Postal Savings Bank of China Co., Ltd. Class H (HK:1658)
:1658
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Postal Savings Bank of China Co., Ltd. Class H
(1658)
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Rating:57Neutral
Price Target:
HK$5.00
â–²(1.42% Upside)
Action:ReiteratedDate:03/30/26
The score is driven by attractive valuation (low P/E and ~5% yield), offset by mixed financial performance—especially the sharp rise in leverage and weaker 2025 cash generation—and a mildly bearish technical setup with negative MACD and prices below longer-term moving averages.
Positive Factors
Extensive retail deposit franchise
A nationwide postal-linked branch network creates a durable retail deposit base and low-cost funding advantage. Persistent retail deposits support net interest income, improve funding stability across cycles, and underpin the bank’s ability to lend and retain market share over months to years.
Negative Factors
Sharp leverage increase in 2025
A nearly fourfold rise in leverage within a year materially increases balance-sheet risk and reduces financial flexibility. Higher leverage raises vulnerability to funding cost rises, regulatory constraints, and unexpected credit losses, weakening resilience over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Extensive retail deposit franchise
A nationwide postal-linked branch network creates a durable retail deposit base and low-cost funding advantage. Persistent retail deposits support net interest income, improve funding stability across cycles, and underpin the bank’s ability to lend and retain market share over months to years.
Read all positive factors
Postal Savings Bank of China Co., Ltd. Class H (1658) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$649.95B
Dividend Yield5.37%
Average Volume (3M)29.91M
Price to Earnings (P/E)6.7
Beta (1Y)0.59
Revenue Growth-1.54%
EPS Growth-3.95%
CountryHK
Employees182,631
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.09
Shares Outstanding19,856,168,000
10 Day Avg. Volume24,908,887
30 Day Avg. Volume29,909,721
Financial Highlights & Ratios
PEG Ratio-0.54
Price to Book (P/B)0.57
Price to Sales (P/S)1.65
P/FCF Ratio6.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$6.26Price Target Upside26.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.71
Revenue Forecast (FY)HK$367.52B
Postal Savings Bank of China Co., Ltd. Class H Business Overview & Revenue Model
Company Description
Postal Savings Bank of China Co., Ltd., together with its subsidiaries, provides various banking products and services for retail and corporate customers in the People's Republic of China. Its Personal Banking segment offers savings products, such...
How the Company Makes Money
Postal Savings Bank of China primarily earns income through (1) net interest income and (2) non-interest income. Net interest income is generated from the spread between interest earned on interest-earning assets (such as loans to individuals and ...
Postal Savings Bank of China Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
47
Neutral
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 345.88B | 320.71B | 316.75B | 435.32B | 398.62B |
| Gross Profit | 313.81B | 320.71B | 316.75B | 234.68B | 272.47B |
| EBITDA | 95.68B | 0.00 | 0.00 | 102.78B | 90.49B |
| Net Income | 85.14B | 86.48B | 86.27B | 85.22B | 76.17B |
Balance Sheet | |||||
| Total Assets | 18.69T | 17.08T | 15.73T | 14.07T | 12.59T |
| Cash, Cash Equivalents and Short-Term Investments | 1.32T | 1.96T | 1.83T | 1.73T | 1.57T |
| Total Debt | 929.67B | 251.20B | 270.41B | 111.76B | 91.11B |
| Total Liabilities | 17.68T | 16.05T | 14.77T | 13.24T | 11.79T |
| Stockholders Equity | 1.01T | 1.03T | 954.87B | 824.23B | 794.09B |
Cash Flow | |||||
| Free Cash Flow | 88.21B | 376.93B | 250.37B | 462.51B | 95.70B |
| Operating Cash Flow | 101.62B | 397.28B | 263.34B | 474.91B | 109.56B |
| Investing Cash Flow | -1.17T | -480.40B | -242.43B | -511.51B | -182.92B |
| Financing Cash Flow | 1.34T | -30.78B | 1.43T | -37.74B | 52.26B |
Postal Savings Bank of China Co., Ltd. Class H Technical Analysis
Negative
4.93
Price Trends
5.02
Negative
5.13
Negative
5.29
Negative
Market Momentum
-0.03
Negative
46.66
Neutral
61.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1658, the sentiment is Negative. The current price of 4.93 is below the 20-day moving average (MA) of 4.94, below the 50-day MA of 5.02, and below the 200-day MA of 5.29, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.66 is Neutral, neither overbought nor oversold. The STOCH value of 61.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1658.
Postal Savings Bank of China Co., Ltd. Class H Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$1.17T | 8.32 | 11.95% | 4.26% | -4.57% | 1.77% | |
71 Outperform | HK$462.45B | 10.39 | 11.77% | 5.80% | 1.90% | 12.81% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | HK$506.25B | 5.02 | 9.01% | 5.76% | -5.46% | 0.33% | |
57 Neutral | HK$649.95B | 6.72 | 9.30% | 5.37% | -1.54% | -3.95% | |
57 Neutral | HK$210.57B | 5.64 | 6.61% | 5.53% | -8.41% | -5.52% | |
52 Neutral | HK$182.90B | 5.60 | 4.68% | 9.09% | -7.28% | -5.00% |
* Financial Sector Average
HK:1658
Postal Savings Bank of China Co., Ltd. Class H
4.93
0.58
13.33%
HK:2388
BOC Hong Kong (Holdings)
43.74
16.63
61.31%
HK:6818
China Everbright Bank Co
3.09
0.30
10.95%
HK:1988
China Minsheng Banking
3.65
0.42
13.11%
HK:0998
China CITIC Bank
7.91
2.50
46.26%
HK:3968
China Merchants Bank Co
49.70
10.38
26.40%
Postal Savings Bank of China Co., Ltd. Class H Corporate Events
Postal Savings Bank of China Details Capital and Risk Profile in 2025 Pillar 3 Report
Mar 27, 2026
Postal Savings Bank of China Co., Ltd. has released its 2025 Pillar 3 Disclosure Report on capital management, detailing its risk management framework, capital composition, and total loss-absorbing capacity under prudential regulations. The report...
Postal Savings Bank of China Proposes Final Dividend for 2025
Mar 27, 2026
Postal Savings Bank of China Co., Ltd., a major Chinese commercial bank listed in Hong Kong, offers a wide range of retail and corporate banking services, including deposits and loans, to customers throughout China. The bank operates under a diver...
Postal Savings Bank of China Updates Agency Deposit Fee Structure With China Post
Mar 27, 2026
Postal Savings Bank of China has detailed the structure of its long-standing agency banking arrangement with China Post Group, under which postal outlets handle Renminbi and foreign currency personal deposits as well as intermediary banking servic...
Postal Savings Bank of China Unveils 2025 Results and Plans RMB26.2 Billion Dividend Payout
Mar 27, 2026
Postal Savings Bank of China has released its audited annual results for the year ended December 31, 2025 and outlined a proposed cash dividend for shareholders. The bank confirmed that its 2025 financial statements, prepared under both PRC GAAP a...
Postal Savings Bank of China Sets March 27 Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 17, 2026
Postal Savings Bank of China has scheduled a board meeting for March 27, 2026 to review and approve the annual results for the year ended December 31, 2025, covering the bank and its subsidiaries, and to authorize their public release. The board w...
Postal Savings Bank of China Confirms Lu Wei as President and Executive Director
Feb 13, 2026
Postal Savings Bank of China has received regulatory approval for Lu Wei to serve as President and Executive Director, formalizing leadership changes previously endorsed by its board and shareholders. Effective 13 February 2026, Lu Wei will also c...
Postal Savings Bank of China Updates Board and Committee Roles to Strengthen Governance
Feb 13, 2026
Postal Savings Bank of China has published an updated list of its board of directors and detailed their respective roles, reflecting a structure that combines executive, non-executive and independent non-executive members under chairman Zheng Guoy...
Postal Savings Bank of China Shareholders Elect Lu Wei as Executive Director at 2026 EGM
Jan 19, 2026
Postal Savings Bank of China Co., Ltd. announced that its 2026 First Extraordinary General Meeting was duly convened in Beijing with a high turnout, with shareholders and proxies representing about 90.48% of the voting shares entitled to vote. At ...
Postal Savings Bank of China Reshapes Board Committee Leadership
Jan 19, 2026
Postal Savings Bank of China Co., Ltd. has announced changes to the composition of its board committees, reflecting an adjustment in its corporate governance structure. The board has elected Lu Wei to serve as chairperson and member of the Social ...
Postal Savings Bank of China Gains Regulator’s Approval for New Independent Director
Jan 15, 2026
Postal Savings Bank of China has received regulatory approval from the National Financial Regulatory Administration for the qualification of Mr. Pu Yonghao as an Independent Non-executive Director, following his election at the bank’s 2024 a...
Postal Savings Bank of China Updates Board Composition and Committee Roles
Jan 15, 2026
Postal Savings Bank of China has announced the current composition of its Board of Directors, naming non-executive director Zheng Guoyu as chairman alongside one executive director, multiple non-executive directors and several independent non-exec...
Postal Savings Bank of China Gains Regulatory Nod for New Non-Executive Director
Dec 31, 2025
Postal Savings Bank of China has received regulatory approval from China’s National Financial Regulatory Administration for the appointment of Chen Xue as a non-executive director, following her election at the bank’s 2025 Second Extra...
Postal Savings Bank of China Sets Out Board Composition and Committee Roles
Dec 31, 2025
Postal Savings Bank of China Co., Ltd. has announced the current composition of its board of directors, led by non-executive chairman Zheng Guoyu and executive director Yao Hong, along with a slate of non-executive and independent non-executive di...
Postal Savings Bank of China Calls January 2026 EGM to Elect New Executive Director
Dec 30, 2025
Postal Savings Bank of China Co., Ltd. has convened its first extraordinary general meeting of 2026, to be held on January 19 in Beijing, with shareholders asked to vote on the proposed election of Lu Wei as an executive director, a move that will...
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.