New City Development Group Limited (0456) AI Stock Analysis

• Market Cap: HK$58.06M
• Dividend Yield: N/A
• Average Volume (3M): 15.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -46.33%
• EPS Growth: 21.41%
• Country: HK
• Employees: 43
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Development
• EPS (TTM): -1.09
• Shares Outstanding: 138,245,040
• 10 Day Avg. Volume: 400
• 30 Day Avg. Volume: 15,020
• PEG Ratio: -0.02
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.03
• 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: 40 Underperform
• Price Target: ―

The overall score of 40 reflects significant financial challenges, including declining revenues and negative profitability, as well as technical indicators pointing to a bearish trend. The valuation metrics further highlight market skepticism. Without improvements in financial health and market sentiment, the stock's outlook remains weak.

New City Development Group Limited Business Overview & Revenue Model

Company Description

New City Development Group Limited (0456) is a Hong Kong-based investment holding company primarily engaged in property development and investment. The company operates through various segments, including property development, property investment, and others. Its core business activities involve the acquisition, development, and sale of residential, commercial, and industrial properties, as well as the leasing and management of properties.

How the Company Makes Money

New City Development Group Limited generates revenue through multiple streams, primarily from property development and investment activities. The company earns money by acquiring land or existing properties, developing or redeveloping these properties into residential, commercial, or industrial units, and then selling or leasing them. Sales of developed properties provide significant one-time revenue, while leasing activities generate ongoing income. Additionally, the company may engage in joint ventures or partnerships with other real estate firms to co-develop large-scale projects, thereby sharing costs and profits. Income from property management services and potential appreciation in property values also contribute to the company's earnings.

New City Development Group Limited Financial Statement Overview

Summary

New City Development Group Limited faces significant financial challenges, evidenced by declining revenues, negative profitability, and high leverage. The company's financial health appears fragile, with substantial risks related to liquidity and operational sustainability. Strategic improvements are necessary to enhance financial performance and stability.

Income Statement

The income statement reveals a declining revenue trend with a significant drop from 2023 to 2024 and persistent negative net income. The EBIT margin is deeply negative, indicating operational challenges. Gross profit margin remains positive, but the net profit margin is significantly negative, highlighting profitability issues.

Balance Sheet

The balance sheet shows high leverage with a rising debt-to-equity ratio, reflecting increasing risk. The equity ratio has decreased over the years, indicating reduced financial stability. ROE is negative due to consistent net losses, further pointing to financial difficulties.

Cash Flow

Cash flow metrics are concerning, with zero operating cash flow and free cash flow in the latest year, indicating potential liquidity issues. The absence of positive cash flow generation raises red flags about the company's ability to sustain operations without external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.61M	172.93M	180.19M	197.82M	46.79M
Gross Profit	49.80M	79.87M	81.81M	93.76M	43.83M
EBITDA	-112.67M	-163.57M	-78.84M	-27.64M	6.69M
Net Income	-127.65M	-125.95M	-76.23M	-64.42M	-27.95M
Balance Sheet
Total Assets	1.61B	1.73B	1.97B	2.29B	1.93B
Cash, Cash Equivalents and Short-Term Investments	8.46M	36.82M	33.15M	35.19M	78.03M
Total Debt	253.17M	700.53M	736.76M	864.71M	540.78M
Total Liabilities	1.34B	1.36B	1.44B	1.55B	1.14B
Stockholders Equity	327.94M	406.06M	544.19M	706.42M	770.64M
Cash Flow
Free Cash Flow	58.70M	109.80M	175.73M	-274.09M	-78.32M
Operating Cash Flow	62.62M	115.80M	175.74M	-266.01M	-76.30M
Investing Cash Flow	-3.87M	-6.00M	85.00K	-8.68M	-32.94M
Financing Cash Flow	-60.29M	-108.64M	-216.04M	232.43M	138.17M

New City Development Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.42
• 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:0456, the sentiment is Negative. The current price of 0.42 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.46, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.56 is Neutral, neither overbought nor oversold. The STOCH value of 7.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0456.

New City Development Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$1.19B	3.42	0.13%	7.14%	-2.13%	-128.06%
0747	48 Neutral	HK$72.00M	―	-22.96%	―	308.44%	34.75%
0456	40 Underperform	HK$58.06M	―	-34.78%	―	-46.33%	21.41%
1124	36 Underperform	€55.97M	―	-35.70%	―	-97.94%	45.33%
1560	31 Underperform	HK$65.43M	―	-53.84%	―	-8.52%	-105.40%

New City Development Group Limited Corporate Events

New City Development Group to Issue New Shares for Loan Capitalization

New City Development Group Limited announced a connected transaction involving the issuance of new shares under a specific mandate to capitalize a shareholder loan. This transaction, which involves the issuance of 31,334,841 new shares at HK$0.442 per share, represents a significant portion of the company’s issued share capital. The move is subject to approval by independent shareholders and is considered a non-exempt connected transaction under Hong Kong’s listing rules. The company has engaged Veda Capital as an independent financial adviser to guide the independent board committee and shareholders through the process.

New City Development Group Passes All AGM Resolutions Unanimously

New City Development Group Limited announced that all resolutions proposed at their Annual General Meeting held on June 5, 2025, were passed unanimously. This includes the adoption of financial statements, re-election of directors, and granting of mandates for share repurchase and issuance, reflecting strong shareholder support and potentially enhancing the company’s operational flexibility.

New City Development Group Announces 2025 AGM and Share Repurchase Plan

New City Development Group Limited has announced its 2025 Annual General Meeting, scheduled for June 5, 2025, in Hong Kong. Key agenda items include the adoption of financial statements for the year ending December 31, 2024, re-election of independent non-executive directors, and the re-appointment of McMillan Woods (Hong Kong) CPA Limited as auditors. Additionally, a resolution will be considered to authorize the company’s directors to repurchase up to 10% of its shares, reflecting a strategic move to manage its capital structure effectively.