China New Town Development Company Limited
China New Town Development Company Limited Fundamental Analysis
China New Town Development Company Limited (1278.HK) shows moderate financial fundamentals with a PE ratio of 10.48, profit margin of 14.59%, and ROE of 1.64%. The company generates $0.5B in annual revenue with weak year-over-year growth of -5.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 1278.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1278.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1278.HK trades at attractive valuation levels.
Growth Score
Weak1278.HK faces weak or negative growth trends.
Financial Health Score
Excellent1278.HK maintains a strong and stable balance sheet.
Profitability Score
Weak1278.HK struggles to sustain strong margins.
Key Financial Metrics
Is 1278.HK Expensive or Cheap?
P/E Ratio
1278.HK trades at 10.48 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1278.HK's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values China New Town Development Company Limited at 0.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.55 times EBITDA. This is generally considered low.
How Well Does 1278.HK Make Money?
Net Profit Margin
For every $100 in sales, China New Town Development Company Limited keeps $14.59 as profit after all expenses.
Operating Margin
Core operations generate 37.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.64 in profit for every $100 of shareholder equity.
ROA
China New Town Development Company Limited generates $0.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China New Town Development Company Limited generates limited operating cash flow of $-35.61M, signaling weaker underlying cash strength.
Free Cash Flow
China New Town Development Company Limited generates weak or negative free cash flow of $-36.42M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.00 in free cash annually.
FCF Yield
1278.HK converts -4.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.89
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 1278.HK Stacks Against Its Sector Peers
| Metric | 1278.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.48 | 22.38 | Better (Cheaper) |
| ROE | 1.64% | 721.00% | Weak |
| Net Margin | 14.59% | -37440.00% (disorted) | Strong |
| Debt/Equity | 0.89 | -20.85 (disorted) | Distorted |
| Current Ratio | 3.16 | 1953.62 | Strong Liquidity |
| ROA | 0.75% | -1450.00% (disorted) | Weak |
1278.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China New Town Development Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
17.16%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-53.56%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-95.72%
Industry Style: Income, Inflation Hedge, REIT
Declining