17 Stock Overview
New World Development Company Limited, an investment holding company, engages in the property development and investment business in Hong Kong and internationally.
New World Development Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||HK$30.75|
|52 Week High||HK$43.00|
|52 Week Low||HK$29.30|
|1 Month Change||2.16%|
|3 Month Change||-7.66%|
|1 Year Change||-15.41%|
|3 Year Change||-34.29%|
|5 Year Change||-13.62%|
|Change since IPO||-30.11%|
Recent News & Updates
A Look At The Intrinsic Value Of New World Development Company Limited (HKG:17)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of New World Development...
New World Development (HKG:17) Use Of Debt Could Be Considered Risky
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
New World Development's (HKG:17) Shareholders Will Receive A Bigger Dividend Than Last Year
New World Development Company Limited's ( HKG:17 ) dividend will be increasing to HK$1.50 on 21st of December. The...
Is Now An Opportune Moment To Examine New World Development Company Limited (HKG:17)?
Let's talk about the popular New World Development Company Limited ( HKG:17 ). The company's shares saw a decent share...
New World Development (HKG:17) Has Announced That It Will Be Increasing Its Dividend To HK$1.50
The board of New World Development Company Limited ( HKG:17 ) has announced that it will be increasing its dividend on...
|17||HK Real Estate||HK Market|
Return vs Industry: 17 exceeded the Hong Kong Real Estate industry which returned -22.4% over the past year.
Return vs Market: 17 underperformed the Hong Kong Market which returned -11.9% over the past year.
|17 Average Weekly Movement||2.5%|
|Real Estate Industry Average Movement||5.6%|
|Market Average Movement||6.7%|
|10% most volatile stocks in HK Market||13.1%|
|10% least volatile stocks in HK Market||3.0%|
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.
About the Company
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 residential, retail, office, and industrial properties. The company also provides commercial aircraft leasing services; operates expressways; and constructs residential and commercial projects, as well as provides protection and savings-related life and medical insurance products.
New World Development Fundamentals Summary
|17 fundamental statistics|
Is 17 overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|17 income statement (TTM)|
|Cost of Revenue||HK$49.55b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.47|
|Net Profit Margin||1.72%|
How did 17 perform over the long term?See historical performance and comparison
6.7%Current Dividend Yield
Is New World Development undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 17 (HK$30.75) is trading above our estimate of fair value (HK$30.67)
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 (66.1x) compared to the Hong Kong Real Estate industry average (6.7x).
PE vs Market: 17 is poor value based on its PE Ratio (66.1x) compared to the Hong Kong market (9.1x).
Price to Earnings Growth Ratio
PEG Ratio: 17 is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: 17 is good value based on its PB Ratio (0.3x) compared to the HK Real Estate industry average (0.4x).
How is New World Development forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 17's forecast earnings growth (24.8% per year) is above the savings rate (1.5%).
Earnings vs Market: 17's earnings (24.8% per year) are forecast to grow faster than the Hong Kong market (16.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 17's revenue (7.1% per year) is forecast to grow slower than the Hong Kong market (11.7% per year).
High Growth Revenue: 17's revenue (7.1% 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 (3.8%).
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$4.2B impacting its June 30 2021 financial results.
Growing Profit Margin: 17's current net profit margins (1.7%) are lower than last year (1.9%).
Past Earnings Growth Analysis
Earnings Trend: 17's earnings have declined by 19.1% per year over the past 5 years.
Accelerating Growth: 17's earnings growth over the past year (6.9%) exceeds its 5-year average (-19.1% per year).
Earnings vs Industry: 17 earnings growth over the past year (6.9%) underperformed the Real Estate industry 21.7%.
Return on Equity
High ROE: 17's Return on Equity (1.5%) is considered low.
How is New World Development's financial position?
Financial Position Analysis
Short Term Liabilities: 17's short term assets (HK$208.1B) exceed its short term liabilities (HK$149.6B).
Long Term Liabilities: 17's short term assets (HK$208.1B) exceed its long term liabilities (HK$173.3B).
Debt to Equity History and Analysis
Debt Level: 17's net debt to equity ratio (31.6%) is considered satisfactory.
Reducing Debt: 17's debt to equity ratio has reduced from 67.6% to 57.9% over the past 5 years.
Debt Coverage: 17's debt is not well covered by operating cash flow (5.5%).
Interest Coverage: 17 earns more interest than it pays, so coverage of interest payments is not a concern.
What is New World Development current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 17's dividend (6.7%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.36%).
High Dividend: 17's dividend (6.7%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.96%).
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 (447.5%), 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 (57.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Adrian Cheng (41 yo)
Dr. Chi-Kong Cheng, also known as Adrian, JP, is Founder of Artisan Acquisition Corp. He serves as Non-Executive Director of Arta TechFin Corporation Limited. Dr. Cheng has been Non-Executive Chairman at N...
Experienced Management: 17's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Experienced Board: 17's board of directors are seasoned and experienced ( 13.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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
- Implied Market Cap: HK$77.386b
- Shares outstanding: 2.52b
- Website: https://www.nwd.com.hk
Number of Employees
- New World Development Company Limited
- New World Tower
- 30th Floor
- Hong Kong
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/16 10:04|
|End of Day Share Price||2022/01/14 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.