New World Development Company Limited, an investment holding company, engages in the property development and investment business in Hong Kong and internationally. More Details
+ 1 more risk
Adequate balance sheet average dividend payer.
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 +/- 4% a week.
Volatility Over Time: 17's weekly volatility (4%) has been stable over the past year.
7 Day Return
HK Real Estate
1 Year Return
HK Real Estate
Return vs Industry: 17 exceeded the Hong Kong Real Estate industry which returned 7.8% over the past year.
Return vs Market: 17 underperformed the Hong Kong Market which returned 28.4% over the past year.
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
No news available
Is New World Development undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 17 (HK$40.95) is trading below our estimate of fair value (HK$72.24)
Significantly Below Fair Value: 17 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 17 is poor value based on its PE Ratio (95.8x) compared to the HK Real Estate industry average (7.3x).
PE vs Market: 17 is poor value based on its PE Ratio (95.8x) compared to the Hong Kong market (11.8x).
Price to Earnings Growth Ratio
PEG Ratio: 17 is poor value based on its PEG Ratio (4.8x)
Price to Book Ratio
PB vs Industry: 17's PB Ratio (0.4x) is in line with the HK Real Estate industry average.
How is New World Development forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 17's forecast earnings growth (19.8% per year) is above the savings rate (1.5%).
Earnings vs Market: 17's earnings (19.8% per year) are forecast to grow faster than the Hong Kong market (17.4% per year).
High Growth Earnings: 17's earnings are forecast to grow, but not significantly.
Revenue vs Market: 17's revenue (8.6% per year) is forecast to grow slower than the Hong Kong market (12.8% per year).
High Growth Revenue: 17's revenue (8.6% 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 (3.9%).
How has New World Development performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 17 has a large one-off gain of HK$2.3B impacting its December 31 2020 financial results.
Growing Profit Margin: 17's current net profit margins (1.8%) are lower than last year (13.1%).
Past Earnings Growth Analysis
Earnings Trend: 17's earnings have declined by 10.6% 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 (-86.1%) over the past year, making it difficult to compare to the Real Estate industry average (5.9%).
Return on Equity
High ROE: 17's Return on Equity (0.9%) is considered low.
How is New World Development's financial position?
Financial Position Analysis
Short Term Liabilities: 17's short term assets (HK$195.0B) exceed its short term liabilities (HK$155.5B).
Long Term Liabilities: 17's short term assets (HK$195.0B) exceed its long term liabilities (HK$162.4B).
Debt to Equity History and Analysis
Debt Level: 17's debt to equity ratio (61%) is considered high.
Reducing Debt: 17's debt to equity ratio has reduced from 62.8% to 61% over the past 5 years.
Debt Coverage: 17's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: 17's interest payments on its debt are well covered by EBIT (7.2x coverage).
What is New World Development current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 17's dividend (4.98%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.93%).
High Dividend: 17's dividend (4.98%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.03%).
Stability and Growth of Payments
Stable Dividend: 17's dividends per share have been stable in the past 10 years.
Growing Dividend: 17's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (477.2%), 17's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 17's dividends in 3 years are forecast to be covered by earnings (58.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Henry Cheng (73 yo)
Dr. Kar Shun Cheng, also known as Henry, BA, MBA, DBA (Hon), LLD (Hon), GBM, GBS, has been the Executive Chairman at New World Development Company Limited since March 1, 2012 and its Managing Director sinc...
CEO Compensation Analysis
Compensation vs Market: Henry's total compensation ($USD7.29M) is above average for companies of similar size in the Hong Kong market ($USD850.49K).
Compensation vs Earnings: Henry's compensation has been consistent with company performance over the past year.
Experienced Management: 17's management team is considered experienced (4.2 years average tenure).
Experienced Board: 17's board of directors are considered experienced (9.2 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
New World Development Company Limited's company bio, employee growth, exchange listings and data sources
- Name: New World Development Company Limited
- Ticker: 17
- Exchange: SEHK
- Founded: 1970
- Industry: Diversified Real Estate Activities
- Sector: Real Estate
- Market Cap: HK$102.984b
- Shares outstanding: 2.54b
- Website: https://www.nwd.com.hk
Number of Employees
- New World Development Company Limited
- New World Tower
- 30th Floor
- Hong Kong
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/05 10:30|
|End of Day Share Price||2021/05/05 00:00|
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.