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China Housing & Land Development (CHLN)

Located in Xi’an, China Housing & Land Development is a leading real estate developer of residential and commercial buildings and land in northwest China. For nearly two decades the company has been acquiring, developing, managing and selling residential and commercial real estate properties and land through its wholly-owned subsidiaries in China.

Leveraging strong relationships with China’s local state authorities, China Housing & Land Development has been able to capitalize on the supply of available land and develop residential and commercial properties. The company has proven its ability to outperform competitors in medium size residential and commercial real estate developments in greater Xi’an.

Currently three analysts track the stock. One says it’s a “strong buy”, while the other two say it’s a “buy”. The average price target is $5.50. The company currently holds $318.5 million in assets and $227.5 million in liabilities. With $68.3 million cash on hand and a market cap of only $66.83 million, the company’s stock trades below total cash per share.

Highlights include:

  • The number 1 residential real estate development company in Xi’an, Shaanxi Province, China
  • Preeminent position permits increased penetration in the residential and commercial property development market
  • Eight year history of market leadership, brand recognition, and established relationships with key decision makers
  • Company leaders own significant shares and anticipate gradually accelerating long-term revenue and earnings growth
  • The company reports using U.S. GAAP accounting and complies with all SEC reporting requirements

Key statistics (5/3/11):

Market cap: $76.82 Million
P/S Ratio: 0.54 versus industry average of 11.92
Price/Cash Flow: 3.60 versus industry average of 11.80
Price/Book Value: 0.70 versus industry average of 3.44

Return on Equity: 3.5% versus industry average of 5.1%
Return on Assets: 5.6% versus industry average of 3.1%
Return on Capital: 8.7% versus industry average of 3.3%
5-Year average ROE: 13.0% versus industry average of 4.3%

Thursday, October 7th, 2010 Uncategorized
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