New World Development Full Year 2024 Earnings: Misses Expectations

New World Development (HKG:17) Full Year 2024 Results

Key Financial Results

• Revenue: HK$35.8b (down 34% from FY 2023).
• Net loss: HK$11.9b (loss widened by HK$10.9b from FY 2023).
• HK$4.71 loss per share (further deteriorated from HK$0.38 loss in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

New World Development Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 18%. Earnings per share (EPS) was also behind analyst expectations.

The primary driver behind last 12 months revenue was the Property Development segment contributing a total revenue of HK$16.3b (45% of total revenue). Notably, cost of sales worth HK$23.6b amounted to 66% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling HK$17.8b were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how 17's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Real Estate industry in Hong Kong.

Performance of the Hong Kong Real Estate industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

We should say that we've discovered 1 warning sign for New World Development that you should be aware of before investing here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.