China Resources Land (1109.HK)
Real Estate · HKEX · Hong Kong
Fundamentals
Valuation and ratings
China Resources Land trades at HK$33.22, which is 63% below the HK$54.05 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 40 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 7.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About China Resources Land
China Resources Land Limited, an investment holding company, engages in the investment, development, management, and sale of properties in the People's Republic of China. The company operates through three segments: Development Property Business, Investment Property Business, and Asset-light Management Business. It engages in development and sale of residential properties, offices, and commercial premises; and leases investment properties comprising self-developed and under sublease, such as shopping malls, offices, hotels, apartments, and industrial park. In addition, the company is involved in commercial operations and property management; and sports and cultural operations, rental housing business, and urban construction management and consultation services. The company was formerly known as China Resources (Beijing) Land Co., Ltd. and changed its name to China Resources Land Limited in 2001. China Resources Land Limited was founded in 1994 and is headquartered in Wan Chai, Hong Kong. China Resources Land Limited operates as a subsidiary of CRH (Land) Limited.
1109.HK passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is China Resources Land (1109.HK) undervalued?
Against our discounted cash flow estimate of HK$54.05, 1109.HK at HK$33.22 is 63% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 1109.HK's P/E ratio?
1109.HK trades at 7.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.