DB:CHZ

Stock Analysis Report

China Resources Land

Executive Summary

China Resources Land Limited, an investment holding company, invests in, develops, manages, and sells properties in the People’s Republic of China.

Rewards

Trading at 95.6% below its fair value

Earnings are forecast to grow 7.77% per year

Earnings grew by 18.3% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Very undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

8.6%

CHZ

9.8%

DE Real Estate

9.9%

DE Market


1 Year Return

-16.9%

CHZ

-17.0%

DE Real Estate

-17.5%

DE Market

Return vs Industry: CHZ exceeded the German Real Estate industry which returned -19.9% over the past year.

Return vs Market: CHZ matched the German Market which returned -17.7% over the past year.


Shareholder returns

CHZIndustryMarket
7 Day8.6%9.8%9.9%
30 Day-10.2%-15.7%-16.6%
90 Day-20.6%-15.6%-24.8%
1 Year-13.6%-16.9%-14.7%-17.0%-15.0%-17.5%
3 Year54.0%38.9%26.7%17.0%-17.4%-24.5%
5 Year57.3%34.6%58.7%35.9%-16.6%-28.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is China Resources Land 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: CHZ (€3.54) is trading below our estimate of fair value (€81.35)

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


Price To Earnings Ratio

PE vs Industry: CHZ is good value based on its PE Ratio (6.9x) compared to the Real Estate industry average (10.6x).

PE vs Market: CHZ is good value based on its PE Ratio (6.9x) compared to the German market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: CHZ is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: CHZ is good value based on its PB Ratio (1.1x) compared to the DE Real Estate industry average (1.3x).


Next Steps

Future Growth

How is China Resources Land forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHZ's forecast earnings growth (7.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: CHZ's earnings (7.8% per year) are forecast to grow slower than the German market (14.3% per year).

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

Revenue vs Market: CHZ's revenue (16.6% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: CHZ's revenue (16.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHZ's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has China Resources Land performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHZ has a large one-off gain of CN¥10.6B impacting its December 31 2019 financial results.

Growing Profit Margin: CHZ's current net profit margins (19.4%) are lower than last year (20%).


Past Earnings Growth Analysis

Earnings Trend: CHZ's earnings have grown by 17.9% per year over the past 5 years.

Accelerating Growth: CHZ's earnings growth over the past year (18.3%) exceeds its 5-year average (17.9% per year).

Earnings vs Industry: CHZ earnings growth over the past year (18.3%) exceeded the Real Estate industry 9%.


Return on Equity

High ROE: CHZ's Return on Equity (14.7%) is considered low.


Next Steps

Financial Health

How is China Resources Land's financial position?


Financial Position Analysis

Short Term Liabilities: CHZ's short term assets (CN¥520.1B) exceed its short term liabilities (CN¥391.1B).

Long Term Liabilities: CHZ's short term assets (CN¥520.1B) exceed its long term liabilities (CN¥137.6B).


Debt to Equity History and Analysis

Debt Level: CHZ's debt to equity ratio (65.8%) is considered high.

Reducing Debt: CHZ's debt to equity ratio has reduced from 84.1% to 65.8% over the past 5 years.

Debt Coverage: CHZ's debt is well covered by operating cash flow (30.8%).

Interest Coverage: CHZ's interest payments on its debt are well covered by EBIT (40x coverage).


Balance Sheet

Inventory Level: CHZ has a high level of physical assets or inventory.

Debt Coverage by Assets: CHZ's debt is covered by short term assets (assets are 3.4x debt).


Next Steps

Dividend

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

3.76%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CHZ's dividend (3.76%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: CHZ's dividend (3.76%) is low compared to the top 25% of dividend payers in the German market (4.97%).


Stability and Growth of Payments

Stable Dividend: CHZ's dividend payments have been volatile in the past 10 years.

Growing Dividend: CHZ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.9%), CHZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHZ's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

China Resources Land has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Dawei Zhang
Vice Chairman1.25yrsCN¥9.37mno data
Xin Li
President & Executive Director2.92yrsCN¥9.12mno data
Tongdong Shen
Chief Information Officer1.25yrsCN¥1.28mno data
Ji Xie
Senior VP & Executive Director2.92yrsCN¥8.67mno data
Eva Lau
Investor Relations Managerno datano datano data
Liqiang Zhang
Senior VP & Chief Human Resources Officer2.92yrsno datano data
Feng Chi
Senior VP & Group GM of Jiangsu Region6.75yrsno datano data
Bingqi Wu
Senior VP1yrno datano data
Xiaokai Kong
Senior VP & GM of the South China Region3.67yrsno datano data
Linkang Yu
Senior Vice President1.25yrsno datano data

3.7yrs

Average Tenure

48yo

Average Age

Experienced Management: CHZ's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dawei Zhang
Vice Chairman1.25yrsCN¥9.37mno data
Xin Li
President & Executive Director2.92yrsCN¥9.12mno data
Tongdong Shen
Chief Information Officer1.25yrsCN¥1.28mno data
Ji Xie
Senior VP & Executive Director2.92yrsCN¥8.67mno data
Bingqi Wu
Senior VP1yrno datano data
Andrew Y. Yan
Independent Non-Executive Director13.67yrsCN¥303.00kno data
Biao Yan
Non-Executive Director24yrsno data0.028% CN¥7.2m
Hing Ngai Ho
Independent Non-Executive Director14.5yrsCN¥303.00kno data
Xiangming Wang
Chairman of the Board0.25yrno datano data
Kam To Wan
Independent Non-Executive Director11yrsCN¥303.00kno data

2.9yrs

Average Tenure

51yo

Average Age

Experienced Board: CHZ's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

China Resources Land Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Resources Land Limited
  • Ticker: CHZ
  • Exchange: DB
  • Founded: 1996
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$220.703b
  • Listing Market Cap: HK$25.799b
  • Shares outstanding: 7.13b
  • Website: https://www.crland.com.hk

Number of Employees


Location

  • China Resources Land Limited
  • China Resources Building
  • 46th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRBJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1996
1109SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 1996
CHZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1996
1109SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 1996
1109SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 1996
1109 NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNNov 1996
CRBJ.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2009

Biography

China Resources Land Limited, an investment holding company, invests in, develops, manages, and sells properties in the People’s Republic of China. It invests in commercial, office, hotel, and apartment properties. As of December 31, 2018, the company had land bank of 59.57 million square meters, including 50.14 million square meters for development properties and 9.43 million square meters for investment properties. It also operates hotels; offers construction, decoration, and other property development related services; and manufactures and sells furniture. The company was incorporated in 1996 and is headquartered in Wanchai, Hong Kong. China Resources Land Limited is a subsidiary of China Resources (Holdings) Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 20:50
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.