China Merchants Land Limited (0978) AI Stock Analysis

• Market Cap: €1.50B
• Dividend Yield: 3.93%
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: -16.06%
• EPS Growth: -529.92%
• Country: HK
• Employees: 712
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): -0.05
• Shares Outstanding: 4,905,258,000
• 10 Day Avg. Volume: 1,388,420
• 30 Day Avg. Volume: 1,677,040
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €0.46
• Price Target Upside: 53.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: HK$0.50 ▲(66.67% 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 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 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's financial performance is weak, evidenced by declining revenues, negative profitability, and high leverage. The negative EBIT and EBITDA margins along with operating cash flow turning negative highlight significant operational and financial challenges.

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: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 0.3 is below the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.29, and above the 200-day MA of 0.25, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.51 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0978	56 Neutral	€1.50B	―	-20.96%	3.93%	-16.06%	-529.92%
0672	56 Neutral	845.37M	36.59	0.19%	―	-43.28%	-93.81%
0480	51 Neutral	1.49B	-1.89	-3.50%	―	-55.51%	-67.95%
0251	48 Neutral	740.61M	-3.31	-3.48%	4.07%	-1.22%	54.17%
0488	48 Neutral	1.00B	-0.52	0.00%	―	2.20%	43.92%
3377	41 Neutral	2.02B	-0.28	147.12%	―	-57.94%	45.77%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

China Merchants Land Limited Corporate Events

China Merchants Land Reports Interim Loss Amid Revenue Decline

China Merchants Land Limited reported its unaudited interim results for the first half of 2025, showing a decrease in revenue compared to the same period in 2024. Despite a gross profit increase, the company faced a net loss due to higher administrative expenses and income tax, impacting its financial performance and shareholder returns.

China Merchants Land Limited Updates on Strategic Acquisition

China Merchants Land Limited has announced a supplemental update regarding its acquisition of 100% equity interests in a target company. The acquisition, valued at RMB45,712,100, was based on an asset valuation report prepared by an independent valuer. The valuation was conducted using the asset-based approach due to the availability of comprehensive asset and liability information, while other approaches were not deemed suitable. This acquisition reflects the company’s strategic move to consolidate its holdings, potentially impacting its market position and offering insights into its future operational strategies.

China Merchants Land Limited Schedules Board Meeting for Interim Results

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

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

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

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

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.