New City Development Group Limited (0456) AI Stock Analysis

• Market Cap: HK$64.28M
• Dividend Yield: N/A
• Average Volume (3M): 15.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -46.33%
• EPS Growth: 21.41%
• Country: HK
• Employees: 43
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Development
• EPS (TTM): -1.09
• Shares Outstanding: 138,245,040
• 10 Day Avg. Volume: 39,045
• 30 Day Avg. Volume: 15,860
• PEG Ratio: 1.01
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.05
• 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, 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 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
	EBIT
-132.77M	-177.27M	-91.19M	-37.72M	-5.87M
	EBITDA
-112.67M	-163.57M	-78.84M	-27.64M	6.69M
	Net Income Common Stockholders
-127.65M	-125.95M	-76.23M	-64.42M	-27.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.46M	36.82M	33.15M	35.19M	78.03M
	Total Assets
1.61B	1.73B	1.97B	2.29B	1.93B
	Total Debt
253.17M	700.53M	736.76M	864.71M	540.78M
	Net Debt
244.71M	690.99M	728.16M	858.67M	497.33M
	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
0.00	109.80M	175.73M	-274.09M	-78.32M
	Operating Cash Flow
0.00	115.80M	175.74M	-266.01M	-76.30M
	Investing Cash Flow
0.00	-6.00M	85.00K	-8.68M	-32.94M
	Financing Cash Flow
0.00	-108.64M	-216.04M	232.43M	138.17M

New City Development Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.46 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.48, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 42.34 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 *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
0456	40 Underperform	HK$64.28M	―	-34.78%	―	-46.33%	21.41%
DCOHF		$337.39M	9.49	5.58%	4.19%	―	―
HLDVF		$15.85B	19.50	1.94%	10.29%	―	―
NWWDF		$1.71B	―	-10.34%	10.40%	―	―
SNLAF		$9.67B	19.36	2.17%	0.24%	―	―
TSGTF		$10.97B	14.48	14.90%	4.67%	―	―

New City Development Group Limited Corporate Events

New City Development Group Reports Decreased Revenue and Losses for 2024

New City Development Group Limited reported a significant decrease in revenue for the year ended December 31, 2024, with figures dropping from HK$172,926,000 in 2023 to HK$98,607,000 in 2024. The company also recorded a loss of HK$136,522,000, slightly lower than the previous year’s loss. Despite the decrease in losses, the company faced challenges such as impairment losses on various assets, which impacted its financial performance. This announcement highlights the company’s ongoing financial struggles and the need for strategic adjustments to improve its market position and stakeholder confidence.

New City Development Group Schedules Board Meeting for Annual Results

New City Development Group Limited has announced that its board of directors will hold a meeting on March 31, 2025, to consider and approve the annual results for the year ended December 31, 2024. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction.