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China New Town Development Co. Ltd.
(1278)
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Rating:61Neutral
Price Target:
HK$0.06
▼(-27.50% Downside)
Action:Reiterated
Date:08/28/26
The score is held back primarily by weak cash flow reliability (negative operating and free cash flow) despite strong reported margins and a recent revenue rebound. Valuation is a key support (low P/E and reasonable yield), while technicals are mixed with modest near-term improvement but a weaker longer-term trend.
Positive Factors
Revenue Rebound
The recent revenue rebound indicates renewed activity across the company’s development-linked business and improves operating scale. If sustained through further project progress and land transactions, stronger revenue can support earnings capacity and reinforce the company’s ability to participate in future urban development opportunities.
Negative Factors
Weak Cash Conversion
Negative operating and free cash flow despite positive earnings indicates that accounting profits are not consistently converting into cash. In a capital-intensive land development model, persistent outflows can increase funding needs, constrain investment capacity, and make earnings less dependable as a source of financial strength.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Rebound
The recent revenue rebound indicates renewed activity across the company’s development-linked business and improves operating scale. If sustained through further project progress and land transactions, stronger revenue can support earnings capacity and reinforce the company’s ability to participate in future urban development opportunities.
Read all positive factors
China New Town Development Co. Ltd. (1278) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$534.94M
Dividend Yield8%
Average Volume (3M)571.81K
Price to Earnings (P/E)4.0
Beta (1Y)0.35
Revenue Growth29.06%
EPS Growth93.48%
CountryHK
Employees89
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)0.01
Shares Outstanding9,726,247,000
10 Day Avg. Volume1,268,411
30 Day Avg. Volume571,807
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 focuses on the strategic planning and establishment of new urban centers throughout the People's Republic of China. Its operations are divided into four primary divisions: Land Development, Urbanization D...
How the Company Makes Money
The company makes money primarily by earning returns linked to Primary Land Development projects in China. Under this model, the company participates in or finances the upfront preparation and development of land (such as planning coordination and...
China New Town Development Co. Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 649.66M | 378.85M | 153.77M | 162.68M | 161.91M | 273.04M |
| Gross Profit | 491.23M | 300.38M | 97.52M | 124.23M | 118.64M | 209.64M |
| EBITDA | 334.12M | 200.72M | 176.00M | 306.59M | 115.43M | 207.34M |
| Net Income | 114.38M | 71.40M | 44.32M | 140.86M | 2.72M | 108.58M |
Balance Sheet | ||||||
| Total Assets | 7.73B | 9.27B | 7.90B | 7.88B | 6.58B | 6.68B |
| Cash, Cash Equivalents and Short-Term Investments | 4.26B | 5.57B | 2.98B | 3.32B | 2.35B | 1.77B |
| Total Debt | 2.22B | 3.76B | 2.30B | 2.32B | 1.12B | 1.13B |
| Total Liabilities | 2.98B | 4.55B | 3.20B | 3.21B | 2.05B | 2.16B |
| Stockholders Equity | 4.25B | 4.23B | 4.21B | 4.19B | 4.07B | 4.05B |
Cash Flow | ||||||
| Free Cash Flow | -31.38M | -31.58M | 29.40M | -25.75M | -116.38M | 416.31M |
| Operating Cash Flow | -31.50M | -30.96M | 29.88M | -20.04M | -33.91M | 422.71M |
| Investing Cash Flow | 444.99M | -197.73M | -296.75M | -71.58M | 226.92M | -106.16M |
| Financing Cash Flow | -223.73M | 1.35B | -142.87M | 1.04B | -75.62M | -785.71M |
China New Town Development Co. Ltd. Technical Analysis
Negative
0.08
Price Trends
0.07
Negative
0.07
Negative
0.07
Negative
Market Momentum
>-0.01
Positive
36.56
Neutral
34.50
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 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 bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.56 is Neutral, neither overbought nor oversold. The STOCH value of 34.50 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% | |
61 Neutral | HK$534.94M | 3.96 | 2.70% | 8.00% | 29.06% | 93.48% | |
53 Neutral | HK$786.48M | 7.53 | 1.75% | 4.15% | 166.73% | ― | |
46 Neutral | HK$1.33B | -7.67 | -3.24% | ― | -50.51% | -262.73% | |
43 Neutral | HK$616.92M | -0.14 | -14.48% | 11.78% | -22.15% | 32.63% | |
42 Neutral | HK$190.10M | <0.01 | 817.88% | 13.91% | -16.73% | ― | |
41 Neutral | HK$1.15B | -1.30 | -6.95% | 5.86% | -72.43% | -49.43% |
* Real Estate Sector Average
HK:1278
China New Town Development Co. Ltd.
0.06
-0.03
-36.78%
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-87.18%
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1.21
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0.72
0.01
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0.15
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-43.77%
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Shanghai Industrial Urban Development Group Ltd
0.24
-0.10
-29.41%
China New Town Development Co. Ltd. Corporate Events
China New Town Development Optimizes Urbanization Fixed-Income Portfolio, Maintains 7.3% Yield
Oct 12, 2026
China New Town Development Company Limited reported that, as of 30 September 2026, its urbanization fixed-income investment portfolio stood at RMB3,073 million after impairment provisions, generating contractually guaranteed annual pre-tax returns...
China New Town Development posts higher revenue and profit in first half of 2026
Aug 21, 2026
China New Town Development Company Limited reported unaudited interim results for the six months ended 30 June 2026, showing operating income of RMB227.2 million, up from RMB192.2 million a year earlier, with revenue rising to RMB210.6 million fro...
China New Town Development Announces Interim Cash Dividend for 2026
Aug 21, 2026
China New Town Development Company Limited has declared an interim ordinary cash dividend of HKD 0.0019 per share for the six months ended 30 June 2026, payable in Hong Kong dollars. The dividend relates to the financial year ending 31 December 20...
China New Town Development Sets August Board Meeting for Interim Results and Dividend Review
Aug 11, 2026
China New Town Development Company Limited has scheduled a board meeting for 21 August 2026 to review and approve the unaudited consolidated financial results for the six months ended 30 June 2026. The company will also consider declaring an inter...
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.