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

• Market Cap: HK$700.29M
• Dividend Yield: 7.78%
• Average Volume (3M): 782.91K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.64
• Revenue Growth: -1.83%
• EPS Growth: -69.18%
• Country: HK
• Employees: 92
• Sector: Real Estate
• Sector Strength: 80
• Industry: Real Estate - Development
• EPS (TTM): <0.01
• Shares Outstanding: 9,726,247,000
• 10 Day Avg. Volume: 1,033,846
• 30 Day Avg. Volume: 782,913
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

The overall stock score of 52 reflects the company's potential for improvement with a strong balance sheet and recent revenue growth. However, challenges in maintaining consistent profitability and cash flow, coupled with a lack of positive momentum in technical indicators, weigh on the overall outlook. The favorable valuation metrics, including a low P/E ratio and high dividend yield, provide some support to the stock's attractiveness.

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

Company Description

China New Town Development Co. Ltd. (1278) is a real estate developer based in China, focused on the development of large-scale, integrated urban projects. The company operates primarily in the real estate development sector, providing comprehensive services that include planning, design, construction, and management of new urban areas. Its core products and services are centered around the development of residential communities, commercial properties, and infrastructure that support the economic growth and urbanization of China.

How the Company Makes Money

China New Town Development Co. Ltd. generates revenue primarily through the sale and leasing of residential and commercial properties developed in its urban projects. The company invests in acquiring large tracts of land, which are then developed into integrated urban areas with residential, commercial, and infrastructure components. Revenue is earned from the sale of these developed properties to individuals and businesses, as well as from long-term leasing agreements. Additionally, the company may engage in partnerships with local governments and other real estate developers to co-develop certain projects, which can provide additional revenue streams through shared profits and fees. Key factors contributing to its earnings include the demand for urban housing and commercial spaces driven by China's rapid urbanization and economic growth.

China New Town Development Co. Ltd. Financial Statement Overview

Summary

China New Town Development Co. Ltd. shows potential with recent revenue growth, but faces challenges in consistent profitability and cash flow generation. The balance sheet is relatively strong, providing a solid foundation for future improvements. Continued focus on enhancing profit margins and stabilizing cash flows will be crucial for sustained growth.

Income Statement

The company has shown inconsistent revenue growth, with a significant increase in the most recent year. However, the net profit margin has been volatile, and the EBIT margin has decreased over the years. This indicates challenges in maintaining profitability despite revenue growth.

Balance Sheet

The company has a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity has been unstable, reflecting inconsistent profitability. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

Cash flow generation has been erratic, with fluctuations in free cash flow growth. Operating cash flow has occasionally been negative, but recent improvements are notable. The free cash flow to net income ratio suggests the company is working towards better cash management.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
162.68M	161.91M	187.93M	171.19M	124.41M
	Gross Profit
124.23M	118.64M	124.53M	130.33M	93.48M
	EBIT
278.86M	223.43M	149.21M	272.09M	329.04M
	EBITDA
306.59M	115.43M	207.34M	-170.22M	355.51M
	Net Income Common Stockholders
140.86M	7.45M	108.58M	-248.16M	95.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.32B	2.35B	1.77B	2.85B	3.40B
	Total Assets
7.88B	6.58B	6.68B	7.41B	8.67B
	Total Debt
2.32B	1.12B	1.13B	1.85B	2.76B
	Net Debt
864.29M	615.89M	747.54M	990.70M	2.49B
	Total Liabilities
3.21B	2.05B	2.16B	3.02B	3.99B
	Stockholders Equity
4.19B	4.07B	4.05B	3.94B	4.24B
Cash Flow		Free Cash Flow
-25.75M	-116.38M	416.31M	-71.94M	630.73M
	Operating Cash Flow
-20.04M	-33.91M	422.71M	-13.00M	697.63M
	Investing Cash Flow
-71.58M	226.92M	-106.16M	1.67B	-740.93M
	Financing Cash Flow
1.04B	-75.62M	-785.71M	-1.04B	-349.81M

China New Town Development Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1278, the sentiment is Positive. The current price of 0.07 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 32.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1109	71 Outperform	$188.26B	6.80	9.66%	6.59%	9.97%	-19.80%
Sector *	60 Neutral	$2.81B	11.39	0.21%	8508.43%	6.31%	-14.32%
3309	55 Neutral	HK$2.15B	33.92	-7.51%	―	-0.56%	-323.09%
1278	52 Neutral	HK$700.29M	14.69	1.06%	7.78%	-1.83%	-69.18%
3383	40 Underperform	$2.32B	―	-90.47%	―	-1.96%	-17.34%
2777	31 Underperform	$3.79B	―	-71.13%	―	-50.18%	12.86%
0813	27 Underperform	$3.11B	―	-380.16%	―	-1.39%	-66.84%

China New Town Development Co. Ltd. Corporate Events

China New Town Development Co. Ltd. Announces AGM with Key Resolutions

China New Town Development Co. Ltd. has announced its upcoming annual general meeting (AGM) on June 19, 2025, in Beijing, where shareholders will consider several key resolutions. These include the adoption of the company’s audited financial statements for 2024, approval of a final dividend, re-election of directors, appointment of a new independent auditor, and authorization for the board to manage share buybacks. The resolutions are aimed at strengthening the company’s governance and financial strategies, potentially impacting its market presence and shareholder value.

China New Town Development Proposes New Auditor Appointment

China New Town Development Co. Ltd. has announced the proposed appointment of CL Partners CPA Limited as its new independent auditor, replacing Ernest & Young after the latter’s term ends at the 2025 AGM. This change aims to enhance the independence and objectivity of the company’s external audit services, deemed beneficial for the company and its shareholders.

China New Town Development Updates Urbanization Investment Portfolio

China New Town Development Co. Ltd. announced an update on its urbanization fixed income investment portfolio, which totals RMB 3,309 million as of March 31, 2025, after accounting for risky project impairments. The portfolio is expected to yield an annual pre-tax return of approximately RMB 233 million, equating to an average annualized return of 7.0%. The company has added new projects in Taizhou and Yangzhou while exiting others, ensuring the return of principal and gains. This strategic portfolio adjustment highlights the company’s focus on optimizing returns and managing risks in its investment strategy, with plans for regular updates to shareholders.

China New Town Development Reports Decreased Profits and Corporate Changes in 2024

China New Town Development Company Limited announced its audited financial results for the year ending December 31, 2024, revealing a significant decrease in profit compared to the previous year. The company’s operating profit dropped to RMB 100,414,000 from RMB 213,434,000 in 2023, with a total comprehensive income of RMB 58,456,000, down from RMB 153,774,000. The announcement also included the retirement of its independent auditor and the resignation of a joint company secretary, indicating potential changes in its corporate governance structure.

China New Town Development Announces Final Dividend for 2024

China New Town Development Co. Ltd. announced a final cash dividend of HKD 0.0039 per share for the financial year ending December 31, 2024, with the payment date set for July 18, 2025. This announcement reflects the company’s financial performance and commitment to returning value to shareholders, potentially impacting investor confidence and market perception of the company’s stability.

China New Town Development Schedules Board Meeting for Financial Results

China New Town Development Company Limited has announced a board meeting scheduled for March 21, 2025, to discuss and approve the audited financial results for the year ending December 31, 2024. The meeting will also consider the recommendation for a final dividend, which could impact the company’s financial strategy and shareholder returns.

China New Town Development Updates Registrar and Office

China New Town Development Co. Ltd. announced a change in its principal share registrar and registered office in the British Virgin Islands, effective February 14, 2025. This change is part of the company’s administrative updates, while its Hong Kong branch share registrar remains unchanged, indicating a strategic move to streamline its operations.