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China New Town Development Co. Ltd. (HK:1278)
:1278
Hong Kong Market
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China New Town Development Co. Ltd. (1278) AI Stock Analysis

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HK:1278

China New Town Development Co. Ltd.

(1278)

Rating:56Neutral
Price Target:
HK$0.00
▼(-100.00%Downside)
The overall score reflects strong technical indicators and a solid balance sheet. However, high valuation concerns due to a high P/E ratio and inconsistent profitability impact the score negatively. The exceptionally high dividend yield provides some compensation for valuation concerns.

China New Town Development Co. Ltd. (1278) vs. iShares MSCI Hong Kong ETF (EWH)

China New Town Development Co. Ltd. Business Overview & Revenue Model

Company DescriptionChina New Town Development Company Limited engages in planning and developing new towns in the People's Republic of China. It operates through four segments: Land Development, Urbanization Development, Property Leasing, and Others. The company provides land infrastructure development services; constructs ancillary public facilities; and invests in new town projects. It also offers property leasing and management, real estate and enterprise investment consultation, asset and fund management, investment and asset development, and investment management services. The company was founded in 2002 and is based in Kowloon, Hong Kong.
How the Company Makes MoneyChina New Town Development Co. Ltd. generates revenue primarily through the sale and lease of developed land and properties. The company engages in large-scale urban development projects, where it transforms undeveloped land into well-planned townships with residential, commercial, and industrial zones. Revenue is also derived from infrastructure development services and property management. Additionally, strategic partnerships with local governments and other real estate developers play a significant role in securing land use rights and facilitating project approvals, thereby contributing to the company's income.

China New Town Development Co. Ltd. Financial Statement Overview

Summary
China New Town Development Co. Ltd. shows potential with recent revenue growth, but faces challenges in consistent profitability and cash flow generation. The balance sheet is relatively strong, providing a solid foundation for future improvements. Continued focus on enhancing profit margins and stabilizing cash flows will be crucial for sustained growth.
Income Statement
45
Neutral
The company has shown inconsistent revenue growth, with a significant increase in the most recent year. However, the net profit margin has been volatile, and the EBIT margin has decreased over the years. This indicates challenges in maintaining profitability despite revenue growth.
Balance Sheet
55
Neutral
The company has a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity has been unstable, reflecting inconsistent profitability. The equity ratio remains strong, suggesting a solid capital structure.
Cash Flow
50
Neutral
Cash flow generation has been erratic, with fluctuations in free cash flow growth. Operating cash flow has occasionally been negative, but recent improvements are notable. The free cash flow to net income ratio suggests the company is working towards better cash management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue153.77M162.68M161.91M187.93M171.19M
Gross Profit97.52M124.23M118.64M124.53M130.33M
EBITDA176.00M306.59M115.43M207.34M-79.15M
Net Income44.32M140.86M2.72M108.58M-250.93M
Balance Sheet
Total Assets7.90B7.88B6.58B6.68B7.41B
Cash, Cash Equivalents and Short-Term Investments2.98B3.32B2.35B1.77B2.85B
Total Debt2.30B2.32B1.12B1.13B1.85B
Total Liabilities3.20B3.21B2.05B2.16B3.02B
Stockholders Equity4.21B4.19B4.07B4.05B3.94B
Cash Flow
Free Cash Flow29.40M-25.75M-116.38M416.31M-71.94M
Operating Cash Flow29.88M-20.04M-33.91M422.71M-13.00M
Investing Cash Flow-296.75M-71.58M226.92M-106.16M1.67B
Financing Cash Flow-142.87M1.04B-75.62M-785.71M-1.04B

China New Town Development Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.13
Price Trends
50DMA
0.10
Positive
100DMA
0.08
Positive
200DMA
0.07
Positive
Market Momentum
MACD
<0.01
Positive
RSI
57.52
Neutral
STOCH
39.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1278, the sentiment is Positive. The current price of 0.13 is below the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.10, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.52 is Neutral, neither overbought nor oversold. The STOCH value of 39.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1278.

China New Town Development Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$6.88B15.40-1.98%6.96%4.49%-24.05%
56
Neutral
HK$1.26B26.531.06%35.71%-1.83%-69.18%
€161.53M-102.67%
€147.67M
16.84%
€105.47M6.11-2.79%5.42%
€128.00M1.779.93%
55
Neutral
HK$749.25M-6.26%6.01%-27.39%-196.24%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1278
China New Town Development Co. Ltd.
0.13
0.07
116.67%
DE:ONF
Minmetals Land Limited
0.04
0.01
33.33%
DE:CS4
China South City Holdings Limited
0.01
-0.01
-50.00%
DE:CQH3
Cheuk Nang (Holdings) Limited
0.16
-0.01
-5.88%
DE:C7B
China New City Commercial Development Ltd
0.06
-0.02
-25.00%
HK:0160
Hon Kwok Land Investment Co., Ltd.
1.04
-0.17
-14.05%

China New Town Development Co. Ltd. Corporate Events

China New Town Development Schedules Board Meeting for Financial Review
Jul 28, 2025

China New Town Development Co. Ltd. has announced an upcoming board meeting scheduled for August 7, 2025, where the board will review and approve the unaudited financial results for the first half of 2025. The meeting will also consider the possibility of declaring an interim dividend, which could impact the company’s financial strategy and shareholder returns.

China New Town Development Updates Urbanization Investment Portfolio
Jul 4, 2025

China New Town Development Company Limited announced an update on its urbanization fixed income investment portfolio, which now totals RMB 3,237 million after accounting for risky projects. The portfolio is expected to yield a 7.0% average annualized pre-tax return. The company has added new projects in Liyang and Wenzhou while withdrawing from a project in Jiangsu Taizhou, having received the principal and guaranteed gains. This strategic adjustment reflects the company’s ongoing efforts to optimize its investment portfolio and enhance returns for stakeholders.

Leadership Changes and Auditor Renaming at China New Town Development
Jul 2, 2025

China New Town Development Co. Ltd. announced the resignation of Mr. Hu Zhiwei as executive director and vice chairman due to changes in his work commitments. Ms. Mei Zhe has been appointed as the new authorized representative. Additionally, the company’s independent auditor has changed its name to Rongcheng (Hong Kong) CPA Limited.

China New Town Development Co. Ltd. Announces Board Composition and Committee Structure
Jul 2, 2025

China New Town Development Co. Ltd. has announced the composition of its board of directors, highlighting the roles and functions of its executive, non-executive, and independent non-executive directors. The board has established three committees—Audit, Nomination, and Remuneration—each chaired by different board members. This announcement reflects the company’s commitment to structured governance and may influence its strategic direction and stakeholder relations.

China New Town Development Announces Board Reshuffle
Jun 19, 2025

China New Town Development Co. Ltd. has announced significant changes to its board of directors and committee composition following its 2025 Annual General Meeting. Mr. Feng Xiaoliang and Mr. Wang Hongxu have retired and resigned as non-executive directors, respectively, due to changes in their work commitments. The company has appointed Mr. Wang Yi and Mr. Xie Zhen as new non-executive directors, while Ms. Liu Yanhong has joined the Nomination Committee, replacing Mr. Yuan Kejian. These changes reflect a strategic shift in leadership, potentially impacting the company’s governance and future direction.

China New Town Development Co. Ltd. Announces Board Composition and Committees
Jun 19, 2025

China New Town Development Co. Ltd. has announced the composition of its board of directors, which includes a mix of executive, non-executive, and independent non-executive directors. The board has established three committees—Audit, Nomination, and Remuneration—to enhance governance and operational oversight. This announcement underscores the company’s commitment to robust corporate governance and may impact its strategic decision-making and stakeholder confidence.

China New Town Development Enhances Governance with New Nomination Committee
Jun 19, 2025

China New Town Development Company Limited, listed on the Hong Kong Stock Exchange, has established a Nomination Committee as part of its adherence to corporate governance standards. This committee is tasked with overseeing the appointment and re-election of directors, assessing board effectiveness, and ensuring board diversity. The committee’s responsibilities include maintaining a balance of diversity in terms of gender, age, and professional background to support the company’s business growth.

China New Town Development Co. Ltd. Announces Unanimous AGM Resolutions and Auditor Change
Jun 19, 2025

China New Town Development Co. Ltd. announced the results of its Annual General Meeting held on June 19, 2025, where all proposed resolutions were passed with unanimous support. The meeting included significant decisions such as the re-election of directors, approval of financial statements, and the appointment of CL Partners CPA Limited as the new independent auditor, replacing Ernst & Young. These resolutions reflect the company’s ongoing commitment to governance and strategic planning, potentially impacting its operational efficiency and market perception positively.

China New Town Development Withdraws Resolution at 2025 AGM
Jun 13, 2025

China New Town Development Co. Ltd. announced the withdrawal of an ordinary resolution at its 2025 AGM due to Mr. Feng Xiaoliang’s decision not to seek re-election as a non-executive director. This decision, attributed to changes in Mr. Feng’s work commitments, will result in his retirement from the board, effective after the AGM. The company has confirmed that there are no disagreements or issues related to this change that need to be communicated to shareholders or the stock exchange.

China New Town Development Co. Ltd. Appoints New CFO
May 30, 2025

China New Town Development Company Limited has announced the appointment of Mr. Meng Hongzhong as its new Chief Financial Officer, effective May 30, 2025. Mr. Meng brings over 20 years of experience in accounting and financial management, having held senior roles at various prominent companies including Hop Hing Group Holdings Limited, We Doctor Holdings Limited, and Meituan. His extensive background is expected to enhance the company’s financial operations and strategic financial planning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025