China Resources Land Ltd 01109

Morningstar Rating

Company Report

China Resources Land's Margin Should Recover as Higher Quality Projects Are Delivered

China Resources Land, or CR Land, is distinctive among leading Chinese real estate developers as it enjoys relatively large exposure to investment property businesses. Riding on the success of the MixC commercial complex, the high-end retail commercial projects in top cities of China, CR Land is transitioning from predominantly developing residential properties to expanding mixed-use projects, including shopping malls, offices, and hotels. While residential project sales continue to underpin CR Land’s cash inflow, we expect the firm to add to its investment property portfolio with strong recurring income and healthy profitability in higher-tier cities. We assume that non-property-development income will continue to drive mid-single-digit growth and will represent around 40% of the firm’s earnings in 2030. Also, the fast-growing investment properties imply increasing visibility of recycling capital through REIT listing in China.

Price vs Fair Value

01109 is trading at a LOCK|q&C&W>V premium.
Price
HK$29.42
Fair Value
P^
Uncertainty
LOCK|w<!
1-Star Price
LOCK|.!?
5-Star Price
LOCK|.Rc
Economic Moat
LOCK|cnh
Capital Allocation
LOCK|TWMr#Np

Bulls Say, Bears Say

Bulls

Limited supply of well-located landbank in higher-tier cities will support demand and selling prices for projects of CR Land.

Bears

The weakened homebuying sentiment, coupled with population decline, will likely result in more subdued sales growth for CR Land in the long run.

News

Trading Information

Previous Close Price
—
Day Range
—–—
52-Week Range
—–—
Bid/Ask
— / —
Shares Outstanding
7.13B
Market Cap
—
Volume/Avg
— / —

Key Statistics

Price/Earnings (Normalized)
12.63
Price/Sales
0.74
Dividend Yield (Trailing)
4.56%
Dividend Yield (Forward)
4.56%
Dividend Payment Schedule
Aug, Oct
Total Yield
4.56%

Company Profile

China Resources Land, or CR Land, is a leading real estate developer with nationwide coverage in China. Aside from the core development business, CR Land differentiates itself from peers with a significant investment property portfolio with luxury-focused MixC malls, and it holds a 70% stake in the listed property management company China Resources Mixc Lifestyle Services. CR Land is a subsidiary of China Resources Holdings, or CR Holdings, a sizable state-owned conglomerate with a diverse presence in the utilities, consumer goods, medical, and property sectors. CR Holdings holds around 60% stake in CR Land.
Sector
Real Estate
Industry
Real Estate - Development
Stock Style Box
Large Value
Total Number of Employees
59,045

Competitors

Valuation

Metric
01109
00688
00817
Price/Earnings (Normalized)
12.6310.4229.24
Price/Book Value
0.620.300.33
Price/Sales
0.740.670.24
Price/Cash Flow
3.3016.981.05
Price/Earnings
01109
00688
00817

Financial Strength

Metric
01109
00688
00817
Quick Ratio
0.510.540.49
Current Ratio
1.612.421.08
Interest Coverage
18.9233.602.49
Quick Ratio
01109
00688
00817

Profitability

Metric
01109
00688
00817
Return on Assets (Normalized)
2.05%1.24%0.38%
Return on Equity (Normalized)
7.92%2.87%4.43%
Return on Invested Capital (Normalized)
3.33%1.61%1.05%
Return on Assets
01109
00688
00817

Real Estate - Development Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Sun Hung Kai Properties Ltd
SUHJF
—LOCK|V^V$38B
Sun Hung Kai Properties Ltd ADR
SUHJY
—LOCK|#T$38B
China Resources Land Ltd ADR
CRBJY
—LOCK|Nn$27B
CK Asset Holdings Ltd ADR
CNGKY
—LOCK|?!$20B
CK Asset Holdings Ltd
CHKGF
—LOCK|#ZW$20B
Daiwa House Industry Co Ltd ADR
DWAHY
—LOCK|ft$18B
Daiwa House Industry Co Ltd
DWAHF
—LOCK|lG$18B
China Overseas Land & Investment Ltd ADR
CAOVY
—LOCK|Q?d$17B
China Overseas Land & Investment Ltd
CAOVF
—LOCK|yYc$17B
Hongkong Land Holdings Ltd ADR
HNGKY
—LOCK|D$myV$17B

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