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17

New World DevelopmentSEHK:17 Stock Report

Last Price

HK$30.75

Market Cap

HK$77.4b

7D

2.8%

1Y

-15.4%

Updated

16 Jan, 2022

Data

Company Financials +
17 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance1/6
Financial Health5/6
Dividends4/6

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

Chinese Estates Holdings

SEHK:127

HK$5.2b

HKR International

SEHK:480

HK$4.7b

Hong Kong Ferry (Holdings)

SEHK:50

HK$2.2b

Henderson Land Development

SEHK:12

HK$161.9b

Price History & Performance

Summary of all time highs, changes and price drops for New World Development
Historical stock prices
Current Share PriceHK$30.75
52 Week HighHK$43.00
52 Week LowHK$29.30
Beta0.98
1 Month Change2.16%
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

Jan 11
A Look At The Intrinsic Value Of New World Development Company Limited (HKG:17)

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...

Dec 09
New World Development (HKG:17) Use Of Debt Could Be Considered Risky

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...

Nov 24
New World Development's (HKG:17) Shareholders Will Receive A Bigger Dividend Than Last Year

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...

Nov 23
Is Now An Opportune Moment To Examine New World Development Company Limited (HKG:17)?

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...

Oct 21
New World Development (HKG:17) Has Announced That It Will Be Increasing Its Dividend To HK$1.50

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...

Shareholder Returns

17HK Real EstateHK Market
7D2.8%0.2%3.2%
1Y-15.4%-22.4%-11.9%

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.

Price Volatility

Is 17's price volatile compared to industry and market?
17 volatility
17 Average Weekly Movement2.5%
Real Estate Industry Average Movement5.6%
Market Average Movement6.7%
10% most volatile stocks in HK Market13.1%
10% least volatile stocks in HK Market3.0%

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

FoundedEmployeesCEOWebsite
197030,000Adrian Chenghttps://www.nwd.com.hk

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

How do New World Development's earnings and revenue compare to its market cap?
17 fundamental statistics
Market CapHK$77.39b
Earnings (TTM)HK$1.17b
Revenue (TTM)HK$68.23b

66.1x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
17 income statement (TTM)
RevenueHK$68.23b
Cost of RevenueHK$49.55b
Gross ProfitHK$18.68b
ExpensesHK$17.51b
EarningsHK$1.17b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.47
Gross Margin27.38%
Net Profit Margin1.72%
Debt/Equity Ratio57.9%

How did 17 perform over the long term?

See historical performance and comparison

Dividends

6.7%

Current Dividend Yield

448%

Payout Ratio

Valuation

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

66.05x

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).


Future Growth

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

24.8%

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%).


Past Performance

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

-19.1%

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.


Financial Health

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.


Balance Sheet


Dividend

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

6.70%

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).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Adrian Cheng (41 yo)

1.67yrs

Tenure

HK$47,000,000

Compensation

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...


Leadership Team

Experienced Management: 17's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: 17's board of directors are seasoned and experienced ( 13.2 years average tenure).


Ownership

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

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 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
  • Implied Market Cap: HK$77.386b
  • Shares outstanding: 2.52b
  • Website: https://www.nwd.com.hk

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 10:04
End of Day Share Price2022/01/14 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.