C C Land Holdings (SEHK:1224) - Share price, News & Analysis

Q: What is the Fair Price of 1224 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1224 (HK$2.01) is trading above our estimate of [[fair value]] (HK$0.3)

1224 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	1/6
Financial Health	2/6
Dividends	0/6

1224 Stock Overview

C C Land Holdings Limited, an investment holding company, invests in and develops properties in the United Kingdom, Hong Kong, and Mainland China.

Risk Analysis

Large one-off items impacting financial results

C C Land Holdings Competitors

K. Wah International Holdings

SEHK:173

HK$9.2b

China South City Holdings

SEHK:1668

HK$5.7b

Poly Property Group

SEHK:119

HK$6.0b

Beijing North Star

SEHK:588

HK$7.2b

Price History & Performance

Summary of all time highs, changes and price drops for C C Land Holdings
Historical stock prices
Current Share Price	HK$2.01
52 Week High	HK$2.08
52 Week Low	HK$1.63
Beta	-0.047
1 Month Change	1.52%
3 Month Change	-1.95%
1 Year Change	5.79%
3 Year Change	11.67%
5 Year Change	18.24%
Change since IPO	145.12%

Shareholder Returns

	1224	HK Real Estate	HK Market
7D	3.1%	0.2%	-0.5%
1Y	5.8%	-35.2%	-20.6%

Return vs Industry: 1224 exceeded the Hong Kong Real Estate industry which returned -37.3% over the past year.

Return vs Market: 1224 exceeded the Hong Kong Market which returned -21.6% over the past year.

Price Volatility

Is 1224's price volatile compared to industry and market?
1224 volatility
1224 Average Weekly Movement	2.7%
Real Estate Industry Average Movement	5.7%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.6%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 1224 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 1224's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1998	121	Peter Lam	https://www.ccland.com.hk

C C Land Holdings Limited, an investment holding company, invests in and develops properties in the United Kingdom, Hong Kong, and Mainland China. The company operates through two segments, Property Development and Investment; and Treasury Investment. It also invests in securities and notes receivable; and provides financial services, as well as engages in treasury management services.

C C Land Holdings Fundamentals Summary

How do C C Land Holdings's earnings and revenue compare to its market cap?
1224 fundamental statistics
Market Cap	HK$7.80b
Earnings (TTM)	HK$490.08m
Revenue (TTM)	HK$648.05m

15.9x

P/E Ratio

12.0x

P/S Ratio

Is 1224 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1224 income statement (TTM)
Revenue	HK$648.05m
Cost of Revenue	HK$20.67m
Gross Profit	HK$627.38m
Other Expenses	HK$137.30m
Earnings	HK$490.08m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 23, 2022

Earnings per share (EPS)	0.13
Gross Margin	96.81%
Net Profit Margin	75.62%
Debt/Equity Ratio	70.7%

How did 1224 perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

16%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 1224 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1224?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1224. This is calculated by dividing 1224's market cap by their current preferred multiple.
What is 1224's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$7.80b

1224 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	23.4x
Enterprise Value/EBITDA	53.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 1224's PE Ratio compare to its peers?

1224 PE Ratio vs Peers

The above table shows the PE ratio for 1224 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	5.4x
173 K. Wah International Holdings	2.7x	-38.6%	HK$9.2b
1668 China South City Holdings	7.5x	38.1%	HK$5.7b
119 Poly Property Group	2.4x	n/a	HK$6.0b
588 Beijing North Star	9x	n/a	HK$7.2b
1224 C C Land Holdings	15.9x	n/a	HK$7.8b

Price-To-Earnings vs Peers: 1224 is expensive based on its Price-To-Earnings Ratio (15.9x) compared to the peer average (5.4x).

Price to Earnings Ratio vs Industry

How does 1224's PE Ratio compare vs other companies in the HK Real Estate Industry?

Price-To-Earnings vs Industry: 1224 is expensive based on its Price-To-Earnings Ratio (15.9x) compared to the Hong Kong Real Estate industry average (5.6x)

Price to Earnings Ratio vs Fair Ratio

What is 1224's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1224 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1224's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 1224 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1224 (HK$2.01) is trading above our estimate of fair value (HK$0.3)

Significantly Below Fair Value: 1224 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is C C Land Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.5%

Forecasted Real Estate industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as C C Land Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Take a look at our analysis of 1224’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
C C Land Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has C C Land Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

49.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1224 has a large one-off loss of HK$304.0M impacting its December 31 2021 financial results.

Growing Profit Margin: 1224's current net profit margins (75.6%) are lower than last year (99.9%).

Past Earnings Growth Analysis

Earnings Trend: 1224 has become profitable over the past 5 years, growing earnings by 49.3% per year.

Accelerating Growth: 1224's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1224 had negative earnings growth (-16.7%) over the past year, making it difficult to compare to the Real Estate industry average (15.4%).

Return on Equity

High ROE: 1224's Return on Equity (2.7%) is considered low.

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Financial Health

How is C C Land Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1224's short term assets (HK$7.0B) do not cover its short term liabilities (HK$9.7B).

Long Term Liabilities: 1224's short term assets (HK$7.0B) exceed its long term liabilities (HK$3.8B).

Debt to Equity History and Analysis

Debt Level: 1224's net debt to equity ratio (39.7%) is considered satisfactory.

Reducing Debt: 1224's debt to equity ratio has increased from 1.7% to 70.7% over the past 5 years.

Debt Coverage: 1224's debt is not well covered by operating cash flow (2.6%).

Interest Coverage: 1224's interest payments on its debt are not well covered by EBIT (0.9x coverage).

Balance Sheet

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Dividend

What is C C Land Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1224's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.87%).

High Dividend: 1224's dividend (1%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.31%).

Stability and Growth of Payments

Stable Dividend: 1224 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1224 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 1224 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: 1224 is not paying a notable dividend for the Hong Kong market.

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Management

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

16.7yrs

Average management tenure

CEO

Peter Lam (74 yo)

23.33yrs

Tenure

HK$19,874,000

Compensation

Dr. How Mun Lam, also known as Peter, founded C C Land Holdings Limited and has been its Managing Director since April 9, 1999. Dr. Lam has responsibility for the strategic development and the overall busi...

CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD2.54M) is above average for companies of similar size in the Hong Kong market ($USD548.44K).

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

Leadership Team

Experienced Management: 1224's management team is seasoned and experienced (16.7 years average tenure).

Board Members

Experienced Board: 1224's board of directors are seasoned and experienced ( 22.4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/16 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31