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

• Market Cap: HK$208.09M
• Dividend Yield: N/A
• Average Volume (3M): 2.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 4.00%
• EPS Growth: -536.36%
• Country: HK
• Employees: 32
• Sector: Financial
• Sector Strength: 73
• Industry: Leisure
• EPS (TTM): >-0.01
• Shares Outstanding: 5,780,368,700
• 10 Day Avg. Volume: 2,154,840
• 30 Day Avg. Volume: 2,029,342
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 1

• Rating: 56 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by the company's mixed financial performance and positive technical indicators. While the stock shows positive momentum, the negative P/E ratio and lack of profitability weigh heavily on the valuation. Addressing operational inefficiencies and revenue decline is crucial for improving financial health.

Positive Factors

Strong Gross Profit Margins

High gross profit margins indicate effective cost management and pricing power, which can support long-term profitability and competitiveness.

Low Leverage

Low leverage reduces financial risk, providing the company with greater flexibility to invest in growth opportunities and weather economic downturns.

Improved Cash Flow Generation

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

Negative Factors

Negative Net Income

Negative net income indicates challenges in generating profit, which can hinder reinvestment in the business and affect long-term financial health.

Revenue Decline

Declining revenue growth suggests potential market share loss or reduced demand, which could impact the company's ability to sustain operations and expand.

Operational Inefficiencies

Decreased operational efficiency can lead to higher costs and lower profitability, affecting the company's competitiveness and ability to invest in growth.

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 through multiple streams, including the development and sale of residential and commercial properties, which is a significant portion of its income. Additionally, the company earns revenue from its hospitality division, which encompasses hotel operations and related services. The financial services segment may include income from investment activities, asset management, and advisory services. Strategic partnerships with local and international firms can also enhance revenue opportunities and market reach, contributing to the company's overall earnings.

New Century Group Hong Kong Limited Financial Statement Overview

Summary

The company shows 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, yet 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	46.83M	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: Positive
• Last Price: 0.04
• 50DMA: Positive
• 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 Positive. The current price of 0.04 is above 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 bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.34 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, 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
Sector *	68 Neutral	$18.02B	11.58	9.93%	3.75%	9.73%	1.23%
0234	56 Neutral	HK$208.09M	―	-3.63%	―	4.00%	-536.36%
1123	54 Neutral	HK$148.16M	17.25	-0.34%	8.00%	-9.22%	-107.57%
1803	44 Neutral	HK$160.51M	―	-24.34%	―	157.17%	39.38%
0180	41 Neutral	HK$211.03M	―	-10.53%	―	-7.61%	-37.66%
0765	―	HK$119.33M	―	-36.17%	―	―	―
8406	43 Neutral	HK$143.64M	―	-10.00%	―	9.29%	18.01%

New Century Group Hong Kong Limited Corporate Events

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.

New Century Group Hong Kong Limited Announces 2025 AGM and Key Resolutions

New Century Group Hong Kong Limited has announced its upcoming Annual General Meeting, scheduled for September 16, 2025, at the ibis Hong Kong Central & Sheung Wan. The agenda includes reviewing the audited financial statements, re-electing directors, authorizing directors’ remuneration, and re-appointing Ernst & Young as auditors. Additionally, the company seeks approval to allow directors to issue additional shares, enhancing its ability to manage capital and pursue growth opportunities.

New Century Group Reports Financial Downturn for 2025

New Century Group Hong Kong Limited announced its financial results for the year ended 31 March 2025, reporting a significant decline in profit from continuing operations, with a loss of HK$46,023,000 compared to a profit of HK$25,688,000 in the previous year. This downturn is attributed to fair value losses on investment properties and impairment losses, impacting the company’s earnings per share, which fell to a loss of HK0.96 cent from a profit of HK0.39 cent. The results indicate challenges in the company’s investment strategy and market conditions, affecting stakeholders’ interests.

New Century Group Hong Kong Issues Profit Warning for Fiscal Year 2025

New Century Group Hong Kong Limited has issued a profit warning, indicating an expected loss of up to HK$58 million for the fiscal year ending March 31, 2025, compared to a profit of HK$22 million the previous year. This anticipated loss is primarily due to fair value losses on investment properties, although there was an increase in profit from the securities trading business. Shareholders and potential investors are advised to exercise caution when dealing with the company’s shares.