China Merchants Land Limited (0978) AI Stock Analysis

• Market Cap: €1.42B
• Dividend Yield: 4.29%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: HK$0.50 ▲(78.57% 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.

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: 0.28
• 50DMA: Negative
• 100DMA: Positive
• 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 0.28 is above the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.29, and above the 200-day MA of 0.25, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.40 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 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 *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0672	―	HK$777.74M	33.66	0.21%	―	-43.28%	-93.81%
0978	―	€1.42B	-0.75	-20.96%	4.29%	-16.06%	-529.92%
0251	―	HK$752.65M	-3.36	-5.69%	4.00%	-1.26%	54.17%
0480	―	€1.63B	―	-3.45%	―	-55.51%	-67.95%
0488	―	$915.60M	-0.32	-11.79%	―	-17.54%	21.78%
3377	―	HK$1.43B	―	-154.48%	―	-57.94%	45.77%

China Merchants Land Limited Corporate Events

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.

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.