# China Resources Land (1109.HK)

Canonical: https://gigainvestors.com/s/1109.HK

Analysis as of: 2026-10-16T07:34:25.473Z. Financial observations: FY1998–FY2025.

Listing currency: HKD. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: HKD 30.06 per share; close as of 2026-10-15.

Estimated value: low HKD 81.17 per share, central HKD 97.63 per share, high HKD 111.47 per share. Buy at or below the central value HKD 97.63 per share. Valuation as of 2026-10-16T07:34:25.473Z; scenarios are not confidence intervals.

Expected annual return: 40.6% at the stated quote. About 40.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.27×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.28×

- FY2017: 0.33×

- FY2018: 0.37×

- FY2019: 0.31×

- FY2020: 0.25×

- FY2021: 0.21×

- FY2022: 0.21×

- FY2023: 0.20×

- FY2024: 0.17×

- FY2025: 0.16×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 7.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 10.1%

- ROIC, second-lowest year: 7.6%

- Typical minus recent gross margin: 7.7 pp

- Typical gross margin (annual median): 28.9%

- Recent gross margin (lower of latest and 3-year median): 21.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.1%

- ROIC including acquisitions, ten-year median: 10.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.2%

- FY2017: 12.5%

- FY2018: 14.1%

- FY2019: 11.4%

- FY2020: 10.4%

- FY2021: 9.7%

- FY2022: 7.6%

- FY2023: 8.4%

- FY2024: 7.6%

- FY2025: 6.5%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.96×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 137B

- Net income, five-year total: CNY 143B

- Return on incremental invested capital: 5.5%

- Working capital / revenue, annual change: -4.5 pp

- Working capital / revenue, change between three-year averages: -35.6 pp

- Working capital / revenue, final three-year average: 144.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.96×

- FY2022: 0.93×

- FY2023: 0.96×

- FY2024: 0.97×

- FY2025: 0.98×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 13.2% vs 7.6%

- Per-share earnings: 2.55 to 3.58 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.3%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: CNY 62B

- Cumulative retained earnings: CNY 136B

- Diluted shares, 10-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.3%

- Per-share value change: CNY 1.03

- Per-share value, starting three-year median: CNY 2.55

- Per-share value, ending three-year median: CNY 3.58

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.1%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 53B

- Cumulative net income, 10 years: CNY 263B

- ROIC, first three-year median: 13.2%

- ROIC, last three-year median: 7.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 2.52

- FY2017: CNY 2.77

- FY2018: CNY 3.54

- FY2019: CNY 4.06

- FY2020: CNY 4.21

- FY2021: CNY 4.54

- FY2022: CNY 3.94

- FY2023: CNY 4.40

- FY2024: CNY 3.58

- FY2025: CNY 3.56

### accounting: pass

- Sloan accruals: -1.2%

- Receivables to sales index (DSRI): 0.92×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.53×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.9%

- FY2017: 2.0%

- FY2018: -0.4%

- FY2019: -0.5%

- FY2020: 0.9%

- FY2021: 2.7%

- FY2022: 2.5%

- FY2023: -1.3%

- FY2024: -1.9%

- FY2025: -1.2%

## Holders

## Price story

Down 21% since Feb 2022 · sales +0.9%

Story as of 2026-10-16T10:00:00.563Z; price observation 2026-10-15.

Price needs cash profits to shrink 18.7% a year for ten years

### Sales · FY2024–2025

sales +0.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 98B 

- FY2017: CNY 99B 

- FY2018: CNY 121B 

- FY2019: CNY 148B 

- FY2020: CNY 180B 

- FY2021: CNY 212B 

- FY2022: CNY 207B 

- FY2023: CNY 251B 

- FY2024: CNY 279B 

- FY2025: CNY 281B 

### Gross margin · FY2025

gross margin 21.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 33.7% 

- FY2017: 40.3% 

- FY2018: 43.4% 

- FY2019: 37.9% 

- FY2020: 30.9% 

- FY2021: 27.0% 

- FY2022: 26.2% 

- FY2023: 25.2% 

- FY2024: 21.6% 

- FY2025: 21.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are CNY 281.4 billion.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2025-12-31 (filed 2026-10-16T07:34:25.473Z); FY2025: revenue 281437885000; grossProfit 59744383000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 21.2% to 25.2% during 2023–25; it earns 10.1% on its capital.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2023-12-31 (filed 2026-10-16T07:34:25.473Z); FY2023: grossProfit / revenue = 25.2%.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2024-12-31 (filed 2026-10-16T07:34:25.473Z); FY2024: grossProfit / revenue = 21.6%.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2025-12-31 (filed 2026-10-16T07:34:25.473Z); FY2025: grossProfit / revenue = 21.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.473Z); 10-year return on capital observations [[2016,0.13191767643051108],[2017,0.12471311047643527],[2018,0.14058966893241823],[2019,0.11408133580705412],[2020,0.10410626887080024],[2021,0.0971998775803493],[2022,0.07588101046591865],[2023,0.08379591114150323],[2024,0.07566558170520958],[2025,0.06503659735852048]]; median 0.10065307322557476. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 26% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.473Z); Gross margin observations: [[2021,0.26967186271839416],[2022,0.2621960620235999],[2023,0.2515037134915106]]; range within 2 percentage points.

### Where the cash goes

Earns 5.5% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2016-12-31 (filed 2026-10-16T07:34:25.473Z); FY2016: growth capex 0; upkeep 1582285337.6; owner earnings 16305022759.33. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2017-12-31 (filed 2026-10-16T07:34:25.473Z); FY2017: growth capex 67238738.82876325; upkeep 1133251207.5412366; owner earnings 18550470342.158764. Growth capex / owner earnings = 0.0036246379519527866.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2018-12-31 (filed 2026-10-16T07:34:25.473Z); FY2018: growth capex 1656515000; upkeep 564925000; owner earnings 24525500000. Growth capex / owner earnings = 0.06754255774601944.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2019-12-31 (filed 2026-10-16T07:34:25.473Z); FY2019: growth capex 2281671469.16394; upkeep 941605530.83606; owner earnings 28355722869.16394. Growth capex / owner earnings = 0.08046599551320888.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2020-12-31 (filed 2026-10-16T07:34:25.473Z); FY2020: growth capex 1975559000; upkeep 926456000; owner earnings 28941666600. Growth capex / owner earnings = 0.06826002895078613.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2021-12-31 (filed 2026-10-16T07:34:25.473Z); FY2021: growth capex 926756000; upkeep 1305764000; owner earnings 31240812600. Growth capex / owner earnings = 0.029664913389608822.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2022-12-31 (filed 2026-10-16T07:34:25.473Z); FY2022: growth capex 0; upkeep 1896770000; cash acquisitions 4371340000; owner earnings 26105212800. Growth capex plus acquisitions / owner earnings = 0.1674508472116343.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2023-12-31 (filed 2026-10-16T07:34:25.473Z); FY2023: growth capex 0; upkeep 1260466000; cash acquisitions 5400851000; owner earnings 30223636113.68005. Growth capex plus acquisitions / owner earnings = 0.1786962686979753.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2024-12-31 (filed 2026-10-16T07:34:25.473Z); FY2024: growth capex 0; upkeep 966879000; cash acquisitions 376254000; owner earnings 24798787200. Growth capex plus acquisitions / owner earnings = 0.015172274231217243.

- Source: https://eodhd.com/api/fundamentals/CHZ.STU.json#2025-12-31 (filed 2026-10-16T07:34:25.473Z); FY2025: growth capex 0; upkeep 899294000; cash acquisitions 38945622000; owner earnings 24958244819.07199. Growth capex plus acquisitions / owner earnings = 1.560431123355256.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.473Z); Incremental return on capital 0.055261469215458076, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.473Z); Dividend observations: [[2016,3593266564.69],[2017,4123578030.26],[2018,5828691000],[2019,7673828000],[2020,7759421000],[2021,8905140000],[2022,10379329000],[2023,10578701000],[2024,10283076000],[2025,9389662000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 59.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 1109.HK SharesStats.PercentInsiders = 59.553 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 18.7% yearly over ten years; actual growth was 3.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:25.473Z); Ten-year compound average after fade. Initial solved rate -0.27029404970733395. Price 30.06; FX 1.1727222788982186; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.5522424586437333 → FY2025 3.4999938707336495. Closing-price date 2026-10-15.

## Monthly share-price history (HKD per share)

- 2016-10: HKD 19.34 per share

- 2016-11: HKD 18.84 per share

- 2016-12: HKD 17.44 per share

- 2017-01: HKD 19.34 per share

- 2017-02: HKD 21.20 per share

- 2017-03: HKD 21.00 per share

- 2017-04: HKD 21.60 per share

- 2017-05: HKD 22.90 per share

- 2017-06: HKD 22.75 per share

- 2017-07: HKD 25.10 per share

- 2017-08: HKD 24.45 per share

- 2017-09: HKD 23.90 per share

- 2017-10: HKD 23.25 per share

- 2017-11: HKD 22.45 per share

- 2017-12: HKD 23.00 per share

- 2018-01: HKD 31.20 per share

- 2018-02: HKD 27.95 per share

- 2018-03: HKD 28.55 per share

- 2018-04: HKD 29.75 per share

- 2018-05: HKD 28.80 per share

- 2018-06: HKD 26.45 per share

- 2018-07: HKD 28.70 per share

- 2018-08: HKD 27.35 per share

- 2018-09: HKD 27.40 per share

- 2018-10: HKD 26.60 per share

- 2018-11: HKD 29.00 per share

- 2018-12: HKD 30.10 per share

- 2019-01: HKD 30.50 per share

- 2019-02: HKD 29.30 per share

- 2019-03: HKD 35.20 per share

- 2019-04: HKD 34.15 per share

- 2019-05: HKD 31.90 per share

- 2019-06: HKD 34.40 per share

- 2019-07: HKD 33.75 per share

- 2019-08: HKD 31.90 per share

- 2019-09: HKD 32.85 per share

- 2019-10: HKD 33.45 per share

- 2019-11: HKD 33.85 per share

- 2019-12: HKD 38.80 per share

- 2020-01: HKD 32.70 per share

- 2020-02: HKD 35.95 per share

- 2020-03: HKD 32.00 per share

- 2020-04: HKD 31.80 per share

- 2020-05: HKD 30.55 per share

- 2020-06: HKD 29.35 per share

- 2020-07: HKD 32.30 per share

- 2020-08: HKD 35.85 per share

- 2020-09: HKD 34.90 per share

- 2020-10: HKD 31.55 per share

- 2020-11: HKD 33.60 per share

- 2020-12: HKD 32.00 per share

- 2021-01: HKD 30.90 per share

- 2021-02: HKD 36.85 per share

- 2021-03: HKD 37.65 per share

- 2021-04: HKD 36.45 per share

- 2021-05: HKD 36.35 per share

- 2021-06: HKD 31.45 per share

- 2021-07: HKD 26.00 per share

- 2021-08: HKD 28.95 per share

- 2021-09: HKD 32.85 per share

- 2021-10: HKD 30.30 per share

- 2021-11: HKD 32.45 per share

- 2021-12: HKD 32.80 per share

- 2022-01: HKD 37.55 per share

- 2022-02: HKD 38.00 per share

- 2022-03: HKD 36.50 per share

- 2022-04: HKD 35.30 per share

- 2022-05: HKD 35.00 per share

- 2022-06: HKD 36.60 per share

- 2022-07: HKD 32.75 per share

- 2022-08: HKD 32.25 per share

- 2022-09: HKD 30.90 per share

- 2022-10: HKD 24.60 per share

- 2022-11: HKD 36.00 per share

- 2022-12: HKD 35.75 per share

- 2023-01: HKD 37.60 per share

- 2023-02: HKD 34.80 per share

- 2023-03: HKD 35.80 per share

- 2023-04: HKD 36.40 per share

- 2023-05: HKD 29.30 per share

- 2023-06: HKD 33.20 per share

- 2023-07: HKD 36.10 per share

- 2023-08: HKD 33.15 per share

- 2023-09: HKD 31.20 per share

- 2023-10: HKD 29.30 per share

- 2023-11: HKD 28.60 per share

- 2023-12: HKD 28.00 per share

- 2024-01: HKD 23.60 per share

- 2024-02: HKD 24.10 per share

- 2024-03: HKD 24.75 per share

- 2024-04: HKD 28.45 per share

- 2024-05: HKD 28.40 per share

- 2024-06: HKD 26.55 per share

- 2024-07: HKD 23.45 per share

- 2024-08: HKD 22.15 per share

- 2024-09: HKD 28.65 per share

- 2024-10: HKD 25.85 per share

- 2024-11: HKD 23.00 per share

- 2024-12: HKD 22.55 per share

- 2025-01: HKD 23.55 per share

- 2025-02: HKD 26.00 per share

- 2025-03: HKD 25.80 per share

- 2025-04: HKD 26.25 per share

- 2025-05: HKD 25.60 per share

- 2025-06: HKD 26.60 per share

- 2025-07: HKD 28.85 per share

- 2025-08: HKD 30.56 per share

- 2025-09: HKD 30.38 per share

- 2025-10: HKD 28.06 per share

- 2025-11: HKD 30.16 per share

- 2025-12: HKD 27.20 per share

- 2026-01: HKD 30.68 per share

- 2026-02: HKD 31.78 per share

- 2026-03: HKD 28.64 per share

- 2026-04: HKD 32.50 per share

- 2026-05: HKD 35.32 per share

- 2026-06: HKD 30.00 per share

- 2026-07: HKD 33.20 per share

- 2026-08: HKD 30.06 per share

- 2026-09: HKD 30.56 per share

- 2026-10: HKD 30.06 per share

## Annual estimated value (HKD per share)

- FY2016: low HKD 44.37 per share, central HKD 60.59 per share, high HKD 70.03 per share

- FY2017: low HKD 46.85 per share, central HKD 63.26 per share, high HKD 72.83 per share

- FY2018: low HKD 58.43 per share, central HKD 78.51 per share, high HKD 90.21 per share

- FY2019: low HKD 71.63 per share, central HKD 98.13 per share, high HKD 113.56 per share

- FY2020: low HKD 89.76 per share, central HKD 121.97 per share, high HKD 140.72 per share

- FY2021: low HKD 105.84 per share, central HKD 143.88 per share, high HKD 166.04 per share

- FY2022: low HKD 85.47 per share, central HKD 117.44 per share, high HKD 136.05 per share

- FY2023: low HKD 92.80 per share, central HKD 117.88 per share, high HKD 135.28 per share

- FY2024: low HKD 85.66 per share, central HKD 105.59 per share, high HKD 120.89 per share

- FY2025: low HKD 81.17 per share, central HKD 97.63 per share, high HKD 111.47 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:10.384Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.