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New World Development
(0017)
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Rating:40Underperform
Price Target:
HK$6.50
â–¼(-8.19% Downside)
Action:Downgraded
Date:03/29/26
The score is primarily constrained by weak financial performance (declining revenue, ongoing losses, high leverage, and poor free cash flow). Technicals also weigh negatively due to a bearish moving-average setup and negative MACD, while oversold readings offer only limited support. Valuation is difficult to assess given the negative P/E and missing dividend yield.
Positive Factors
Diversified revenue streams
New World operates across development, recurring rentals, property services and infrastructure/investments, giving multiple cash-flow channels. Recurring rental and services revenues provide steadier income to partially offset volatile development cycles, aiding medium-term stability.
Negative Factors
High leverage
Significant leverage raises refinancing, interest-rate and covenant risks that persist across cycles. High debt amplifies earnings volatility, constrains land acquisition and capex flexibility, and increases the probability the group must raise external capital or sell assets during market weakness.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue streams
New World operates across development, recurring rentals, property services and infrastructure/investments, giving multiple cash-flow channels. Recurring rental and services revenues provide steadier income to partially offset volatile development cycles, aiding medium-term stability.
Read all positive factors
New World Development (0017) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$15.58B
Dividend Yield23.72%
Average Volume (3M)4.86M
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue Growth-68.23%
EPS Growth29.26%
CountryHK
Employees10,000
SectorReal Estate
Sector Strength53
IndustryReal Estate - Diversified
Share Statistics
EPS (TTM)-5.32
Shares Outstanding2,516,633,000
10 Day Avg. Volume5,954,454
30 Day Avg. Volume4,858,447
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.07
Price to Sales (P/S)0.52
P/FCF Ratio-21.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$7.33Price Target Upside3.58% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-0.39
Revenue Forecast (FY)HK$23.04B
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, e...
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 ...
New World Development Earnings Call Summary
Earnings Call Date:Sep 26, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 25, 2026
Earnings Call Sentiment Neutral
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.Positive Updates
Successful HKD 88.2 Billion Bank Refinancing
New World Development completed a HKD 88.2 billion bank refinancing, enhancing short- to medium-term liquidity and allowing focus on core business development.
Negative Updates
HKD 16.3 Billion Loss Attributable to Shareholders
The company reported a loss of HKD 16.3 billion for FY '25, impacted by noncash provisions and one-off losses.
Read all updates
Q4-2025 Updates
Positive
Negative
Successful HKD 88.2 Billion Bank Refinancing
New World Development completed a HKD 88.2 billion bank refinancing, enhancing short- to medium-term liquidity and allowing focus on core business development.
Read all positive 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
Income Statement
35
Negative
Balance Sheet
45
Neutral
Cash Flow
30
Negative
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.18B | 27.71B | 35.78B | 95.55B | 68.21B | 68.47B |
| Gross Profit | 8.99B | 10.63B | 12.85B | 20.76B | 17.41B | 18.06B |
| EBITDA | -4.44B | 1.71B | 3.74B | 9.78B | 11.22B | 12.15B |
| Net Income | -12.30B | -15.31B | -17.51B | 900.90M | 1.25B | 1.15B |
Balance Sheet | ||||||
| Total Assets | 418.07B | 420.26B | 445.16B | 616.48B | 635.88B | 627.08B |
| Cash, Cash Equivalents and Short-Term Investments | 21.60B | 25.99B | 28.24B | 70.01B | 76.54B | 76.21B |
| Total Debt | 183.91B | 155.01B | 160.95B | 195.56B | 199.11B | 182.22B |
| Total Liabilities | 239.95B | 213.53B | 220.27B | 395.43B | 395.40B | 371.82B |
| Stockholders Equity | 170.38B | 198.89B | 216.11B | 196.05B | 213.36B | 223.33B |
Cash Flow | ||||||
| Free Cash Flow | -445.40M | -656.10M | -13.17B | 3.76B | 1.90B | 2.49B |
| Operating Cash Flow | 3.24B | 3.56B | -8.35B | 10.99B | 7.45B | 9.65B |
| Investing Cash Flow | -715.90M | 1.45B | 6.49B | 1.69B | -3.26B | 3.04B |
| Financing Cash Flow | -3.24B | -7.21B | -31.81B | -14.78B | -5.72B | -17.91B |
New World Development Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | HK$16.99B | 11.87 | 1.41% | 6.97% | 9.19% | -0.21% | |
58 Neutral | HK$11.38B | -41.86 | -0.52% | 7.37% | 74.94% | 84.97% | |
52 Neutral | HK$128.20B | 19.39 | 2.11% | 4.71% | 45.52% | 13.35% | |
44 Neutral | HK$1.17B | -0.45 | -39.42% | 4.29% | 25.82% | -27.10% | |
40 Underperform | HK$15.58B | -1.17 | -6.66% | 23.72% | -68.23% | 29.26% | |
39 Underperform | HK$570.07M | -0.04 | 239.84% | 5.92% | -4.28% | -60.46% |
* Real Estate Sector Average
HK:0017
New World Development
6.20
-2.37
-27.65%
HK:0041
Great Eagle Holdings
15.07
1.26
9.09%
HK:0012
Henderson Land Development Co
26.76
-0.16
-0.61%
HK:0010
Hang Lung Group
12.34
-1.95
-13.66%
HK:3377
Sino-Ocean Group Holding
0.04
-0.13
-76.30%
HK:0978
China Merchants Land Limited
0.23
-0.08
-24.52%
New World Development Corporate Events
New World Development Shareholders Approve 2026 CTFE Services Agreement
Jun 24, 2026
Independent shareholders of New World Development have approved the 2026 CTFE Master Services Agreement and related continuing connected transactions at an extraordinary general meeting, with 98.42% of votes cast in favor. The mandate authorizes d...
New World Development Calls Hybrid EGM to Approve 2026 CTFE Services Deal
Jun 3, 2026
New World Development has called an extraordinary general meeting for 24 June 2026 in Hong Kong, to be held as a hybrid event combining an in-person session at the Convention and Exhibition Centre with online participation via the Vistra eVoting P...
New World Development Denies Investment Deal and Flags Ongoing 11 Skies, Financing Talks
May 14, 2026
New World Development issued a clarification to address market speculation over potential investments in the company, its flagship 11 Skies project, and the group’s financing terms. The company said its controlling shareholder has reported n...
New World Development Denies Deal on Rumoured Hong Kong Hotel Asset Sale
May 5, 2026
New World Development has issued a clarification to address media speculation that it is disposing of its stake in certain Hong Kong hotel assets. The company said it is regularly approached by potential buyers regarding various assets, including ...
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.