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

• Market Cap: €472.12M
• Dividend Yield: N/A
• Average Volume (3M): 223.76K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.91
• Revenue Growth: -13.06%
• EPS Growth: N/A
• Country: HK
• Employees: 1,734
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Department Stores
• EPS (TTM): <0.01
• Shares Outstanding: 1,686,145,000
• 10 Day Avg. Volume: 185,500
• 30 Day Avg. Volume: 223,765
• PEG Ratio: 0.12
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.66
• 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: 54 Neutral
• Price Target: HK$0.50 ▲(78.57%Upside)

The stock score reflects a mix of improving operational efficiency and positive technical indicators, countered by valuation concerns and declining revenue trends. The lack of dividend yield and a high P/E ratio are significant negatives.

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 China Limited generates revenue through multiple streams, primarily from the sale of goods in its department stores and shopping malls. The company earns income through direct retail sales, leasing of retail spaces to various brands, and through service charges for promotional activities conducted within its properties. Additionally, strategic partnerships with local and international brands enhance its product offerings and attract a diverse customer base, further driving sales. The company's revenue model is bolstered by its focus on customer experience and targeted marketing efforts, aiming to increase foot traffic and customer spending.

New World Department Store China Limited Financial Statement Overview

Summary

The company faces declining revenues and low profitability margins. Operational efficiency has improved, evidenced by positive EBIT margins, but the company has limited returns on equity. Cash flow management is robust, although free cash flow has decreased. Moderate leverage provides some stability.

Income Statement

The company has shown a declining revenue trend with a significant drop from 2019 to 2024. Gross Profit Margin improved significantly in 2024 to 77.6% from 22.6% in 2023. However, Net Profit Margin is low at 0.98% in 2024, indicating profitability challenges. EBIT Margin improved to 18.73% in 2024 from negative margins in 2023, signaling operational improvements.

Balance Sheet

The Debt-to-Equity Ratio stands at 1.22 in 2024, suggesting moderate leverage. The Equity Ratio of 33.12% indicates a stable financial structure, though not particularly strong. Return on Equity (ROE) is low at 0.39% in 2024, showing limited returns on shareholder investments.

Cash Flow

Free Cash Flow showed a decrease from 520.25 million in 2023 to 240.55 million in 2024, indicating declining cash generation. Operating Cash Flow to Net Income ratio is strong at 23.76 in 2024, reflecting robust operational cash generation relative to net income.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.44B	1.36B	1.48B	1.93B	2.25B	2.23B
Gross Profit	815.22M	1.06B	335.73M	516.38M	635.88M	633.80M
EBITDA	617.55M	626.57M	326.24M	340.24M	710.96M	448.56M
Net Income	14.77M	13.31M	-320.85M	-483.38M	-229.36M	-483.67M
Balance Sheet
Total Assets	9.88B	10.21B	10.79B	12.51B	14.18B	13.12B
Cash, Cash Equivalents and Short-Term Investments	803.16M	875.25M	831.51M	1.08B	1.57B	1.51B
Total Debt	3.80B	4.14B	4.54B	5.61B	6.43B	5.95B
Total Liabilities	6.47B	6.83B	7.42B	8.51B	9.71B	8.91B
Stockholders Equity	3.40B	3.38B	3.38B	4.00B	4.47B	4.21B
Cash Flow
Free Cash Flow	233.08M	240.55M	520.25M	107.79M	837.35M	104.84M
Operating Cash Flow	302.73M	316.40M	627.84M	200.36M	885.85M	181.36M
Investing Cash Flow	130.39M	214.85M	75.33M	154.06M	-544.16M	64.00K
Financing Cash Flow	-563.41M	-506.28M	-751.39M	-562.27M	-975.59M	-544.62M

New World Department Store China Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0825, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.26, and below the 200-day MA of 0.29, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.55 is Neutral, neither overbought nor oversold. The STOCH value of 84.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	56 Neutral	HK$23.37B	3.96	-1.56%	6.69%	0.06%	-64.88%
0825	54 Neutral	€472.12M	32.18	0.43%	―	-13.06%	―
AVK1		€10.97M	―		20.77%	―	―
HI7		€46.50M	―	-11.10%	―	―	―
0162	36 Underperform	HK$56.34M	―	-75.85%	―	-3.75%	-18.22%
0244		HK$328.49M	―	-62.86%	―	―	―
0312	53 Neutral	HK$269.42M	―	-4.40%	―	3.10%	90.13%

New World Department Store China Limited Corporate Events

New World Department Store China Limited Announces Board Composition

New World Department Store China Limited announced the composition of its board of directors, highlighting the roles and functions of each member. The announcement underscores the company’s commitment to strong governance and strategic oversight, which could enhance its operational efficiency and market position.

New World Department Store Announces Board Restructuring

New World Department Store China Limited announced significant changes in its board of directors and committee compositions effective June 27, 2025. Key changes include the re-designation of Ms. Chiu Wai-han from a non-executive to an executive director, along with appointments of Mr. Lau Fu-keung and Mr. Chan Yiu-ho as executive directors. These changes are expected to enhance the company’s governance and strategic direction, potentially impacting its market positioning and operations.

New World Department Store China Limited Announces Board Composition

New World Department Store China Limited has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement provides clarity on the leadership structure, which is crucial for stakeholders as it impacts the company’s strategic direction and governance.

New World Department Store China Limited Forms Nomination Committee to Strengthen Board Governance

New World Department Store China Limited has established a Nomination Committee to enhance its board governance. The committee, composed mainly of independent non-executive directors, is tasked with reviewing board composition, recommending appointments, and ensuring board diversity, which is expected to strengthen the company’s strategic direction and compliance with regulatory requirements.