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New World Development (0017) AI Stock Analysis
New World Development
(HKEX:0017)
The score is primarily held down by weak financial performance—large recent losses, rising leverage, and negative operating/free cash flow. Technicals also reflect a sustained downtrend (price below key moving averages and negative MACD), though oversold RSI/Stoch modestly temper the outlook. Valuation is difficult to assess on a negative P/E, with no dividend yield data to offset risk.
New World Development (0017) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 1.70B
- Dividend Yield
- ―
- Average Volume (3M)
- 6.43M
- Price to Earnings (P/E)
- -0.7
- Beta (1Y)
- 1.32
- Revenue Growth
- 9.77%
- EPS Growth
- -72.68%
- Country
- Hong Kong
- Employees
- 9,200
- Sector
- Real Estate
- Sector Strength
- 65
- Industry
- Real Estate - Diversified
New World Development Business Overview & Revenue Model
Company Description
Founded in 1970 and headquartered in Central, Hong Kong, New World Development Company Limited functions as an investment holding company with a broad and diverse portfolio of businesses. Its primary focus is property development and investment, enco...
How the Company Makes Money
New World Development primarily makes money through real estate and investment-related activities. Key revenue streams typically include: (1) Property development revenue from selling completed residential and commercial units, where earnings are rec...
New World Development Earnings Call Summary
The earnings call presented a mixed picture with significant achievements in refinancing, property sales, and debt reduction. However, these were counterbalanced by substantial financial losses, impairments, and suspended dividend payments, leading to a cautious outlook.
Q4-2025 Updates
Positive Updates
Negative Updates
Company Guidance
During the call, New World Development provided detailed guidance on several financial metrics and strategic initiatives. The company completed a significant HKD 88.2 billion bank refinancing on June 30, 2025, which extended certain loan maturities to June 2028, improving short- to medium-term liquidity. Additionally, the company secured an additional HKD 3.95 billion in committed loan facilities to address debt-related needs, with the option to scale further. Despite market uncertainties, New World Development achieved its annual property sales target of HKD 26 billion, with strong sales in Hong Kong and Mainland China. The company's total and net debt decreased by HKD 5.7 billion and HKD 4.5 billion, respectively, throughout FY 2025, while the net gearing ratio slightly increased to 58.1% due to a decline in shareholders' equity. Efforts to streamline costs resulted in a 16% reduction in G&A expenses, contributing to a 15% year-on-year decrease in CapEx to HKD 12.6 billion. The company plans to further reduce CapEx to below HKD 12 billion in FY 2026. Despite a reported loss of HKD 16.3 billion, largely due to noncash provisions and one-off losses, the company remains focused on debt reduction, enhancing operational efficiency, and optimizing cash flow.
New World Development Financial Statement Overview
Summary
Overall financial statements indicate deterioration versus 2022–2023: very large losses through 2024–2026, higher leverage with debt-to-equity rising to ~1.19, and renewed negative operating cash flow in 2026 with recurring negative free cash flow. Positives (more stable gross margin and a 2026 revenue rebound) are outweighed by weak earnings quality and liquidity pressure.
Income Statement
22NegativeBalance Sheet
41NeutralCash Flow
28Negative| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.02B | 20.85B | 27.71B | 35.78B | 95.55B | 68.21B |
| Gross Profit | 10.16B | 8.05B | 10.63B | 12.85B | 20.76B | 17.41B |
| EBITDA | -18.80B | -19.60B | 1.71B | 3.74B | 11.70B | 10.70B |
| Net Income | -26.16B | -26.16B | -15.31B | -17.51B | 900.90M | 1.25B |
Balance Sheet | ||||||
| Total Assets | 391.70B | 391.70B | 420.26B | 445.16B | 616.48B | 635.88B |
| Cash, Cash Equivalents and Short-Term Investments | 17.41B | 17.41B | 25.99B | 28.24B | 70.01B | 76.54B |
| Total Debt | 178.57B | 178.57B | 155.01B | 160.95B | 195.56B | 199.11B |
| Total Liabilities | 234.74B | 234.74B | 213.53B | 220.27B | 395.43B | 395.40B |
| Stockholders Equity | 149.74B | 149.74B | 198.89B | 216.11B | 196.05B | 213.36B |
Cash Flow | ||||||
| Free Cash Flow | -10.19B | -10.19B | -656.10M | -13.17B | 3.76B | 1.90B |
| Operating Cash Flow | -8.23B | -8.23B | 3.56B | -8.35B | 10.99B | 7.45B |
| Investing Cash Flow | 3.12B | 3.12B | 1.45B | 6.49B | 1.69B | -3.26B |
| Financing Cash Flow | -3.83B | -3.83B | -7.21B | -31.81B | -14.78B | -5.72B |
New World Development Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0017, the sentiment is Negative. The current price of 5.05 is below the 20-day moving average (MA) of 5.19, below the 50-day MA of 5.87, and below the 200-day MA of 7.76, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 36.03 is Neutral, neither overbought nor oversold. The STOCH value of 55.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0017.
New World Development Peers Comparison
Overall Rating
HK:001071Outperform
HK:004158Neutral
HK:001252Neutral
HK:097842Neutral- HK:001742Neutral
HK:337738Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:0010 | 71Outperform | HKD 16.63B | 11.74 | 1.41% | 7.04% | 9.19% | -0.21% |
| Sector * | 65Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
| HK:0041 | 58Neutral | HKD 10.32B | -38.22 | -0.52% | 7.78% | 74.94% | 84.97% |
| HK:0012 | 52Neutral | HKD 135.75B | 20.32 | 2.11% | 4.49% | 45.52% | 13.35% |
| HK:0978 | 42Neutral | HKD 1.16B | -0.45 | -39.42% | ― | 25.82% | -27.10% |
| HK:0017 | 42Neutral | HKD 12.71B | -0.65 | -16.35% | ― | 9.77% | -72.68% |
| HK:3377 | 38Underperform | HKD 356.62M | -0.03 | 239.84% | ― | -4.40% | -61.12% |
* Real Estate Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:0017 | New World Development Co. Ltd. | 5.05 | -2.36 | -31.85% | |
| HK:0041 | Great Eagle Holdings | 13.76 | -0.03 | -0.21% | |
| HK:0012 | Henderson Land Development Co | 28.04 | 1.59 | 6.03% | |
| HK:0010 | Hang Lung Group | 12.21 | -1.93 | -13.66% | |
| HK:3377 | Sino-Ocean Group Holding | 0.03 | -0.09 | -76.27% | |
| HK:0978 | China Merchants Land Limited | 0.24 | -0.06 | -19.66% |
New World Development Corporate Events
New World Development Pays HK$2.3 Billion to Exit Hong Kong Airport Sub-Lease Early
New World Development has agreed an early termination of a long-term sub-lease arrangement at Hong Kong International Airport, under which its indirect wholly owned subsidiary Roxy had been contracted to construct and operate a development on the sit...
New World Development Seeks Shareholder Nod for Overhaul of Articles
New World Development plans to replace its existing articles of association with a new set designed to align with recent changes to Hong Kong company and securities regulations. The board will seek shareholder approval for the new articles by special...
New World Development Returns to Underlying Profit Amid Hong Kong Property Market Recovery
New World Development reported a sharp 28% drop in revenue to HK$19,992 million and a 19% decline in gross profit, though gross margin improved to 47% and core operating profit rose 28% to HK$7,702 million. Despite a headline loss of HK$26,818 millio...
New World Development Publishes FY2026 Results Presentation
New World Development Company Limited has released a presentation detailing its financial results for the year ended 30 June 2026, signalling completion of its fiscal 2026 reporting cycle. The materials, published alongside a formal board-approved an...
New World Development Ups Mortgage-Backed Facility for Victoria Dockside
New World Development has increased its secured financing for the landmark Victoria Dockside complex, raising lender commitments under a Deutsche Bank-arranged facility from HKD 3.95 billion to HKD 4.9 billion. The loan is backed by a first-ranking m...
New World Development Advances Shanghai REIT Spin-Off Plan
New World Development plans a proposed spin-off and separate listing of a real estate investment trust on the Shanghai Stock Exchange, involving the disposal of most of its interest in a project company that owns a key asset. Following completion, it...
New World Development Sets Date to Approve 2026 Final Results and Dividend Plan
New World Development has scheduled a board meeting for 30 September 2026 to approve the annual results for the year ended 30 June 2026. The board will also consider whether to recommend a final dividend, signaling a forthcoming update on the group&#...
New World Development Plans Shanghai REIT Spin-Off for Flagship Tower
New World Development has announced plans to spin off a commercial real estate investment trust backed by its Shanghai Hong Kong New World Tower asset, a mixed-use complex on Huaihai Road Central that includes the Shanghai K11 Art Mall and K11 ATELIE...
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 10, 2026