New World Development (HK:0017)
:0017
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New World Development
(0017)
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Rating:40Underperform
Price Target:
HK$8.00
▲(0.63% Upside)
Action:DowngradedDate:03/29/26
The score is primarily constrained by weak financial performance (declining revenue, ongoing losses, high leverage, and poor free cash flow). Technicals also weigh negatively due to a bearish moving-average setup and negative MACD, while oversold readings offer only limited support. Valuation is difficult to assess given the negative P/E and missing dividend yield.
Positive Factors
Diversified business model
New World Development's mix of property development, investment, construction and insurance spreads revenue sources across cyclicality and services. This vertical and geographic breadth supports resilience through property cycles, enables cross‑selling and internal execution synergies that can sustain earnings over multiple quarters.
Negative Factors
Falling revenue
A near 22% revenue decline materially reduces scale and operating leverage, pressuring margins and cash flow. Persisting top‑line contraction limits reinvestment in projects, weakens negotiating leverage with suppliers and tenants, and undermines the firm's ability to rebuild profitability over succeeding quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
New World Development's mix of property development, investment, construction and insurance spreads revenue sources across cyclicality and services. This vertical and geographic breadth supports resilience through property cycles, enables cross‑selling and internal execution synergies that can sustain earnings over multiple quarters.
Read all positive factors
New World Development (0017) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$21.52B
Dividend YieldN/A
Average Volume (3M)18.32M
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue Growth-40.92%
EPS Growth-42.67%
CountryHK
Employees10,500
SectorReal Estate
Sector Strength53
IndustryReal Estate - Diversified
Share Statistics
EPS (TTM)-1.48
Shares Outstanding2,516,633,000
10 Day Avg. Volume11,682,085
30 Day Avg. Volume18,321,725
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$10.74Price Target Upside35.04% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-1.04
Revenue Forecast (FY)HK$25.10B
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 proper...
How the Company Makes Money
New World Development primarily earns revenue and profits from a mix of property-related and service/financial activities. (1) Property development: It develops residential and commercial projects and recognizes revenue largely from contracted sal...
New World Development Earnings Call Summary
Earnings Call Date:Sep 26, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 25, 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.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.
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
35
Negative
Balance Sheet
45
Neutral
Cash Flow
30
Negative
| 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
Negative
7.95
Price Trends
9.74
Negative
8.60
Negative
7.70
Positive
Market Momentum
-0.49
Positive
30.39
Neutral
15.16
Positive
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 7.95 is below the 20-day moving average (MA) of 8.82, below the 50-day MA of 9.74, and above the 200-day MA of 7.70, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 30.39 is Neutral, neither overbought nor oversold. The STOCH value of 15.16 is Positive, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$145.14B | 24.10 | 1.76% | 6.20% | -19.91% | -6.92% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | HK$21.47B | 7.71 | 1.39% | 5.62% | -9.78% | -29.50% | |
59 Neutral | HK$12.86B | -6.82 | -3.14% | 5.93% | 1.37% | -157.43% | |
45 Neutral | HK$1.15B | -0.55 | -32.15% | 4.36% | -16.06% | -529.92% | |
40 Underperform | HK$21.52B | -1.70 | -9.54% | ― | -40.92% | -42.67% | |
40 Underperform | HK$899.59M | 0.14 | -154.48% | ― | -57.94% | 45.77% |
* Real Estate Sector Average
HK:0017
New World Development
8.55
4.18
95.65%
HK:0041
Great Eagle Holdings
17.18
5.87
51.87%
HK:0012
Henderson Land Development Co
29.98
11.50
62.23%
HK:0010
Hang Lung Group
15.77
6.41
68.57%
HK:3377
Sino-Ocean Group Holding
0.08
-0.11
-58.47%
HK:0978
China Merchants Land Limited
0.23
0.03
17.00%
New World Development Corporate Events
New World Development Publishes Unaudited Interim Results for First Half of 2025/26
Feb 27, 2026
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 ...
New World Development Issues FY2026 Interim Results Presentation for Analysts
Feb 27, 2026
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 ...
New World Development Sets Board Meeting to Approve Interim Results and Consider Dividend
Feb 12, 2026
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 w...
New World Development Clarifies Investor Approaches to Major Shareholder
Jan 30, 2026
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 be...
New World Development Clarifies Market Rumours on Potential New Investors
Jan 29, 2026
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 i...
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.