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978

China Merchants Land SEHK:978 Stock Report

Last Price

HK$0.64

Market Cap

HK$3.1b

7D

1.6%

1Y

-38.5%

Updated

15 Aug, 2022

Data

Company Financials
978 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance1/6
Financial Health3/6
Dividends3/6

978 Stock Overview

China Merchants Land Limited, an investment holding company, engages in the investment, development, management, lease, and sale of properties.

China Merchants Land Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Merchants Land
Historical stock prices
Current Share PriceHK$0.64
52 Week HighHK$1.09
52 Week LowHK$0.56
Beta0.34
1 Month Change1.59%
3 Month Change-13.51%
1 Year Change-38.46%
3 Year Change-41.28%
5 Year Change-57.33%
Change since IPO-87.94%

Recent News & Updates

Shareholder Returns

978HK Real EstateHK Market
7D1.6%-1.7%-0.2%
1Y-38.5%-37.3%-21.6%

Return vs Industry: 978 underperformed the Hong Kong Real Estate industry which returned -36.4% over the past year.

Return vs Market: 978 underperformed the Hong Kong Market which returned -21.6% over the past year.

Price Volatility

Is 978's price volatile compared to industry and market?
978 volatility
978 Average Weekly Movement6.0%
Real Estate Industry Average Movement5.8%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.6%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 978 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 978's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1997962n/ahttps://www.cmland.hk

China Merchants Land Limited, an investment holding company, engages in the investment, development, management, lease, and sale of properties. The company operates through Properties and Asset Management segments. Its property portfolio includes residential properties; and residential and commercial complex properties, such as apartments, villas, offices, retail shops, etc. The company also offers asset management services for office premises and shopping malls.

China Merchants Land Fundamentals Summary

How do China Merchants Land's earnings and revenue compare to its market cap?
978 fundamental statistics
Market CapCN¥2.70b
Earnings (TTM)CN¥560.57m
Revenue (TTM)CN¥25.92b

4.8x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
978 income statement (TTM)
RevenueCN¥25.92b
Cost of RevenueCN¥21.13b
Gross ProfitCN¥4.79b
Other ExpensesCN¥4.23b
EarningsCN¥560.57m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 18, 2022

Earnings per share (EPS)0.11
Gross Margin18.49%
Net Profit Margin2.16%
Debt/Equity Ratio140.4%

How did 978 perform over the long term?

See historical performance and comparison

Dividends

8.8%

Current Dividend Yield

40%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 978 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 978?

Other financial metrics that can be useful for relative valuation.

978 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/Revenue2.5x
Enterprise Value/EBITDA16.4x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 978's PE Ratio compare to its peers?

978 PE Ratio vs Peers
The above table shows the PE ratio for 978 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average0.8x
2772 Zhongliang Holdings Group
1x5.7%HK$3.2b
1966 China SCE Group Holdings
0.8x1.1%HK$2.9b
337 Greenland Hong Kong Holdings
1xn/aHK$2.5b
1238 Powerlong Real Estate Holdings
0.6x-7.6%HK$4.0b
978 China Merchants Land
4.8xn/aHK$3.1b

Price-To-Earnings vs Peers: 978 is expensive based on its Price-To-Earnings Ratio (4.8x) compared to the peer average (0.8x).


Price to Earnings Ratio vs Industry

How does 978's PE Ratio compare vs other companies in the HK Real Estate Industry?

Price-To-Earnings vs Industry: 978 is good value based on its Price-To-Earnings Ratio (4.8x) compared to the Hong Kong Real Estate industry average (5.7x)


Price to Earnings Ratio vs Fair Ratio

What is 978'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.

978 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 978's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 978 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 978 (HK$0.64) is trading below our estimate of fair value (HK$0.84)

Significantly Below Fair Value: 978 is trading below fair value by more than 20%.


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 China Merchants Land 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


9.3%

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 China Merchants Land 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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  • Examine whether China Merchants Land is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • China Merchants Land competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has China Merchants Land 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


-7.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 978 has high quality earnings.

Growing Profit Margin: 978's current net profit margins (2.2%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: 978's earnings have declined by 7.6% per year over the past 5 years.

Accelerating Growth: 978's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 978 had negative earnings growth (-20.1%) over the past year, making it difficult to compare to the Real Estate industry average (15.4%).


Return on Equity

High ROE: 978's Return on Equity (4.7%) is considered low.


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Financial Health

How is China Merchants Land's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 978's short term assets (CN¥113.4B) exceed its short term liabilities (CN¥75.6B).

Long Term Liabilities: 978's short term assets (CN¥113.4B) exceed its long term liabilities (CN¥29.3B).


Debt to Equity History and Analysis

Debt Level: 978's net debt to equity ratio (97.8%) is considered high.

Reducing Debt: 978's debt to equity ratio has increased from 124.2% to 140.4% over the past 5 years.

Debt Coverage: 978's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 978's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet


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Dividend

What is China Merchants Land current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


8.82%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 978's dividend (8.82%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.85%).

High Dividend: 978's dividend (8.82%) is in the top 25% of dividend payers in the Hong Kong market (8.26%)


Stability and Growth of Payments

Stable Dividend: 978 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 978's dividend payments have increased, but the company has only paid a dividend for 8 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40.3%), 978's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 978 is paying a dividend but the company has no free cash flows.


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Management

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

4.6yrs

Average management tenure


CEO

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


Leadership Team

Experienced Management: 978's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: 978's board of directors are seasoned and experienced ( 10.2 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.


Top Shareholders

Company Information

China Merchants Land Limited's employee growth, exchange listings and data sources


Key Information

  • Name: China Merchants Land Limited
  • Ticker: 978
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Implied Market Cap: HK$3.139b
  • Shares outstanding: 4.91b
  • Website: https://www.cmland.hk

Number of Employees


Location

  • China Merchants Land Limited
  • China Merchants Tower
  • 26th Floor, Room 2603 to 2606
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.