New World Department Store China Limited (0825) AI Stock Analysis

• Market Cap: HK$455.26M
• Dividend Yield: N/A
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 1.06
• Revenue Growth: -12.99%
• EPS Growth: 89.87%
• Country: HK
• Employees: 1,734
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 0.01
• Shares Outstanding: 1,686,145,000
• 10 Day Avg. Volume: 437,500
• 30 Day Avg. Volume: 1,482,987
• PEG Ratio: 0.19
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 1.25
• 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: 50 Neutral
• Price Target: HK$0.50 ▲(92.31% Upside)

The overall stock score reflects significant challenges in financial performance, particularly in revenue and profitability, despite strong cash flow generation. Technical indicators suggest a bearish trend, while valuation metrics indicate moderate pricing. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Cash Flow Generation

Strong free cash flow growth indicates robust financial health, providing the company with the flexibility to invest in growth opportunities and manage debt effectively.

EBITDA Margin

A strong EBITDA margin suggests efficient operations and good cash generation capabilities, which can support long-term business sustainability and growth.

Product and Revenue Diversification

Diverse revenue streams from sales, rentals, and events reduce dependency on a single income source, enhancing resilience against market fluctuations.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term growth prospects.

Low Net Profit Margin

A low net profit margin suggests difficulties in converting revenue into profit, which may hinder the company's ability to reinvest in business development and innovation.

Moderate Leverage

Moderate leverage can limit financial flexibility and increase risk, especially in economic downturns, potentially affecting long-term financial stability.

New World Department Store China Limited Business Overview & Revenue Model

Company Description

New World Department Store China Limited, an investment holding company, owns and operates department stores in the People's Republic of China. The company is also involved in the property investment activities; operation of convenience stores, household goods shops, and shopping malls; and provision of catering, management, and financing services. As of June 30, 2021, it operated 21 department stores under the New World brand name in Mainland China; and 8 department stores and shopping malls under the Ba Li Chun Tian brand name in Shanghai with a total gross floor area of approximately 1,232,350 square meters covering 17 locations in Mainland China, including Beijing, Tianjin, Yanjiao, Yantai, Lanzhou, Xi'an, Harbin, Shenyang, Shanghai, Nanjing, Wuhan, Changsha, Zhengzhou, Chengdu, Chongqing, Kunming, and Mianyang, as well as nine Love - Original - Life (LOL) concept shops, and two N+ convenience Stores. The company was founded in 1993 and is headquartered in Causeway Bay, Hong Kong. New World Department Store China Limited is a subsidiary of New World Development Company Limited.

How the Company Makes Money

New World Department Store generates revenue primarily through the sale of merchandise in its department stores and shopping malls. The company earns money from a variety of key revenue streams including direct sales of products, rental income from tenants within its retail spaces, and revenue from promotional events and partnerships. Additionally, the company may benefit from strategic collaborations with both local and international brands to enhance product offerings and attract a wider customer base. The performance of the company is significantly influenced by consumer spending trends, retail market dynamics, and the overall economic environment in China.

New World Department Store China Limited Financial Statement Overview

Summary

The company faces challenges with declining revenue and low net profit margins, but maintains a strong EBITDA margin and significant improvement in free cash flow, indicating potential for recovery. Moderate leverage and low return on equity suggest limited returns for shareholders.

Income Statement

The company has experienced a significant decline in revenue over the past year, with a revenue growth rate of -18.09%. While the gross profit margin is relatively healthy at 25.41%, the net profit margin is low at 2.14%, indicating challenges in converting revenue into profit. The EBIT margin is negative, reflecting operational inefficiencies. However, the EBITDA margin is strong at 53.01%, suggesting good cash generation capabilities before accounting for interest, taxes, depreciation, and amortization.

Balance Sheet

The debt-to-equity ratio stands at 1.06, indicating a moderate level of leverage. The return on equity is low at 0.72%, suggesting limited profitability for shareholders. The equity ratio is not provided, but the overall balance sheet shows a stable equity base relative to total assets.

Cash Flow

The company has shown a strong free cash flow growth rate of 50.31%, which is a positive indicator of financial health. The operating cash flow to net income ratio is 0.12, and the free cash flow to net income ratio is 0.96, indicating that the company is generating substantial cash relative to its net income, which is a positive sign for liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.35B	1.18B	1.36B	1.48B	1.93B	2.25B
Gross Profit	762.98M	300.58M	1.06B	335.73M	516.38M	635.88M
EBITDA	641.29M	626.97M	626.57M	326.24M	340.24M	710.96M
Net Income	25.29M	25.29M	13.31M	-320.85M	-483.38M	-229.36M
Balance Sheet
Total Assets	9.91B	9.91B	10.21B	10.79B	12.51B	14.18B
Cash, Cash Equivalents and Short-Term Investments	743.19M	743.19M	875.25M	831.51M	1.08B	1.57B
Total Debt	3.73B	3.73B	4.14B	4.54B	5.61B	6.43B
Total Liabilities	6.40B	6.40B	6.83B	7.42B	8.51B	9.71B
Stockholders Equity	3.51B	3.51B	3.38B	3.38B	4.00B	4.47B
Cash Flow
Free Cash Flow	351.03M	350.35M	240.55M	520.25M	107.79M	837.35M
Operating Cash Flow	363.79M	363.11M	316.40M	627.84M	200.36M	885.85M
Investing Cash Flow	100.03M	82.26M	239.16M	75.33M	154.06M	-544.16M
Financing Cash Flow	-570.09M	-551.64M	-506.28M	-751.39M	-562.27M	-975.59M

New World Department Store China Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.26
• 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:0825, the sentiment is Neutral. The current price of 0.26 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.29, and below the 200-day MA of 0.29, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 61.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0825.

New World Department Store China Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0825	50 Neutral	HK$455.26M	18.67	0.76%	―	-12.99%	89.87%
0984	46 Neutral	HK$106.60M	-0.28	―	―	-3.03%	-36.45%
0162	43 Neutral	HK$51.74M	-0.08	-110.16%	―	-17.63%	-13.10%
0312	42 Neutral	HK$236.99M	-10.76	-2.41%	―	-0.83%	93.83%
0097	39 Underperform	HK$542.42M	-5.60	-9.44%	―	-1.43%	21.29%

New World Department Store China Limited Corporate Events

New World Department Store China Tightens Group Control With Chairman Change and Board Reshuffle

New World Department Store China Limited has announced a significant leadership reshuffle effective 9 January 2026, highlighted by the retirement of chairman and executive director Philip Cheung Fai-yet, who is stepping down for personal reasons and relinquishing his roles on key board committees and as authorised representative. The board has appointed veteran Hong Kong tycoon Dr. Henry Cheng Kar-shun, chairman of New World Development and a major figure within the Cheng family’s business empire, as the new chairman and executive director, with a three-year term and a seat on the executive committee, signaling closer alignment with the group’s strategic direction. Echo Huang Shaomei has been named vice-chairman, executive director and chair of the executive committee, while Mandy Xie Hui-fang will remain on that committee but no longer chair it, and several other executive directors have been added to the nomination and remuneration committees, alongside a new authorised representative appointment. These moves consolidate leadership under the New World and Chow Tai Fook family interests and may strengthen governance and coordination within the group’s retail operations in mainland China, with implications for strategic integration and oversight across the wider New World Development network.

The most recent analyst rating on (HK:0825) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on New World Department Store China Limited stock, see the HK:0825 Stock Forecast page.

New World Department Store China Details Board and Committee Structure

New World Department Store China Limited has announced the current composition of its board of directors, confirming a mix of executive and independent non-executive directors led by Chairman Dr. Cheng Kar-shun, Henry, Vice-chairman Ms. Huang Shaomei, Echo, and Chief Executive Officer Ms. Xie Hui-fang, Mandy. The company has also detailed the membership and chairmanship of its key board committees—Audit, Executive, Nomination and Remuneration—indicating clear allocations of oversight responsibilities among directors, which underscores its corporate governance framework and may reassure investors and other stakeholders about the robustness of its board oversight and decision-making structure.

The most recent analyst rating on (HK:0825) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on New World Department Store China Limited stock, see the HK:0825 Stock Forecast page.

New World Department Store China Discloses Former CEO’s 2017 Emoluments in Supplemental Filing

New World Department Store China Limited has issued a supplemental announcement to its annual report for the year ended 30 June 2017, disclosing detailed emoluments for former chief executive officer Niu Wei. The filing specifies that Mr. Niu, who served as CEO from 17 March 2017 and later became an executive director before resigning from both roles on 1 August 2018, received HK$1,290,212 in salaries and allowance and HK$5,702 in retirement benefit contributions for that financial year, with no director’s fee. The company emphasized that this clarification is provided to meet Hong Kong listing disclosure requirements and does not alter any other information in the 2017 annual report, indicating no change to previously reported financials or governance disclosures beyond the added remuneration detail.

The most recent analyst rating on (HK:0825) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on New World Department Store China Limited stock, see the HK:0825 Stock Forecast page.

New World Department Store Secures Shareholder Approval for AGM Resolutions

New World Department Store China Limited announced the results of its Annual General Meeting held on November 19, 2025, where all proposed resolutions were approved by shareholders. These resolutions included the re-election of directors, the reappointment of auditors, and the authorization for the board to manage share issuance and repurchase mandates. The approval of these resolutions reflects strong shareholder support and positions the company to continue its strategic initiatives with a stable leadership and financial oversight.

The most recent analyst rating on (HK:0825) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on New World Department Store China Limited stock, see the HK:0825 Stock Forecast page.