China New Town Development Co. Ltd. (1278) AI Stock Analysis

• Market Cap: HK$807.28M
• Dividend Yield: 6.71%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.94
• Revenue Growth: 2.19%
• EPS Growth: -70.51%
• Country: HK
• Employees: 92
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): <0.01
• Shares Outstanding: 9,726,247,000
• 10 Day Avg. Volume: 677,187
• 30 Day Avg. Volume: 1,031,230
• PEG Ratio: -0.19
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 3.68
• P/FCF Ratio: 19.27
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$0.09 ▲(8.75% Upside)

The overall stock score is primarily influenced by the company's strong revenue growth and gross profit margins, which are offset by challenges in net profitability and cash flow management. The technical analysis indicates a bearish trend, further impacting the score. While the valuation is reasonable with a high dividend yield, it is not sufficient to counterbalance the financial and technical weaknesses.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, enhancing the company's market position and potential for future expansion.

Gross Profit Margin

A high gross profit margin reflects efficient cost management, allowing the company to maintain profitability even in competitive markets, supporting long-term financial health.

Stable Balance Sheet

A moderate debt-to-equity ratio indicates a balanced approach to leveraging, providing financial stability and flexibility to invest in future growth opportunities.

Negative Factors

Net Profit Margin Decline

The decline in net profit margin suggests challenges in maintaining profitability, which could affect the company's ability to reinvest in growth and sustain competitive advantages.

Cash Flow Management

Negative cash flows indicate cash management issues, potentially limiting the company's ability to fund operations and growth initiatives without external financing.

Low Return on Equity

Low return on equity highlights limited profitability relative to shareholder equity, which may deter investors seeking efficient capital utilization and strong returns.

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

Company Description

China New Town Development Co. Ltd. (1278) is a prominent real estate development company based in China, primarily focused on urban development and infrastructure projects. The company operates in various sectors, including residential, commercial, and mixed-use property development. Its core products and services include the planning, construction, and sale of residential communities, commercial properties, and integrated urban facilities, catering to the growing demand for urban living spaces in China's rapidly expanding cities.

How the Company Makes Money

China New Town Development Co. Ltd. generates revenue primarily through the sale and leasing of properties developed under its projects. The company profits from the sale of residential units and commercial spaces, often engaging in pre-sales to secure funding prior to construction completion. Additional revenue streams include providing property management services and collaborating with local governments on public infrastructure projects, which can lead to government contracts and financial incentives. Strategic partnerships with other developers and investment firms also enhance its capacity for large-scale projects, contributing significantly to its earnings.

China New Town Development Co. Ltd. Financial Statement Overview

Summary

Strong revenue growth and gross profit margins are offset by challenges in net profitability and cash flow management. The balance sheet is stable with moderate leverage, but low return on equity highlights profitability concerns.

Income Statement

The company shows a strong gross profit margin of 83.67% in TTM, indicating efficient cost management. However, the net profit margin has decreased to 11.94% from 28.82% in the previous year, suggesting challenges in maintaining profitability. Revenue growth is positive at 129.9% in TTM, showing a significant recovery from the previous year's decline.

Balance Sheet

The debt-to-equity ratio is moderate at 0.54, indicating a balanced approach to leveraging. Return on equity is low at 0.98% in TTM, reflecting limited profitability relative to shareholder equity. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

The company faces challenges with negative operating and free cash flows in TTM, indicating cash management issues. The free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and profitability, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	346.25M	153.77M	162.68M	161.91M	273.04M	391.64M
Gross Profit	289.72M	97.52M	124.23M	118.64M	209.64M	350.77M
EBITDA	168.06M	176.00M	306.59M	115.43M	207.34M	-79.15M
Net Income	41.35M	44.32M	140.86M	2.72M	108.58M	-250.93M
Balance Sheet
Total Assets	7.83B	7.90B	7.88B	6.58B	6.68B	7.41B
Cash, Cash Equivalents and Short-Term Investments	4.27B	2.98B	3.32B	2.35B	1.77B	2.85B
Total Debt	2.28B	2.30B	2.32B	1.12B	1.13B	1.87B
Total Liabilities	3.12B	3.20B	3.21B	2.05B	2.16B	3.02B
Stockholders Equity	4.22B	4.21B	4.19B	4.07B	4.05B	3.94B
Cash Flow
Free Cash Flow	-28.14M	29.40M	-25.75M	-116.38M	416.31M	-71.94M
Operating Cash Flow	-27.04M	29.88M	-20.04M	-33.91M	422.71M	-13.00M
Investing Cash Flow	-325.61M	-296.75M	-71.58M	226.92M	-106.16M	1.67B
Financing Cash Flow	-174.49M	-142.87M	1.04B	-75.62M	-785.71M	-1.04B

China New Town Development Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1278, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.09, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.92 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1278.

China New Town Development Co. Ltd. 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%
1321	61 Neutral	HK$1.12B	12.42	1.84%	―	-54.44%	120.18%
0131	58 Neutral	HK$783.21M	-0.76	-16.32%	3.70%	-11.00%	-676.27%
1278	55 Neutral	HK$807.28M	18.04	0.97%	6.71%	2.19%	-70.51%
0160	51 Neutral	HK$684.41M	-0.79	-7.88%	3.09%	46.99%	-598.31%
0230	46 Neutral	HK$3.28B	-1.06	-114.48%	―	-26.58%	-40.96%
1668	38 Underperform	HK$1.22B	-0.14	―	―	―	―

China New Town Development Co. Ltd. Corporate Events

China New Town Development Announces CNY1.5 Billion Bond Issuance

China New Town Development Company Limited has announced a voluntary issuance of CNY1.5 billion in bonds, due in 2028, with a 2.95% interest rate. The issuance involves a subscription agreement with Wuxi Communications Industry Group and several independent managers, aiming to attract professional investors and strengthen the company’s financial position.

China New Town Development Delays Circular Dispatch, Granted Waiver

China New Town Development Company Limited has announced a delay in the dispatch of a circular related to financial assistance for a joint venture. The company received a waiver from the Hong Kong Stock Exchange to extend the deadline for dispatching the circular until December 3, 2025, due to the need for additional time to finalize necessary information.

China New Town Development Extends Major Financial Assistance Agreement

China New Town Development Co. Ltd. has announced a major transaction involving the extension of a financial assistance agreement for a joint venture. The company, through its subsidiary Xincheng Kaiyuan, alongside JPC, has agreed to extend the repayment schedule of a bank loan from 2031 to 2033, with both parties continuing to guarantee the loan. This extension involves an outstanding principal amount of approximately RMB423 million. The transaction is classified as a major transaction under Hong Kong’s Listing Rules, requiring shareholder approval, which has been obtained from major shareholders, negating the need for an extraordinary general meeting.

China New Town Development Updates Urbanization Investment Portfolio

China New Town Development Company Limited announced an update on its urbanization fixed income investment portfolio, which totals RMB3,750 million as of September 30, 2025, after accounting for risky project impairments. The portfolio is expected to yield a 7.0% annualized pre-tax return. The company added several new projects, including the Taizhou Xinghua Economic Development Zone Industrial Park Upgrading Project and the Yancheng Water Purification Group Project, while withdrawing from the Zhuji Pingfengwu Ecological Cemetery Project. The company plans to continue providing quarterly updates to shareholders on its investment activities.

China New Town Development Appoints New Non-Executive Director

China New Town Development Company Limited has announced the appointment of Ms. Qin Yangfan as a non-executive director effective from September 26, 2025. Ms. Qin, who brings experience from her role as Deputy Head of Corporate Management at Wuxi Traffic Industry Group, will serve a three-year term. Her appointment is expected to strengthen the company’s board with her diverse background in corporate management and finance.

China New Town Development Announces Board Composition

China New Town Development Co. Ltd. has announced the composition of its board of directors, detailing the roles and functions of its executive, non-executive, and independent non-executive directors. This announcement provides clarity on the company’s governance structure, which may impact its strategic decision-making and stakeholder relations.