International Alliance Financial Leasing Co., Ltd. (1563) AI Stock Analysis

• Market Cap: HK$290.84M
• Dividend Yield: N/A
• Average Volume (3M): 902.03K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.54
• Revenue Growth: 8.77%
• EPS Growth: -76.88%
• Country: HK
• Employees: 2,325
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): N/A
• Shares Outstanding: 1,690,914,000
• 10 Day Avg. Volume: 991,000
• 30 Day Avg. Volume: 902,033
• PEG Ratio: -0.16
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 1.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: HK$0.19 ▲(12.35% Upside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

The stock's overall score is primarily influenced by its solid financial performance and reasonable valuation. However, technical indicators suggest bearish momentum, which weighs down the score. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth Momentum

Sustained revenue growth (22.6% last year) indicates expanding lease originations and customer adoption of financing solutions. Over 2-6 months this underpins recurring contract pipelines, supports asset utilization and provides a base for margin and earnings improvement as scale absorbs fixed costs.

Conservative Balance Sheet

Very low leverage (debt/equity ~0.048) and a strong equity ratio mean the company has high financial flexibility and lower default risk. This durable capital structure allows continued leasing activity, supports financing of new assets, and cushions performance through economic cycles.

Cash Conversion Strength

High free cash flow conversion (Fcf/net income ~81.5%) and healthy operating cash conversion point to efficient cash generation from core leasing operations. Durable cash conversion supports reinvestment, portfolio funding and reduces dependence on external financing over the medium term.

Negative Factors

Low Net Profit Margin

A persistent net margin near 3.6% limits retained earnings and shareholder returns, constraining ROE and capital build-up. Over months this compresses capacity to self-fund growth, increases sensitivity to loan losses or rate changes, and leaves less buffer for expense variability.

Declining Free Cash Flow Growth

A sharp FCF growth drop (-54%) signals potential timing or quality issues in cash generation despite solid conversion ratios. Persisting declines can constrain investments into new leases, raise dependence on external funding, and weaken resilience to cyclical pressures over the coming quarters.

Modest Return on Equity

ROE around 1.1% shows limited effectiveness in converting equity into profit. Over a 2-6 month horizon this implies capital is underutilized, reducing attractiveness to long-term investors and limiting the firm’s ability to expand equity-funded leasing without improving margins or asset yields.

International Alliance Financial Leasing Co., Ltd. Business Overview & Revenue Model

Company Description

Alliance International Education Leasing Holdings Ltd. is engaged in the provision of finance leasing and advisory services. The company was founded on January 19, 2015 and is headquartered in Beijing, China.

How the Company Makes Money

The company primarily generates revenue through its leasing services, which involve charging clients periodic lease payments for the use of equipment and assets over a specified term. Key revenue streams include operational leasing, where clients use assets without the intention of ownership, and financial leasing, which allows clients to eventually purchase the equipment at the end of the lease term. Additionally, International Alliance Financial Leasing may earn income from ancillary services such as maintenance, insurance, and asset management. Strategic partnerships with equipment manufacturers and suppliers enhance its service offerings, providing clients with competitive leasing options and contributing to the company's overall profitability.

International Alliance Financial Leasing Co., Ltd. Financial Statement Overview

Summary

The company shows strong revenue growth and a solid balance sheet with low leverage. However, profitability margins are mixed, and recent declines in free cash flow growth highlight potential cash management challenges.

Income Statement

The company shows a strong revenue growth rate of 22.6% in the latest year, indicating positive momentum. However, the net profit margin is relatively low at 3.57%, suggesting potential challenges in cost management or pricing power. The gross profit margin is healthy at 42.37%, but the EBIT margin of 20.55% reflects moderate operational efficiency.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.048, indicating conservative leverage. The return on equity is modest at 1.08%, suggesting limited profitability relative to shareholder equity. The equity ratio is strong, reflecting a solid capital structure with significant equity backing.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow growth at -54.37%, which could indicate cash management issues. However, the operating cash flow to net income ratio is healthy, suggesting good cash generation relative to net income. The free cash flow to net income ratio is robust at 81.54%, indicating effective cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	599.30M	734.76M	599.30M	207.65M	158.33M	126.01M
Gross Profit	599.30M	311.33M	599.30M	207.65M	158.33M	126.01M
EBITDA	940.88M	265.48M	940.88M	0.00	0.00	0.00
Net Income	112.09M	26.26M	112.09M	360.39M	78.90M	16.61M
Balance Sheet
Total Assets	3.68B	3.78B	3.68B	4.17B	2.44B	3.11B
Cash, Cash Equivalents and Short-Term Investments	191.45M	224.46M	191.45M	125.83M	141.82M	35.70M
Total Debt	71.66M	118.54M	71.66M	367.19M	796.56M	1.49B
Total Liabilities	878.34M	877.12M	878.34M	1.58B	796.56M	1.49B
Stockholders Equity	2.38B	2.44B	2.38B	2.24B	1.27B	1.20B
Cash Flow
Free Cash Flow	520.08M	237.29M	520.08M	149.65M	794.77M	226.36M
Operating Cash Flow	764.69M	291.00M	764.69M	151.26M	796.33M	226.43M
Investing Cash Flow	-567.70M	-355.38M	-567.70M	-266.57M	76.35M	-139.29M
Financing Cash Flow	-149.10M	-75.66M	-149.10M	90.78M	-762.86M	-306.12M

International Alliance Financial Leasing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1563, the sentiment is Neutral. The current price of 0.17 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.17, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.52 is Neutral, neither overbought nor oversold. The STOCH value of 44.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1563.

International Alliance Financial Leasing Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1905	71 Outperform	HK$6.59B	5.14	7.87%	11.28%	0.59%	-5.95%
1601	64 Neutral	HK$1.36B	2.30	9.89%	7.43%	1.11%	3.98%
6866	64 Neutral	HK$436.60M	4.23	2.79%	4.88%	-12.94%	-15.93%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1563	59 Neutral	HK$290.84M	12.13	0.49%	―	8.77%	-76.88%
0508	48 Neutral	HK$527.42M	-0.18	-56.39%	―	-61.09%	-1306.43%
0379	42 Neutral	HK$131.61M	-0.75	-22.92%	―	25.64%	-25.07%

International Alliance Financial Leasing Co., Ltd. Corporate Events

Alliance International Education Leasing Signs New RMB27 Million Finance Lease, Triggering Discloseable Transaction Status

Alliance International Education Leasing Holdings Limited has entered into a new finance lease transaction through its subsidiary, signing Finance Lease Agreement II on 22 January 2026 with an independent third-party lessee. Under this latest deal, the subsidiary will purchase leased assets from the lessee for RMB27 million and lease them back over 36 months for a total lease consideration of about RMB29.34 million, while a prior agreement signed on 24 October 2025 with the same lessee involved RMB13 million in assets and a 36‑month lease totaling approximately RMB14.12 million. Because the two agreements involve the same counterparty and are treated as one transaction under Hong Kong listing rules, their aggregate size pushes the relevant percentage ratios above 5% but below 25%, making Finance Lease Agreement II a discloseable transaction subject to notification and announcement requirements, underscoring the growing scale of the company’s leasing portfolio and its compliance obligations under Chapter 14 of the Listing Rules.

The most recent analyst rating on (HK:1563) stock is a Hold with a HK$0.17 price target. To see the full list of analyst forecasts on International Alliance Financial Leasing Co., Ltd. stock, see the HK:1563 Stock Forecast page.

Alliance International Education Leasing Signs RMB50 Million Sale-and-Leaseback Deal

Alliance International Education Leasing Holdings Limited has entered into a new finance lease transaction through one of its subsidiaries, under which it will purchase certain leased assets from an independent third-party lessee for RMB50 million and lease them back over 36 months for a total lease amount of approximately RMB55.506 million, covering both principal and interest. The deal, sized between 5% and 25% of the company’s applicable percentage ratios under Hong Kong Listing Rules, is classified as a disclosable transaction, underscoring the ongoing expansion of its leasing portfolio and signalling continued use of sale-and-leaseback structures to deploy capital and generate interest income, with implications for revenue visibility and balance-sheet growth.

The most recent analyst rating on (HK:1563) stock is a Hold with a HK$0.19 price target. To see the full list of analyst forecasts on International Alliance Financial Leasing Co., Ltd. stock, see the HK:1563 Stock Forecast page.

Alliance International Education Leasing Announces New Finance Lease Agreement

Alliance International Education Leasing Holdings Limited announced a new finance lease agreement where its subsidiary, acting as the lessor, acquired leased assets from the lessee for RMB36,400,000. The agreement includes a leaseback arrangement with a 36-month term and a total lease amount of RMB39,548,000, reflecting the company’s commitment to flexible financial arrangements. This transaction aligns with disclosure requirements under Hong Kong’s Listing Rules and highlights the company’s robust approach to structuring and executing significant transactions, enhancing its market presence. Stakeholders may view this as a strategic step towards strengthening its asset management capabilities and reinforcing industry positioning.

The most recent analyst rating on (HK:1563) stock is a Hold with a HK$0.19 price target. To see the full list of analyst forecasts on International Alliance Financial Leasing Co., Ltd. stock, see the HK:1563 Stock Forecast page.