SHSE:600340

Stock Analysis Report

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.

Rewards

PE ratio (4.9x) is below the CN market (33.7x)

Earnings are forecast to grow 25.11% per year

Earnings grew by 29.8% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Exceptional growth potential 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

1.1%

600340

1.9%

CN Real Estate

4.3%

CN Market


1 Year Return

-35.4%

600340

-23.3%

CN Real Estate

-7.0%

CN Market

Return vs Industry: 600340 underperformed the CN Real Estate industry which returned -23.3% over the past year.

Return vs Market: 600340 underperformed the CN Market which returned -7% over the past year.


Shareholder returns

600340IndustryMarket
7 Day1.1%1.9%4.3%
30 Day-12.7%-6.9%-4.8%
90 Day-21.9%-12.7%-5.1%
1 Year-32.8%-35.4%-21.0%-23.3%-5.4%-7.0%
3 Year-46.9%-51.4%-22.4%-27.4%-10.0%-13.6%
5 Year-13.1%-22.7%-30.7%-36.1%-19.6%-24.6%

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?

4.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 600340 (CN¥21.58) is trading above our estimate of fair value (CN¥19.71)

Significantly Below Fair Value: 600340 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 600340 is good value based on its PE Ratio (4.9x) compared to the Real Estate industry average (12.8x).

PE vs Market: 600340 is good value based on its PE Ratio (4.9x) compared to the CN market (33.7x).


Price to Earnings Growth Ratio

PEG Ratio: 600340 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 600340 is overvalued based on its PB Ratio (1.4x) compared to the CN Real Estate industry average (1.1x).


Next Steps

Future Growth

How is China Fortune Land Development forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

25.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600340's forecast earnings growth (25.1% per year) is above the savings rate (3.2%).

Earnings vs Market: 600340's earnings (25.1% per year) are forecast to grow faster than the CN market (20.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 600340's revenue (24.4% per year) is forecast to grow faster than the CN market (15.8% per year).

High Growth Revenue: 600340's revenue (24.4% per year) is forecast to grow faster 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 (30.1%)


Next Steps

Past Performance

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

27.8%

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 (13.2%) are lower than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: 600340's earnings have grown significantly by 27.8% per year over the past 5 years.

Accelerating Growth: 600340's earnings growth over the past year (29.8%) exceeds its 5-year average (27.8% per year).

Earnings vs Industry: 600340 earnings growth over the past year (29.8%) exceeded the Real Estate industry 7.2%.


Return on Equity

High ROE: Whilst 600340's Return on Equity (20.5%) is high, this metric is skewed due to their high level of debt.


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¥402.4B) exceed its short term liabilities (CN¥252.8B).

Long Term Liabilities: 600340's short term assets (CN¥402.4B) exceed its long term liabilities (CN¥125.5B).


Debt to Equity History and Analysis

Debt Level: 600340's debt to equity ratio (265.5%) is considered high.

Reducing Debt: 600340's debt to equity ratio has increased from 180.8% to 265.5% 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 (56.4x coverage).


Balance Sheet


Next Steps

Dividend

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

5.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 600340's dividend (5.56%) is higher than the bottom 25% of dividend payers in the CN market (0.44%).

High Dividend: 600340's dividend (5.56%) is in the top 25% of dividend payers in the CN market (1.96%)


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.1%), 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 (31.4% payout ratio).


Next Steps

Management

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


CEO

Jing Meng (52yo)

no data

Tenure

Mr. Jing Meng serves as the President at China Fortune Land Development Co., Ltd. Mr. Meng served as the Chief Executive Officer of China Fortune Land Development Co., Ltd. He served as a Manager of the Hu ...


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¥65.027b
  • Shares outstanding: 3.01b
  • 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 as China Fortune Real Estate Development Co., Ltd. and changed its name to China Fortune Land Development Co., Ltd. in December 2007. The company was founded in 1998 and is headquartered in Beijing, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 17:59
End of Day Share Price2020/04/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.