China Merchants Land
Market Cap
HK$7.0b
Last Updated
2020/07/09 12:39 UTC
Data Sources
Company Financials
Executive Summary
China Merchants Land Limited, an investment holding company, engages in the investment, development, management, lease, and sale of properties.
Rewards
Risk Analysis
Snowflake Analysis
Good value with proven track record.
Share Price & News
How has China Merchants Land's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 978 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
10.2%
978
1.5%
HK Real Estate
6.6%
HK Market
1 Year Return
21.6%
978
-11.2%
HK Real Estate
0.6%
HK Market
Return vs Industry: 978 exceeded the Hong Kong Real Estate industry which returned -9.6% over the past year.
Return vs Market: 978 exceeded the Hong Kong Market which returned 0.2% over the past year.
Shareholder returns
| 978 | Industry | Market | |
|---|---|---|---|
| 7 Day | 10.2% | 1.5% | 6.6% |
| 30 Day | 16.5% | 3.5% | 8.1% |
| 90 Day | 10.2% | 6.1% | 13.9% |
| 1 Year | 36.6%21.6% | -6.4%-11.2% | 4.7%0.6% |
| 3 Year | 10.1%-13.5% | 20.7%6.2% | 9.7%-2.2% |
| 5 Year | 17.1%-11.3% | 40.1%14.8% | 12.5%-6.4% |
Price Volatility Vs. Market
How volatile is China Merchants Land's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
China Merchants Land (HKG:978) Takes On Some Risk With Its Use Of Debt1 month ago | Simply Wall St
Investors Who Bought China Merchants Land (HKG:978) Shares Five Years Ago Are Now Down 47%2 months ago | Simply Wall St
Here's What China Merchants Land Limited's (HKG:978) P/E Ratio Is Telling UsValuation
Is China Merchants 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: 978 (HK$1.41) is trading below our estimate of fair value (HK$7.18)
Significantly Below Fair Value: 978 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 978 is good value based on its PE Ratio (3.5x) compared to the Real Estate industry average (7.2x).
PE vs Market: 978 is good value based on its PE Ratio (3.5x) compared to the Hong Kong market (10.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 978's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 978 is overvalued based on its PB Ratio (0.7x) compared to the HK Real Estate industry average (0.5x).
Next Steps
Future Growth
How is China Merchants Land forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
12.6%
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.
Next Steps
- 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.
- Explore growth companies in the Real Estate industry.
Past Performance
How has China Merchants Land performed over the past 5 years?
33.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 978 has high quality earnings.
Growing Profit Margin: 978's current net profit margins (9.2%) are lower than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: 978's earnings have grown significantly by 33.8% per year over the past 5 years.
Accelerating Growth: 978's earnings growth over the past year (47.6%) exceeds its 5-year average (33.8% per year).
Earnings vs Industry: 978 earnings growth over the past year (47.6%) exceeded the Real Estate industry 3.9%.
Return on Equity
High ROE: 978's Return on Equity (9.4%) is considered low.
Next Steps
Financial Health
How is China Merchants Land's financial position?
Financial Position Analysis
Short Term Liabilities: 978's short term assets (CN¥73.8B) exceed its short term liabilities (CN¥42.1B).
Long Term Liabilities: 978's short term assets (CN¥73.8B) exceed its long term liabilities (CN¥17.5B).
Debt to Equity History and Analysis
Debt Level: 978's debt to equity ratio (88.9%) is considered high.
Reducing Debt: 978's debt to equity ratio has increased from 88% to 88.9% over the past 5 years.
Debt Coverage: 978's debt is not well covered by operating cash flow (12.8%).
Interest Coverage: 978's interest payments on its debt are well covered by EBIT (14.1x coverage).
Balance Sheet
Next Steps
Dividend
What is China Merchants Land current dividend yield, its reliability and sustainability?
10.19%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 978's dividend (10.19%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 978's dividend (10.19%) is in the top 25% of dividend payers in the Hong Kong market (6.61%)
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (35.5%), 978's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
China Merchants Land has no CEO, or we have no data on them.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Director | 9.58yrs | CN¥35.00k | 0.65% CN¥45.8m | |
| GM & Executive Director | 8.08yrs | CN¥2.28m | no data | |
| Executive Director | 4.33yrs | CN¥37.00k | no data | |
| Financial Controller | 2.5yrs | no data | no data | |
| General Director of Investment & Development | 4yrs | no data | no data | |
| Company Secretary | 1.17yrs | no data | no data |
2.5yrs
Average Tenure
43.5yo
Average Age
Experienced Management: 978's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Director | 9.58yrs | CN¥35.00k | 0.65% CN¥45.8m | |
| GM & Executive Director | 8.08yrs | CN¥2.28m | no data | |
| Executive Director | 4.33yrs | CN¥37.00k | no data | |
| Independent Non-Executive Director | 8.08yrs | CN¥119.00k | no data | |
| Independent Non-Executive Director | 8.08yrs | CN¥119.00k | no data | |
| Independent Non-Executive Director | 8.08yrs | CN¥119.00k | no data | |
| Non-Executive Director | 8.08yrs | CN¥35.00k | no data | |
| Chairman | 4.33yrs | CN¥35.00k | no data | |
| Non-Executive Director | 4.33yrs | CN¥35.00k | no data | |
| Independent Non-Executive Director | 6.67yrs | CN¥119.00k | no data |
8.1yrs
Average Tenure
58.5yo
Average Age
Experienced Board: 978's board of directors are considered experienced (8.1 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 company bio, 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
- Market Cap: HK$7.015b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 978 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Oct 1997 |
| TNY1 | BST (Boerse-Stuttgart) | Yes | Ordinary Shares | DE | EUR | Oct 1997 |
Biography
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. As of December 31, 2019, its portfolio of property development projects includes 33 projects in Foshan, Guangzhou, Chongqing, Nanjing, Jurong, and Xi’an; and a land bank of approximately 5,954,429 square metres. The company was formerly known as Tonic Industries Holdings Limited. China Merchants Land Limited was founded in 1997 and is headquartered in Central, Hong Kong.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/09 12:39 |
| End of Day Share Price | 2020/07/09 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.