New World Development (0017) AI Stock Analysis

• Market Cap: HK$23.66B
• Dividend Yield: N/A
• Average Volume (3M): 18.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: -40.92%
• EPS Growth: -42.67%
• Country: HK
• Employees: 10,500
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): -1.48
• Shares Outstanding: 2,516,633,000
• 10 Day Avg. Volume: 11,682,085
• 30 Day Avg. Volume: 18,321,725
• PEG Ratio: -0.02
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -21.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$10.49
• Price Target Upside: 11.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): -0.87
• Revenue Forecast (FY): HK$24.90B

• Rating: 48 Neutral
• Price Target: HK$10.00 ▲(6.38% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is held down mainly by weak financial performance (declining revenue, losses, high leverage, and challenged free cash flow). Technicals are comparatively constructive with an uptrend and positive momentum, while valuation is hindered by loss-making results and no dividend support. Earnings-call updates improve the outlook on liquidity and debt management, but significant losses, impairments, and dividend suspension keep overall risk elevated.

Positive Factors

Liquidity / Refinancing

Extending loan maturities via the HKD 88.2B refinancing materially reduces near-term rollover risk and improves short-to-medium term liquidity. This structural relief provides management time to execute sales, cut costs and reduce leverage without forced asset sales, supporting stability over the next 2-6 months.

Property Sales Execution

Meeting the HKD 26B sales target demonstrates durable underlying demand and effective go-to-market execution across Hong Kong and Mainland projects. Reliable sales conversion supports predictable cash inflows, reduces inventory risk and underpins medium-term revenue recognition and working capital improvement.

Recurring Leasing Income

Strong foot traffic and tenant sales at flagship retail assets strengthen recurring rental and service income. Robust leasing performance improves occupancy and rental resilience, cushioning overall revenue volatility inherent in development cycles and supporting steadier cash generation over time.

Negative Factors

High Leverage

A high debt-to-equity ratio leaves limited equity buffer and increases sensitivity to interest, asset-value and cash-flow shocks. Even with refinancing, elevated leverage constrains strategic flexibility, raises refinancing risk if markets tighten, and magnifies downside in a weak property cycle.

Weak Free Cash Flow

Negative free cash flow growth and operating cash that doesn't cover net income signal structural cash-generation weakness. This forces dependence on external financing or asset disposals to fund capex and debt service, limiting organic deleveraging and capacity to rebuild liquidity over several quarters.

Large Losses & Impairments

The HKD 16.3B loss, material impairments and a dividend suspension erode shareholder equity and signal asset-quality issues. One-off and noncash provisions reduce balance-sheet flexibility, prolong recovery of returns and prioritize capital preservation over distributions in the medium term.

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 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 Financial Statement Overview

Summary

Weak fundamentals driven by a sharp revenue decline (−21.95%), negative profitability, high leverage, and strained cash generation (poor free cash flow metrics), despite some stabilization signals noted in the balance sheet commentary.

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.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	10.01B	27.71B	35.78B	95.55B	68.21B	68.47B
Gross Profit	6.88B	10.63B	12.85B	20.76B	17.41B	18.06B
EBITDA	-5.24B	1.71B	3.74B	9.78B	11.22B	12.15B
Net Income	-12.30B	-15.31B	-17.51B	900.90M	1.25B	1.15B
Balance Sheet
Total Assets	418.07B	420.26B	445.16B	616.48B	635.88B	627.08B
Cash, Cash Equivalents and Short-Term Investments	22.07B	25.99B	28.24B	70.01B	76.54B	76.21B
Total Debt	183.91B	155.01B	160.95B	195.56B	199.11B	182.22B
Total Liabilities	239.95B	213.53B	220.27B	395.43B	395.40B	371.82B
Stockholders Equity	170.38B	198.89B	216.11B	196.05B	213.36B	223.33B
Cash Flow
Free Cash Flow	-445.40M	-656.10M	-13.17B	3.76B	1.90B	2.49B
Operating Cash Flow	3.24B	3.56B	-8.35B	10.99B	7.45B	9.65B
Investing Cash Flow	-715.90M	1.45B	6.49B	1.69B	-3.26B	3.04B
Financing Cash Flow	-3.24B	-7.21B	-31.81B	-14.78B	-5.72B	-17.91B

New World Development Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.40
• 50DMA: Negative
• 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 Negative. The current price of 9.4 is below the 20-day moving average (MA) of 10.08, below the 50-day MA of 9.64, and above the 200-day MA of 7.46, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 39.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0017.

New World Development Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0010	74 Outperform	HK$21.31B	15.15	1.39%	5.62%	-9.78%	-29.50%
0012	70 Outperform	HK$150.57B	11.42	1.89%	6.20%	-19.91%	-6.92%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0041	53 Neutral	HK$12.68B	-6.82	-3.14%	5.93%	1.37%	-157.43%
0017	48 Neutral	HK$23.66B	-1.70	-9.54%	―	-40.92%	-42.67%
0480	48 Neutral	HK$1.77B	-0.83	-3.56%	―	72.75%	25.44%

New World Development Corporate Events

New World Development Publishes Unaudited Interim Results for First Half of 2025/26

New World Development has released its unaudited interim results for the six months ended 31 December 2025, fulfilling disclosure requirements for listed companies in Hong Kong. The announcement confirms that the full interim report for 2025/2026 has been made available, providing investors and other stakeholders with updated financial and operational information for the first half of the financial year.

The company also disclosed the current composition of its board, comprising eight executive directors, four non-executive directors, and six independent non-executive directors. This board structure underscores the group’s corporate governance framework and oversight arrangements at a time when transparency and board independence are closely watched by regulators and investors in the Hong Kong market.

The most recent analyst rating on (HK:0017) stock is a Hold with a HK$10.70 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 Issues FY2026 Interim Results Presentation for Analysts

New World Development has released a presentation covering its interim results for the six months ended 31 December 2025, aligning with its 2025/2026 financial year. The materials are intended for an analyst briefing, signaling ongoing engagement with the investment community and providing updated financial and operational information for stakeholders.

The announcement, approved by the board and signed by the joint company secretaries, underscores standard corporate governance and disclosure practices for a major Hong Kong–listed issuer. While the filing itself offers limited detail on performance, it marks the formal communication milestone for the group’s FY2026 interim reporting cycle, from which investors will gauge recent business trends and management outlook once the appended presentation is reviewed.

The most recent analyst rating on (HK:0017) stock is a Hold with a HK$10.70 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 Sets Board Meeting to Approve Interim Results and Consider Dividend

New World Development has scheduled a board meeting for 27 February 2026 to review and approve the interim results for the six months ended 31 December 2025. The board will also consider whether to declare an interim dividend, a decision closely watched by investors for signals on the company’s earnings strength and cash distribution policy.

The announcement also reconfirms the current composition of the board, which includes eight executive directors, four non-executive directors, and six independent non-executive directors. This governance structure underscores the group’s adherence to Hong Kong listing requirements and highlights the breadth of oversight ahead of a key interim results and dividend decision.

The most recent analyst rating on (HK:0017) stock is a Hold with a HK$10.00 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 Investor Approaches to Major Shareholder

New World Development has clarified that its major shareholder Chow Tai Fook Enterprises has been approached by several potential investors regarding possible investments in the company, but discussions remain preliminary and no agreements have been reached on the size, structure or form of any deal. The company understands that none of the current proposals is intended to trigger a general offer for its shares, and it states it is unaware of any undisclosed inside information or factors that would require additional market disclosure at this time, while urging shareholders and investors to disregard market rumours and exercise caution when dealing in its securities.

The most recent analyst rating on (HK:0017) stock is a Hold with a HK$9.50 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 Clarifies Market Rumours on Potential New Investors

New World Development has publicly addressed recent media speculation about potential new investors in the company, confirming that its controlling shareholder, Chow Tai Fook Enterprises, has been approached by several parties regarding possible investments but has not reached any agreement on the amount, nature or form of any such deal. The company stressed that there is no assurance any investment will materialise, stated it is not aware of undisclosed inside information that could affect its share price, and urged shareholders and investors not to rely on market rumours but to exercise caution and base decisions solely on official announcements, signalling a desire to stabilise market expectations amid ongoing interest from prospective investors.

The most recent analyst rating on (HK:0017) stock is a Hold with a HK$10.00 price target. To see the full list of analyst forecasts on New World Development stock, see the HK:0017 Stock Forecast page.