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

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 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. The company offers a range of financial products, including operating leases, finance leases, and other leasing-related services, catering to both domestic and international clients. With a strong focus on supporting the development of key industries in China, the company plays a vital role in enhancing the country's economic growth through its leasing solutions.
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
Positive
Last Price1.71
Price Trends
50DMA
1.72
Positive
100DMA
1.69
Positive
200DMA
1.41
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
52.28
Neutral
STOCH
76.19
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 1.70, below the 50-day MA of 1.72, and above the 200-day MA of 1.41, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 76.19 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

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$21.74B4.0113.09%5.67%3.17%23.13%
69
Neutral
HK$6.67B4.467.87%11.00%0.59%-5.95%
68
Neutral
HK$1.39B3.839.89%7.51%1.11%3.98%
66
Neutral
HK$34.09B7.307.90%7.35%-1.77%-24.74%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
58
Neutral
HK$324.66M11.161.12%-9.75%-81.16%
41
Neutral
HK$145.11M-1.94-21.07%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
1.72
0.48
38.37%
HK:1563
International Alliance Financial Leasing Co., Ltd.
0.19
-0.09
-32.14%
HK:1601
Zhongguancun Science-Tech Leasing Co. Ltd. Class H
0.86
0.13
17.81%
HK:1905
Haitong Unitrust International Financial Leasing Co., Ltd Class H
0.81
0.05
6.58%
HK:3360
Far East Horizon Limited
7.48
2.34
45.47%
HK:0379
China Ever Grand Financial Leasing Group Co., Ltd.
0.06
0.03
68.42%

China Development Bank Financial Leasing Co Ltd Class H Corporate Events

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.

The most recent analyst rating on (HK:1606) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on China Development Bank Financial Leasing Co Ltd Class H stock, see the HK:1606 Stock Forecast page.

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.

The most recent analyst rating on (HK:1606) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on China Development Bank Financial Leasing Co Ltd Class H stock, see the HK:1606 Stock Forecast page.

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.

The most recent analyst rating on (HK:1606) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on China Development Bank Financial Leasing Co Ltd Class H stock, see the HK:1606 Stock Forecast page.

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.

The most recent analyst rating on (HK:1606) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on China Development Bank Financial Leasing Co Ltd Class H stock, see the HK:1606 Stock Forecast page.

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.

The most recent analyst rating on (HK:1606) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on China Development Bank Financial Leasing Co Ltd Class H stock, see the HK:1606 Stock Forecast page.

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.

The most recent analyst rating on (HK:1606) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on China Development Bank Financial Leasing Co Ltd Class H stock, see the HK:1606 Stock Forecast page.

China Development Bank Financial Leasing Cancels EGM Amid Unauthorized Document Release
Aug 29, 2025

China Development Bank Financial Leasing Co., Ltd. announced the cancellation of its upcoming extraordinary general meeting (EGM) and the closure of its register of members, initially scheduled for September 2025. This decision follows an unauthorized publication of EGM documents by Toppan Nexus Holdings Limited, which the company attributes to a significant administrative error. The company is currently seeking legal advice to address this breach of contractual obligations and assures stakeholders of its commitment to resolving the issue. The capital increase proposal for CDB Aviation, initially intended for discussion at the EGM, remains under consideration.

The most recent analyst rating on (HK:1606) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on China Development Bank Financial Leasing Co Ltd Class H stock, see the HK:1606 Stock Forecast page.

China Development Bank Financial Leasing Reports Increased Profit Amid Revenue Dip
Aug 29, 2025

China Development Bank Financial Leasing Co., Ltd. reported its unaudited interim results for the first half of 2025, showing a slight decrease in total revenue compared to the same period in 2024. Despite the revenue decline, the company achieved a notable increase in profit before income tax and profit for the reporting period, indicating improved operational efficiency and cost management. This performance may enhance the company’s industry positioning and provide positive implications for stakeholders.

The most recent analyst rating on (HK:1606) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on China Development Bank Financial Leasing Co Ltd Class H stock, see the HK:1606 Stock Forecast page.

China Development Bank Financial Leasing Co., Ltd. Announces EGM to Discuss Capital Increase
Aug 29, 2025

China Development Bank Financial Leasing Co., Ltd. has announced the convening of its second extraordinary general meeting (EGM) of 2025, scheduled for September 15, 2025, in Shenzhen, China. The key agenda for the EGM includes the consideration and approval of a capital increase in its wholly-owned subsidiary, CDB Aviation Lease Finance Designated Activity Company, which could potentially enhance the company’s operational capabilities and market positioning in the aviation leasing sector.

The most recent analyst rating on (HK:1606) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on China Development Bank Financial Leasing Co Ltd Class H stock, see the HK:1606 Stock Forecast page.

China Development Bank Financial Leasing Announces EGM and Register Closure
Aug 27, 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 15 September 2025. This meeting will allow shareholders to attend and vote, with the register closed from 10 to 15 September 2025 to determine shareholder eligibility. This announcement is significant for stakeholders as it outlines the procedural steps and deadlines for participating in the EGM, impacting shareholder engagement and decision-making processes.

The most recent analyst rating on (HK:1606) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on China Development Bank Financial Leasing Co Ltd Class H stock, see the HK:1606 Stock Forecast page.

CDB Financial Leasing Secures $140 Million in Insurance Settlements
Aug 26, 2025

China Development Bank Financial Leasing Co., Ltd. announced that its subsidiary, CDB Aviation, has received approximately US$140 million in insurance settlements for aircraft detained in Russia. This settlement was achieved in compliance with all relevant laws and regulations, and it reflects the company’s effective management of its leasing operations, potentially impacting its financial stability and stakeholder confidence.

The most recent analyst rating on (HK:1606) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on China Development Bank Financial Leasing Co Ltd Class H stock, see the HK:1606 Stock Forecast page.

China Development Bank Financial Leasing Engages in Significant Finance Lease Deal
Aug 25, 2025

China Development Bank Financial Leasing Co., Ltd. announced a finance lease transaction with Ningxia Baofeng Photovoltaic Power Generation Co., Ltd., involving the purchase and leaseback of power generation facilities valued at RMB1.6 billion. This transaction, classified as a discloseable transaction under Hong Kong’s Listing Rules, signifies a strategic move to enhance the company’s portfolio in the renewable energy sector, potentially strengthening its market position and offering long-term financial benefits.

The most recent analyst rating on (HK:1606) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on China Development Bank Financial Leasing Co Ltd Class H stock, see the HK:1606 Stock Forecast page.

China Development Bank Financial Leasing Co. Schedules Board Meeting for Interim Results
Aug 19, 2025

China Development Bank Financial Leasing Co., Ltd. has announced a board meeting scheduled for August 29, 2025, to review and approve the interim results for the first half of the year and discuss the possibility of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.

China Development Bank Financial Leasing Co., Ltd. Enters RMB1.26 Billion Finance Lease Arrangement
Aug 15, 2025

China Development Bank Financial Leasing Co., Ltd. has announced a finance lease arrangement involving the purchase of wind power station equipment from three vendors for RMB1,260,000,000. The equipment, located in Julu County, Hebei Province, will be leased to Zhongke Photovoltaic Energy Storage Wind Power (Julu County) New Energy Development Co., Ltd. for a period of 216 months. This transaction, classified as a discloseable transaction under the Hong Kong Listing Rules, reflects the company’s strategic focus on renewable energy sectors and enhances its market positioning in the financial leasing industry.

China Development Bank Financial Leasing Granted Extension for Compliance
Aug 12, 2025

China Development Bank Financial Leasing Co., Ltd. announced an extension of the grace period to comply with Hong Kong Stock Exchange listing rules following the resignation of an independent non-executive director. The company has nominated Ms. LIU Siqin to fill the vacancy, pending approval from the National Financial Regulatory Administration’s Shenzhen Office. The extension allows the company until October 31, 2025, to meet the required governance standards, which is crucial for maintaining its compliance and operational stability.

China Development Bank Financial Leasing Co., Ltd. Details Finance Lease Agreements
Aug 1, 2025

China Development Bank Financial Leasing Co., Ltd. announced supplemental details regarding its finance lease agreements with Beijing China Auto Rental Co., Ltd. The agreements involve the purchase and leasing of vehicles owned by the lessee, with transactions valued at approximately RMB452,000,000 and RMB110,000,000. The lease periods are set for 12 and 60 months, respectively, with payments made monthly. These transactions were negotiated at arm’s length, considering the appraised value of the leased assets and prevailing market prices, potentially impacting the company’s leasing operations and market positioning in the PRC.

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