China Development Bank Financial Leasing Co Ltd Class H (HK:1606)
:1606
Want to see HK:1606 full AI Analyst Report?
Top Page
China Development Bank Financial Leasing Co Ltd Class H
(1606)
Select Model
Select Model
Rating:64Neutral
Price Target:
HK$1.50
â–¼(-12.28% Downside)
Action:DowngradedDate:04/10/26
The score is primarily supported by very attractive valuation (low P/E and high dividend yield). This is tempered by financial risk from very high leverage and volatile cash flow (including negative free cash flow in 2024–2025), plus mixed-to-weak technical signals with the stock below key moving averages.
Positive Factors
Asset-backed leasing revenue model
The company earns recurring financing income from finance leases and sale-and-leaseback structures, producing contracted cashflows tied to collateralized assets. That asset-backed model supports predictable interest income, reduces unsecured credit exposure, and underpins medium-term cash generation resilience.
Negative Factors
Very high leverage
A capital structure with debt-to-equity near 8.5x–9.8x leaves limited margin for underwriting or market stress. Rising debt increases refinancing and interest-rate sensitivity, constraining financial flexibility and amplifying downside if asset quality weakens or funding conditions tighten over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-backed leasing revenue model
The company earns recurring financing income from finance leases and sale-and-leaseback structures, producing contracted cashflows tied to collateralized assets. That asset-backed model supports predictable interest income, reduces unsecured credit exposure, and underpins medium-term cash generation resilience.
Read all positive factors
China Development Bank Financial Leasing Co Ltd Class H (1606) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$19.47B
Dividend Yield5.84%
Average Volume (3M)2.95M
Price to Earnings (P/E)1.9
Beta (1Y)0.84
Revenue Growth-6.19%
EPS Growth11.78%
CountryHK
Employees604
SectorIndustrials
Sector Strength72
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.23
Shares Outstanding2,769,594,000
10 Day Avg. Volume2,650,220
30 Day Avg. Volume2,949,282
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$1.90Price Target Upside11.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.39
Revenue Forecast (FY)HK$26.91B
China Development Bank Financial Leasing Co Ltd Class H Business Overview & Revenue Model
Company Description
China Development Bank Financial Leasing Co Ltd Class H (1606) is a leading financial leasing company based in China, primarily engaged in providing leasing services across various sectors, including transportation, aviation, and infrastructure. T...
How the Company Makes Money
The company primarily makes money by earning financing income from its leasing and loan-like activities. Its core revenue stream is interest/financing income generated when it provides assets to customers under finance lease structures (including ...
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 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 26.62B | 25.44B | 15.53B | 15.11B | 12.18B |
| Gross Profit | 11.33B | 25.39B | 15.53B | 7.89B | 5.30B |
| EBITDA | 22.69B | 26.08B | 21.88B | 18.55B | 11.51B |
| Net Income | 4.90B | 4.50B | 4.15B | 3.35B | 3.92B |
Balance Sheet | |||||
| Total Assets | 433.66B | 405.85B | 409.69B | 354.72B | 341.84B |
| Cash, Cash Equivalents and Short-Term Investments | 61.85B | 10.36B | 69.44B | 29.76B | 36.83B |
| Total Debt | 365.76B | 343.68B | 342.87B | 298.95B | 294.95B |
| Total Liabilities | 389.66B | 365.59B | 372.41B | 320.43B | 311.73B |
| Stockholders Equity | 43.99B | 40.26B | 37.28B | 34.28B | 30.11B |
Cash Flow | |||||
| Free Cash Flow | -12.06B | -22.54B | 46.67B | 3.06B | -842.62M |
| Operating Cash Flow | 6.34B | 582.68M | 66.83B | 17.00B | 23.71B |
| Investing Cash Flow | -11.52B | -32.53B | -35.32B | -8.79B | -24.12B |
| Financing Cash Flow | 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
1.52
Positive
1.59
Negative
1.65
Negative
Market Momentum
<0.01
Negative
56.13
Neutral
71.07
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 1.48, above the 50-day MA of 1.52, and above the 200-day MA of 1.65, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 71.07 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$6.59B | ― | 5.13% | 11.28% | -17.62% | -3.54% | |
65 Neutral | HK$1.39B | 4.31 | 8.51% | 7.43% | -2.69% | -8.21% | |
64 Neutral | HK$19.47B | 1.89 | 12.27% | 5.84% | -6.19% | 11.78% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | HK$262.09M | 6.53 | 1.09% | ― | 8.77% | -76.88% | |
54 Neutral | HK$34.44B | 8.52 | 7.50% | 6.69% | -5.86% | -4.69% | |
42 Neutral | HK$178.85M | -1.47 | -29.10% | ― | -5.72% | -6.26% |
* Industrials Sector Average
HK:1606
China Development Bank Financial Leasing Co Ltd Class H
1.54
0.42
37.38%
HK:1563
International Alliance Financial Leasing Co., Ltd.
0.15
-0.03
-16.76%
HK:1601
Zhongguancun Science-Tech Leasing Co. Ltd. Class H
0.85
0.13
18.06%
HK:1905
Haitong Unitrust International Financial Leasing Co., Ltd Class H
0.77
0.05
6.94%
HK:3360
Far East Horizon Limited
7.38
1.71
30.16%
HK:0379
China Ever Grand Financial Leasing Group Co., Ltd.
0.10
0.04
67.21%
China Development Bank Financial Leasing Co Ltd Class H Corporate Events
China Development Bank Financial Leasing Proposes Final 2025 Dividend
Mar 31, 2026
China Development Bank Financial Leasing Co., Ltd. has proposed a final ordinary cash dividend of RMB 0.9947 per 10 shares for the financial year ended 31 December 2025, signaling a distribution of profits to shareholders. The dividend, declared i...
China Development Bank Financial Leasing lifts 2025 profit as operating lease share grows
Mar 31, 2026
China Development Bank Financial Leasing reported that in 2025 its total lease revenue slipped slightly to RMB24.61 billion, as finance lease income declined while operating lease income continued to grow. Overall revenue and other income edged do...
CDB Leasing Strikes RMB1.62 Billion Wind Power Finance Lease With Ningxia Zecheng
Mar 27, 2026
China Development Bank Financial Leasing has entered into a finance lease deal with Ningxia Zecheng New Energy, involving wind power generation equipment in the Ningxia Hui Autonomous Region valued at about RMB1.97 billion. Under the arrangement, ...
China Development Bank Financial Leasing Expands Portfolio With New RMB462 Million Lease Deals
Mar 26, 2026
China Development Bank Financial Leasing has entered into new finance lease agreements with two independent lessees in Hainan and Zhejiang involving aerial work machinery and forklifts with a net book value of about RMB462 million. Under these agr...
China Development Bank Financial Leasing Sets March 2026 Board Meeting to Review 2025 Results
Mar 19, 2026
China Development Bank Financial Leasing Co., Ltd. has scheduled a board meeting for 31 March 2026 to review and approve the annual results for the year ended 31 December 2025. The board will also consider the potential declaration of a final divi...
China Development Bank Financial Leasing President Jin Tao Resigns; Chair Ma Hong Named Interim Successor
Mar 18, 2026
China Development Bank Financial Leasing announced that vice chairman, executive director and president Jin Tao has resigned from all his roles, including multiple board committee positions, effective 18 March 2026, citing a change in work arrange...
China Development Bank Financial Leasing Sets Board Roles and Clarifies Regulatory Status
Mar 18, 2026
China Development Bank Financial Leasing Co., Ltd., a PRC-based financial leasing company listed in Hong Kong, clarified that it operates outside the Hong Kong banking regulatory framework. The firm focuses on leasing-related financial services ra...
CDB Financial Leasing Sells Interests in Four B737-8 Jets to JSA
Mar 6, 2026
China Development Bank Financial Leasing’s subsidiary CDB Aviation Lease Finance DAC, through certain wholly owned units, has agreed to sell the beneficial interests in four B737-8 aircraft, each with attached leases, to JSA International U....
China Development Bank Financial Leasing Signs RMB257 Million Auto Leaseback, Triggers Discloseable Threshold
Feb 27, 2026
China Development Bank Financial Leasing Co., Ltd. has entered into a new finance lease agreement with Beijing China Auto Rental Co., Ltd., under which it will purchase vehicle assets worth about RMB257 million and lease them back to the lessee fo...
CDB Financial Leasing Signs RMB1.4 Billion Hydropower Finance Lease
Feb 27, 2026
China Development Bank Financial Leasing Co., Ltd. has entered into a major finance lease agreement with Kashgar Zhaoheng Clean Energy Co., Ltd. involving hydropower station generating equipment in Xinjiang, with the lessor purchasing the assets f...
China Development Bank Financial Leasing Strikes RMB1.75 Billion Wind Power Finance Lease Deal
Feb 25, 2026
China Development Bank Financial Leasing has entered into a major finance lease arrangement involving wind power assets in Hebei Province, underscoring its role in providing large-scale equipment financing, particularly in infrastructure and energ...
China Development Bank Financial Leasing Strikes RMB1.2 Billion Solar Equipment Lease Deal
Feb 10, 2026
China Development Bank Financial Leasing Co., Ltd. has entered into a major finance lease arrangement in which it will purchase photovoltaic power generation equipment in Yangzhou, Jiangsu Province, for RMB1.208 billion from Henan Bizhi Constructi...
CDB Financial Leasing Seals RMB1.02 Billion Wind Power Finance Lease in Xinjiang
Feb 10, 2026
China Development Bank Financial Leasing has entered into a major long-term finance lease arrangement involving wind power assets in Xinjiang, underscoring its role in funding large infrastructure and clean energy projects. The deal showcases the ...
China Development Bank Financial Leasing Signs RMB189 Million IT Equipment Lease With Datong Qinyuan
Jan 29, 2026
China Development Bank Financial Leasing Co., Ltd. has entered into a new finance lease agreement with Datong Qinyuan Data Technology Co., Ltd., under which it will purchase information technology computer equipment in Hebei Province from the less...
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.