SEHK:1109

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet, good value 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


Market Performance


7 Day Return

7.7%

1109

1.9%

HK Real Estate

2.2%

HK Market


1 Year Return

39.3%

1109

6.9%

HK Real Estate

-1.3%

HK Market

Return vs Industry: 1109 exceeded the Hong Kong Real Estate industry which returned 6.9% over the past year.

Return vs Market: 1109 exceeded the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

1109IndustryMarket
7 Day7.7%1.9%2.2%
30 Day7.1%-0.6%-2.1%
90 Day3.2%-11.2%-5.6%
1 Year44.7%39.3%11.0%6.9%2.3%-1.3%
3 Year103.7%84.0%37.6%23.3%15.6%3.9%
5 Year142.3%101.0%59.6%34.0%20.1%0.06%

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

Valuation

Is China Resources Land undervalued based on future cash flows and its price relative to the stock market?

41%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: 1109 (HK$35.65) is trading below our estimate of fair value (HK$60.71)

Significantly Undervalued: 1109 is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: 1109 is poor value based on its PE Ratio (7.9x) compared to the Real Estate industry average (6.1x).

PE vs Market: 1109 is good value based on its PE Ratio (7.9x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: 1109 is good value based on its PEG Ratio (0.6x)


Price Based on Value of Assets

PB vs Industry: 1109 is overvalued based on its PB Ratio (1.5x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is China Resources Land expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 1109's forecast earnings growth (13.7% per year) is above the savings rate (2%).

Earnings vs Market: 1109's earnings (13.7% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: 1109's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1109's revenue (20.9% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 1109's revenue (20.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 1109's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

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

17.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1109's earnings have grown by 17.2% per year over the past 5 years.

Accelerating Growth: 1109's earnings growth over the past year (17%) is below its 5-year average (17.2% per year).

Earnings vs Industry: 1109 earnings growth over the past year (17%) exceeded the Real Estate industry -12.4%.


Return on Equity

High ROE: 1109's Return on Equity (16.4%) is considered low.


Return on Assets

ROA vs Industry: 1109 has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 1109's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is China Resources Land's financial position?


Financial Position Analysis

Short Term Liabilities: 1109's short term assets (HK$505.7B) exceeds its short term liabilities (HK$385.2B)

Long Term Liabilities: 1109's short term assets (HK$505.7B) exceeds its long term liabilities (HK$151.8B)


Debt to Equity History and Analysis

Debt Level: 1109's debt to equity ratio (78.2%) is considered high

Reducing Debt: 1109's debt to equity ratio has reduced from 81.1% to 78.2% over the past 5 years.

Debt Coverage: 1109's debt is well covered by operating cash flow (31.8%).

Interest Coverage: 1109 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1109 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1109's debt is covered by short term assets (assets are 3.404340x debt).


Next Steps

Dividend

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

4.41%

Expected Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%2.3%markettop25%6.3%industryaverage4.4%forecastin3Years4.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 1109's dividend (3.38%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1109's dividend (3.38%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: 1109's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1109's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.6%), 1109's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1109's dividends in 3 years are forecast to be well covered by earnings (35.2% payout ratio).


Next Steps

Management

What is the CEO of China Resources Land's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

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


Management Age and Tenure

3.3yrs

Average Tenure

48yo

Average Age

Experienced Management: 1109's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

51yo

Average Age

Experienced Board: 1109's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Yong Tang (47yo)

    Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: CN¥10.28m
  • Ji Xie (47yo)

    Senior VP & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥8.67m
  • Xin Li (48yo)

    President & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥9.12m
  • Eva Lau

    Investor Relations Manager

    • Tenure: 0yrs
  • Dawei Zhang (51yo)

    Vice Chairman

    • Tenure: 0.8yrs
    • Compensation: CN¥9.37m
  • Feng Chi (46yo)

    Senior VP & Group GM of Jiangsu Region

    • Tenure: 6.3yrs
  • Bingqi Wu (47yo)

    Senior VP

    • Tenure: 0.7yrs
  • Xiaokai Kong (50yo)

    Senior VP & GM of the South China Region

    • Tenure: 3.3yrs
  • Tongdong Shen (51yo)

    Chief Information Officer

    • Tenure: 0.8yrs
    • Compensation: CN¥1.28m
  • Liqiang Zhang (53yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 2.5yrs

Board Members

  • Andy Yan (62yo)

    Independent Non-Executive Director

    • Tenure: 13.3yrs
    • Compensation: CN¥303.00k
  • Biao Yan (57yo)

    Non-Executive Director

    • Tenure: 23.7yrs
  • Yong Tang (47yo)

    Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: CN¥10.28m
  • Ji Xie (47yo)

    Senior VP & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥8.67m
  • Xin Li (48yo)

    President & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥9.12m
  • Bosco Ho (74yo)

    Independent Non-Executive Director

    • Tenure: 14.1yrs
    • Compensation: CN¥303.00k
  • Kam To Wan (66yo)

    Independent Non-Executive Director

    • Tenure: 10.6yrs
    • Compensation: CN¥303.00k
  • Dawei Zhang (51yo)

    Vice Chairman

    • Tenure: 0.8yrs
    • Compensation: CN¥9.37m
  • Bingqi Wu (47yo)

    Senior VP

    • Tenure: 0.7yrs
  • Tongdong Shen (51yo)

    Chief Information Officer

    • Tenure: 0.8yrs
    • Compensation: CN¥1.28m

Company Information

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


Key Information

  • Name: China Resources Land Limited
  • Ticker: 1109
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$247.088b
  • Shares outstanding: 6.93b
  • 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
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 pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 12:35
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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