tiprankstipranks
Trending News
More News >
China Merchants Land Limited (HK:0978)
:0978
Advertisement

China Merchants Land Limited (0978) AI Stock Analysis

Compare
2 Followers

Top Page

HK:0978

China Merchants Land Limited

(Stuttgart:0978)

Rating:56Neutral
Price Target:
HK$0.50
▲(78.57%Upside)
The overall stock score of 56 reflects significant financial challenges, marked by declining revenues and high leverage, balanced somewhat by a technically positive stock trend. The negative valuation metrics present risks, especially the negative P/E ratio, which suggests underlying profitability issues.

China Merchants Land Limited (0978) vs. iShares MSCI Hong Kong ETF (EWH)

China Merchants Land Limited Business Overview & Revenue Model

Company DescriptionChina Merchants Land Limited (0978) is a prominent real estate development company based in China. It operates within the real estate sector, focusing on property development, property investment, and property management services. The company is involved in the development of residential and commercial properties, providing high-quality living spaces and business environments. As a publicly traded entity, China Merchants Land Limited is part of the China Merchants Group, a leading state-owned enterprise in China with a diverse portfolio across various industries.
How the Company Makes MoneyChina Merchants Land Limited generates revenue primarily through the sale of developed residential and commercial properties. The company engages in comprehensive real estate development projects, from land acquisition to project planning, construction, and sales. Revenue from property sales constitutes the largest portion of the company's income. Additionally, the company earns recurring income through property management services and property leasing, where it manages and leases commercial and residential properties. Strategic partnerships, particularly with its parent company, China Merchants Group, provide significant support in terms of funding, resources, and market reach, contributing to its earnings.

China Merchants Land Limited Financial Statement Overview

Summary
The company is experiencing significant financial challenges with declining revenues, negative profitability, and high leverage. Key concerns include negative net profit margin, negative operating cash flow, and high debt-to-equity ratio, which highlight the company's operational inefficiencies and financial instability.
Income Statement
45
Neutral
The income statement indicates declining performance with a significant drop in total revenue from previous years. The gross profit margin fell sharply from recent years due to decreasing gross profit. Net profit margin is negative, reflecting substantial net losses in the latest period. Additionally, the company shows negative EBIT and EBITDA margins, indicating operating challenges.
Balance Sheet
55
Neutral
The balance sheet shows a high debt-to-equity ratio, highlighting reliance on debt financing, which could pose a risk in a rising interest rate environment. Stockholders' equity has decreased over time, and the equity ratio is low, indicating limited financial buffer. Return on equity has turned negative, reflecting poor profitability.
Cash Flow
40
Negative
Cash flow metrics highlight instability, with operating cash flow turning negative, and zero free cash flow in the latest period. This raises concerns about the company's ability to generate cash from operations, which is critical for covering debt obligations and investing activities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.66B28.80B29.87B25.92B18.96B
Gross Profit985.42M3.87B4.00B4.79B4.72B
EBITDA-79.58M3.66B3.83B4.50B4.51B
Net Income-1.85B133.41M1.73B1.58B1.51B
Balance Sheet
Total Assets124.74B132.67B130.87B138.73B111.03B
Cash, Cash Equivalents and Short-Term Investments12.73B10.28B12.34B14.42B9.72B
Total Debt36.36B37.09B35.79B36.97B19.94B
Total Liabilities91.65B97.55B98.14B104.88B79.76B
Stockholders Equity8.02B9.91B9.86B9.74B9.50B
Cash Flow
Free Cash Flow6.55B-566.56M6.12B-6.13B7.66B
Operating Cash Flow6.55B-551.79M6.15B-6.11B7.67B
Investing Cash Flow592.20M-4.35B-6.57B-997.67M-16.74B
Financing Cash Flow-3.34B334.31M-1.76B11.82B9.88B

China Merchants Land Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.28
Price Trends
50DMA
0.24
Positive
100DMA
0.23
Positive
200DMA
0.25
Positive
Market Momentum
MACD
0.01
Positive
RSI
57.74
Neutral
STOCH
25.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0978, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.24, and above the 200-day MA of 0.25, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0978.

China Merchants Land Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
HK$1.37B-20.46%4.00%-29.12%-1450.50%
56
Neutral
HK$867.91M40.530.19%-4.79%-95.94%
54
Neutral
$1.19B3.64-0.79%6.13%-2.02%-153.39%
50
Neutral
€1.40B-3.45%1.15%-59.65%-290.78%
49
Neutral
$1.06B-7.26%2.20%43.92%
45
Neutral
HK$710.50M-3.41%4.10%0.96%83.98%
43
Neutral
$1.40B-118.67%-50.72%14.86%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0978
China Merchants Land Limited
0.28
0.03
12.00%
HK:0251
SEA Holdings Ltd.
1.18
-0.26
-18.06%
HK:0480
HKR International Limited
0.94
-0.20
-17.54%
HK:0488
Lai Sun Development Co
0.73
0.14
23.73%
HK:3377
Sino-Ocean Group Holding
0.13
-0.19
-60.62%
HK:0672
Zhong An Group Limited
0.15
0.06
58.76%

China Merchants Land Limited Corporate Events

China Merchants Land Limited Schedules Board Meeting for Interim Results
Aug 1, 2025

China Merchants Land Limited has announced a board meeting scheduled for August 15, 2025, to consider and approve the unaudited interim results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and potentially impact its market positioning and stakeholder interests.

China Merchants Land Limited Reports Decline in First Half 2025 Sales
Jul 25, 2025

China Merchants Land Limited reported a decrease in its unaudited operating statistics for the first half of 2025, with contracted sales dropping by 18.24% year-on-year to approximately RMB16,092.66 million. Despite a challenging market, the company saw a quarter-on-quarter increase of 43.50% in contracted sales from April to June 2025, indicating some recovery momentum.

China Merchants Land Limited Releases Supplemental Information on 2024 Connected Transactions
Jul 23, 2025

China Merchants Land Limited has released a supplemental announcement regarding its 2024 annual report, focusing on continuing connected transactions. The announcement provides detailed financial figures for various services rendered, such as REIT management, property management, and consulting services, highlighting discrepancies between projected and actual transaction amounts. This information is crucial for stakeholders to understand the company’s operational performance and financial commitments, potentially impacting its market positioning and investor relations.

China Merchants Land Limited Acquires Full Equity in Target Company
Jul 23, 2025

China Merchants Land Limited announced that its indirect wholly-owned subsidiary, Xi’an Mao On, has entered into an Equity Transfer Agreement with its controlling shareholder, CMSK, to acquire 100% equity interests in a target company for RMB45,712,100. This acquisition will make the target company an indirect wholly-owned subsidiary of China Merchants Land Limited. The transaction is classified as a connected transaction under the Hong Kong Listing Rules, requiring reporting and announcement but exempt from circular and independent shareholders’ approval due to its percentage ratios.

China Merchants Land Limited Successfully Passes AGM Resolutions
Jun 5, 2025

China Merchants Land Limited announced that all proposed resolutions at their annual general meeting on June 5, 2025, were passed with significant support. This includes the re-election of directors, re-appointment of KPMG as auditor, and granting mandates for share repurchase and issuance, reflecting strong shareholder confidence and strategic continuity.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2025