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

• Market Cap: HK$184.97M
• Dividend Yield: N/A
• Average Volume (3M): 654.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 10.02%
• EPS Growth: 40.91%
• Country: HK
• Employees: 32
• Sector: Financial
• Sector Strength: 76
• Industry: Leisure
• EPS (TTM): >-0.01
• Shares Outstanding: 5,780,368,700
• 10 Day Avg. Volume: 1,672,305
• 30 Day Avg. Volume: 654,848
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.55
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ―

New Century Group Hong Kong Limited has a solid financial foundation with robust cash flow and low leverage, which are significant strengths. However, the stock's technical indicators show a clear downward trend and oversold conditions, while the negative P/E ratio highlights profitability challenges. These factors contribute to a moderate overall stock score.

New Century Group Hong Kong Limited Business Overview & Revenue Model

Company Description

New Century Group Hong Kong Limited (0234) is an investment holding company primarily engaged in the sectors of property investment, hotel operations, and vessel chartering. The company owns and operates a portfolio of properties and hotels, and it also provides leisure and entertainment services through its vessel chartering operations. With a strategic presence in key locations, the company aims to capitalize on opportunities within the hospitality and real estate industries.

How the Company Makes Money

New Century Group Hong Kong Limited generates revenue through multiple channels. One of its primary revenue streams is property investment, which involves acquiring and managing a diversified portfolio of real estate assets, generating rental income and capital appreciation. The company also earns from its hotel operations, providing accommodation and hospitality services to guests, which include room bookings, food and beverage sales, and other related services. Additionally, the company's vessel chartering business contributes to its income by offering leisure and entertainment services aboard its fleet. This diversification across different sectors enables the company to leverage market opportunities and reduce dependency on a single revenue source.

New Century Group Hong Kong Limited Financial Statement Overview

Summary

New Century Group Hong Kong Limited shows a strong financial position with improving profitability and excellent cash flow generation. The company's low leverage and high liquidity provide stability, though challenges in maintaining operational margins and asset growth remain. Overall, the financial health is solid, supported by strategic cost management and effective cash flow utilization.

Income Statement

The company demonstrated a strong gross profit margin of nearly 100% in the latest year, reflecting effective cost management. The net profit margin improved significantly to 25.4% from a negative position in the prior year, indicating a turnaround in profitability. Revenue growth was 10.2%, showing a positive trajectory. However, EBIT and EBITDA margins declined slightly from previous highs, suggesting some operational challenges.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.02, indicating low leverage. The company has a healthy equity ratio of 76.7%, reflecting financial stability. Return on equity improved significantly to 1.43% from negative levels, though still modest. The high cash reserves enhance liquidity but the decline in total assets indicates a need for asset growth.

Cash Flow

Cash flow is a strong point, with a substantial increase in free cash flow. The free cash flow growth rate was a remarkable 356.3%, indicating robust cash generation capabilities. The operating cash flow to net income ratio is favorable, reflecting efficient conversion of profits into cash. However, the negative investing cash flow highlights ongoing investments that could strain resources if not managed.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
93.22M	88.22M	80.07M	80.74M	100.36M	145.36M
	Gross Profit
78.07M	88.22M	77.27M	72.96M	84.69M	125.86M
	EBIT
31.82M	29.15M	31.23M	39.38M	9.65M	73.31M
	EBITDA
-6.98M	34.73M	47.42M	46.83M	63.85M	100.21M
	Net Income Common Stockholders
-7.46M	22.41M	-36.87M	-1.50M	-56.71M	15.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
556.26M	533.63M	456.01M	481.62M	550.83M	452.93M
	Total Assets
2.05B	2.04B	2.08B	2.07B	2.13B	2.17B
	Total Debt
80.00M	24.09M	71.89M	72.03M	72.14M	72.04M
	Net Debt
-470.93M	-494.16M	-384.12M	-329.52M	-382.16M	-366.77M
	Total Liabilities
108.27M	134.26M	201.90M	153.28M	164.39M	152.20M
	Stockholders Equity
1.57B	1.56B	1.55B	1.58B	1.58B	1.62B
Cash Flow		Free Cash Flow
103.07M	65.58M	14.37M	-40.47M	13.88M	179.09M
	Operating Cash Flow
103.11M	66.21M	21.78M	-40.17M	26.22M	188.20M
	Investing Cash Flow
-147.24M	-130.55M	24.57M	-3.86M	-81.29M	-257.13M
	Financing Cash Flow
-3.00K	-47.81M	39.87M	-40.19M	-185.00K	-237.45M

New Century Group Hong Kong Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0234, the sentiment is Positive. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.38 is Neutral, neither overbought nor oversold. The STOCH value of 16.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
0700	78 Outperform	$4.62T	21.66	21.25%	7.09%	8.88%	54.27%
0027	76 Outperform	$140.15B	16.00	11.92%	3.12%	17.34%	28.21%
0113	76 Outperform	HK$2.64B	13.59	5.58%	2.92%	-12.74%	-17.17%
1928	71 Outperform	$125.12B	15.34	203.51%	12.50%	6.04%	50.60%
Sector *	64 Neutral	$12.73B	9.92	7.90%	78.88%	12.06%	-7.95%
0234	57 Neutral	HK$184.97M	―	-0.48%	―	10.02%	40.91%
0880	39 Underperform	$16.33B	5,750.00	0.03%	―	31.24%	―