China Development Bank Financial Leasing Co. Ltd. (1606) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Qifu Technology. Inc.

Far East Horizon Ltd.

Genertec Universal Medical Group Co., Ltd.

China Development Bank Financial Leasing Co. Ltd.

SY Holdings Group Ltd.

Sun Hung Kai & Co. Ltd.

Yixin Group Ltd.

Allied Group Ltd.

Shandong Hi-Speed Holdings Group Ltd.

Horizon Construction Development Ltd.

Hao Tian International Construction Investment Group Ltd.

Why is China Development Bank Financial Leasing Co. Ltd. ?

Flat results in Dec 25

RAW MATERIAL COST(Y) Grown by 8.35% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 0.13 times
NET SALES(Q) Lowest at HKD 14,297.44 MM

With ROE of 21.17%, it has a Attractive valuation with a 0.08 Price to Book Value

Over the past year, while the stock has generated a return of -21.05%, its profits have risen by 19.6% ; the PEG ratio of the company is 0

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 0.26% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -21.05% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to China Development Bank Financial Leasing Co. Ltd. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is China Development Bank Financial Leasing Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Development Bank Financial Leasing Co. Ltd.

-21.05%

-1.34

27.53%

Hang Seng Hong Kong

0.26%

0.01

20.12%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.42%

EBIT Growth (5y)

2.93%

EBIT to Interest (avg)

1.76

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

22.06%

Dividend Payout Ratio

26.51%

Pledged Shares

Institutional Holding

ROCE (avg)

545.91%

ROE (avg)

14.59%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.08

EV to EBIT

-4.03

EV to EBITDA

-2.65

EV to Capital Employed

3.26

EV to Sales

-2.19

PEG Ratio

0.02

Dividend Yield

6.55%

ROCE (Latest)

-80.77%

ROE (Latest)

21.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 251.37

DEBT-EQUITY RATIO (HY)

Lowest at 694.03 %

DIVIDEND PER SHARE(HY)

Highest at HKD 0.13

EPS(Q)

Highest at HKD 0.23

-3What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 8.35% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.13 times

NET SALES(Q)

Lowest at HKD 14,297.44 MM

Here's what is working for China Development Bank Financial Leasing Co. Ltd.

Interest Coverage Ratio

Highest at 251.37

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

EPS

Highest at HKD 0.23

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Debt-Equity Ratio

Lowest at 694.03 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at HKD 0.13

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Depreciation

Highest at HKD 4,258.59 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Here's what is not working for China Development Bank Financial Leasing Co. Ltd.

Net Sales

Lowest at HKD 14,297.44 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Debtors Turnover Ratio

Lowest at 0.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 8.35% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales