China Merchants Land Limited (0978) AI Stock Analysis

• Market Cap: €1.17B
• Dividend Yield: 5.02%
• Average Volume (3M): 658.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: -29.12%
• EPS Growth: -1450.50%
• Country: HK
• Employees: 712
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Diversified
• EPS (TTM): -0.34
• Shares Outstanding: 4,905,258,000
• 10 Day Avg. Volume: 625,000
• 30 Day Avg. Volume: 658,773
• PEG Ratio: <0.01
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The most significant factor affecting the stock score is the company's weak financial performance, characterized by high leverage and negative profitability. Technical analysis provides a mixed outlook with neutral momentum signals, while valuation metrics are challenging due to negative earnings, albeit with a high dividend yield. These factors collectively result in a below-average overall stock score.

China Merchants Land Limited Business Overview & Revenue Model

Company Description

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, 2021, it had a portfolio of 50 property development projects in Guangzhou, Foshan, Chongqing, Xi'an, Nanjing, and Jurong; and a land bank of approximately 5,406,063 square meters. The company was formerly known as Tonic Industries Holdings Limited. The company was incorporated in 1997 and is headquartered in Central, Hong Kong. China Merchants Land Limited is a subsidiary of Success Well Investments Limited.

How the Company Makes Money

China Merchants Land Limited generates revenue through several key streams: the sale of developed residential and commercial properties, rental income from leased properties, and property management services. The company benefits from its affiliation with China Merchants Group, which provides strategic advantages and access to prime development opportunities. By focusing on high-demand urban areas and leveraging its extensive industry expertise, China Merchants Land Limited capitalizes on property value appreciation and rental yields to drive its revenue growth.

China Merchants Land Limited Financial Statement Overview

Summary

China Merchants Land Limited faces financial challenges marked by declining revenues, negative profitability, and high leverage. The company must address operational inefficiencies and improve cash flow generation to ensure sustainability. The high debt levels and eroding equity pose risks in maintaining financial stability.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.66B	28.80B	29.87B	25.92B	18.96B
Gross Profit	985.42M	3.87B	4.00B	4.79B	4.72B
EBITDA	-79.58M	3.66B	3.83B	4.50B	4.51B
Net Income	-1.85B	133.41M	1.73B	1.58B	1.51B
Balance Sheet
Total Assets	124.74B	132.67B	130.87B	138.73B	111.03B
Cash, Cash Equivalents and Short-Term Investments	12.73B	10.28B	12.34B	14.42B	9.72B
Total Debt	36.36B	37.09B	35.79B	36.97B	19.94B
Total Liabilities	91.65B	97.55B	98.14B	104.88B	79.76B
Stockholders Equity	8.02B	9.91B	9.86B	9.74B	9.50B
Cash Flow
Free Cash Flow	6.55B	-566.56M	6.12B	-6.13B	7.66B
Operating Cash Flow	6.55B	-551.79M	6.15B	-6.11B	7.67B
Investing Cash Flow	592.20M	-4.35B	-6.57B	-997.67M	-16.74B
Financing Cash Flow	-3.34B	334.31M	-1.76B	11.82B	9.88B

China Merchants Land Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.24 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.22, and below the 200-day MA of 0.25, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.33 is Neutral, neither overbought nor oversold. The STOCH value of 89.96 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$6.99B	18.83	-1.16%	6.86%	4.65%	-25.28%
0978	47 Neutral	€1.17B	―	-20.46%	5.02%	-29.12%	-1450.50%
LVSDF		$98.13M	―	-7.26%	―	―	―
SIOLF		$122.86M	―	-118.67%	―	―	―
0251	45 Neutral	HK$734.59M	―	-3.41%	4.92%	0.96%	83.98%
HKR		€147.79M	―	-3.45%	1.37%	―	―
35Z		€65.83M	37.50	0.19%	―	―	―

China Merchants Land Limited Corporate Events

China Merchants Land Limited Successfully Passes AGM Resolutions

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.

China Merchants Land Reports Q1 2025 Sales Decline

China Merchants Land Limited reported unaudited operating statistics for the first quarter of 2025, indicating a slight decline in performance. The company achieved contracted sales of approximately RMB6,608.89 million, a 0.93% decrease year-on-year, with a sales area of 272,056 square meters, down 8.43% from the previous year. These figures, based on preliminary internal data, suggest a challenging market environment, urging investors to exercise caution.

China Merchants Land Limited Announces 2025 AGM and Key Resolutions

China Merchants Land Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 5, 2025, in Hong Kong. The meeting will address several key issues, including the adoption of the company’s audited financial statements for 2024, the re-election of certain directors, and the re-appointment of KPMG as the company’s auditor. Additionally, the AGM will consider resolutions to authorize the repurchase of shares, which could impact the company’s stock market activities and shareholder value.