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New World Department Store China Limited (HK:0825)
:0825

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 57 (OpenAI - 5.2)
Rating:57Neutral
Price Target:
HK$0.35
▲(33.46% Upside)
Action:ReiteratedDate:02/03/26
The score is held back primarily by weak financial performance (notably declining revenue, low profitability, and weak ROE), partially offset by strong free cash flow trends. Technical indicators are supportive (price above major moving averages with positive MACD), while valuation is a modest negative with a relatively high P/E and no dividend yield provided.
Positive Factors
Free Cash Flow Growth
Sustained FCF growth of +50.31% indicates the business is generating meaningful cash from operations relative to profits. That durable cash cushion supports debt servicing, store reinvestment, working capital needs and strategic flexibility over the next 2-6 months.
High EBITDA Margin
A 53.01% EBITDA margin shows strong cash profitability before non‑cash charges and suggests core retail and concession operations produce healthy operating cash. That structural cash conversion supports resilience through cyclical retail swings and funding for improvements.
Diversified Revenue Model
A mixed model of direct sales plus concession/ rental/management fees diversifies revenue and reduces inventory/markdown exposure. Recurring concession and rental streams provide more predictable cash flow and lower marginal costs, strengthening long‑term revenue stability.
Negative Factors
Material Revenue Decline
An 18.09% sales drop is a durable concern: declining top line limits operating leverage, pressures margins and reduces funds available for capex or brand investment. If sustained, it can erode market position and make fixed‑cost retail property economics harder to sustain.
Low Net Profit and Negative EBIT
Low net margin and a negative EBIT margin point to operational inefficiencies and weak conversion of sales into operating profit. This restricts the company’s ability to self‑fund growth, dividends, or costly strategic moves and raises sensitivity to cost or traffic shocks.
Weak Return on Equity
An ROE of 0.72% signals limited effectiveness in generating shareholder returns from equity capital. Persistently weak ROE can hinder investor confidence and implies the company may struggle to earn adequate returns on reinvested funds over the medium term.

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 MoneyThe company makes money primarily from operating department stores in Mainland China. Its main revenue streams generally come from (1) direct retail sales of merchandise where the company purchases inventory and sells to consumers, generating revenue from product sales; and (2) concessionary and counter-based arrangements with third-party brands inside its stores, where the company earns income such as concession/commission fees and/or rental and management fees for providing selling space, store traffic, and in-store services. Additional earnings may come from ancillary in-store services and related commercial activities connected to operating department store premises. Specific breakdowns by segment, named partners, or the exact mix of commission-versus-rental arrangements are null.

New World Department Store China Limited Financial Statement Overview

Summary
Financials are mixed: revenue declined sharply (-18.09%) and net margin is low (2.14%) with a negative EBIT margin, but free cash flow growth is strong (+50.31%) and EBITDA margin is high (53.01%). Leverage is moderate (debt-to-equity 1.06) and ROE is weak (0.72%).
Income Statement
45
Neutral
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
50
Neutral
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
60
Neutral
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.
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue1.11B1.18B1.36B1.48B1.93B2.25B
Gross Profit246.93M300.58M1.06B335.73M516.38M635.88M
EBITDA461.20M626.97M626.57M326.24M340.24M710.96M
Net Income37.50M25.29M13.31M-320.85M-483.38M-229.36M
Balance Sheet
Total Assets9.74B9.91B10.21B10.79B12.51B14.18B
Cash, Cash Equivalents and Short-Term Investments555.19M743.19M875.25M831.51M1.08B1.57B
Total Debt3.60B3.73B4.14B4.54B5.61B6.43B
Total Liabilities6.18B6.40B6.83B7.42B8.51B9.71B
Stockholders Equity3.57B3.51B3.38B3.38B4.00B4.47B
Cash Flow
Free Cash Flow210.30M350.35M240.55M520.25M107.79M837.35M
Operating Cash Flow219.58M363.11M316.40M627.84M200.36M885.85M
Investing Cash Flow363.03M82.26M239.16M75.33M154.06M-544.16M
Financing Cash Flow-559.61M-551.64M-506.28M-751.39M-562.27M-975.59M

New World Department Store China Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.26
Price Trends
50DMA
0.34
Negative
100DMA
0.32
Positive
200DMA
0.31
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
42.29
Neutral
STOCH
19.78
Positive
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 0.36, below the 50-day MA of 0.34, and below the 200-day MA of 0.31, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.29 is Neutral, neither overbought nor oversold. The STOCH value of 19.78 is Positive, 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%
57
Neutral
HK$564.86M7.561.06%-12.99%89.87%
46
Neutral
HK$100.10M-0.1160.23%-3.03%-36.45%
42
Neutral
HK$59.78M-0.10-141.46%-17.63%-13.10%
42
Neutral
HK$179.61M-20.80-2.44%-0.83%93.83%
39
Underperform
HK$566.80M-2.53-9.44%-1.43%21.29%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0825
New World Department Store China Limited
0.34
<0.01
1.49%
HK:0984
AEON Stores (Hong Kong) Co., Limited
0.40
>-0.01
-1.23%
HK:0097
Henderson Investment Limited
0.19
0.09
96.84%
HK:0162
Century Ginwa Retail Holdings Limited
0.05
-0.01
-21.21%
HK:0244
Sincere Co. Ltd.
0.36
0.11
47.92%
HK:0312
Shirble Department Store Holdings (China) Ltd.
0.06
0.02
32.61%

New World Department Store China Limited Corporate Events

New World Department Store China Unveils FY26 Interim Results Presentation
Feb 26, 2026

New World Department Store China Limited has released a presentation covering its interim results for the six months ended 31 December 2025, providing stakeholders with detailed financial and operational information for the first half of the 2025/2026 financial year. The disclosure, issued via the Hong Kong bourse framework and endorsed by the company’s board and company secretary, signals ongoing transparency in reporting and offers investors and analysts an updated view of the retailer’s performance and governance as it navigates the evolving consumer and retail landscape in Greater China.

The most recent analyst rating on (HK:0825) stock is a Hold with a HK$0.37 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 Releases Unaudited Interim Results for December 2025 Half-Year
Feb 26, 2026

New World Department Store China Limited has released its unaudited interim results for the six months ended 31 December 2025, fulfilling Hong Kong listing requirements for preliminary disclosure of half-year performance. The interim report for the 2025/2026 period has been made available through this announcement, which also reconfirms the current composition of the company’s board, signaling ongoing adherence to corporate governance and disclosure standards for stakeholders.

While the announcement does not disclose specific financial figures, it indicates that management has completed and approved the interim accounts for the period. Investors and other market participants are expected to look to the full interim report for detailed operating and financial information that may influence their assessment of the retailer’s performance and outlook in the competitive China consumer market.

The most recent analyst rating on (HK:0825) stock is a Hold with a HK$0.37 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 Updates Board and Committee Roles
Feb 13, 2026

New World Department Store China Limited has announced the current composition of its board of directors, detailing the roles of executive and independent non-executive directors and their responsibilities in overseeing corporate services, financial management, and operations. The company also set out the membership and leadership of its key board committees, including the audit, executive, nomination, and remuneration committees, signaling a structured governance framework that clarifies oversight and decision-making responsibilities for stakeholders.

The updated list highlights Dr. Cheng Kar-shun, Henry as chairman and Ms. Huang Shaomei, Echo as vice-chairman, with several executives assigned to specific management functions and committee roles. Independent non-executive directors hold key committee chair positions, reinforcing checks and balances within the board structure and underscoring the company’s emphasis on formalized corporate governance as of mid-February 2026.

The most recent analyst rating on (HK:0825) stock is a Hold with a HK$0.38 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 Sets Board Meeting to Approve Interim Results and Consider Dividend
Feb 10, 2026

New World Department Store China Limited has scheduled a board meeting for 26 February 2026 to review and approve the interim results for the six months ended 31 December 2025. At the same meeting, the board will also consider whether to declare an interim dividend, a decision that could affect shareholder returns and signal management’s outlook on the company’s financial performance.

The announcement also confirms the current composition of the company’s board, listing both executive and independent non-executive directors, which reflects its existing governance structure. Investors and other stakeholders may look to the forthcoming interim results and any dividend decision as indicators of operational momentum and financial health in the company’s core retail markets.

The most recent analyst rating on (HK:0825) stock is a Hold with a HK$0.38 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 Announces CEO Resignation and Interim Leadership Plan
Jan 14, 2026

New World Department Store China Limited has announced the resignation of executive director and chief executive officer Ms. Xie Hui-fang, Mandy, effective 14 February 2026, as she steps down to devote more time to her personal endeavours and leaves her roles on the executive, nomination and remuneration committees. The board emphasized there is no disagreement with Ms. Xie and expressed gratitude for her contributions, while putting in place an interim leadership arrangement under which vice-chairman and executive director Ms. Huang Shaomei, Echo, will assume overall responsibility for the Group’s day-to-day management and strategic guidance from 14 January 2026 until a new chief executive officer is appointed, signaling a managed leadership transition aimed at maintaining operational continuity during the search for a permanent successor.

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 Tightens Group Control With Chairman Change and Board Reshuffle
Jan 9, 2026

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
Jan 9, 2026

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
Jan 6, 2026

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.

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: Feb 03, 2026