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China Development Bank Financial Leasing Co Ltd Class H (HK:1606)
FRANKFURT:1606

China Development Bank Financial Leasing Co Ltd Class H (1606) AI Stock Analysis

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HK:1606

China Development Bank Financial Leasing Co Ltd Class H

(Frankfurt:1606)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
HK$2.00
▲(16.96% Upside)
The stock's overall score is driven by strong financial performance and attractive valuation. While profitability and leverage improvements are notable, liquidity issues due to negative free cash flow are a concern. Technical indicators suggest a neutral trend, with potential for upward movement.
Positive Factors
Revenue Growth
Consistent revenue growth indicates robust demand for leasing services, supporting long-term business expansion and market position.
Improved Leverage Ratios
Reduced leverage enhances financial stability, providing greater flexibility for future investments and reducing risk.
Profitability
Improved profitability reflects effective cost management and operational efficiency, supporting sustainable financial health.
Negative Factors
Negative Free Cash Flow
Negative free cash flow indicates liquidity challenges, potentially limiting the company's ability to invest in growth opportunities.
Low Equity Ratio
A low equity ratio indicates dependence on debt, which can increase financial risk and limit strategic flexibility.
Cash Generation Challenges
Difficulties in cash generation relative to earnings may hinder the company's ability to fund operations and growth sustainably.

China Development Bank Financial Leasing Co Ltd Class H (1606) vs. iShares MSCI Hong Kong ETF (EWH)

China Development Bank Financial Leasing Co Ltd Class H Business Overview & Revenue Model

Company DescriptionChina Development Bank Financial Leasing Co., Ltd., together with its subsidiaries, engages in the leasing business in the People's Republic of China. It operates through Aircraft Leasing, Infrastructure Leasing, Ship Leasing, Inclusive Finance, and Others segments. The Aircraft Leasing segment engages in the acquisition, leasing, management, and sale of commercial aircraft. The Infrastructure Leasing segment is involved in the leasing of transportation and energy infrastructure. The Ship Leasing segment leases ships. The Inclusive Finance segment is involved in the leasing of vehicles and construction machinery. The Other Leasing Business segment engages in the leasing of manufacturing equipment and commercial property. The company was formerly known as CDB Leasing Co., Ltd. and changed its name to China Development Bank Financial Leasing Co., Ltd. in September 2015. The company was founded in 1984 and is headquartered in Shenzhen, the People's Republic of China. China Development Bank Financial Leasing Co., Ltd. is a subsidiary of China Development Bank.
How the Company Makes MoneyThe company generates revenue primarily through its leasing operations, which include finance leases and operating leases. In a finance lease, the lessee pays a series of lease payments over time to use an asset but retains ownership at the end of the lease term, allowing the company to earn income over the life of the lease. Operating leases, on the other hand, involve rental agreements where the company retains ownership of the asset, generating continuous rental income. Additionally, China Development Bank Financial Leasing Co Ltd may earn fees from providing ancillary services related to leasing, such as maintenance and management services. The company's partnerships with various industries, particularly in transportation and infrastructure, also contribute to its earnings by facilitating large-scale projects that require significant capital investment.

China Development Bank Financial Leasing Co Ltd Class H Financial Statement Overview

Summary
The company exhibits strong revenue growth and profitability with a high net profit margin. Improved leverage ratios and return on equity indicate financial stability. However, negative free cash flow and challenges in cash generation relative to earnings highlight liquidity concerns.
Income Statement
85
Very Positive
The company shows strong revenue growth with a 8.73% increase from the previous year. The gross profit margin is consistently high at 100%, indicating effective cost management. Net profit margin improved slightly to 26.67%, demonstrating enhanced profitability. However, the absence of EBITDA data for the latest year limits a full assessment of operational efficiency.
Balance Sheet
75
Positive
The debt-to-equity ratio improved significantly to 3.01 from 9.20, indicating reduced leverage and improved financial stability. Return on equity stands at a healthy 11.18%, reflecting efficient use of equity. However, the equity ratio is relatively low at 9.92%, suggesting high reliance on liabilities for financing.
Cash Flow
60
Neutral
The free cash flow has shown a negative trend, decreasing to -22.54 billion, impacting liquidity. The operating cash flow to net income ratio fell sharply, indicating potential challenges in cash generation relative to earnings. Despite these issues, the company has maintained a positive operating cash flow, which is a positive sign.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.57B25.44B15.53B15.11B12.18B10.85B
Gross Profit16.57B25.39B15.53B7.89B5.30B10.37B
EBITDA18.26B26.08B21.88B18.55B11.51B15.70B
Net Income5.02B4.50B4.15B3.35B3.92B3.27B
Balance Sheet
Total Assets417.73B405.85B409.69B354.72B341.84B303.33B
Cash, Cash Equivalents and Short-Term Investments22.84B10.36B69.44B29.76B36.83B34.99B
Total Debt354.57B343.68B342.87B298.95B294.95B258.73B
Total Liabilities376.11B365.59B372.41B320.43B311.73B276.70B
Stockholders Equity41.62B40.26B37.28B34.28B30.11B26.63B
Cash Flow
Free Cash Flow-70.24B-22.54B46.67B3.06B-842.62M10.88B
Operating Cash Flow-51.67B582.68M66.83B17.00B23.71B27.81B
Investing Cash Flow-5.17B-32.53B-35.32B-8.79B-24.12B-13.01B
Financing Cash Flow1.93B-7.16B-7.49B-14.47B-3.12B1.23B

China Development Bank Financial Leasing Co Ltd Class H Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.71
Price Trends
50DMA
1.69
Negative
100DMA
1.71
Negative
200DMA
1.50
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
47.66
Neutral
STOCH
63.69
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 1.67, above the 50-day MA of 1.69, and above the 200-day MA of 1.50, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 63.69 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$21.11B3.8913.09%5.84%3.17%23.13%
69
Neutral
HK$6.51B4.297.87%11.42%0.59%-5.95%
68
Neutral
HK$1.39B3.879.89%7.51%1.11%3.98%
66
Neutral
HK$38.28B8.177.90%6.68%-1.77%-24.74%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
HK$304.36M22.380.49%8.77%-76.88%
47
Neutral
HK$126.55M-1.69-21.07%25.64%-25.07%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1606
China Development Bank Financial Leasing Co Ltd Class H
1.67
0.55
48.97%
HK:1563
International Alliance Financial Leasing Co., Ltd.
0.18
-0.05
-21.74%
HK:1601
Zhongguancun Science-Tech Leasing Co. Ltd. Class H
0.87
0.10
12.99%
HK:1905
Haitong Unitrust International Financial Leasing Co., Ltd Class H
0.78
-0.01
-1.27%
HK:3360
Far East Horizon Limited
8.22
3.15
62.13%
HK:0379
China Ever Grand Financial Leasing Group Co., Ltd.
0.08
0.05
166.67%

China Development Bank Financial Leasing Co Ltd Class H Corporate Events

China Development Bank Financial Leasing Co., Ltd. Enters Finance Lease Agreement for Photovoltaic Power Station
Nov 27, 2025

China Development Bank Financial Leasing Co., Ltd. has entered into a finance lease agreement with Qinghai Huangnan Yuedian New Energy Co., Ltd. for photovoltaic power station facilities located in Qinghai Province, China. The transaction involves the purchase of leased assets for RMB1,220,000,000 and a lease period of 192 months, with a total lease interest of approximately RMB400,000,000. This transaction, classified as a discloseable transaction under Chapter 14 of the Listing Rules, highlights the company’s strategic focus on expanding its leasing operations in the renewable energy sector, potentially enhancing its market position and offering growth opportunities for stakeholders.

China Development Bank Financial Leasing Co., Ltd. Expands IT Leasing Portfolio with Major Acquisition
Nov 26, 2025

China Development Bank Financial Leasing Co., Ltd. has announced a discloseable transaction involving the purchase of 1,372 units of information technology computer equipment from Shandong Zhisuo Information Technology Co., Ltd. for RMB1,108,000,000. This transaction, which will be funded through the company’s own funds and/or commercial bank loans, aims to enhance the company’s market share in the computer equipment operating lease market. By entering into the Product Purchase Agreement, the company seeks to leverage its strengths and contribute to the national strategy of strengthening technological infrastructure, ultimately benefiting its shareholders and aligning with its business objectives.

China Development Bank Financial Leasing Announces Aircraft Sale to United Airlines
Nov 18, 2025

China Development Bank Financial Leasing Co., Ltd. announced a discloseable transaction involving the sale of a 787-9 aircraft to United Airlines. This transaction, combined with a previous similar sale, exceeds the 5% threshold for discloseable transactions under Hong Kong’s Listing Rules, necessitating an announcement. The company received a waiver from strict compliance with certain disclosure requirements due to the economic equivalence of the transaction structure and the potential adverse impact of full disclosure on its operations.

China Development Bank Financial Leasing Approves Capital Injection for Aviation Subsidiary
Nov 17, 2025

China Development Bank Financial Leasing Co., Ltd. announced the successful passing of a resolution at its Extraordinary General Meeting to inject capital into its wholly-owned subsidiary, CDB Aviation Lease Finance Designated Activity Company. This capital injection is subject to approvals from the Shenzhen Office of the National Financial Regulatory Administration and the National Development and Reform Commission. The unanimous approval of the resolution by shareholders, representing 75.53% of the total issued shares, underscores strong support for the company’s strategic initiatives in enhancing its aviation leasing operations.

China Development Bank Financial Leasing Engages in RMB1.5 Billion Finance Lease for Wind Power Equipment
Nov 14, 2025

China Development Bank Financial Leasing Co., Ltd. has entered into a finance lease arrangement involving the purchase and lease of wind power station equipment in Heilongjiang Province, China. The transaction, valued at RMB1.5 billion, is considered a discloseable transaction under Hong Kong listing rules, indicating its significance to the company’s operations and market positioning.

China Development Bank Financial Leasing Co., Ltd. Expands in IT Leasing Market with Major Acquisition
Nov 6, 2025

China Development Bank Financial Leasing Co., Ltd. announced a significant transaction involving the purchase of 1,198 units of information technology computer equipment for RMB1,040,000,000. This transaction, categorized as a discloseable transaction under Hong Kong’s Listing Rules, aims to enhance the company’s market share in the computer equipment operating lease market and aligns with China’s national strategy to bolster technological infrastructure.

China Development Bank Financial Leasing Co., Ltd. Appoints Independent Director to Strengthen Governance
Oct 31, 2025

China Development Bank Financial Leasing Co., Ltd. has announced the approval of Ms. LIU Siqin as an independent non-executive director, effective from 30 October 2025. This appointment allows the company to comply with the Hong Kong Stock Exchange’s listing rules regarding board composition and committee leadership. Ms. LIU will serve as chairman of the Remuneration and Nomination Committees and as a member of several other board committees. Her appointment ensures that the company meets the regulatory requirements for independent non-executive directors, enhancing its governance structure and potentially improving stakeholder confidence.

China Development Bank Financial Leasing Co., Ltd. Announces Board Composition
Oct 31, 2025

China Development Bank Financial Leasing Co., Ltd. announced the composition of its board of directors and the roles of each member within various committees. This organizational update may impact the company’s governance and strategic decision-making, potentially influencing its market operations and stakeholder relations.

China Development Bank Financial Leasing Boosts CDB Aviation with $0.86 Billion Capital Injection
Oct 29, 2025

China Development Bank Financial Leasing Co., Ltd. has announced a capital injection of US$0.86 billion into its wholly-owned subsidiary, CDB Aviation. This move is aimed at meeting regulatory requirements and strengthening the subsidiary’s capital base, which will enhance its market competitiveness and support sustainable growth. The capital injection aligns with the company’s strategic development plans and is expected to bring long-term strategic benefits to the group.

China Development Bank Financial Leasing to Hold EGM for Capital Injection Approval
Oct 29, 2025

China Development Bank Financial Leasing Co., Ltd. has announced the convening of its second extraordinary general meeting (EGM) of 2025, scheduled for November 17, 2025. The primary agenda for the meeting is to consider and approve a capital injection into its wholly-owned subsidiary, CDB Aviation Lease Finance Designated Activity Company. This move could potentially strengthen the company’s financial position and enhance its competitive edge in the aviation leasing market.

China Development Bank Financial Leasing Announces EGM and Register Closure
Oct 28, 2025

China Development Bank Financial Leasing Co., Ltd. has announced the closure of its register of members in preparation for its second extraordinary general meeting (EGM) of 2025, scheduled for 17 November 2025. This move is significant for shareholders as it determines their eligibility to attend and vote at the meeting, impacting their involvement in the company’s future decisions.

China Development Bank Financial Leasing Engages in RMB1.7 Billion Finance Lease
Sep 30, 2025

China Development Bank Financial Leasing Co., Ltd. announced a finance lease arrangement involving the purchase and leasing of energy storage power station equipment located in Inner Mongolia, China. The transaction, valued at RMB1.7 billion, is classified as a discloseable transaction under Hong Kong’s Listing Rules, indicating significant financial engagement without requiring shareholder approval.

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.Date of analysis: Nov 01, 2025