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:65Neutral
Price Target:
HK$5.50
â–²(8.91% Upside)
Action:Reiterated
Date:04/30/26
The score is driven primarily by financial risk considerations: negative TTM operating/free cash flow and meaningfully higher leverage temper otherwise solid revenue growth and profitability. Support comes from attractive valuation (low P/E and strong dividend yield) and moderately positive technical momentum.
Positive Factors
Strong revenue growth and healthy net margin
Sustained ~17% TTM revenue growth combined with ~26% net margins indicates durable core profitability from lending and fee activities. That scale and margin profile support ongoing internal capital generation and resilience across economic cycles, underpinning long-term earnings stability.
Negative Factors
Negative operating and free cash flow (TTM)
A shift to negative TTM operating and free cash flow materially reduces financial flexibility and the bank's internal funding ability. Over several months this can constrain lending capacity, increase reliance on wholesale funding, and limit the firm’s ability to absorb credit shocks or pursue strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and healthy net margin
Sustained ~17% TTM revenue growth combined with ~26% net margins indicates durable core profitability from lending and fee activities. That scale and margin profile support ongoing internal capital generation and resilience across economic cycles, underpinning long-term earnings stability.
Read all positive factors
Postal Savings Bank of China Co., Ltd. Class H (1658) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$647.14B
Dividend Yield5.37%
Average Volume (3M)29.91M
Price to Earnings (P/E)5.1
Beta (1Y)0.64
Revenue Growth-0.97%
EPS Growth-13.82%
CountryHK
Employees182,631
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.72
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$6.00Price Target Upside18.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.7
Revenue Forecast (FY)HK$372.50B
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
The company primarily makes money through (1) net interest income and (2) non-interest (fee and other) income. Net interest income is earned from the spread between interest received on interest-earning assets (mainly customer loans and advances, ...
Postal Savings Bank of China Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 450.23B | 345.88B | 320.71B | 316.75B | 435.32B | 398.62B |
| Gross Profit | 327.41B | 313.81B | 320.71B | 316.75B | 234.68B | 272.47B |
| EBITDA | 100.76B | 95.68B | 0.00 | 0.00 | 102.78B | 90.49B |
| Net Income | 87.48B | 85.14B | 86.48B | 86.27B | 85.22B | 76.17B |
Balance Sheet | ||||||
| Total Assets | 19.45T | 18.69T | 17.08T | 15.73T | 14.07T | 12.59T |
| Cash, Cash Equivalents and Short-Term Investments | 1.35T | 1.32T | 1.96T | 1.83T | 1.73T | 1.57T |
| Total Debt | 995.33B | 929.67B | 251.20B | 270.41B | 111.76B | 91.11B |
| Total Liabilities | 18.42T | 17.68T | 16.05T | 14.77T | 13.24T | 11.79T |
| Stockholders Equity | 1.03T | 1.01T | 1.03T | 954.87B | 824.23B | 794.09B |
Cash Flow | ||||||
| Free Cash Flow | -52.78B | 88.21B | 376.93B | 250.37B | 462.51B | 95.70B |
| Operating Cash Flow | -44.29B | 101.62B | 397.28B | 263.34B | 474.91B | 109.56B |
| Investing Cash Flow | -1.22T | -175.93B | -480.40B | -242.43B | -511.51B | -182.92B |
| Financing Cash Flow | 1.28T | 45.74B | -30.78B | 1.43T | -37.74B | 52.26B |
Postal Savings Bank of China Co., Ltd. Class H Technical Analysis
Negative
5.05
Price Trends
5.04
Negative
5.07
Negative
5.23
Negative
Market Momentum
>-0.01
Positive
43.50
Neutral
25.13
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 5.05 is below the 20-day moving average (MA) of 5.13, above the 50-day MA of 5.04, and below the 200-day MA of 5.23, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.50 is Neutral, neither overbought nor oversold. The STOCH value of 25.13 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | HK$499.46B | 10.39 | 11.37% | 5.80% | -1.26% | 4.94% | |
70 Outperform | HK$484.87B | 4.85 | 9.18% | 5.76% | -3.89% | 2.20% | |
70 Outperform | HK$1.10T | 7.29 | 11.91% | 4.26% | -4.57% | 1.77% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | HK$647.14B | 5.09 | 8.09% | 5.37% | -0.97% | -13.82% | |
62 Neutral | HK$204.79B | 3.48 | 6.59% | 5.53% | -8.41% | -5.52% | |
54 Neutral | HK$173.01B | 3.10 | 4.59% | 9.09% | -8.22% | -2.28% |
* Financial Sector Average
HK:1658
Postal Savings Bank of China Co., Ltd. Class H
5.04
0.06
1.20%
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16.60
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3.02
-0.46
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-7.04%
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Postal Savings Bank of China Co., Ltd. Class H Corporate Events
Postal Savings Bank of China Proposes New Three-Year Term for Independent Director Tang Zhihong
Apr 29, 2026
Postal Savings Bank of China has proposed the re-election of Mr. Tang Zhihong as an independent non-executive director for a new three-year term, subject to approval at the shareholders’ general meeting. Mr. Tang, a senior economist with ext...
Postal Savings Bank of China Schedules Board Meeting to Approve Q1 2026 Results
Apr 17, 2026
Postal Savings Bank of China Co., Ltd., a major mainland Chinese retail and inclusive finance bank with H-shares listed in Hong Kong, has a diverse board comprising executive, non-executive, and independent non-executive directors. The bank operat...
Postal Savings Bank of China Wins Approval for Registered Capital Increase
Apr 2, 2026
Postal Savings Bank of China has secured regulatory approval from the National Financial Regulatory Administration to increase its registered capital from RMB99.16 billion to RMB120.10 billion, formalizing an earlier private placement of A shares ...
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...
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.