China Resources Land Limited (1109.HK) stock analysis

In our weekly check, China Resources Land Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7.

About China Resources Land Limited

China Resources Land Limited is a Real Estate company (Real Estate - Development) based in Hong Kong, listed on HKSE as 1109.HK.

What our checks show for 1109.HK

Red flags

• The net margin fell by 6.4 points over 5 years, to 9%: the company keeps less of each sale as profit.
• The gross margin fell by 5.4 points, to 21.2%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 6.2% a year.
• The dividend takes 246% of profit: little cushion if profit falls.
• The stock has fallen as much as 70% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 4.1 years.
• Return on capital (ROCE) is only 4.2%.

Warning signs

• Net debt is 3.7x a year of EBITDA (debt/equity 0.95). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 2.3 times: a weak year could make the payments hard.
• Analysts expect earnings per share to shrink about 0.8% a year.
• Earnings per share fell 3.2% a year over the last 3 years.
• Net profit fell 7.4% a year over the last 3 years.
• The net margin is only 9%: little room if costs rise.

Strengths

• Operating cash flow is 1.53x net profit: the profit arrives as real cash.
• Free cash flow is 13.5% of revenue: cash for dividends, buybacks or growth.
• The price is 7.6 times earnings (P/E), reasonable for its growth.
• A large company: market value $26.82 billion.
• Actively traded: about 23.6 million shares a day.
• Pay in shares is only 0% of free cash flow.

Similar companies

1113.HK · 0016.HK · 0688.HK · NRP.JO · EMAAR.AE · DLF.NS

Questions

What grade does China Resources Land Limited (1109.HK) have?

In our weekly check, China Resources Land Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1109.HK stock?

This week's biggest flags for China Resources Land Limited: Margins falling, Gross margin falling, Weak revenue forecast. In total 13 of 25 checks show a warning or a red flag.

What does China Resources Land Limited do?

China Resources Land Limited is a Real Estate company (Real Estate - Development) based in Hong Kong, listed on HKSE as 1109.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis