Buy RMB1.5 Billion in IT Equipment for Operating Leases
Jul 13, 2026
China Development Bank Financial Leasing Co., Ltd. has agreed to purchase information technology computer equipment from Henan Kunlun Technology Co., Ltd. for up to RMB1.5 billion, using its own funds and/or commercial bank loans. The equipment wi...
China Development Bank Financial Leasing to Buy RMB4 Billion in IT Equipment for Leasing
Jul 5, 2026
China Development Bank Financial Leasing Co., Ltd. has agreed to purchase up to RMB4 billion worth of information technology computer equipment from Shanghai Yuyun Information Technology Co., Ltd. The assets will be used in its operating lease bus...
China Development Bank Financial Leasing to Add Two Boeing 787-9s in Leaseback Deal
Jul 1, 2026
China Development Bank Financial Leasing Co., Ltd., via its wholly owned subsidiary CDB Aviation Lease Finance DAC, is expanding its aircraft leasing portfolio as part of its broader focus on aviation, shipping, energy, high-end equipment and incl...
China Development Bank Financial Leasing to Buy RMB2.5 Billion in IT Equipment for Operating Leases
Jul 1, 2026
China Development Bank Financial Leasing has agreed to purchase up to RMB2.5 billion worth of information technology computer equipment from Da Chuang Precision Intelligent Manufacturing (Kunshan) Co., Limited, an independent third party, to expan...
China Development Bank Financial Leasing to Spend RMB4 Billion on IT Equipment for Leasing Expansion
Jul 1, 2026
China Development Bank Financial Leasing Co., Ltd. has agreed to purchase up to RMB4 billion worth of information technology computer equipment from Henan Yuxin Information Industry Co., Ltd. for use in its operating lease business. The transactio...
China Development Bank Financial Leasing to Invest Up to RMB4 Billion in IT Equipment for Operating Lease Business
Jul 1, 2026
China Development Bank Financial Leasing has agreed to purchase information technology computer equipment from Changkuai Computing Information Industry (Beijing) Co., Ltd. for up to RMB4 billion, using its own funds and/or commercial bank loans. T...
China Development Bank Financial Leasing Updates 2025 Final Dividend and Tax Arrangements
Jun 30, 2026
China Development Bank Financial Leasing Co., Ltd., a Hong Kong-listed financial leasing company, provides leasing and associated financial services to a broad base of resident and non-resident investors, including participants in the Shenzhen-Hon...
China Development Bank Financial Leasing Wins Strong Shareholder Backing at 2025 AGM
Jun 30, 2026
China Development Bank Financial Leasing Co., Ltd., a PRC-based financial leasing company listed in Hong Kong, provides leasing and financing products rather than traditional banking services and operates outside Hong Kong banking supervision. It ...
China Development Bank Financial Leasing Updates Timetable for 2025 Final Dividend Payout
Jun 3, 2026
China Development Bank Financial Leasing has updated details of its proposed final ordinary dividend for the financial year ended 31 December 2025, confirming a payout of RMB 0.9947 per 10 shares, subject to shareholder approval on 30 June 2026. T...
China Development Bank Financial Leasing Sets 2025 AGM to Approve Results and Debt Mandate
Jun 3, 2026
China Development Bank Financial Leasing Co., Ltd. has convened its 2025 annual shareholders’ meeting for 30 June 2026 in Shenzhen to review 2025 performance and approve key corporate matters, including the board and supervisory reports, fin...
China Development Bank Financial Leasing Proposes Auditor Change to Baker Tilly for 2026
Jun 2, 2026
China Development Bank Financial Leasing plans to replace its current auditors, BDO China Shu Lun Pan Certified Public Accountants LLP and BDO Limited, when their term ends at the conclusion of the 2025 annual shareholders’ meeting. The comp...
China Development Bank Financial Leasing Strikes RMB1.47 Billion Wind Power Lease Deal
Jun 2, 2026
China Development Bank Financial Leasing Co., Ltd. has entered into a major finance lease arrangement with Anda Tianying New Energy Co., Ltd. and Zhejiang Windey Energy Construction Co., Ltd., centred on wind power station equipment and ancillary ...
CDB Financial Leasing Signs RMB1.8 Billion Wind Power Lease Deals
May 25, 2026
China Development Bank Financial Leasing Co., Ltd. has entered into new long-term finance lease agreements with two independent wind power operators in Guangxi Zhuang Autonomous Region. The deals underline the company’s role in financing lar...
China Development Bank Financial Leasing Shareholders Elect New Executive Director at 2026 ESM
May 18, 2026
China Development Bank Financial Leasing Co. said shareholders approved all business at its first extraordinary shareholders’ meeting of 2026, held on 18 May in Shenzhen, with about 74.78% of issued shares represented. The meeting was conven...
China Development Bank Financial Leasing Clarifies Sellers in Solar Asset Purchase Deal
May 15, 2026
China Development Bank Financial Leasing Co., Ltd., a Hong Kong-listed PRC financial leasing firm that is not licensed as a bank in Hong Kong, provides operating lease solutions across various asset classes, including renewable energy infrastructu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.