China Merchants Land Limited (0978) AI Stock Analysis

• Market Cap: HK$1.35B
• Dividend Yield: 4.36%
• Average Volume (3M): 1.03M
• 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: 702,400
• 30 Day Avg. Volume: 1,026,006
• PEG Ratio: <0.01
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 0.19
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$0.50 ▲(92.31% Upside)

The overall stock score reflects significant financial challenges, with declining revenues and high leverage being major concerns. Technical analysis shows mixed signals, with some short-term volatility. The negative P/E ratio highlights profitability issues, although the dividend yield offers some appeal. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strategic Partnerships

Partnerships with China Merchants Group enhance resource access and market reach, supporting long-term growth and stability.

Recurring Income Streams

Recurring income from property management and leasing provides a stable revenue base, reducing reliance on volatile property sales.

Parent Company Support

Being part of a major state-owned enterprise offers financial backing and credibility, aiding in navigating industry challenges.

Negative Factors

Declining Revenues

Decreasing revenues indicate challenges in market demand or competitiveness, impacting long-term growth prospects.

High Leverage

High leverage can strain financial flexibility, especially in rising interest rate environments, affecting long-term sustainability.

Negative Cash Flow

Negative cash flow raises concerns about the company's ability to meet obligations and invest in growth, threatening financial health.

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 residential and commercial properties. The company's revenue model is centered on property development, where it acquires land, develops real estate projects, and sells these properties to end-users or investors. Additionally, the company earns income from property leasing and management services, providing a steady stream of revenue from its commercial properties. Partnerships with local governments and other enterprises also play a crucial role in securing land acquisition and development projects, contributing to the company's earnings. The growing demand for housing and urban infrastructure in China further enhances its revenue potential.

China Merchants Land Limited Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenues, negative profitability, and high leverage. The income statement shows negative net profit margins, and the balance sheet reveals a high debt-to-equity ratio. Cash flow issues are evident with negative operating cash flow and zero free cash flow, raising concerns about financial sustainability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.32B	20.66B	28.80B	29.87B	25.92B	18.96B
Gross Profit	1.03B	985.42M	3.87B	4.00B	4.79B	4.72B
EBITDA	-73.25M	-79.58M	3.66B	3.83B	4.50B	4.51B
Net Income	-1.75B	-1.85B	133.41M	329.66M	560.57M	701.26M
Balance Sheet
Total Assets	135.97B	124.74B	132.67B	130.87B	138.73B	111.03B
Cash, Cash Equivalents and Short-Term Investments	14.52B	12.73B	10.28B	12.34B	14.42B	9.72B
Total Debt	34.80B	36.36B	37.09B	35.79B	36.97B	19.94B
Total Liabilities	102.16B	91.65B	97.55B	98.14B	104.88B	79.76B
Stockholders Equity	7.75B	8.02B	9.91B	9.86B	9.74B	9.50B
Cash Flow
Free Cash Flow	4.73B	6.55B	-566.56M	6.12B	-6.13B	7.66B
Operating Cash Flow	4.73B	6.55B	-551.79M	6.15B	-6.11B	7.67B
Investing Cash Flow	3.66B	592.20M	-4.35B	-6.57B	-997.67M	-16.74B
Financing Cash Flow	-7.24B	-3.34B	334.31M	-1.76B	11.82B	9.88B

China Merchants Land Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 0.26 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.28, and below the 200-day MA of 0.26, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.30 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0672	52 Neutral	HK$676.30M	29.27	0.21%	―	-43.28%	-93.81%
0978	50 Neutral	HK$1.35B	-0.71	-20.96%	4.36%	-16.06%	-529.92%
0251	50 Neutral	HK$812.87M	-3.63	-5.69%	3.85%	-1.26%	54.17%
0480	50 Neutral	HK$1.62B	-2.05	-3.56%	―	72.75%	25.44%
0488	41 Neutral	HK$842.93M	-0.29	-11.79%	―	-18.16%	21.78%
3377	39 Underperform	HK$1.18B	-0.16	-154.48%	―	-57.94%	45.77%

China Merchants Land Limited Corporate Events

China Merchants Land Acquires 100% Equity in Project Company

China Merchants Land Limited, through its subsidiary Nanjing Zhaoping, has entered into an Equity Transfer Agreement with CITIC Securities to acquire 100% equity interests in a Project Company. This transaction, valued at RMB259,236,960.10, is considered a discloseable transaction under the Hong Kong Listing Rules, as it exceeds 5% but is less than 25% of the applicable percentage ratios. The acquisition is part of a distribution in specie under an Asset-Backed Securities (ABS) Scheme, which was due to expire in April 2025. This move is expected to impact the company’s operations by expanding its asset base and potentially enhancing its market position.

The most recent analyst rating on (HK:0978) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Merchants Land Limited stock, see the HK:0978 Stock Forecast page.

Leadership Transition at China Merchants Land Limited

China Merchants Land Limited has announced a significant leadership change with the resignation of Mr. Jiang Tiefeng from his roles as non-executive Director, Chairman of the Board, and Chairman of the Nomination Committee, effective November 14, 2025. Mr. Zhu Wenkai has been appointed to fill these positions, bringing extensive experience from his previous roles within the China Merchants Group, including his recent position as Chairman of the Board of Directors and Party Committee Secretary of China Merchants Shekou Industrial Zone Holdings Co., Ltd. This leadership transition is expected to influence the company’s strategic direction and operations, potentially impacting stakeholders and the company’s market positioning.

The most recent analyst rating on (HK:0978) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Merchants Land Limited stock, see the HK:0978 Stock Forecast page.

China Merchants Land Limited Announces Board Composition

China Merchants Land Limited has announced the composition of its Board of Directors, detailing the roles and functions of each member within the company’s governance structure. This announcement provides clarity on the leadership and oversight within the company, which could impact its strategic direction and decision-making processes.

The most recent analyst rating on (HK:0978) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Merchants Land Limited stock, see the HK:0978 Stock Forecast page.

China Merchants Land Reports Mixed Nine-Month Performance with Rising Prices

China Merchants Land Limited reported unaudited operating statistics for the nine months ending September 30, 2025, showing a decline in aggregate contracted sales and sales area compared to the previous year. Despite a decrease in sales volume, the company experienced a significant increase in average selling prices, indicating a shift in market dynamics or a focus on higher-value properties.

The most recent analyst rating on (HK:0978) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Merchants Land Limited stock, see the HK:0978 Stock Forecast page.