Postal Savings Bank of China Co., Ltd. (1658.HK) stock analysis

In our weekly check, Postal Savings Bank of China Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5.

About Postal Savings Bank of China Co., Ltd.

Postal Savings Bank of China Co., Ltd. is a Financial Services company (Banks - Regional) based in China, listed on HKSE as 1658.HK.

What our checks show for 1658.HK

Red flags

• The gross margin fell by 4.4 points, to 63.9%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 6.9% a year.
• The share count grew by 22.8% in 2 years: each shareholder owns a smaller slice.
• Return on capital (ROCE) is only 0.1%.

Warning signs

• The net margin fell by 1.8 points over 5 years, to 17.3%: the company keeps less of each sale as profit.
• Earnings per share fell 4.1% a year over the last 3 years.
• The stock has fallen as much as 50% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 1.26x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 8.2 points from today's 17.3%.
• Free cash flow is 19.3% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 22% of profit: there is a cushion.
• The price is 7.7 times earnings (P/E), reasonable for its growth.
• A large company: market value $82.61 billion.

Next earnings report: 2026-10-30

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Questions

What grade does Postal Savings Bank of China Co., Ltd. (1658.HK) have?

In our weekly check, Postal Savings Bank of China Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1658.HK stock?

This week's biggest flags for Postal Savings Bank of China Co., Ltd.: Gross margin falling, Weak revenue forecast, Share dilution. In total 9 of 25 checks show a warning or a red flag.

What does Postal Savings Bank of China Co., Ltd. do?

Postal Savings Bank of China Co., Ltd. is a Financial Services company (Banks - Regional) based in China, listed on HKSE as 1658.HK.

When does Postal Savings Bank of China Co., Ltd. report earnings next?

The next earnings report is expected on 2026-10-30. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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