China New City Commercial Development Limited
China New City Commercial Development Limited Fundamental Analysis
China New City Commercial Development Limited (1321.HK) shows weak financial fundamentals with a PE ratio of 8.27, profit margin of 5.85%, and ROE of 1.73%. The company generates $1.5B in annual revenue with weak year-over-year growth of 2.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 1321.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1321.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1321.HK trades at attractive valuation levels.
Growth Score
Weak1321.HK faces weak or negative growth trends.
Financial Health Score
Excellent1321.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate1321.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1321.HK Expensive or Cheap?
P/E Ratio
1321.HK trades at 8.27 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1321.HK's PEG of -0.12 indicates potential undervaluation.
Price to Book
The market values China New City Commercial Development Limited at 0.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 35.18 times EBITDA. This signals the market has high growth expectations.
How Well Does 1321.HK Make Money?
Net Profit Margin
For every $100 in sales, China New City Commercial Development Limited keeps $5.85 as profit after all expenses.
Operating Margin
Core operations generate 20.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.73 in profit for every $100 of shareholder equity.
ROA
China New City Commercial Development Limited generates $0.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China New City Commercial Development Limited generates limited operating cash flow of $59.46M, signaling weaker underlying cash strength.
Free Cash Flow
China New City Commercial Development Limited generates weak or negative free cash flow of $8.29M, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
1321.HK converts 1.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
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 1321.HK Stacks Against Its Sector Peers
| Metric | 1321.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.27 | 22.38 | Better (Cheaper) |
| ROE | 1.73% | 721.00% | Weak |
| Net Margin | 5.85% | -37440.00% (disorted) | Weak |
| Debt/Equity | 0.87 | -20.85 (disorted) | Distorted |
| Current Ratio | 1.67 | 1953.62 | Neutral |
| ROA | 0.68% | -1450.00% (disorted) | Weak |
1321.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China New City Commercial Development Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
109.77%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
1817.75%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
397.33%
Industry Style: Income, Inflation Hedge, REIT
High Growth