SEHK:17

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New World Development

Executive Summary

New World Development Company Limited, an investment holding company, engages in the property development and investment business in Hong Kong and internationally. More Details


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has New World Development's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 17 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 17's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.1%

17

-1.6%

HK Real Estate

0.7%

HK Market


1 Year Return

-2.4%

17

-8.1%

HK Real Estate

7.8%

HK Market

Return vs Industry: 17 exceeded the Hong Kong Real Estate industry which returned -8.9% over the past year.

Return vs Market: 17 underperformed the Hong Kong Market which returned 7.7% over the past year.


Shareholder returns

17IndustryMarket
7 Day-0.1%-1.6%0.7%
30 Day5.9%4.7%5.9%
90 Day-0.7%-3.3%4.7%
1 Year-0.8%-2.4%-3.2%-8.1%12.2%7.8%
3 Year-0.1%-10.2%-1.0%-13.5%-1.5%-11.7%
5 Year59.8%30.7%45.2%15.0%30.2%8.2%

Long-Term Price Volatility Vs. Market

How volatile is New World Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is New World Development undervalued compared to its fair value and its price relative to the market?

94.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 17 (HK$40.45) is trading above our estimate of fair value (HK$19.63)

Significantly Below Fair Value: 17 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 17 is poor value based on its PE Ratio (94.3x) compared to the HK Real Estate industry average (8.6x).

PE vs Market: 17 is poor value based on its PE Ratio (94.3x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 17 is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: 17's PB Ratio (0.4x) is in line with the HK Real Estate industry average.


Next Steps

Future Growth

How is New World Development forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

29.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 17's forecast earnings growth (29.8% per year) is above the savings rate (1.6%).

Earnings vs Market: 17's earnings (29.8% per year) are forecast to grow faster than the Hong Kong market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 17's revenue (9% per year) is forecast to grow slower than the Hong Kong market (13.8% per year).

High Growth Revenue: 17's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 17's Return on Equity is forecast to be low in 3 years time (4.4%).


Next Steps

Past Performance

How has New World Development performed over the past 5 years?

-4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 17 has high quality earnings.

Growing Profit Margin: 17's current net profit margins (1.9%) are lower than last year (23.6%).


Past Earnings Growth Analysis

Earnings Trend: 17's earnings have declined by 4.3% per year over the past 5 years.

Accelerating Growth: 17's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 17 had negative earnings growth (-93.9%) over the past year, making it difficult to compare to the Real Estate industry average (-1.2%).


Return on Equity

High ROE: 17's Return on Equity (1.2%) is considered low.


Next Steps

Financial Health

How is New World Development's financial position?


Financial Position Analysis

Short Term Liabilities: 17's short term assets (HK$182.3B) exceed its short term liabilities (HK$152.6B).

Long Term Liabilities: 17's short term assets (HK$182.3B) exceed its long term liabilities (HK$167.8B).


Debt to Equity History and Analysis

Debt Level: 17's debt to equity ratio (68.2%) is considered high.

Reducing Debt: 17's debt to equity ratio has increased from 53.3% to 68.2% over the past 5 years.

Debt Coverage: 17's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 17's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Next Steps

Dividend

What is New World Development current dividend yield, its reliability and sustainability?

5.04%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 17's dividend (5.04%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 17's dividend (5.04%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.65%).


Stability and Growth of Payments

Stable Dividend: 17's dividends per share have been stable in the past 10 years.

Growing Dividend: 17's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (475.5%), 17's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 17's dividends in 3 years are forecast to be covered by earnings (52.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Henry Cheng (73 yo)

31.83yrs

Tenure

HK$56,600,000

Compensation

Dr. Kar Shun Cheng, also known as Henry, BA, MBA, DBA (Hon), LLD (Hon), GBM, GBS, serves as Non-Executive Director at DTXS Silk Road Investment Holdings Company Limited since August 28, 2019. Dr. Cheng has...


CEO Compensation Analysis

Compensation vs Market: Henry's total compensation ($USD7.30M) is above average for companies of similar size in the Hong Kong market ($USD835.80K).

Compensation vs Earnings: Henry's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kar Shun Cheng
Executive Chairman & MD31.83yrsHK$56.60m0.10%
HK$ 105.7m
Chi-Kong Cheng
Executive Vice-Chairman & CEO5.58yrsHK$49.00m0.081%
HK$ 81.5m
Chi-Heng Cheng
Executive Director10.42yrsHK$2.50m0.0052%
HK$ 5.3m
Chi-Man Cheng
Executive Director8.67yrsHK$18.20m0.031%
HK$ 31.7m
Nam-Hoi Sitt
Senior Director of the Project Management Department & Executive Director2.42yrsHK$19.50mno data
Shao-Mei Huang
Executive Director0.50yrHK$21.60mno data
Wai-Han Chiu
Executive Director0.50yrHK$4.90m0.0012%
HK$ 1.2m
Aldous Chiu
General Manager - Investor Relationsno datano datano data
Woon Yeo
Senior Director of Sales and Marketing Departmentno datano datano data
Man-Hoi Wong
Company Secretary9.83yrsno datano data
Jim Lam
Director of Finance and Accountsno datano datano data

3.7yrs

Average Tenure

50yo

Average Age

Experienced Management: 17's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kar Shun Cheng
Executive Chairman & MD31.83yrsHK$56.60m0.10%
HK$ 105.7m
Chi-Kong Cheng
Executive Vice-Chairman & CEO5.58yrsHK$49.00m0.081%
HK$ 81.5m
Chi-Heng Cheng
Executive Director10.42yrsHK$2.50m0.0052%
HK$ 5.3m
Chi-Man Cheng
Executive Director8.67yrsHK$18.20m0.031%
HK$ 31.7m
Nam-Hoi Sitt
Senior Director of the Project Management Department & Executive Director2.42yrsHK$19.50mno data
Shao-Mei Huang
Executive Director0.50yrHK$21.60mno data
Wai-Han Chiu
Executive Director0.50yrHK$4.90m0.0012%
HK$ 1.2m
Luen-Wai Lee
Independent Non-Executive Director16.25yrsHK$900.00kno data
Hau-Hay Ho
Independent Non-Executive Director16.25yrsHK$800.00k0.0086%
HK$ 8.7m
Kar-Shing Cheng
Non-Executive Director26.08yrsHK$9.90m0.011%
HK$ 10.9m
Wai-Hoi Doo
Non-Executive Vice Chairman7.33yrsHK$400.00k0.19%
HK$ 186.9m
Cheung-Biu Liang
Independent Non-Executive Director16.25yrsHK$700.00k0.00010%
HK$ 100.9k

8.7yrs

Average Tenure

67yo

Average Age

Experienced Board: 17's board of directors are considered experienced (8.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 17 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

New World Development Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New World Development Company Limited
  • Ticker: 17
  • Exchange: SEHK
  • Founded: 1970
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$100.946b
  • Shares outstanding: 2.55b
  • Website: https://www.nwd.com.hk

Number of Employees


Location

  • New World Development Company Limited
  • New World Tower
  • 30th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWWD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
NWDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
17SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
17SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
17SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
NDVL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 1995

Biography

New World Development Company Limited, an investment holding company, engages in the property development and investment business in Hong Kong and internationally. Its property portfolio comprises resident...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 12:41
End of Day Share Price2020/11/24 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.