SHSE:600340

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

China Fortune Land Development

Executive Summary

China Fortune Land Development Co., Ltd. engages in the investment, development, construction, and operation of new industry cities in China, Indonesia, and internationally. More Details


Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has China Fortune Land Development's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 600340's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.5%

600340

-2.8%

CN Real Estate

-1.7%

CN Market


1 Year Return

-32.7%

600340

1.2%

CN Real Estate

29.0%

CN Market

Return vs Industry: 600340 underperformed the CN Real Estate industry which returned 3.1% over the past year.

Return vs Market: 600340 underperformed the CN Market which returned 29.6% over the past year.


Shareholder returns

600340IndustryMarket
7 Day-3.5%-2.8%-1.7%
30 Day-8.5%-6.1%0.3%
90 Day-19.9%-7.2%-0.3%
1 Year-28.9%-32.7%4.6%1.2%31.2%29.0%
3 Year-28.1%-36.6%-6.3%-13.4%13.6%8.2%
5 Year-11.9%-25.4%-13.3%-21.9%12.4%4.8%

Price Volatility Vs. Market

How volatile is China Fortune Land Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Fortune Land Development undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 600340 (CN¥15.02) is trading below our estimate of fair value (CN¥105.22)

Significantly Below Fair Value: 600340 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 600340 is good value based on its PE Ratio (4.3x) compared to the CN Real Estate industry average (18.8x).

PE vs Market: 600340 is good value based on its PE Ratio (4.3x) compared to the CN market (41.9x).


Price to Earnings Growth Ratio

PEG Ratio: 600340 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 600340's PB Ratio (1.2x) is in line with the CN Real Estate industry average.


Next Steps

Future Growth

How is China Fortune Land Development forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600340's forecast earnings growth (14.4% per year) is above the savings rate (3.3%).

Earnings vs Market: 600340's earnings (14.4% per year) are forecast to grow slower than the CN market (24.2% per year).

High Growth Earnings: 600340's earnings are forecast to grow, but not significantly.

Revenue vs Market: 600340's revenue (16.2% per year) is forecast to grow slower than the CN market (17.7% per year).

High Growth Revenue: 600340's revenue (16.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 600340's Return on Equity is forecast to be high in 3 years time (28.6%)


Next Steps

Past Performance

How has China Fortune Land Development performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600340 has a high level of non-cash earnings.

Growing Profit Margin: 600340's current net profit margins (11.7%) are lower than last year (15.2%).


Past Earnings Growth Analysis

Earnings Trend: 600340's earnings have grown significantly by 24.1% per year over the past 5 years.

Accelerating Growth: 600340's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 600340 had negative earnings growth (-8.3%) over the past year, making it difficult to compare to the Real Estate industry average (-9.6%).


Return on Equity

High ROE: 600340's Return on Equity (15.1%) is considered low.


Next Steps

Financial Health

How is China Fortune Land Development's financial position?


Financial Position Analysis

Short Term Liabilities: 600340's short term assets (CN¥455.6B) exceed its short term liabilities (CN¥298.1B).

Long Term Liabilities: 600340's short term assets (CN¥455.6B) exceed its long term liabilities (CN¥116.4B).


Debt to Equity History and Analysis

Debt Level: 600340's debt to equity ratio (239.1%) is considered high.

Reducing Debt: 600340's debt to equity ratio has increased from 237.7% to 239.1% over the past 5 years.

Debt Coverage: 600340's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 600340's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Next Steps

Dividend

What is China Fortune Land Development current dividend yield, its reliability and sustainability?

7.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 600340's dividend (7.68%) is higher than the bottom 25% of dividend payers in the CN market (0.35%).

High Dividend: 600340's dividend (7.68%) is in the top 25% of dividend payers in the CN market (1.64%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 600340 has been paying a dividend for less than 10 years.

Growing Dividend: 600340's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.3%), 600340's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 600340's dividends in 3 years are forecast to be well covered by earnings (27.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Xiangdong Wu (53 yo)

1.67yrs

Tenure

CN¥38,689,300

Compensation

Mr. Xiangdong Wu serves as the Chief Executive Officer, President and Director at China Fortune Land Development Co., Ltd. since February 19, 2019, its Co-Chairman since March 18, 2019. He has been an Inde ...


Leadership Team

NamePositionTenureCompensationOwnership
Xiangdong Wu
Co-Chairman1.67yrsCN¥38.69m0.15%
CN¥ 88.8m
Jing Meng
Director & Co-President6.83yrsCN¥20.21m0.22%
CN¥ 132.1m
Jian Yu
Co-President1.83yrsCN¥29.00m0.095%
CN¥ 55.8m
Zhong Bing Wu
VP & CFOno dataCN¥7.06m0.075%
CN¥ 44.0m
Gang Yuan
VP & Head of Human Resources Departmentno dataCN¥6.23m0.048%
CN¥ 27.9m
Hongjing Zhao
Director & VP7.83yrsCN¥8.29m0.11%
CN¥ 63.8m
Cheng Hong Lin
Secretary of the Board of Directors4.42yrsCN¥2.90m0.029%
CN¥ 17.2m
Huaizhou Chen
Vice Presidentno dataCN¥8.63m0.052%
CN¥ 30.5m
Yi Zhang
Member of Supervisory Board & Senior Professional Director of Department of Legal Affairs6.83yrsCN¥266.50kno data
Yan Li Zheng
Employee Supervisor & Director of Financial Division3.42yrsno datano data

1.8yrs

Average Tenure

44yo

Average Age

Experienced Management: 600340's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Xiangdong Wu
Co-Chairman1.67yrsCN¥38.69m0.15%
CN¥ 88.8m
Jing Meng
Director & Co-President6.83yrsCN¥20.21m0.22%
CN¥ 132.1m
Hongjing Zhao
Director & VP7.83yrsCN¥8.29m0.11%
CN¥ 63.8m
Yi Zhang
Member of Supervisory Board & Senior Professional Director of Department of Legal Affairs6.83yrsCN¥266.50kno data
Yan Li Zheng
Employee Supervisor & Director of Financial Division3.42yrsno datano data
Wuxiang Zhu
Independent Director6.83yrsCN¥200.00kno data
Wei Wang
Director2yrsno datano data
Wenxue Wang
Chairmanno dataCN¥8.55mno data
Qifeng Zhang
Independent Director6.83yrsCN¥200.00kno data
Chang Dongjuan
Chairman of the Board of Supervisors6.83yrsCN¥448.30kno data
Sen Meng
Director2yrsno datano data
Jing Wei Wang
Independent director2.83yrsCN¥200.00kno data

6.8yrs

Average Tenure

49yo

Average Age

Experienced Board: 600340's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Fortune Land Development Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Fortune Land Development Co., Ltd.
  • Ticker: 600340
  • Exchange: SHSE
  • Founded: 1998
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: CN¥58.787b
  • Shares outstanding: 3.91b
  • Website: https://www.cfldcn.com

Number of Employees


Location

  • China Fortune Land Development Co., Ltd.
  • Tower A, Gateway Plaza
  • 7th Floor
  • Beijing
  • 100027
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
600340SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYSep 2011
600340XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYSep 2011

Biography

China Fortune Land Development Co., Ltd. engages in the investment, development, construction, and operation of new industry cities in China, Indonesia, and internationally. The company was formerly known ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 15:35
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.