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New World Development Co. Ltd. (HK:0017)
:0017
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New World Development (0017) AI Stock Analysis

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HK:0017

New World Development

(OTC:0017)

Rating:57Neutral
Price Target:
HK$6.50
▲(0.46% Upside)
The overall stock score is primarily driven by strong technical analysis indicating bullish momentum, but tempered by significant financial challenges reflected in declining revenues and profitability. Valuation metrics are mixed, suggesting potential risk and reward.
Positive Factors
Project Sales Success
The recent launch of State Pavilia was greeted with enthusiastic response with 72% of total units sold for HKD3.2bn.
Rental Income Expansion
New World Development is expanding its rental income base, with the gradual completion of new rental properties such as K11 ECOAST in Shenzhen.
Negative Factors
Leadership Changes
Frequent change of the Chief Executive Officer adds uncertainties to the company’s future direction.

New World Development (0017) vs. iShares MSCI Hong Kong ETF (EWH)

New World Development Business Overview & Revenue Model

Company DescriptionNew World Development Company Limited, an investment holding company, engages in the property development and investment business in Hong Kong and internationally. Its property portfolio comprises residential, retail, office, and industrial properties. The company also provides commercial aircraft leasing services; operates expressways; and constructs residential and commercial projects, as well as provides protection and savings-related life and medical insurance products. In addition, it is involved in the duty-free operation and general trading, civil engineering, loyalty program, marketing, promotion, fashion retailing and trading, and piling and ground investigation businesses; development and operation of sports park; operation of household goods shop and convenience store; sale of LED lighting products and systems; and trading of telecommunication system integration products. Further, the company manages Hong Kong Convention and Exhibition Centre; operates hotels, golf and tennis academies, and shopping malls; operates department stores; and provides information technology, healthcare, training course, ticketing, financial, project management, management, advertising and media related, business and investment consultancy, franchised and non-franchised bus, estate agency, wellness and rehabilitation, endoscopic, carpark management, supply chain management, and catering services, as well as property agency, management, and consultancy services. Additionally, the company undertakes façade and foundation works; and offers elderly residential and nursing care services. As of June 30, 2021, the company had a total of 18 hotel properties with approximately 7,503 rooms in Hong Kong, Mainland China, and the Southeast Asia. New World Development Company Limited was founded in 1970 and is headquartered in Central, Hong Kong.
How the Company Makes MoneyNew World Development generates revenue through several key streams. The primary source is its property development and investment segment, which involves the sale and leasing of residential and commercial properties. The company capitalizes on its extensive land bank and strategic locations to develop high-value real estate projects. In addition to property sales, recurring income from property leasing provides a stable revenue base. The infrastructure and services segment contributes through construction services, facilities management, and transportation solutions. Furthermore, the company earns significant income from its retail and hotel operations, offering luxury accommodations and retail experiences. New World Development also benefits from strategic partnerships and joint ventures that enhance its market presence and operational capabilities.

New World Development Financial Statement Overview

Summary
New World Development faces significant financial challenges, characterized by declining revenues, negative profitability, and strained cash flows. The balance sheet maintains moderate equity, but high leverage and recent losses pose risks. Improving cash flow management and operational efficiency is crucial for future stability.
Income Statement
40
Negative
The income statement reveals a significant decline in total revenue and profitability over the past year. Gross profit margin decreased substantially from the previous period, and the company reported a net loss, resulting in a negative net profit margin. The EBIT and EBITDA margins are also under pressure, reflecting operational challenges. Revenue growth has been negative, indicating a declining trend in business performance.
Balance Sheet
55
Neutral
The balance sheet shows a stable equity base despite the challenging operating environment. The debt-to-equity ratio is relatively high, indicating a leveraged position, but stockholders' equity remains robust. The return on equity has turned negative due to recent losses, suggesting inefficiencies in generating returns. The equity ratio suggests moderate stability with substantial reliance on liabilities.
Cash Flow
35
Negative
Cash flow analysis highlights significant challenges, with negative free cash flow and a substantial decline in operating cash flow compared to net income. The free cash flow to net income ratio is unfavorable, indicating liquidity issues. The company has experienced a considerable decrease in free cash flow growth, reflecting cash management difficulties.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue35.78B95.55B68.69B68.47B59.25B
Gross Profit12.85B20.76B17.41B18.06B18.89B
EBITDA3.74B13.91B11.22B12.15B13.31B
Net Income-17.51B900.90M1.25B1.15B1.10B
Balance Sheet
Total Assets445.16B616.48B635.88B627.08B600.20B
Cash, Cash Equivalents and Short-Term Investments28.24B70.01B76.54B76.21B78.16B
Total Debt160.95B243.02B246.73B231.80B235.47B
Total Liabilities220.27B395.43B395.40B371.82B357.54B
Stockholders Equity216.11B196.05B213.36B223.33B213.02B
Cash Flow
Free Cash Flow-13.17B3.76B1.90B2.49B-27.09B
Operating Cash Flow-8.35B10.99B7.45B9.65B-10.29B
Investing Cash Flow4.02B1.67B-3.26B3.04B-17.07B
Financing Cash Flow-31.81B-14.78B-5.72B-17.91B28.53B

New World Development Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.47
Price Trends
50DMA
5.46
Positive
100DMA
5.18
Positive
200DMA
5.54
Positive
Market Momentum
MACD
0.31
Negative
RSI
66.13
Neutral
STOCH
79.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0017, the sentiment is Positive. The current price of 6.47 is above the 20-day moving average (MA) of 5.95, above the 50-day MA of 5.46, and above the 200-day MA of 5.54, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 66.13 is Neutral, neither overbought nor oversold. The STOCH value of 79.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0017.

New World Development Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
kr18.15B19.992.73%2.57%2.19%140.59%
57
Neutral
HK$16.28B-10.34%7.68%-56.64%-3398.20%
$1.40B-3.12%6.88%
$17.09B21.301.94%7.01%
$2.50B13.681.48%6.98%
€808.74M-0.98%
€154.21M-3.45%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0017
New World Development
6.47
-0.96
-12.92%
GEAHF
Great Eagle Holdings
1.63
0.33
25.38%
HLDVF
Henderson Land Development Co
3.55
0.89
33.46%
HNLGF
Hang Lung Group
1.78
0.79
79.80%
DE:HKP
Joy City Property Limited
0.06
0.04
200.00%
DE:HKR
HKR International Limited
0.09
-0.02
-18.18%

New World Development Corporate Events

New World Development Announces Leadership Change
Jun 30, 2025

New World Development Company Limited announced the resignation of Dr. Cheng Chi-Kong, Adrian from his roles as non-executive director and non-executive vice-chairman, effective 1 July 2025. Dr. Cheng is stepping down to focus on public services and personal commitments, and he has no disagreements with the Board. The company expressed gratitude for his contributions.

The most recent analyst rating on (HK:0017) stock is a Sell with a HK$9.00 price target. To see the full list of analyst forecasts on New World Development stock, see the HK:0017 Stock Forecast page.

New World Development Announces New Board Composition
Jun 30, 2025

New World Development Company Limited has announced the composition of its board of directors, effective from July 1, 2025. The board includes a mix of executive, non-executive, and independent non-executive directors, with specific roles and committee memberships assigned to each member. This announcement reflects the company’s strategic focus on governance and leadership structure, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:0017) stock is a Sell with a HK$9.00 price target. To see the full list of analyst forecasts on New World Development stock, see the HK:0017 Stock Forecast page.

New World Development Secures HK$88.2 Billion Refinancing
Jun 30, 2025

New World Development Company Limited announced the successful refinancing of its existing offshore unsecured financial indebtedness, amounting to approximately HK$88.2 billion, through a new term loan facility and aligned bank facilities. This strategic move provides the company with enhanced financial flexibility to manage its business and financial needs, potentially strengthening its position in the market and offering reassurance to stakeholders.

The most recent analyst rating on (HK:0017) stock is a Sell with a HK$6.50 price target. To see the full list of analyst forecasts on New World Development stock, see the HK:0017 Stock Forecast page.

New World Development Addresses Loan Refinancing Rumors
Jun 23, 2025

New World Development Company Limited has addressed market rumors regarding the refinancing of its existing loans, confirming ongoing discussions with creditors. The company advises stakeholders to rely solely on official announcements for accurate information and to exercise caution when dealing with its securities.

The most recent analyst rating on (HK:0017) stock is a Sell with a HK$9.00 price target. To see the full list of analyst forecasts on New World Development stock, see the HK:0017 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2025