New Century Group Hong Kong Limited (0234) AI Stock Analysis

• Market Cap: HK$196.53M
• Dividend Yield: N/A
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -14.74%
• EPS Growth: -830.77%
• Country: HK
• Employees: 32
• Sector: Financial
• Sector Strength: 70
• Industry: Leisure
• EPS (TTM): >-0.01
• Shares Outstanding: 5,780,368,700
• 10 Day Avg. Volume: 1,021,086
• 30 Day Avg. Volume: 1,542,381
• PEG Ratio: <0.01
• Price to Book (P/B): 0.10
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 0.95
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.04 ▲(33.33% Upside)

The stock's overall score is primarily influenced by its mixed financial performance and technical analysis. While the company maintains strong gross profit margins and low leverage, its negative profitability and revenue decline are significant concerns. The technical indicators suggest a mild positive trend, but the lack of profitability and dividend yield negatively impact its valuation.

Positive Factors

Strong Gross Profit Margins

High gross profit margins suggest effective cost management, which can support long-term profitability and competitive pricing strategies.

Low Leverage

Minimal leverage reduces financial risk and provides the company with greater flexibility to invest in growth opportunities and withstand economic downturns.

Improved Cash Flow Generation

Improved cash flow generation enhances the company's ability to fund operations, invest in growth, and return capital to shareholders, supporting long-term financial health.

Negative Factors

Negative Revenue Growth

Declining revenue growth can indicate weakening market demand or competitive pressures, which may challenge the company's ability to sustain operations and profitability.

Negative Net Profit Margin

A negative net profit margin suggests the company is not currently profitable, which could hinder its ability to invest in growth and return value to shareholders.

Operational Inefficiencies

Decreased operational efficiency can lead to higher costs and reduced profitability, impacting the company's competitive position and long-term sustainability.

New Century Group Hong Kong Limited Business Overview & Revenue Model

Company Description

New Century Group Hong Kong Limited (0234) is a diversified investment holding company based in Hong Kong, primarily engaged in the sectors of property development, investment, and asset management. The company focuses on creating value through its involvement in various real estate projects, including residential and commercial properties, as well as strategic investments in other sectors to enhance its portfolio and maximize returns for its shareholders.

How the Company Makes Money

New Century Group generates revenue primarily through the sale and leasing of residential and commercial properties. Their revenue model is built on property development, where they invest in land acquisition, construction, and marketing of real estate projects. Additionally, the company earns income from rental properties and may also engage in joint ventures or partnerships with other real estate firms to share expertise and resources. Significant factors contributing to its earnings include market demand for properties in Hong Kong, effective project management, and the company's ability to secure favorable financing terms for its developments.

New Century Group Hong Kong Limited Financial Statement Overview

Summary

The company shows mixed financial performance with strong gross profit margins and low leverage, but struggles with profitability due to negative net income and return on equity. Cash flow generation has improved, but operational inefficiencies and revenue decline need addressing.

Income Statement

The company has experienced a decline in revenue growth, with a negative growth rate of -7.61% in the most recent year. Gross profit margins remain exceptionally high, indicating strong cost management, but the net profit margin is negative, reflecting significant losses. EBIT and EBITDA margins have also decreased, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet shows a very low debt-to-equity ratio, indicating minimal leverage and financial risk. However, the return on equity is negative, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 59.12%, indicating improved cash generation. The operating cash flow to net income ratio is robust, suggesting efficient cash conversion. However, the free cash flow to net income ratio is nearly 1, indicating that cash flow is not significantly exceeding net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	93.22M	86.12M	88.22M	80.07M	80.74M	100.36M
Gross Profit	78.07M	86.12M	88.22M	77.27M	72.96M	84.69M
EBITDA	-6.98M	13.93M	34.73M	47.42M	54.65M	63.85M
Net Income	-7.46M	-55.66M	22.41M	-36.87M	-1.50M	-56.71M
Balance Sheet
Total Assets	2.05B	1.99B	2.04B	2.08B	2.07B	2.13B
Cash, Cash Equivalents and Short-Term Investments	556.26M	693.63M	533.63M	456.01M	481.62M	550.83M
Total Debt	80.00M	156.00K	24.09M	71.89M	72.03M	72.14M
Total Liabilities	108.27M	109.47M	134.26M	201.90M	153.28M	164.39M
Stockholders Equity	1.57B	1.51B	1.56B	1.55B	1.58B	1.58B
Cash Flow
Free Cash Flow	103.07M	163.99M	65.58M	14.37M	-40.47M	13.88M
Operating Cash Flow	103.11M	164.01M	66.21M	21.78M	-40.17M	26.22M
Investing Cash Flow	-147.24M	146.97M	-130.55M	24.57M	-3.86M	-81.29M
Financing Cash Flow	-3.00K	-13.00K	-47.81M	39.87M	-40.19M	-185.00K

New Century Group Hong Kong Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0234, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 71.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0234.

New Century Group Hong Kong Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0234	52 Neutral	HK$196.53M	-2.81	-4.58%	―	-14.74%	-830.77%
1123	50 Neutral	HK$142.24M	-200.00	-0.11%	8.33%	-8.31%	-108.70%
8406	43 Neutral	HK$124.49M	-6.74	-10.00%	―	9.29%	18.01%
1803	42 Neutral	HK$146.43M	-4.38	-24.34%	―	157.17%	39.38%
0180	41 Neutral	HK$189.17M	-0.96	-10.53%	―	-7.61%	-37.66%
0765	40 Neutral	HK$149.57M	-7.67	-36.17%	―	-13.96%	64.58%

New Century Group Hong Kong Limited Corporate Events

New Century Group Hong Kong Limited Announces New Loan Agreement

New Century Group Hong Kong Limited announced a new loan agreement through its subsidiary, ETC Finance, providing a mortgage loan of HK$30,200,000 to customers for a 12-month term. This transaction, classified as discloseable under the Hong Kong Stock Exchange Listing Rules, involves a secured loan with properties in Central, Tsim Sha Tsui, and Chai Wan as collateral, indicating the company’s strategic move to manage its financial assistance operations effectively.

New Century Group Hong Kong Limited Passes All Resolutions at AGM

New Century Group Hong Kong Limited successfully passed all proposed resolutions during its Annual General Meeting held on September 16, 2025. The resolutions included the re-election of directors, authorization of the board to determine directors’ remuneration, re-appointment of Ernst & Young as auditors, and granting of mandates for share issuance and repurchase. This outcome reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility.

New Century Group Hong Kong Limited Announces New Loan Agreement

New Century Group Hong Kong Limited, through its subsidiary ETC Finance, has entered into a New Loan Agreement to provide a mortgage loan of HK$9,200,000 to a customer for 12 months. This transaction, classified as a discloseable transaction under the Listing Rules, involves a mortgage loan secured by a residential property in Tsuen Wan, valued at HK$11,500,000, with an interest rate of 10.5% per annum. The loan proceeds were used to settle a previous loan, resulting in no cash outflow for the Group.