China Merchants Land Limited (0978) AI Stock Analysis

• Market Cap: €1.20B
• Dividend Yield: 4.9%
• Average Volume (3M): 430.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -29.12%
• EPS Growth: -1450.50%
• Country: HK
• Employees: 712
• Sector: Real Estate
• Sector Strength: 63
• Industry: Real Estate - Diversified
• EPS (TTM): -0.34
• Shares Outstanding: 4,905,258,000
• 10 Day Avg. Volume: 740,400
• 30 Day Avg. Volume: 430,413
• PEG Ratio: 0.15
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.39
• 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: 46 Neutral
• Price Target: ―

The overall stock score reflects significant financial challenges with declining revenues and profitability, high leverage, and negative cash flows. Technical indicators suggest a bearish trend, and valuation metrics highlight risks, mitigated slightly by a high dividend yield. These factors collectively suggest a cautious outlook for China Merchants Land Limited.

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
	EBIT
-280.39M	2.64B	3.41B	4.21B	4.21B
	EBITDA
-79.58M	3.66B	3.83B	4.50B	4.51B
	Net Income Common Stockholders
-1.85B	133.41M	1.73B	1.58B	1.51B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.73B	10.28B	12.34B	14.42B	9.72B
	Total Assets
124.74B	132.67B	130.87B	138.73B	111.03B
	Total Debt
36.36B	37.09B	35.79B	36.97B	19.94B
	Net Debt
23.63B	26.81B	23.45B	22.54B	10.22B
	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
0.00	-566.56M	6.12B	-6.13B	7.66B
	Operating Cash Flow
0.00	-551.79M	6.15B	-6.11B	7.67B
	Investing Cash Flow
0.00	-4.35B	-6.57B	-997.67M	-16.74B
	Financing Cash Flow
0.00	334.31M	-1.76B	11.82B	9.88B

China Merchants Land Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0978, the sentiment is Neutral. The current price of 0.23 is above the 20-day moving average (MA) of 0.22, 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 55.24 is Neutral, neither overbought nor oversold. The STOCH value of 63.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
0978	46 Neutral	€1.20B	―	-20.46%	4.90%	-29.12%	-1450.50%
EGRNF		$274.22M	―		―	―	―
AGPYF		$257.16M	―	-90.47%	―	―	―
CRBJF		$24.35B	6.17	9.66%	2.01%	―	―
CTRYF		$1.36B	―	-341.41%	―	―	―
GZUHF		$482.86M	―	-71.13%	―	―	―

China Merchants Land Limited Corporate Events

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.

China Merchants Land Reports Significant Revenue Decline and Net Loss for 2024

China Merchants Land Limited reported its financial results for the year ended December 31, 2024, revealing a significant decline in revenue from RMB 28.8 billion in 2023 to RMB 20.7 billion in 2024. The company also experienced a substantial net loss of RMB 1.69 billion compared to a profit of RMB 1.25 billion the previous year, attributed to various factors including impairment losses and increased allowances for expected credit losses. This downturn reflects challenges in the real estate market and could impact the company’s stakeholders and market position.

China Merchants Land Limited Reports Significant FY2024 Financial Loss

China Merchants Land Limited has announced a significant financial downturn for FY2024, with an estimated loss of approximately RMB1.9 billion compared to a profit of RMB133.4 million in the previous year. This negative performance is attributed to a substantial decrease in the carry-forward scale and gross profit margin of real estate projects, as well as the impact of the property market downturn on its joint ventures and associates.

China Merchants Land Limited Schedules Board Meeting for Annual Results

China Merchants Land Limited has announced a board meeting scheduled for March 12, 2025, to discuss and approve the annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend, which could impact shareholder returns and signal the company’s financial health.

China Merchants Land Limited Approves Key Property Management Agreement

China Merchants Land Limited announced that the resolution regarding the Property Management Master Agreement was approved at the extraordinary general meeting held on February 28, 2025. This approval allows the company to proceed with the transactions outlined in the agreement, potentially strengthening its operations and market position in the property management industry.

China Merchants Land to Seek Approval for Property Management Agreement

China Merchants Land Limited has announced an extraordinary general meeting to seek approval for a property management master agreement with China Merchants Property Management Co., Ltd. This agreement and its transactions, if approved, could potentially enhance the company’s property management operations, aligning with its strategic goals and possibly impacting its market positioning positively.