China Development Bank Financial Leasing Co., Ltd.

SEHK:1606 Stock Report

Market Cap: HK$15.0b

China Development Bank Financial Leasing Valuation

Is 1606 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1606 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1606 (HK$1.19) is trading below our estimate of fair value (HK$4.8)

Significantly Below Fair Value: 1606 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1606?

Key metric: As 1606 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1606. This is calculated by dividing 1606's market cap by their current earnings.
What is 1606's PE Ratio?
PE Ratio3.5x
EarningsCN¥4.07b
Market CapCN¥14.06b

Price to Earnings Ratio vs Peers

How does 1606's PE Ratio compare to its peers?

The above table shows the PE ratio for 1606 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average4.3x
3877 CSSC (Hong Kong) Shipping
4.7x7.3%HK$10.0b
3360 Far East Horizon
4.2x7.8%HK$23.5b
2666 Genertec Universal Medical Group
4.1x6.8%HK$9.0b
1905 Haitong Unitrust International Financial Leasing
4.4xn/aHK$7.1b
1606 China Development Bank Financial Leasing
3.5x7.9%HK$15.0b

Price-To-Earnings vs Peers: 1606 is good value based on its Price-To-Earnings Ratio (3.5x) compared to the peer average (4.3x).


Price to Earnings Ratio vs Industry

How does 1606's PE Ratio compare vs other companies in the HK Diversified Financial Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
1606 3.5xIndustry Avg. 7.5xNo. of Companies10PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1606 is good value based on its Price-To-Earnings Ratio (3.5x) compared to the Hong Kong Diversified Financial industry average (7.5x).


Price to Earnings Ratio vs Fair Ratio

What is 1606's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1606 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.5x
Fair PE Ratio9.1x

Price-To-Earnings vs Fair Ratio: 1606 is good value based on its Price-To-Earnings Ratio (3.5x) compared to the estimated Fair Price-To-Earnings Ratio (9.1x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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