New City Development Group Limited (0456) AI Stock Analysis

• Market Cap: HK$72.92M
• Dividend Yield: N/A
• Average Volume (3M): 12.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -46.33%
• EPS Growth: 21.41%
• Country: HK
• Employees: 43
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Development
• EPS (TTM): -1.00
• Shares Outstanding: 169,579,880
• 10 Day Avg. Volume: 14,620
• 30 Day Avg. Volume: 12,633
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: 6.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: HK$0.50 ▲(6.38% Upside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues, negative profitability, and high leverage. Technical analysis indicates a bearish trend, and valuation metrics are unfavorable due to ongoing losses and lack of dividends. These factors collectively suggest a high-risk investment with limited immediate upside potential.

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 focuses on developing and managing residential, commercial, and hotel properties. Additionally, New City Development Group Limited is involved in property management and leasing activities.

How the Company Makes Money

New City Development Group Limited generates revenue primarily through the sale and leasing of developed properties, including residential, commercial, and hotel assets. The company also earns income from property management services provided to its developments and other third-party properties. Significant partnerships with construction companies and local governments can enhance project execution and market reach, contributing to the company's earnings. Additionally, strategic investments and joint ventures in key real estate markets further bolster revenue streams.

New City Development Group Limited Financial Statement Overview

Summary

New City Development Group Limited faces significant financial challenges, including declining revenues, negative profitability, and high leverage. The financial health appears fragile, with substantial risks related to liquidity and operational sustainability.

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: 0.47
• 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 0.47 is below the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.46, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.26 is Neutral, neither overbought nor oversold. The STOCH value of 13.41 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	$1.23B	2.98	-2.60%	5.79%	-2.13%	-151.64%
0747	47 Neutral	HK$94.04M	―	-22.96%	―	308.44%	34.75%
0456	41 Neutral	HK$72.92M	―	-34.78%	―	-46.33%	21.41%
1124	36 Underperform	HK$62.19M	―	-35.70%	―	2528.40%	72.71%
1560	31 Underperform	HK$82.75M	―	-53.84%	―	-8.52%	-105.40%

New City Development Group Limited Corporate Events

New City Development Group Approves Share Issuance Agreement

New City Development Group Limited announced that a resolution was successfully passed at their extraordinary general meeting held on July 28, 2025. The resolution involved an agreement for the issuance and allotment of 31,334,841 new shares to Han Junran, a subscriber, at an issue price of HK$0.442 per share, totaling HK$13.85 million. This transaction will be executed through the capitalization of a shareholder’s loan. The approval of this resolution allows the company to proceed with the issuance of shares, potentially impacting its capital structure and shareholder composition.

New City Development Group Forms Nomination Committee to Enhance Board Governance

New City Development Group Limited has established a Nomination Committee to oversee the appointment and evaluation of its Board members. The committee, primarily composed of independent non-executive directors, is tasked with reviewing the Board’s structure, diversity, and performance, ensuring alignment with the company’s corporate strategy and diversity policy. This move is expected to enhance governance and strategic oversight, potentially impacting the company’s operational efficiency and stakeholder confidence.

New City Development Group Plans Share Issuance to Strengthen Financial Position

New City Development Group Limited has announced an extraordinary general meeting to be held on July 28, 2025, to discuss and approve an agreement with Han Junran for the issuance and allotment of 31,334,841 new shares at HK$0.442 per share. This move involves the capitalization of a shareholder’s loan amounting to HK$13.85 million and is aimed at strengthening the company’s financial position. The resolution, if passed, will grant the directors the authority to issue the shares and execute necessary actions to implement the agreement, potentially impacting the company’s market standing and shareholder value.

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.