New City Development Group Limited (0456) AI Stock Analysis

• Market Cap: HK$78.36M
• Dividend Yield: N/A
• Average Volume (3M): 80.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: -54.13%
• EPS Growth: 24.72%
• Country: HK
• Employees: 43
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.04
• Shares Outstanding: 186,579,880
• 10 Day Avg. Volume: 14,200
• 30 Day Avg. Volume: 80,402
• PEG Ratio: 0.03
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 1.22
• 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: 38 Underperform
• Price Target: HK$0.50 ▲(13.64% Upside)

The overall stock score is heavily impacted by significant financial challenges, including declining revenues, negative profitability, and high leverage. Technical analysis further indicates bearish trends, with the stock trading below key moving averages and showing oversold conditions. Valuation metrics are poor, with a negative P/E ratio and no dividend yield, making the stock unattractive.

Positive Factors

Strategic Partnerships

These partnerships enhance project execution and market reach, contributing to long-term revenue growth and competitive positioning.

Diversified Revenue Streams

Diversified revenue streams from different property-related activities provide stability and reduce reliance on a single income source.

Strategic Investments

These investments can bolster revenue streams and enhance market presence, supporting long-term growth and competitive advantage.

Negative Factors

Declining Revenues

A significant decline in revenues indicates challenges in maintaining market share and demand, impacting long-term financial stability.

High Leverage

Increased leverage heightens financial risk and limits flexibility, potentially affecting future growth and operational sustainability.

Negative Cash Flow

Negative cash flow raises concerns about liquidity and the ability to fund operations, posing risks to long-term viability without external financing.

New City Development Group Limited Business Overview & Revenue Model

Company Description

New City Development Group Limited, an investment holding company, engages in the property development and investment activities in the People's Republic of China. It also sells buses; and offers general management services, as well as engages in the supermarket business. The company was formerly known as New City (China) Development Limited and changed its name to New City Development Group Limited in May 2012. The company was incorporated in 1998 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

New City Development Group Limited generates revenue primarily through the sale and leasing of residential and commercial properties it develops. The company engages in large-scale property development projects, which involve acquiring land, obtaining necessary permits, and executing construction. Key revenue streams include the sale of completed residential units, leasing commercial spaces to businesses, and property management services that generate ongoing income. Additionally, the company may benefit from strategic partnerships with local governments and other stakeholders in urban development projects, which can provide financial incentives and increased project viability, contributing positively to its overall 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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.19M	98.61M	172.93M	180.19M	197.82M	46.79M
Gross Profit	70.46M	49.80M	79.87M	81.81M	93.76M	46.79M
EBITDA	-112.44M	-112.67M	-163.57M	-55.19M	-21.67M	4.29M
Net Income	-122.33M	-127.65M	-125.95M	-76.23M	-64.42M	-27.95M
Balance Sheet
Total Assets	1.65B	1.61B	1.73B	1.97B	2.29B	1.93B
Cash, Cash Equivalents and Short-Term Investments	63.10M	8.46M	36.82M	33.15M	42.02M	78.03M
Total Debt	684.30M	253.17M	700.53M	736.76M	864.71M	540.78M
Total Liabilities	1.43B	1.34B	1.36B	1.44B	1.55B	1.14B
Stockholders Equity	289.04M	327.94M	406.06M	544.19M	706.42M	770.64M
Cash Flow
Free Cash Flow	-17.97M	58.70M	109.80M	175.73M	-274.09M	-78.32M
Operating Cash Flow	-14.53M	62.62M	115.80M	175.74M	-266.01M	-76.30M
Investing Cash Flow	-4.74M	-3.87M	-6.00M	85.00K	-8.68M	-32.94M
Financing Cash Flow	-43.58M	-60.29M	-108.64M	-216.04M	232.43M	138.17M

New City Development Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.44 is below the 20-day moving average (MA) of 0.45, below the 50-day MA of 0.50, and below the 200-day MA of 0.48, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 37.69 is Neutral, neither overbought nor oversold. The STOCH value of 21.21 is Neutral, 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 *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
9968	51 Neutral	HK$110.33M	-0.12	―	―	-63.99%	-34.79%
1560	46 Neutral	HK$71.85M	-0.19	-40.52%	―	-52.37%	15.93%
1124	45 Neutral	HK$103.65M	-0.31	-32.62%	―	3574.59%	48.95%
0747	45 Neutral	HK$132.24M	-1.25	-24.60%	―	-72.39%	26.33%
0456	38 Underperform	HK$78.36M	-0.43	-37.65%	―	-54.13%	24.72%

New City Development Group Limited Corporate Events

New City Development Group Increases Authorized Share Capital

New City Development Group Limited announced that the resolution to increase its authorized share capital was successfully passed at the extraordinary general meeting held on December 4, 2025. The resolution received overwhelming support with 99.9997% of votes in favor, indicating strong shareholder backing. This decision is expected to enhance the company’s financial flexibility and support its future growth initiatives.

New City Development Group to Expand Share Capital

New City Development Group Limited has announced an Extraordinary General Meeting (EGM) to seek approval for increasing its authorized share capital from HK$40 million to HK$400 million. This move, involving the creation of 1.8 billion new shares, aims to enhance the company’s financial flexibility and support its growth strategy. The EGM is scheduled for December 4, 2025, in Hong Kong, and shareholders are encouraged to participate in the decision-making process.

New City Development Group Proposes Significant Share Capital Increase

New City Development Group Limited has announced a proposal to increase its authorised share capital from HK$40,000,000 to HK$400,000,000, creating an additional 1,800,000,000 unissued shares. This strategic move is aimed at accommodating the company’s growth and providing greater flexibility for future fundraising, which the Board believes is in the best interest of the company and its shareholders.