China Development Bank Financial Leasing Co., Ltd., together with its subsidiaries, engages in the leasing business in the People’s Republic of China. More Details
Undervalued with acceptable track record.
Share Price & News
How has China Development Bank Financial Leasing's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1606 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: 1606's weekly volatility (5%) has been stable over the past year.
7 Day Return
HK Diversified Financial
1 Year Return
HK Diversified Financial
Return vs Industry: 1606 underperformed the Hong Kong Diversified Financial industry which returned 20.2% over the past year.
Return vs Market: 1606 underperformed the Hong Kong Market which returned 28.6% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is China Development Bank Financial Leasing's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StIs Now The Time To Put China Development Bank Financial Leasing (HKG:1606) On Your Watchlist?
1 month ago | Simply Wall StChina Development Bank Financial Leasing's (HKG:1606) Stock Price Has Reduced 33% In The Past Three Years
7 months ago | Simply Wall StA Look At China Development Bank Financial Leasing's (HKG:1606) Share Price Returns
Is China Development Bank Financial Leasing undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 1606 (HK$1.14) is trading below our estimate of fair value (HK$1.79)
Significantly Below Fair Value: 1606 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1606 is good value based on its PE Ratio (3.7x) compared to the HK Diversified Financial industry average (11.1x).
PE vs Market: 1606 is good value based on its PE Ratio (3.7x) compared to the Hong Kong market (11.7x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 1606's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 1606 is good value based on its PB Ratio (0.5x) compared to the HK Diversified Financial industry average (0.6x).
How is China Development Bank Financial Leasing forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Diversified Financials industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Development Bank Financial Leasing has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
How has China Development Bank Financial Leasing performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1606 has a large one-off loss of CN¥1.6B impacting its December 31 2020 financial results.
Growing Profit Margin: 1606's current net profit margins (28.7%) are higher than last year (28.6%).
Past Earnings Growth Analysis
Earnings Trend: 1606's earnings have grown by 19.9% per year over the past 5 years.
Accelerating Growth: 1606's earnings growth over the past year (11.3%) is below its 5-year average (19.9% per year).
Earnings vs Industry: 1606 earnings growth over the past year (11.3%) exceeded the Diversified Financial industry 5.5%.
Return on Equity
High ROE: 1606's Return on Equity (12.3%) is considered low.
How is China Development Bank Financial Leasing's financial position?
Financial Position Analysis
Short Term Liabilities: 1606's short term assets (CN¥219.4B) exceed its short term liabilities (CN¥179.5B).
Long Term Liabilities: 1606's short term assets (CN¥219.4B) exceed its long term liabilities (CN¥97.2B).
Debt to Equity History and Analysis
Debt Level: 1606's debt to equity ratio (972.3%) is considered high.
Reducing Debt: 1606's debt to equity ratio has increased from 849.6% to 972.3% over the past 5 years.
Debt Coverage: 1606's debt is not well covered by operating cash flow (10.7%).
Interest Coverage: Insufficient data to determine if 1606's interest payments on its debt are well covered by EBIT.
What is China Development Bank Financial Leasing current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1606's dividend (8.08%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.96%).
High Dividend: 1606's dividend (8.08%) is in the top 25% of dividend payers in the Hong Kong market (5.97%)
Stability and Growth of Payments
Stable Dividend: 1606 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 1606's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30%), 1606's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Zhong Peng (50 yo)
Mr. Peng Zhong serves as the President of China Development Bank Financial Leasing Co., Ltd. and serves as its Executive Director. He served as Executive Director of China Development Bank Financial Leasin...
CEO Compensation Analysis
Compensation vs Market: Zhong's total compensation ($USD295.61K) is below average for companies of similar size in the Hong Kong market ($USD647.36K).
Compensation vs Earnings: Insufficient data to compare Zhong's compensation with company performance.
Experienced Management: 1606's management team is considered experienced (3.9 years average tenure).
Experienced Board: 1606's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
China Development Bank Financial Leasing Co., Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: China Development Bank Financial Leasing Co., Ltd.
- Ticker: 1606
- Exchange: SEHK
- Founded: 1984
- Industry: Specialized Finance
- Sector: Diversified Financials
- Market Cap: HK$14.286b
- Shares outstanding: 12.64b
- Website: https://www.cdb-leasing.com
Number of Employees
- China Development Bank Financial Leasing Co., Ltd.
- CDB Financial Center
- No. 2003 Fuzhong Third Road
- Guangdong Province
China 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 L...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/12 10:05|
|End of Day Share Price||2021/04/12 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.