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Country Garden Holdings Co. Ltd. (HK:2007)
:2007

Country Garden Holdings (2007) AI Stock Analysis

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HK:2007

Country Garden Holdings

(OTC:2007)

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Underperform 39 (OpenAI - 4o)
Rating:39Underperform
Price Target:
HK$0.50
▼(-9.09% Downside)
The overall stock score is primarily impacted by the company's poor financial performance, characterized by negative profitability and high leverage. Technical indicators also suggest a bearish trend, while valuation metrics reflect the company's financial struggles. The lack of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Urbanization Trends
China's ongoing urbanization supports demand for residential properties, providing a stable long-term growth driver for Country Garden's core business.
Established Brand Reputation
A strong brand reputation enhances customer trust and loyalty, potentially leading to sustained sales and competitive advantage in the real estate market.
Diverse Revenue Streams
Diversified revenue sources reduce dependency on any single segment, providing resilience against market fluctuations and supporting long-term financial stability.
Negative Factors
Declining Revenues
Consistent revenue decline indicates weakening market position and demand, threatening long-term growth and sustainability of the business.
High Leverage
High leverage and negative equity indicate financial instability, limiting the company's ability to invest in growth opportunities and increasing bankruptcy risk.
Negative Cash Flow
Negative cash flows suggest liquidity challenges, constraining the company's ability to fund operations and invest in future growth, impacting long-term viability.

Country Garden Holdings (2007) vs. iShares MSCI Hong Kong ETF (EWH)

Country Garden Holdings Business Overview & Revenue Model

Company DescriptionCountry Garden Holdings Co., Ltd. is a leading property development company based in China, primarily engaged in residential real estate development. Founded in 1992, the company operates in various sectors, including property development, construction, and property management. Country Garden focuses on developing large-scale residential projects, including villas, apartments, and integrated community developments, and has expanded its operations to include commercial properties and hospitality services.
How the Company Makes MoneyCountry Garden generates revenue primarily through the sale of residential and commercial properties. The company develops and sells properties in various stages, from land acquisition to construction and final sale, capturing value at each stage. Key revenue streams include residential property sales, rental income from commercial properties, and property management services. Additionally, the company often engages in joint ventures and partnerships with local governments and other developers to enhance its project portfolio and market reach. Factors contributing to its earnings include China's urbanization trends, demand for affordable housing, and the company's established brand reputation in the real estate sector.

Country Garden Holdings Financial Statement Overview

Summary
Country Garden Holdings Co is facing substantial financial difficulties, with declining revenues, negative profitability, high leverage, and poor cash flow management. These factors pose significant risks to its financial health and sustainability.
Income Statement
15
Very Negative
Country Garden Holdings Co has experienced significant declines in revenue and profitability. The gross profit margin and net profit margin have turned negative, indicating operational challenges. Revenue has decreased over the years, with a notable decline in 2024. The EBIT and EBITDA margins are also negative, reflecting poor operational efficiency.
Balance Sheet
20
Very Negative
The balance sheet shows a concerning financial structure with a negative stockholders' equity in 2024, leading to an extremely high and negative debt-to-equity ratio. This indicates high leverage and financial instability. The return on equity has been negative in recent years, further highlighting the company's struggles to generate returns for shareholders.
Cash Flow
10
Very Negative
Cash flow analysis reveals severe issues, with negative operating and free cash flows in recent years. The free cash flow growth rate is significantly negative, and the free cash flow to net income ratio is poor, indicating cash flow challenges and potential liquidity issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue223.22B252.76B401.01B430.37B523.06B462.86B
Gross Profit-6.44B-1.69B-93.61B32.88B92.78B100.91B
EBITDA-16.55B-15.90B-159.67B7.63B63.74B71.75B
Net Income-39.07B-32.84B-178.40B-6.05B26.80B35.02B
Balance Sheet
Total Assets909.33B1.04T1.29T1.74T1.95T2.02T
Cash, Cash Equivalents and Short-Term Investments13.03B15.06B18.82B139.69B161.16B173.75B
Total Debt257.01B256.00B251.65B271.72B318.61B327.14B
Total Liabilities885.41B984.59B1.20T1.43T1.65T1.76T
Stockholders Equity-26.07B-7.18B25.95B203.62B198.74B175.10B
Cash Flow
Free Cash Flow-3.11B-3.32B-77.06B33.68B7.26B-25.70B
Operating Cash Flow-3.10B-3.28B-76.13B35.62B10.86B-21.63B
Investing Cash Flow3.62B6.05B9.54B4.41B-18.04B-5.92B
Financing Cash Flow-859.00M-3.53B-54.44B-58.69B-12.90B-54.14B

Country Garden Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.55
Price Trends
50DMA
0.55
Negative
100DMA
0.53
Negative
200DMA
0.48
Positive
Market Momentum
MACD
-0.01
Positive
RSI
39.99
Neutral
STOCH
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2007, the sentiment is Negative. The current price of 0.55 is above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.55, and above the 200-day MA of 0.48, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.99 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2007.

Country Garden Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
46
Neutral
HK$16.62B32.201.20%2.44%-8.18%
41
Neutral
HK$8.33B-1.05-40.14%-54.25%-134.22%
39
Underperform
HK$13.58B-0.32-19.37%72.77%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2007
Country Garden Holdings
0.49
<0.01
1.03%
GTWCF
Greentown China Holdings
1.12
>-0.01
-0.88%
DE:16H0
Guangdong - Hong Kong Greater Bay Area Holdings Ltd.
0.49
0.47
2350.00%
DE:HVP0
Hopson Development Holdings Limited
0.33
-0.01
-2.94%
HK:9993
Radiance Holdings (Group) Company Limited
2.06
-0.97
-32.01%
HK:0817
China Jinmao Holdings Group Limited
1.23
0.23
23.00%

Country Garden Holdings Corporate Events

Country Garden’s Offshore Debt Restructuring Scheme Sanctioned by Court
Dec 5, 2025

Country Garden Holdings Company Limited announced that the court has sanctioned its offshore debt restructuring scheme, marking a significant milestone in its proposed restructuring efforts. The Scheme Effective Date occurred on December 5, 2025, signifying progress towards the restructuring, although the final Restructuring Effective Date is contingent upon fulfilling all conditions. The company expressed gratitude to creditors for their support and cautioned investors about potential risks in the restructuring process.

Country Garden Announces Leadership Restructuring Amid Strategic Shift
Dec 4, 2025

Country Garden Holdings has announced a series of leadership changes, including the re-designation of Mr. MO Bin from President to Co-Chairman, effective December 2025. These changes are part of the company’s strategic efforts to enhance operational efficiency and align with its long-term development goals, particularly in the context of its ’15th Five-Year Plan’ which emphasizes quality and customer-centric approaches. The company is also progressing with its offshore debt restructuring, aiming to restore normal operations and strengthen its competitiveness in the evolving market landscape.

Country Garden Secures Approval for Onshore Bonds Restructuring
Dec 4, 2025

Country Garden Holdings Company Limited announced the approval of a restructuring proposal for nine onshore corporate bonds, involving adjustments to principal and interest repayment arrangements. This move, approved by relevant bondholders, includes options such as repurchase, stock, and general creditor claims, indicating a strategic approach to manage its financial obligations and strengthen its market position.

Country Garden Reports November 2025 Sales Figures
Dec 4, 2025

Country Garden Holdings Company Limited announced its unaudited operating figures for November 2025, reporting contracted sales of approximately RMB 2.35 billion and a contracted sales gross floor area of about 0.30 million square meters. These figures, derived from management information, are preliminary and subject to change, highlighting the company’s ongoing operations and market presence. Investors are cautioned to consider these figures as informational and not indicative of future performance.

Country Garden Approves Key Resolutions at Extraordinary General Meeting
Dec 3, 2025

Country Garden Holdings Company Limited announced the approval of resolutions at its extraordinary general meeting held on December 3, 2025. Key resolutions included the proposed capitalization of shareholder loans, issuance of new shares, and adoption of a management incentive plan. Certain shareholders abstained from voting due to material interests, ensuring compliance with corporate governance standards. This development is part of the company’s broader restructuring efforts, potentially impacting its financial strategy and shareholder relations.

Country Garden Holdings Addresses Regulatory Compliance Issues
Nov 27, 2025

Country Garden Holdings announced that its subsidiary, Giant Leap Construction, received a regulatory decision from the Guangdong Securities Regulatory Bureau due to non-compliance in timely disclosure of corporate changes and legal matters. Despite the regulatory warning, the board supports the integrity of Ms. Yang Huiyan, the chairman, and emphasizes the company’s commitment to improving compliance and safeguarding bondholders’ interests.

Country Garden’s Subsidiary Faces Regulatory Measures
Nov 21, 2025

Country Garden Holdings Company Limited announced that its subsidiary, Giant Leap Construction Technology Group Co., Ltd., has received administrative regulatory measures from the Guangdong Securities Regulatory Bureau of the China Securities Regulatory Commission. This announcement, published on the Shanghai Stock Exchange, highlights regulatory scrutiny that may impact the company’s operations and investor relations, reflecting the broader regulatory environment in China’s real estate sector.

Country Garden Holdings to Issue $12.9 Billion in Convertible Bonds
Nov 16, 2025

Country Garden Holdings has announced an extraordinary general meeting to discuss the issuance of mandatory convertible bonds (MCB) totaling over USD 12.9 billion. This strategic move aims to strengthen the company’s capital structure by converting these bonds into ordinary shares, subject to approval by the Stock Exchange’s Listing Committee. The issuance of these bonds is expected to enhance the company’s financial flexibility and support its ongoing development projects, potentially impacting its market positioning and shareholder value.

Country Garden Announces Major Restructuring to Reduce Debt
Nov 14, 2025

Country Garden Holdings has announced a proposed restructuring plan aimed at reducing its offshore indebtedness by over USD 11 billion. This restructuring involves several transactions, including the issuance of mandatory convertible bonds, new shares, and the adoption of a management incentive plan. The company has secured sufficient support from its creditors to approve the scheme, which is expected to provide a more sustainable capital structure, allowing Country Garden to focus on delivering housing units and maximizing value for stakeholders.

Country Garden Advances Offshore Debt Restructuring with Bondholder Approval
Nov 5, 2025

Country Garden Holdings has announced the successful passing of Extraordinary Resolutions regarding the restructuring of its offshore debt, specifically the Existing HKD Convertible Bonds. This restructuring involves changing the governing law of these bonds to Hong Kong law, facilitating their inclusion in the company’s broader restructuring scheme. The resolutions were approved at recent Consent Solicitation Meetings, meeting the necessary quorum and majority vote requirements, and will become effective upon satisfying all conditions.

Country Garden Reports October 2025 Sales Figures
Nov 4, 2025

Country Garden Holdings Company Limited reported unaudited operating figures for October 2025, revealing contracted sales of approximately RMB 2.90 billion and a contracted sales gross floor area of about 0.39 million square meters. These preliminary figures, derived from management information, are subject to change and should not be relied upon as indicators of the company’s current or future performance, urging investors to exercise caution.

Country Garden Updates on Offshore Debt Restructuring Plans
Oct 30, 2025

Country Garden Holdings has issued a supplement to its Explanatory Statement regarding its offshore debt restructuring, which is available for eligible stakeholders on their transaction website. The company has confirmed that the timings and venues for the upcoming Scheme Meetings and Consent Solicitation Meetings remain unchanged, and no further action is required from creditors unless they wish to amend their previously submitted forms.

Country Garden Holdings Announces Offshore Debt Restructuring Update
Oct 13, 2025

Country Garden Holdings has announced an update on its offshore debt restructuring process, including the scheduling of scheme meetings for creditors. The meetings aim to consider and potentially approve a proposed scheme of arrangement, which is a critical step in managing the company’s financial obligations and maintaining its operational stability. This development is significant for stakeholders as it reflects the company’s efforts to address its debt challenges and sustain its market position.

Country Garden Holdings Reports September 2025 Sales Figures
Oct 13, 2025

Country Garden Holdings Company Limited reported unaudited operating figures for September 2025, indicating contracted sales of approximately RMB 2.58 billion and a contracted sales GFA of 0.32 million square meters. These figures, derived from management information, are preliminary and subject to change, highlighting the need for investors to exercise caution when dealing with the company’s securities.

Country Garden Advances Debt Restructuring Efforts
Sep 30, 2025

Country Garden Holdings Company Limited has announced significant progress in its efforts to resolve a Disclaimer of Opinion issued by its auditor regarding the company’s financial statements for 2024. The company is actively pursuing a proposed restructuring plan aimed at converting major offshore debts into equity and extending debt tenors, which is expected to alleviate liquidity burdens and create a more sustainable capital structure. The restructuring has gained substantial support from creditors, with agreements reached with key lenders and a majority of debt holders, signaling a positive step towards financial stability.

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: Nov 07, 2025