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

• Market Cap: HK$472.12M
• Dividend Yield: N/A
• Average Volume (3M): 239.10K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.93
• Revenue Growth: -13.06%
• EPS Growth: N/A
• Country: HK
• Employees: 1,734
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Department Stores
• EPS (TTM): <0.01
• Shares Outstanding: 1,686,145,000
• 10 Day Avg. Volume: 277,200
• 30 Day Avg. Volume: 239,100
• PEG Ratio: 3.05
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.95
• 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$0.46
• Price Target Upside: 63.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: HK$0.50 ▲(78.57%Upside)

New World Department Store China Limited's stock score is primarily impacted by financial challenges, including declining revenues and low profitability. Technical analysis indicates some positive momentum, but the high P/E ratio suggests overvaluation concerns. The absence of dividend yield further reduces its valuation appeal.

New World Department Store China Limited Business Overview & Revenue Model

Company Description

New World Department Store China Limited (0825) operates a chain of department stores across China, offering a variety of merchandise ranging from fashion and accessories to home furnishings and beauty products. The company is a subsidiary of New World Development Company Limited and primarily focuses on providing an upscale shopping experience to customers, featuring both domestic and international brands.

How the Company Makes Money

New World Department Store China Limited generates revenue primarily through the sale of goods in its department stores, which include a wide range of products such as apparel, cosmetics, and household items. The company also earns income from leasing retail space to various brands and concessions within its stores, thereby diversifying its revenue streams. Additionally, the company benefits from strategic partnerships and collaborations with renowned brands that enhance its product offerings and attract a broader customer base. Factors such as store location, brand portfolio, and customer service quality significantly contribute to its earnings.

New World Department Store China Limited Financial Statement Overview

Summary

New World Department Store China Limited is experiencing declining revenues and low profitability margins. Despite improved operational efficiency with positive EBIT margins, the company shows limited returns on equity and decreased free cash flow generation. Moderate leverage provides some stability amidst fluctuating financial performance.

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

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 0.27, above the 50-day MA of 0.27, and below the 200-day MA of 0.29, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, 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 *	57 Neutral	HK$25.10B	4.09	-2.03%	5.85%	-0.24%	-68.05%
0097	54 Neutral	€432.72M	―	-11.10%	―	-1.02%	-73.73%
0825	52 Neutral	HK$472.12M	31.03	0.43%	―	-13.06%	―
0312	47 Neutral	HK$232.00M	―	-4.40%	―	3.10%	90.13%
0162	42 Neutral	HK$58.63M	―	-75.85%	―	-3.75%	-18.22%
0984	42 Neutral	HK$132.60M	―		11.11%	-6.87%	-79.20%

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.