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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.03 ▲(13.33% 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

High gross profit margins

Sustained high gross margins reflect durable pricing power or low direct costs in core property projects. This supports cash generation and margin resilience across cycles, enabling reinvestment in developments and buffering against cyclical revenue dips over the next several months.

Low leverage / solid capital structure

Very low leverage gives the company long-term financial flexibility to fund new developments, withstand property market volatility, and avoid refinancing stress. A strong capital structure supports strategic investments or joint ventures without pressuring cash flow in adverse conditions.

Improved free cash flow generation

A large increase in free cash flow growth and robust operating cash flow to net income ratio indicate the business is converting revenues into cash more effectively. Durable cash generation supports project funding, reduces reliance on external finance, and improves strategic optionality.

Negative Factors

Negative profitability and ROE

Persistent net losses and negative ROE undermine long-term shareholder value creation and limit retained earnings for reinvestment. This restricts capacity to scale development activities or return capital, increasing reliance on cash reserves or external funding over months ahead.

Declining revenue trend

Material revenue decline indicates weakening demand or reduced project delivery. Over a multi-month horizon this compresses operating leverage, pressures margin recovery efforts, and raises execution risk for planned developments and asset-management revenue streams.

Falling operating margins / efficiency

Decreasing EBIT/EBITDA margins point to worsening cost structure or adverse project mix. Reduced operational efficiency erodes the firm's ability to turn sales into sustainable profits and cash, limiting reinvestment and magnifying sensitivity to further revenue weakness.

New Century Group Hong Kong Limited Business Overview & Revenue Model

Company Description

New Century Group Hong Kong Limited, an investment holding company, primarily provides money lending business in Hong Kong and rest of Southeast Asia. It operates through four segments: Money Lending, Cruise Ship Charter Services, Property Investment, and Securities Trading. The company offers secured mortgage loans and unsecured personal loans; and charters cruise ships under the Aegean Paradise name. It also invests in office space and commercial shops; and trades in marketable securities for short-term investment purpose. The company was incorporated in 1990 and is headquartered in Central, Hong Kong. New Century Group Hong Kong Limited is a subsidiary of New Century Investment Pacific Limited.

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	81.81M	86.12M	88.22M	80.07M	80.74M	100.36M
Gross Profit	39.83M	86.12M	88.22M	77.27M	72.96M	84.69M
EBITDA	20.70M	13.93M	34.73M	47.42M	54.65M	63.85M
Net Income	-70.13M	-55.66M	22.41M	-36.87M	-1.50M	-56.71M
Balance Sheet
Total Assets	1.99B	1.99B	2.04B	2.08B	2.07B	2.13B
Cash, Cash Equivalents and Short-Term Investments	854.45M	693.63M	533.63M	456.01M	481.62M	550.83M
Total Debt	115.00K	156.00K	24.09M	71.89M	72.03M	72.14M
Total Liabilities	194.84M	109.47M	134.26M	201.90M	153.28M	164.39M
Stockholders Equity	1.50B	1.51B	1.56B	1.55B	1.58B	1.58B
Cash Flow
Free Cash Flow	271.76M	163.99M	65.58M	14.37M	-40.47M	13.88M
Operating Cash Flow	271.76M	164.01M	66.21M	21.78M	-40.17M	26.22M
Investing Cash Flow	-346.24M	146.97M	-130.55M	24.57M	-3.86M	-81.29M
Financing Cash Flow	-54.00K	-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: Negative
• 200DMA: Negative
• 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 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 bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.77 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, 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$139.87M	-208.33	-0.11%	8.62%	-8.31%	-108.70%
8406	46 Neutral	HK$82.08M	-4.47	-10.00%	―	9.29%	18.01%
0180	43 Neutral	HK$206.28M	-1.01	-10.53%	―	-7.61%	-37.66%
1803	41 Neutral	HK$109.83M	-4.02	-24.34%	―	157.17%	39.38%
0765	40 Neutral	HK$137.31M	-6.65	-36.17%	―	-13.96%	64.58%

New Century Group Hong Kong Limited Corporate Events

New Century Group Hong Kong Limited Reports Interim Loss Amid Revenue Decline

New Century Group Hong Kong Limited reported its interim results for the six months ending September 2025, showing a significant decline in revenue to HK$36,926,000 from HK$48,697,000 in the previous year. The company faced a loss of HK$14,076,000 for the period, attributed to fair value losses on investment properties and impairment provisions, impacting its financial stability and stakeholder interests.

The most recent analyst rating on (HK:0234) stock is a Hold with a HK$0.04 price target. To see the full list of analyst forecasts on New Century Group Hong Kong Limited stock, see the HK:0234 Stock Forecast page.

New Century Group Schedules Board Meeting for Interim Results

New Century Group Hong Kong Limited has announced a board meeting scheduled for November 26, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting is crucial as it will determine the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

New Century Group Issues Profit Warning Amid Increased Losses

New Century Group Hong Kong Limited, along with its subsidiaries, has announced a profit warning for the six months ending September 30, 2025. The Group is expected to record a loss of up to HK$20 million, a significant increase from the previous year’s loss of approximately HK$4 million. This increase in loss is attributed to a decrease in profit from its money lending business due to tighter lending measures, increased fair value losses on investment properties in Hong Kong, and a decrease in fair value gains and dividend income from listed equity investments.