China New Town Development Co. Ltd. (HK:1278)
:1278
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China New Town Development Co. Ltd.
(1278)
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Rating:56Neutral
Price Target:
HK$0.09
▲(16.25% Upside)
Action:ReiteratedDate:03/27/26
The score is held back primarily by financial risk—especially inconsistent operating/free cash flow and materially higher leverage—despite improved reported profitability. Technicals are mildly constructive but not strong (below the 200-day average and slightly negative MACD). Valuation is a key offset, supported by a low P/E and high dividend yield.
Positive Factors
Integrated land-development model
Long-term advantage: government partnerships and an integrated land-development model create preferential access to project pipelines, early planning roles, and coordinated infrastructure work. This structural positioning supports repeat project opportunities and higher capture of land-value uplift over multiple cycles.
Negative Factors
Rising leverage
Higher debt-to-equity materially tightens financial flexibility in a cyclical real estate sector. Elevated leverage increases interest and refinancing risk, limits ability to withstand project delays, and raises the probability the firm must defer investments or sell assets at unfavorable times to shore up liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated land-development model
Long-term advantage: government partnerships and an integrated land-development model create preferential access to project pipelines, early planning roles, and coordinated infrastructure work. This structural positioning supports repeat project opportunities and higher capture of land-value uplift over multiple cycles.
Read all positive factors
China New Town Development Co. Ltd. (1278) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$826.73M
Dividend Yield6.71%
Average Volume (3M)1.03M
Price to Earnings (P/E)9.8
Beta (1Y)0.72
Revenue Growth2.19%
EPS Growth-70.51%
CountryHK
Employees92
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)<0.01
Shares Outstanding9,726,247,000
10 Day Avg. Volume677,187
30 Day Avg. Volume1,031,230
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)0.17
Price to Sales (P/S)1.84
P/FCF Ratio-22.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
China New Town Development Co. Ltd. Business Overview & Revenue Model
Company Description
China 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 pro...
How the Company Makes Money
China New Town Development’s core revenue model is centered on returns generated from its participation in integrated land development and new-town projects with local governments in China. Under this model, the company helps fund and/or organize ...
China New Town Development Co. Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
57
Neutral
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 378.85M | 153.77M | 162.68M | 161.91M | 273.04M |
| Gross Profit | 300.38M | 97.52M | 124.23M | 118.64M | 209.64M |
| EBITDA | 200.72M | 176.00M | 306.59M | 115.43M | 207.34M |
| Net Income | 71.40M | 44.32M | 140.86M | 2.72M | 108.58M |
Balance Sheet | |||||
| Total Assets | 9.27B | 7.90B | 7.88B | 6.58B | 6.68B |
| Cash, Cash Equivalents and Short-Term Investments | 5.57B | 2.98B | 3.32B | 2.35B | 1.77B |
| Total Debt | 3.76B | 2.30B | 2.32B | 1.12B | 1.13B |
| Total Liabilities | 4.55B | 3.20B | 3.21B | 2.05B | 2.16B |
| Stockholders Equity | 4.23B | 4.21B | 4.19B | 4.07B | 4.05B |
Cash Flow | |||||
| Free Cash Flow | -31.58M | 29.40M | -25.75M | -116.38M | 416.31M |
| Operating Cash Flow | -30.96M | 29.88M | -20.04M | -33.91M | 422.71M |
| Investing Cash Flow | -197.73M | -296.75M | -71.58M | 226.92M | -106.16M |
| Financing Cash Flow | 1.35B | -142.87M | 1.04B | -75.62M | -785.71M |
China New Town Development Co. Ltd. Technical Analysis
Negative
0.08
Price Trends
0.08
Negative
0.08
Negative
0.09
Negative
Market Momentum
>-0.01
Positive
46.98
Neutral
43.33
Neutral
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 0.08, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.98 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | HK$828.90M | 1.03 | -16.32% | 3.70% | -11.00% | -676.27% | |
61 Neutral | HK$885.13M | -7.49 | 1.84% | ― | -54.44% | 120.18% | |
56 Neutral | HK$826.73M | 9.79 | 1.64% | 6.71% | 2.19% | -70.51% | |
49 Neutral | HK$698.82M | -0.84 | -8.23% | 3.09% | 46.99% | -598.31% | |
41 Neutral | HK$1.22B | -0.14 | ― | ― | ― | ― |
* Real Estate Sector Average
HK:1278
China New Town Development Co. Ltd.
0.09
0.03
44.07%
HK:1668
China South City Holdings Limited
0.11
-0.05
-30.52%
HK:0131
Cheuk Nang (Holdings) Limited
1.27
-0.24
-15.73%
HK:1321
China New City Commercial Development Ltd
0.48
-0.19
-28.36%
HK:0160
Hon Kwok Land Investment Co., Ltd.
0.97
-0.07
-6.73%
China New Town Development Co. Ltd. Corporate Events
China New Town Development Posts Higher 2025 Profit on Revenue Growth and Cost Control
Mar 20, 2026
China New Town Development Company Limited reported audited consolidated results for the year ended 31 December 2025, showing operating income of RMB416.9 million, up slightly from RMB412.2 million a year earlier. Revenue rose to RMB388.9 million ...
China New Town Development Declares Final Dividend for 2025
Mar 20, 2026
China New Town Development Company Limited has declared a final ordinary cash dividend of HKD 0.0025 per share for the financial year ended 31 December 2025, payable in Hong Kong dollars. The dividend is subject to shareholder approval on 25 June ...
China New Town Development Sets March Board Meeting on 2025 Results and Dividend
Mar 10, 2026
China New Town Development Company Limited has scheduled a board meeting for 20 March 2026 to review and approve its audited consolidated financial results for the year ended 31 December 2025. The board will also consider whether to recommend a fi...
China New Town Development Forecasts Higher 2025 Profit on Stable Wuhan Assets
Feb 16, 2026
China New Town Development Company Limited has flagged a rise in annual earnings, projecting a net profit of about RMB76 million for 2025, up from roughly RMB56 million a year earlier, based on preliminary unaudited figures. The improvement unders...
China New Town Development Reports RMB 3.37 Billion Urbanization Fixed-Income Portfolio With 7.1% Yield
Jan 6, 2026
China New Town Development Company Limited reported that as of 31 December 2025 its urbanization fixed-income investment portfolio, net of impairment on risky projects, stood at RMB 3.366 billion, generating contractually guaranteed pre-tax annual...
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.