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New World Development (HK:0017)
:0017

New World Development (0017) AI Stock Analysis

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HK:0017

New World Development

(0017)

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Neutral 44 (OpenAI - 4o)
Rating:44Neutral
Price Target:
HK$7.00
▼(-4.89% Downside)
New World Development's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, high leverage, and liquidity challenges. While technical analysis and valuation also present concerns, the company's efforts in refinancing and debt reduction provide some stability. However, significant financial losses and the suspension of dividends contribute to a cautious outlook.
Positive Factors
Successful Refinancing
The successful refinancing enhances liquidity, allowing the company to focus on core business development and improve financial stability.
Property Sales Achievement
Meeting sales targets in uncertain markets underscores strong demand and effective sales strategies, supporting revenue stability.
Debt Reduction
Debt reduction efforts improve the company's financial position, enhancing long-term sustainability and reducing financial risk.
Negative Factors
Significant Financial Loss
Substantial financial losses impact profitability and may hinder future investment capabilities, posing a risk to long-term growth.
Core Operating Profit Decline
A decline in core operating profit reflects operational challenges, potentially affecting the company's ability to sustain growth.
Suspension of Dividend Payments
Suspending dividends can signal financial distress and may reduce investor confidence, impacting the company's market perception.

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 primarily through its property development and investment activities. This includes the sale of residential and commercial properties, leasing of retail spaces, and revenue from hotel operations. The company also earns income from its infrastructure projects, which can involve long-term contracts for public works and utilities. Additionally, New World Development has stakes in various subsidiaries and joint ventures that contribute to its earnings, including partnerships in the telecommunications sector. The company's strategic focus on urban development and community-oriented projects allows it to tap into the growing demand for housing and commercial spaces, further bolstering its financial performance.

New World Development Earnings Call Summary

Earnings Call Date:Sep 26, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Feb 20, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant achievements in refinancing, property sales, and debt reduction. However, these were counterbalanced by substantial financial losses, impairments, and suspended dividend payments, leading to a cautious outlook.
Q4-2025 Updates
Positive Updates
Successful HKD 88.2 Billion Bank Refinancing
New World Development completed a HKD 88.2 billion bank refinancing, enhancing short- to medium-term liquidity and allowing focus on core business development.
Achievement of Property Sales Target
Despite market uncertainties, the company achieved its annual property sales target of HKD 26 billion, with strong sales in Hong Kong and Mainland China.
Debt Reduction and Positive Cash Flow
Total debt and net debt decreased in FY '25, with cash flow returning to positive territory, indicating a stabilizing financial position.
Strong Performance in Retail and Office Leasing
K11 MUSEA and Art Mall in Hong Kong recorded high foot traffic and double-digit sales growth across multiple tenant categories.
Successful Project Launches in Property Development
Multiple projects in Hong Kong, such as Deepwater Pavilia, achieved significant sales since their launches, contributing to the company's strong property sales performance.
Interest Expense Reduction
Due to rate cuts, the company's average interest rate decreased from 5% in FY '24 to 4.8% in FY '25, reducing total financing costs by HKD 1.3 billion.
Negative Updates
HKD 16.3 Billion Loss Attributable to Shareholders
The company reported a loss of HKD 16.3 billion for FY '25, impacted by noncash provisions and one-off losses.
13% Decrease in Core Operating Profit
Core operating profit decreased by 13% year-on-year due to lower property delivery volume and preopening expenses for new investment properties.
Suspension of Dividend Payments
Dividend payments were suspended to preserve cash amidst ongoing financial management efforts.
Asset Impairments and Provisions
Significant impairments and provisions were recorded, including a HKD 2.7 billion adjustment on the 11 SKIES retail portion and losses from asset disposals in Mainland China.
Decline in Shareholders' Equity
Shareholders' equity declined from HKD 224.9 billion to HKD 206.7 billion, influenced by property development impairments and one-off losses.
Company Guidance
During the call, New World Development provided detailed guidance on several financial metrics and strategic initiatives. The company completed a significant HKD 88.2 billion bank refinancing on June 30, 2025, which extended certain loan maturities to June 2028, improving short- to medium-term liquidity. Additionally, the company secured an additional HKD 3.95 billion in committed loan facilities to address debt-related needs, with the option to scale further. Despite market uncertainties, New World Development achieved its annual property sales target of HKD 26 billion, with strong sales in Hong Kong and Mainland China. The company's total and net debt decreased by HKD 5.7 billion and HKD 4.5 billion, respectively, throughout FY 2025, while the net gearing ratio slightly increased to 58.1% due to a decline in shareholders' equity. Efforts to streamline costs resulted in a 16% reduction in G&A expenses, contributing to a 15% year-on-year decrease in CapEx to HKD 12.6 billion. The company plans to further reduce CapEx to below HKD 12 billion in FY 2026. Despite a reported loss of HKD 16.3 billion, largely due to noncash provisions and one-off losses, the company remains focused on debt reduction, enhancing operational efficiency, and optimizing cash flow.

New World Development Financial Statement Overview

Summary
New World Development faces significant financial challenges, with declining revenues, negative profitability, high leverage, and poor cash flow metrics. The income statement shows a substantial revenue drop and negative net profit margins, while the balance sheet reveals a high debt-to-equity ratio and negative return on equity. Cash flow analysis indicates severe liquidity issues.
Income Statement
The income statement shows a significant decline in revenue and profitability. The company experienced a substantial revenue drop of 21.95% in the most recent year, with negative net profit margins indicating ongoing losses. Gross profit margins have decreased over the years, and EBIT and EBITDA margins are low, reflecting operational challenges.
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses financial risk. The return on equity is negative, reflecting poor profitability. However, the equity ratio is relatively stable, suggesting some balance sheet strength.
Cash Flow
Cash flow analysis indicates severe challenges, with negative free cash flow growth and a negative free cash flow to net income ratio. Operating cash flow has improved but remains insufficient to cover net income, highlighting liquidity issues.
BreakdownTTMDec 2024Dec 2023Dec 2023Dec 2023Dec 2023
Income Statement
Total Revenue19.58B27.71B35.78B35.78B35.78B35.78B
Gross Profit10.63B10.63B12.85B12.85B12.85B12.85B
EBITDA-3.27B1.71B3.74B3.74B3.74B3.74B
Net Income-15.31B-15.31B-17.51B-17.51B-17.51B-17.51B
Balance Sheet
Total Assets420.26B420.26B445.16B445.16B445.16B445.16B
Cash, Cash Equivalents and Short-Term Investments25.99B25.99B28.24B28.24B28.24B28.24B
Total Debt155.01B155.01B160.95B160.95B160.95B160.95B
Total Liabilities213.53B213.53B220.27B220.27B220.27B220.27B
Stockholders Equity198.89B198.89B216.11B216.11B216.11B216.11B
Cash Flow
Free Cash Flow-656.10M-656.10M-13.17B-13.17B-13.17B-13.17B
Operating Cash Flow3.56B3.56B-8.35B-8.35B-8.35B-8.35B
Investing Cash Flow1.45B1.45B6.49B6.49B6.49B6.49B
Financing Cash Flow-7.21B-7.21B-31.81B-31.81B-31.81B-31.81B

New World Development Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.36
Price Trends
50DMA
7.26
Positive
100DMA
7.41
Positive
200DMA
6.34
Positive
Market Momentum
MACD
0.06
Negative
RSI
59.42
Neutral
STOCH
81.69
Negative
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 7.36 is above the 20-day moving average (MA) of 7.29, above the 50-day MA of 7.26, and above the 200-day MA of 6.34, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 59.42 is Neutral, neither overbought nor oversold. The STOCH value of 81.69 is Negative, 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$21.17B14.891.48%5.62%-9.78%-29.50%
70
Outperform
HK$143.40B23.781.89%6.20%-19.91%-6.92%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
53
Neutral
HK$11.16B-6.18-3.35%5.93%1.37%-157.43%
50
Neutral
HK$1.63B-2.07-3.56%72.75%25.44%
44
Neutral
HK$18.93B-1.16-9.54%-40.92%-42.67%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0017
New World Development
7.52
3.31
78.62%
HK:0041
Great Eagle Holdings
14.92
5.06
51.30%
HK:0012
Henderson Land Development Co
29.62
9.26
45.50%
HK:0010
Hang Lung Group
15.55
6.21
66.54%
HK:0480
HKR International Limited
1.10
0.29
35.80%

New World Development Corporate Events

New World Development Appoints New Executive Director
Dec 11, 2025

New World Development Company Limited has announced the appointment of Mr. Chan Yiu-Ho as an Executive Director, effective December 12, 2025. Mr. Chan, who has been with the company since 2000, brings extensive experience in real estate development in China and will also serve as the Chief Executive Officer of New World China Land Limited. This strategic appointment is expected to strengthen the company’s leadership team and enhance its operations in the Chinese market.

The most recent analyst rating on (HK:0017) stock is a Hold with a HK$7.00 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 Board Composition and Roles
Dec 11, 2025

New World Development Company Limited has announced the composition of its Board of Directors, detailing the roles and functions of its executive, non-executive, and independent non-executive directors. This announcement, effective from December 12, 2025, highlights the company’s strategic leadership structure, which is crucial for its operational and governance framework, potentially impacting its market positioning and stakeholder engagement.

The most recent analyst rating on (HK:0017) stock is a Hold with a HK$7.00 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 Successfully Passes All AGM Resolutions
Nov 20, 2025

New World Development Company Limited announced that all proposed resolutions at its annual general meeting held on November 20, 2025, were successfully passed by shareholders through a poll. The resolutions included the adoption of financial statements, re-election of directors, and the granting of mandates for share buybacks and issuance. The successful passing of these resolutions indicates strong shareholder support and is expected to positively impact the company’s governance and strategic initiatives.

The most recent analyst rating on (HK:0017) stock is a Hold with a HK$7.00 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 Final Early Results and Cap Increase in Exchange Offers
Nov 18, 2025

New World Development has announced the final early results and an increase to the Maximum PerpCo Cap in connection with its exchange offers for several series of existing perpetual securities and notes. This announcement marks a significant step in the company’s financial strategy, potentially impacting its liquidity and capital structure, and reflects its ongoing efforts to optimize its debt profile.

The most recent analyst rating on (HK:0017) stock is a Hold with a HK$7.00 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 Successful Deleveraging Through Exchange Offers
Nov 18, 2025

New World Development, through its subsidiaries CS Treasury Management Services (P) Limited and CS Treasury Management Services (B) Limited, has announced the preliminary early results and extension of the Early Exchange Consideration for its exchange offers. The company aims to achieve significant deleveraging by reducing its outstanding perpetual securities and senior notes by approximately U.S.$1.02 billion and U.S.$29.9 million, respectively. This move is expected to improve the company’s debt maturity profile, enhance balance sheet flexibility and liquidity, and strengthen its overall financial position.

The most recent analyst rating on (HK:0017) stock is a Hold with a HK$7.00 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 Clarifies Position on Debt and Equity Rumors
Oct 21, 2025

New World Development has issued a voluntary announcement to clarify that it is not currently undertaking any liability management exercise concerning its perpetual or other debt securities, nor has it received any equity financing proposals. The company advises stakeholders to disregard market rumors and rely only on official announcements for accurate information, emphasizing caution when dealing with its securities.

The most recent analyst rating on (HK:0017) stock is a Hold with a HK$8.50 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: Oct 31, 2025