Understanding the Market | CDB LEASING rises over 8% again, recently signing vehicle leasing agreements, with the company's costs expected to continue decreasing as the US dollar interest rates decline

According to Zhitong Finance APP, CDB Leasing (01606) has risen over 8% again, with a cumulative increase of over 42% this month. As of the time of writing, it has risen 6.92%, trading at HKD 1.7, with a transaction volume of HKD 25.0392 million.

In terms of news, CDB Leasing announced that it will purchase several vehicles located across China from Beijing Shenzhou Car Rental Co., Ltd. for a price of RMB 488 million, which will then be leased back to Beijing Shenzhou Car Rental Co., Ltd. for a lease term of 12 to 60 months. The principal amount of the lease is consistent with the transfer price, totaling approximately RMB 488 million; the total lease interest during the lease term is approximately RMB 16 million.

Tianfeng Securities released a research report stating that CDB Leasing is backed by the China Development Bank, with the Ministry of Finance as its actual controlling party. The institution pointed out that the company is the first leasing company in China to promote the marketization and internationalization of the aviation leasing market, with the value of its active fleet ranking 9th globally. In addition, the company's ship leasing business is in a leading position in the industry in terms of asset quality, profitability, and professional management level. The institution noted that the company's dividend payments are stable, with a relatively high dividend yield. With the beginning of the U.S. dollar interest rate cut cycle, the company's costs are expected to continue to decline