New World Development (0017) AI Stock Analysis

• Market Cap: $16.84B
• Dividend Yield: 7.69%
• Average Volume (3M): 21.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -56.64%
• EPS Growth: -3398.20%
• Country: HK
• Employees: 10,500
• Sector: Real Estate
• Sector Strength: 48
• Industry: Real Estate - Diversified
• EPS (TTM): -2.64
• Shares Outstanding: 2,516,633,000
• 10 Day Avg. Volume: 19,446,989
• 30 Day Avg. Volume: 21,768,646
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 11.27
• Enterprise Value/Revenue: 5.34
• Enterprise Value/Gross Profit: 15.47
• Enterprise Value/Ebitda: 115.46
• 1Y Price Target: $4.44
• Price Target Upside: -31.70% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5

• Rating: 57 Neutral
• Price Target: HK$6.50 ▲(0.00% 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 c.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

Debt Refinancing

Progress in bank loan refinancing to dictate near-term share price performance.

Executive Leadership

Frequent change of the Chief Executive Officer adds uncertainties to the company’s direction.

Net Interim Loss

Net interim loss reached HKD6.6bn, in line with profit warning.

New World Development Business Overview & Revenue Model

Company Description

New 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 Money

New 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

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	35.78B	95.55B	68.69B	68.47B	59.25B
Gross Profit	12.85B	20.76B	17.41B	18.06B	18.89B
EBITDA	3.74B	13.91B	11.22B	12.15B	13.31B
Net Income	-17.51B	900.90M	1.25B	1.15B	1.10B
Balance Sheet
Total Assets	445.16B	616.48B	635.88B	627.08B	600.20B
Cash, Cash Equivalents and Short-Term Investments	28.24B	70.01B	76.54B	76.21B	78.16B
Total Debt	160.95B	243.02B	246.73B	231.80B	235.47B
Total Liabilities	220.27B	395.43B	395.40B	371.82B	357.54B
Stockholders Equity	216.11B	196.05B	213.36B	223.33B	213.02B
Cash Flow
Free Cash Flow	-13.17B	3.76B	1.90B	2.49B	-27.09B
Operating Cash Flow	-8.35B	10.99B	7.45B	9.65B	-10.29B
Investing Cash Flow	4.02B	1.67B	-3.26B	3.04B	-17.07B
Financing Cash Flow	-31.81B	-14.78B	-5.72B	-17.91B	28.53B

New World Development Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 6.5 is below the 20-day moving average (MA) of 6.59, above the 50-day MA of 6.06, and above the 200-day MA of 5.41, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 52.88 is Neutral, neither overbought nor oversold. The STOCH value of 43.59 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$7.02B	13.47	-0.52%	7.00%	3.61%	-22.78%
0017	57 Neutral	$16.84B	―	-10.34%	7.69%	-56.64%	-3398.20%
GEAHF	―	$1.43B	―	-3.35%	5.71%	―	―
HLDVF	―	$16.87B	22.76	1.89%	6.31%	―	―
HNLGF	―	$2.43B	13.16	1.48%	1.51%	―	―
HKP	―	€846.93M	―	-0.98%	―	―	―
HKR	―	€162.06M	―	-3.45%	―	―	―

New World Development Corporate Events

New World Development Announces Leadership Change

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

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

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

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.