SEHK:1107

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Executive Summary

Modern Land (China) Co., Limited, an investment holding company, engages in the real estate development, property investment, hotel operation, real estate agency, and other services in the People’s Republic of China and the United States.


Snowflake Analysis

Undervalued with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1107's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.0%

1107

3.9%

HK Real Estate

3.4%

HK Market


1 Year Return

-7.2%

1107

-14.7%

HK Real Estate

-7.8%

HK Market

Return vs Industry: 1107 exceeded the Hong Kong Real Estate industry which returned -17.9% over the past year.

Return vs Market: 1107 exceeded the Hong Kong Market which returned -9.9% over the past year.


Shareholder returns

1107IndustryMarket
7 Day-1.0%3.9%3.4%
30 Day-1.9%-4.7%-1.4%
90 Day-6.4%-11.0%-5.8%
1 Year-2.3%-7.2%-11.0%-14.7%-4.8%-7.8%
3 Year9.0%-7.1%9.3%-2.9%-2.6%-12.4%
5 Year1.0%-19.6%15.1%-4.4%-13.6%-27.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Modern Land (China) 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: 1107 (HK$1.03) is trading below our estimate of fair value (HK$2.49)

Significantly Below Fair Value: 1107 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1107 is good value based on its PE Ratio (3.6x) compared to the Real Estate industry average (6.2x).

PE vs Market: 1107 is good value based on its PE Ratio (3.6x) compared to the Hong Kong market (9.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1107 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 1107 is overvalued based on its PB Ratio (0.4x) compared to the HK Real Estate industry average (0.4x).


Next Steps

Future Growth

How is Modern Land (China) forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

23.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1107's forecast earnings growth (23.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 1107's earnings (23.7% per year) are forecast to grow faster than the Hong Kong market (16.6% per year).

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

Revenue vs Market: 1107's revenue (18% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).

High Growth Revenue: 1107's revenue (18% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1107's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has Modern Land (China) performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1107 has high quality earnings.

Growing Profit Margin: 1107's current net profit margins (5%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: 1107's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: 1107's earnings growth over the past year (39.2%) exceeds its 5-year average (1.7% per year).

Earnings vs Industry: 1107 earnings growth over the past year (39.2%) exceeded the Real Estate industry 2.8%.


Return on Equity

High ROE: 1107's Return on Equity (12.3%) is considered low.


Next Steps

Financial Health

How is Modern Land (China)'s financial position?


Financial Position Analysis

Short Term Liabilities: 1107's short term assets (CN¥56.7B) exceed its short term liabilities (CN¥50.3B).

Long Term Liabilities: 1107's short term assets (CN¥56.7B) exceed its long term liabilities (CN¥9.6B).


Debt to Equity History and Analysis

Debt Level: 1107's debt to equity ratio (262.7%) is considered high.

Reducing Debt: 1107's debt to equity ratio has increased from 139.4% to 262.7% over the past 5 years.

Debt Coverage: 1107's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1107's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Modern Land (China)'s current dividend yield, its reliability and sustainability?

7.00%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 1107's dividend (7%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.59%).

High Dividend: 1107's dividend (7%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.38%).


Stability and Growth of Payments

Stable Dividend: 1107 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1107's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.8%), 1107's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1107's dividends in 3 years are forecast to be well covered by earnings (20.5% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Peng Zhang (44yo)

6.33yrs

Tenure

CN¥5,290,000

Compensation

Mr. Peng Zhang has been President and Executive Director at Modern Land (China) Co., Ltd., since January 2014. Mr. Peng Zhang serves as Chairman at First Moma Asset Management (Beijing) Co., Ltd. He serves ...


CEO Compensation Analysis

Compensation vs Market: Peng's total compensation ($USD741.25K) is above average for companies of similar size in the Hong Kong market ($USD422.19K).

Compensation vs Earnings: Peng's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lei Zhang
Chairman8.83yrsCN¥5.50m65.8% CN¥1.9b
Peng Zhang
President & Executive Director6.33yrsCN¥5.29m0.44% CN¥12.7m
Yin Chen
CTO, Head of Research & Development Department and Executive Director8.83yrsCN¥1.58m0.25% CN¥7.1m
Ren Yu Deng
Company Secretary1yrno datano data
Tsz Kin Lam
Compliance Consultant1yrno datano data

1.0yrs

Average Tenure

44yo

Average Age

Experienced Management: 1107's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Lei Zhang
Chairman8.83yrsCN¥5.50m65.8% CN¥1.9b
Peng Zhang
President & Executive Director6.33yrsCN¥5.29m0.44% CN¥12.7m
Yin Chen
CTO, Head of Research & Development Department and Executive Director8.83yrsCN¥1.58m0.25% CN¥7.1m
Chun Ho Hui
Independent Non-Executive Director6.83yrsCN¥180.00kno data
Qingguo Fan
Non-Executive Director8.83yrsCN¥160.00k0.21% CN¥6.2m
Youguo Qin
Independent Non-Executive Director6.83yrsCN¥180.00kno data
Jian Cui
Independent Non-Executive Director6.83yrsCN¥180.00kno data
Junhao Xu
Independent Directorno datano datano data
Zhiwei Chen
Non-Executive Director3.42yrsno datano data
Bin Zhong
Independent Non-Executive Director3.33yrsCN¥180.00kno data

6.8yrs

Average Tenure

48yo

Average Age

Experienced Board: 1107'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: 1107 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

Modern Land (China) Co., Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Modern Land (China) Co., Limited
  • Ticker: 1107
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$2.879b
  • Shares outstanding: 2.79b
  • Website: https://www.modernland.hk

Number of Employees


Location

  • Modern Land (China) Co., Limited
  • Mega Hall
  • Building 10, 4th Floor
  • Beijing
  • 100028
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1107SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2013

Biography

Modern Land (China) Co., Limited, an investment holding company, engages in the real estate development, property investment, hotel operation, real estate agency, and other services in the People’s Republic of China and the United States. It also offers technology development, consulting, and real estate brokerage, immigration advisory services. The company was founded in 2000 and is headquartered in Beijing, the People’s Republic of China. Modern Land (China) Co., Limited is a subsidiary of Cititrust Private Trust (Cayman) Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 13:27
End of Day Share Price2020/05/29 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.