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

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HK:0825

New World Department Store China Limited

(0825)

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Neutral 50 (OpenAI - 4o)
Rating:50Neutral
Price Target:
HK$0.50
▲(66.67% Upside)
The stock score reflects significant challenges in financial performance, particularly in revenue and profitability. Technical indicators suggest a lack of strong momentum, while valuation metrics indicate moderate pricing. The company's strong cash flow provides some stability, but overall, the stock faces headwinds.

New World Department Store China Limited (0825) vs. iShares MSCI Hong Kong ETF (EWH)

New World Department Store China Limited Business Overview & Revenue Model

Company DescriptionNew 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 MoneyNew 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. The balance sheet shows moderate leverage, but low return on equity suggests limited shareholder returns.
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.35B1.18B1.36B1.48B1.93B2.25B
Gross Profit762.98M300.58M1.06B335.73M516.38M635.88M
EBITDA641.29M626.97M626.57M326.24M340.24M710.96M
Net Income25.29M25.29M13.31M-320.85M-483.38M-229.36M
Balance Sheet
Total Assets9.91B9.91B10.21B10.79B12.51B14.18B
Cash, Cash Equivalents and Short-Term Investments743.19M743.19M875.25M831.51M1.08B1.57B
Total Debt3.73B3.73B4.14B4.54B5.61B6.43B
Total Liabilities6.40B6.40B6.83B7.42B8.51B9.71B
Stockholders Equity3.51B3.51B3.38B3.38B4.00B4.47B
Cash Flow
Free Cash Flow351.03M350.35M240.55M520.25M107.79M837.35M
Operating Cash Flow363.79M363.11M316.40M627.84M200.36M885.85M
Investing Cash Flow100.03M82.26M239.16M75.33M154.06M-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 Price0.30
Price Trends
50DMA
0.31
Negative
100DMA
0.29
Positive
200DMA
0.29
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
42.17
Neutral
STOCH
20.83
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 0.3 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.31, and above the 200-day MA of 0.29, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 20.83 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
50
Neutral
€514.27M20.330.76%-12.99%89.87%
44
Neutral
HK$792.31M-9.44%-1.43%21.29%
41
Neutral
HK$229.50M-2.41%-0.83%93.83%
41
Neutral
HK$55.19M-110.16%-17.63%-13.10%
40
Underperform
HK$104.00M-3.03%-36.45%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0825
New World Department Store China Limited
0.31
0.01
3.39%
HK:0984
AEON Stores (Hong Kong) Co., Limited
0.40
0.00
0.00%
HK:0097
Henderson Investment Limited
0.25
0.13
110.08%
HK:0162
Century Ginwa Retail Holdings Limited
0.05
-0.02
-28.57%
HK:0244
Sincere Co. Ltd.
0.32
0.10
45.45%
HK:0312
Shirble Department Store Holdings (China) Ltd.
0.09
0.05
125.00%

New World Department Store China Limited Corporate Events

New World Department Store Extends Shanghai Lease to 2036
Oct 9, 2025

New World Department Store China Limited has announced a Supplemental Lease Agreement through its subsidiary, NWDS Shanghai Huiying, with Shanghai Yongyi to extend the lease of its department store premises in Shanghai until April 2036. This agreement, which amends certain terms of the existing lease, reflects recent commercial negotiations and includes a rent-free period to support business enhancements. The transaction is classified as a discloseable transaction under the Hong Kong Listing Rules, impacting the company’s asset acquisition and financial statements.

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 Limited Announces AGM and Key Resolutions
Sep 25, 2025

New World Department Store China Limited has announced its upcoming annual general meeting scheduled for November 19, 2025. The meeting will address several key issues, including the consideration of audited financial statements, re-election of directors, and re-appointment of auditors. Additionally, the company seeks approval for the potential issuance of additional shares, which could impact its capital structure and shareholder value.

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 Limited Releases 2024/2025 Annual Results
Sep 25, 2025

New World Department Store China Limited announced its audited annual results for the fiscal year ending June 30, 2025. The announcement complies with the Hong Kong Stock Exchange’s listing rules and reflects the company’s commitment to transparency and regulatory adherence. This release may impact stakeholders by providing insights into the company’s financial health and operational performance over the past year.

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 Limited Announces FY25 Annual Results
Sep 25, 2025

New World Department Store China Limited has announced its annual results for the fiscal year ending June 30, 2025. This presentation, led by Chairman Cheung Fai-yet, Philip, provides insights into the company’s financial performance and strategic positioning, which are crucial for stakeholders to assess its market standing and future prospects.

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 Limited Schedules Board Meeting for Annual Results
Sep 15, 2025

New World Department Store China Limited has announced a board meeting scheduled for September 25, 2025, to approve the annual results for the year ended June 30, 2025, and to consider a final dividend recommendation. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

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 Clarifies Take-Private Speculation
Aug 7, 2025

New World Department Store China Limited has issued a clarification announcement addressing media speculation about a potential take-private offer involving its parent company, New World Development Company Limited (NWD), by its controlling shareholder and Blackstone Inc. The company clarified that no such approach has been made to NWD, urging shareholders and potential investors to disregard market rumors and rely only on official announcements for information. This announcement aims to maintain transparency and protect stakeholders from misinformation.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 22, 2025