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Postal Savings Bank of China (1658) Fair Value & Analysis

Financial Services · HK · Market cap HK$551B

PS Postal Savings Bank of China 1658 · HK
PriceHK$4.79
Fair ValueHK$8.18
Upside+70.7%
Quality45/100
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Healthy Growth
Highly profitable · 27.2% net margin
Low debt · generates free cash flow
4.77% dividend yield
Mixed vs. peers (8/14)
Moderate moat 60/100
Evidence: High Range HK$6.13 – HK$10.23 Share as image

Fair value as of: Aug 13, 2026

From 6 valuation models · updated 3 days ago

Share price +0.2% over the past month.

Below-average quality, screening 71% undervalued on our models.

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What matters now

  • The price is below even our cautious bear case (HK$6.13). The market is more pessimistic than our downside scenario.
  • Solid quality (45/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

HK$5.72 HK$2.89 Fair Value HK$8.18 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$2.89 – HK$5.72 · fair‑value band HK$6.13 – HK$10.23 · the HK$4.79 price screens below the HK$8.18 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Postal Savings Bank of China (1658) currently trades at HK$4.79, while our model-based Fair Value estimate is HK$8.18, implying the stock looks roughly 70.7% undervalued today. The Quality Score stands at 45/100 (below-average quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Postal Savings Bank of China generated revenue of HK$323B at a net margin of 27.2%. Revenue declined 0.3% year over year. It earns a return on equity of 8.2%. The balance sheet holds a net cash position of HK$390B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$6.13 (bear case) to HK$10.23 (bull case); at HK$4.79, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 17% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 47% fair-value upside, at 71%, 1658 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income HK$7.24 HK$7.88 HK$10.37 76
Gordon GGM HK$2.85 HK$6.23 HK$10.48 70
P/E Multiple HK$6.93 HK$9.24 HK$11.56 63
All 6 models by family
Dividend Discount
Gordon GGM HK$2.85 HK$6.23 HK$10.48 70
DDM Multi-Stage HK$2.85 HK$5.10 HK$6.49 61
Multiples
P/E Multiple HK$6.93 HK$9.24 HK$11.56 63
P/B Multiple HK$8.86 HK$11.82 HK$14.77 55
Asset-Based
NCAV (Graham) HK$4.22 HK$5.66 HK$8.44 50
Economic Profit
Residual Income HK$7.24 HK$7.88 HK$10.37 76

Widest divergence: Multiples (HK$9.24) versus Dividend Discount (HK$5.10). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$323B
Revenue growth (YoY) -0.3%
Net margin 27.2%
Return on equity 8.2%
Free cash flow HK$88.2B FY2025
P/E ratio 5.5 as of Jul 2, 2026
More key figures
Operating margin 35.2%
EPS (TTM) HK$0.7317
Dividend yield 4.8%
EPS growth (YoY) -16.7%
Net cash HK$390B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 44 · Market factors (momentum, volatility) 47

Profitability 33
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 24
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 94
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 22
Distance to the 52-week high (market factor)
Net Issuance 0
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Postal Savings Bank of China Co., Ltd., together with its subsidiaries, provides various banking products and services for retail and corporate customers in the People's Republic of China.

Full company description

Postal Savings Bank of China Co., Ltd., together with its subsidiaries, provides various banking products and services for retail and corporate customers in the People's Republic of China. It offers demand, time, personal call, time/demand optional, call, negotiated, foreign currency exchange deposit; passbooks and certificate of deposits; credit, mortgage, government, farmer, and merchant express loan; business easy mix, agriculture aid plus, domestic remittance and exchange, and payment and collection agency; cross-border remittance, personal exchange settlement and sale, and foreign currency exchange services; personal housing, auto, consumer, and personal education loans; and bank cards, as well as online banking services. The company also provides pledge, syndicated, land reserve, town rebuild, commercial property mortgage, real estate development, fixed asset, project, and consignment loans. In addition, it offers check, promissory notes, bank and commercial draft, remittance, consignment collection, and collection with acceptance settlement services; accounts management, payments and collection, liquidity, investment and financing, information management, fund monitoring, and bank-enterprise direct link services; draft acceptance and discounting, draft manager, and electronic commercial draft services; foreign exchange deposit, foreign exchange settlement, sale, and conversion, settlement, and trade finance; custody services; and bill rediscount, interbank financing, investment, and market trading services. It operates through directly operated outlets and agency outlets. The company was founded in 2007 and is based in Beijing, China. Postal Savings Bank of China Co., Ltd. operates as a subsidiary of China Post Group Corporation Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Postal Savings Bank of China reported revenue of HK$346B in FY2025 versus HK$399B in FY2021, a compound −3.5%/yr. Reported net income was HK$85.1B in FY2025, compounding +2.8%/yr from FY2021.

Growth Quality 81/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$346B
Latest YoY
+7.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−7.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.9%
Avg. growth/yr (15Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.4%
Revenue −3.5%/yr
FY21 HK$399B
FY22 HK$435B
FY23 HK$317B
FY24 HK$321B
FY25 HK$346B
Net income +2.8%/yr
FY21 HK$76.2B
FY22 HK$85.2B
FY23 HK$86.3B
FY24 HK$86.5B
FY25 HK$85.1B
Character of growth · EPS growth decomposed (2014-2025) +5.3 % p.a.
Revenue per share +6.3 pp

of which total revenue +11.3 pp · buybacks/dilution −5.0 pp

EBIT margin +4.0 pp
Tax rate +0.6 pp
Residual (interest, one-offs) −5.7 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Postal Savings Bank of China Fair Value". https://www.fairvalue-calculator.com/stock/1658

Peer Group

Banks - Regional · 1088 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 44 · Bottom 25%
Fair Value upside +71% · Top 25%
Return on equity (TTM) 8% · Below median
Return on assets 0% · Bottom 25%
Net margin (TTM) 27% · Below median
Operating margin (TTM) 35% · Below median
Revenue growth -0% · Bottom 25%
Dividend yield (TTM) 4.8% · Top 25%
Debt / equity 0.13× · Lower than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 5.5× · Cheaper than 75% of peers
P/B 0.55× · Cheaper than 75% of peers
P/S (TTM) 1.71× · Cheaper than 75% of peers
P/FCF 0.8× · Cheaper than median
PEG 0.69× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 33
FUTURE 0 · sector 44
PAST 33 · sector 41
HEALTH 93 · sector 85
DIVIDEND 95 · sector 56

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,350 IDR 4,637 IDR -27%
KB Financial Group 105560 168,100 KRW 220,258 KRW +31%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 3,110 IDR 3,792 IDR +22%
PT Bank Mandiri (Persero) Tbk BMRI 4,130 IDR 6,067 IDR +47%
Banco Bradesco S.A BBD 5,120 ARS 8,400 ARS +64%
Shinhan Financial Group 055550 103,800 KRW 146,032 KRW +41%
Hana Financial Group 086790 127,900 KRW 210,506 KRW +65%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,500 VND 45,959 VND -23%
Woori Financial Group 316140 33,000 KRW 60,758 KRW +84%

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Frequently asked questions

Is Postal Savings Bank of China (1658) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$8.18 versus a price of HK$4.79, about +71% (undervalued).
What is the fair value of 1658?
Our model-based fair value for Postal Savings Bank of China is HK$8.18 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$4.79.
What is the quality score of 1658?
Postal Savings Bank of China has a Quality Score of 45/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Postal Savings Bank of China (1658)?
Postal Savings Bank of China reported trailing-twelve-month revenue of about HK$323B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1658?
The net profit margin of Postal Savings Bank of China is about 27.2%, meaning it keeps roughly 27.2% of revenue as net income. Based on the latest reported figures.
Does Postal Savings Bank of China pay a dividend?
Postal Savings Bank of China currently shows a dividend yield of about 4.77% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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