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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 and profit growth
Improving revenue momentum and a multi-year rise in net income indicate that the leasing platform is generating stronger business activity and earnings. If sustained, this combination can support internal capital formation, reinforce operating scale, and provide a durable base for future growth.
Negative Factors
Very high leverage
The heavily leveraged capital structure leaves limited room for error if credit conditions tighten or asset quality weakens. High debt relative to equity can increase financing sensitivity, constrain strategic flexibility, and make future growth more dependent on continued access to funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and profit growth
Improving revenue momentum and a multi-year rise in net income indicate that the leasing platform is generating stronger business activity and earnings. If sustained, this combination can support internal capital formation, reinforce operating scale, and provide a durable base for future growth.
Read all positive factors
China Development Bank Financial Leasing Co Ltd Class H (1606) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$19.66B
Dividend Yield7.36%
Average Volume (3M)2.20M
Price to Earnings (P/E)3.0
Beta (1Y)0.74
Revenue Growth-5.13%
EPS Growth14.20%
CountryHK
Employees604
SectorIndustrials
Sector Strength72
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.44
Shares Outstanding2,769,594,000
10 Day Avg. Volume2,736,254
30 Day Avg. Volume2,200,951
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)0.44
Revenue Forecast (FY)HK$25.52B
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
Neutral
1.71
Price Trends
1.51
Negative
1.46
Positive
1.45
Positive
Market Momentum
<0.01
Positive
46.55
Neutral
39.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1606, the sentiment is Neutral. The current price of 1.71 is above the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.51, and above the 200-day MA of 1.45, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.55 is Neutral, neither overbought nor oversold. The STOCH value of 39.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | HK$11.28B | 8.23 | 6.19% | 7.13% | -19.73% | -12.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | HK$19.66B | 3.00 | 12.30% | 7.36% | -5.13% | 14.20% | |
61 Neutral | HK$1.04B | 3.45 | 7.80% | 10.51% | 0.45% | -20.53% | |
52 Neutral | HK$26.81B | 5.85 | 7.47% | 9.78% | 0.51% | -7.18% | |
50 Neutral | HK$5.46B | -5.61 | -1.11% | 114.25% | ― | ― | |
42 Neutral | HK$158.61M | -58.75 | -0.77% | ― | 24.04% | 96.40% |
* Industrials Sector Average
HK:1606
China Development Bank Financial Leasing Co Ltd Class H
1.56
-0.02
-1.52%
HK:1601
Zhongguancun Science-Tech Leasing Co. Ltd. Class H
0.65
-0.14
-18.15%
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Haitong Unitrust International Financial Leasing Co., Ltd Class H
1.37
0.64
88.45%
HK:3360
Far East Horizon Limited
5.73
-0.72
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China Ever Grand Financial Leasing Group Co., Ltd.
0.09
0.02
27.03%
HK:6623
Lufax Holding Ltd Class A
3.26
-7.65
-70.14%
China Development Bank Financial Leasing Co Ltd Class H Corporate Events
China Development Bank Financial Leasing Buys RMB1.5 Billion Residential Solar Assets for Leasing
Oct 23, 2026
China Development Bank Financial Leasing Co., Ltd. has agreed to buy a portfolio of residential photovoltaic power stations and ancillary equipment spread across multiple municipalities and provinces in China, including Beijing, Tianjin, Chongqing...
China Development Bank Financial Leasing Signs RMB1.5 Billion IT Lease Asset Deal
Oct 22, 2026
China Development Bank Financial Leasing Co., Ltd. has entered into a major procurement deal to support its operating lease business, agreeing to buy information technology computer equipment from Guangdong Purui Cloud Innovation Technology Co., L...
China Development Bank Financial Leasing Announces Chairman Resignation and New Leadership Nomination
Oct 22, 2026
China Development Bank Financial Leasing Co., Ltd. announced that chairman and executive director Ms. Ma Hong has resigned from the board and several key committees, effective 22 October 2026, due to changes in work arrangements. The board express...
China Development Bank Financial Leasing Sets Board and Committee Structure
Oct 22, 2026
China Development Bank Financial Leasing Co., Ltd. has announced the current composition of its board of directors, confirming one executive director, two non-executive directors and three independent non-executive directors. The executive directo...
China Development Bank Financial Leasing Expands Vehicle Leasing Deals with Shanghai Client
Oct 9, 2026
China Development Bank Financial Leasing Co., Ltd. has entered into a new finance lease agreement with Shanghai Mingxing Auto Service Co., Ltd., purchasing a portfolio of vehicles across the PRC for approximately RMB183 million and leasing them ba...
CDB Financial Leasing Seals RMB1.03 Billion Hydropower Sale-and-Leaseback Deal
Sep 28, 2026
China Development Bank Financial Leasing has entered into a major finance lease deal with Guangxi Chongzuo Huiyuan Hydropower, acquiring a hydropower station in the Guangxi Zhuang Autonomous Region for RMB1.03 billion and leasing it back for 300 m...
China Development Bank Financial Leasing to Buy RMB6.48 Billion in IT Equipment for Leasing Business
Sep 23, 2026
China Development Bank Financial Leasing Co., Ltd. has agreed to purchase information technology computer equipment from Guangdong Shuhuan Zhilian Technology Co., Ltd. for approximately RMB6.484 billion, with funding to come from its own resources...
China Development Bank Financial Leasing Postpones Board Election to Ensure Governance Continuity
Sep 23, 2026
China Development Bank Financial Leasing Co., Ltd. has announced that the term of its third board of directors will expire on 24 September 2026, but the election of a new board is still being prepared. To ensure continuity, the company will postpo...
China Development Bank Financial Leasing Expands Battery Leasing Portfolio With NIO Deal
Sep 22, 2026
China Development Bank Financial Leasing Co., Ltd. has agreed to purchase power batteries from NIO Sales and Services Co., Ltd. under a framework agreement signed on 22 September 2026, with a total consideration of about RMB461 million, funded by ...
China Development Bank Financial Leasing Confirms Bao Quanyong as President and Vice Chairman
Sep 21, 2026
China Development Bank Financial Leasing Co., Ltd., a PRC-based financial leasing company listed in Hong Kong under stock code 1606, has a board comprising executive, non-executive and independent non-executive directors and operates outside Hong ...
China Development Bank Financial Leasing Sets Out Board and Committee Structure
Sep 21, 2026
China Development Bank Financial Leasing Co., Ltd., a Hong Kong-listed PRC financial leasing firm under stock code 1606, has disclosed its current board composition, comprising executive, non-executive and independent non-executive directors. The ...
China Development Bank Financial Leasing Boosts Interim Profit on Strong Operating Lease Growth
Aug 31, 2026
China Development Bank Financial Leasing Co., Ltd. reported unaudited interim results for the six months ended 30 June 2026, showing total lease revenue of RMB 12.64 billion, slightly above the prior-year period, driven by a notable increase in op...
China Development Bank Financial Leasing Sets Date to Review Interim Results and Dividend
Aug 19, 2026
China Development Bank Financial Leasing Co., Ltd. has announced that its board of directors will convene on 31 August 2026 to review and approve the interim results for the six months ended 30 June 2026. At the same meeting, the board will also c...
CDB Financial Leasing Signs RMB1.3 Billion Wind Power Finance Lease
Aug 13, 2026
China Development Bank Financial Leasing Co., Ltd. has entered into a finance lease agreement with Zhangbei Hengdianfengqi New Energy Development Co., Ltd. involving wind power generation equipment and ancillary facilities in Hebei Province, value...
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.