OTCPK:NDVL.Y

Stock Analysis Report

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Executive Summary

New World Development Company Limited, an investment holding company, invests in, develops, constructs, operates, manages, rents, and leases properties.


Snowflake Analysis

6 star dividend payer and good value.


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: NDVL.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.6%

NDVL.Y

6.7%

US Real Estate

2.9%

US Market


1 Year Return

-31.9%

NDVL.Y

-10.5%

US Real Estate

8.9%

US Market

Return vs Industry: NDVL.Y underperformed the US Real Estate industry which returned -10.5% over the past year.

Return vs Market: NDVL.Y underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

NDVL.YIndustryMarket
7 Day7.6%6.7%2.9%
30 Day-7.8%18.0%10.6%
90 Day-16.6%-18.4%5.1%
1 Year-28.8%-31.9%-9.9%-10.5%11.4%8.9%
3 Year-10.3%-20.2%-11.3%-13.3%34.3%25.4%
5 Year-5.0%-21.1%-19.0%-21.4%60.7%42.7%

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

Valuation

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

10.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NDVL.Y ($2.13) is trading above our estimate of fair value ($1.82)

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


Price To Earnings Ratio

PE vs Industry: NDVL.Y is good value based on its PE Ratio (10.9x) compared to the Real Estate industry average (16.1x).

PE vs Market: NDVL.Y is good value based on its PE Ratio (10.9x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: NDVL.Y is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: NDVL.Y is good value based on its PB Ratio (0.4x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

How is New World Development forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

18.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NDVL.Y's forecast earnings growth (18.7% per year) is above the savings rate (2.2%).

Earnings vs Market: NDVL.Y's earnings (18.7% per year) are forecast to grow slower than the US market (22.3% per year).

High Growth Earnings: NDVL.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: NDVL.Y's revenue (9.2% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: NDVL.Y's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NDVL.Y's Return on Equity is forecast to be low in 3 years time (4.5%).


Next Steps

Past Performance

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

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NDVL.Y has a large one-off gain of HK$3.3B impacting its December 31 2019 financial results.

Growing Profit Margin: NDVL.Y's current net profit margins (13.2%) are lower than last year (28.5%).


Past Earnings Growth Analysis

Earnings Trend: NDVL.Y's earnings have grown by 5.5% per year over the past 5 years.

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

Earnings vs Industry: NDVL.Y had negative earnings growth (-66.2%) over the past year, making it difficult to compare to the Real Estate industry average (-6.4%).


Return on Equity

High ROE: NDVL.Y's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is New World Development's financial position?


Financial Position Analysis

Short Term Liabilities: NDVL.Y's short term assets (HK$182.7B) exceed its short term liabilities (HK$141.8B).

Long Term Liabilities: NDVL.Y's short term assets (HK$182.7B) exceed its long term liabilities (HK$174.5B).


Debt to Equity History and Analysis

Debt Level: NDVL.Y's debt to equity ratio (67.3%) is considered high.

Reducing Debt: NDVL.Y's debt to equity ratio has increased from 58.3% to 67.3% over the past 5 years.

Debt Coverage: NDVL.Y's debt is not well covered by operating cash flow (2%).

Interest Coverage: NDVL.Y's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet


Next Steps

Dividend

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

6.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NDVL.Y's dividend (6.04%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: NDVL.Y's dividend (6.04%) is in the top 25% of dividend payers in the US market (4.32%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66%), NDVL.Y's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NDVL.Y's dividends in 3 years are forecast to be covered by earnings (57.6% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Henry Cheng (72yo)

31.42yrs

Tenure

HK$68,000,000

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 b ...


CEO Compensation Analysis

Compensation vs Market: Henry's total compensation ($USD8.77M) is about average for companies of similar size in the US market ($USD11.52M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kar-Shun Cheng
Executive Chairman & MD31.42yrsHK$68.00m0.10% HK$11.6m
Chi-Kong Cheng
Executive Vice-Chairman & CEO5.17yrsHK$44.20m0.081% HK$9.0m
Chi-Heng Cheng
Executive Director10yrsHK$2.90m0.0052% HK$582.4k
Chi-Man Cheng
Executive Director8.25yrsHK$19.10m0.031% HK$3.5m
Nam-Hoi Sitt
Senior Director of the Project Management Department & Executive Director2yrsHK$15.90mno data
Man-Fung Ki
Advisor & Non-Executive Director11.5yrsHK$9.20m0.00088% HK$97.8k
Aldous Chiu
General Manager - Investor Relationsno datano datano data
Woon Yeo
Senior Director of Sales and Marketing Departmentno datano datano data
Shao-Mei Huang
Executive Director0.083yrno datano data
Wai-Han Chiu
Executive Director0.083yrno datano data

2.0yrs

Average Tenure

50yo

Average Age

Experienced Management: NDVL.Y's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kar-Shun Cheng
Executive Chairman & MD31.42yrsHK$68.00m0.10% HK$11.6m
Chi-Kong Cheng
Executive Vice-Chairman & CEO5.17yrsHK$44.20m0.081% HK$9.0m
Chi-Heng Cheng
Executive Director10yrsHK$2.90m0.0052% HK$582.4k
Chi-Man Cheng
Executive Director8.25yrsHK$19.10m0.031% HK$3.5m
Nam-Hoi Sitt
Senior Director of the Project Management Department & Executive Director2yrsHK$15.90mno data
Man-Fung Ki
Advisor & Non-Executive Director11.5yrsHK$9.20m0.00088% HK$97.8k
Shao-Mei Huang
Executive Director0.083yrno datano data
Wai-Han Chiu
Executive Director0.083yrno datano data
Luen-Wai Lee
Independent Non-Executive Director15.83yrsHK$1.00mno data
Hau-Hay Ho
Independent Non-Executive Director15.83yrsHK$900.00k0.0086% HK$958.1k
Wai-Hoi Doo
Non-Executive Vice Chairman6.92yrsHK$300.00k0.34% HK$37.5m

8.3yrs

Average Tenure

65yo

Average Age

Experienced Board: NDVL.Y's board of directors are considered experienced (8.3 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.


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: NDVL.Y
  • Exchange: OTCPK
  • Founded: 1970
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: HK$86.144b
  • Listing Market Cap: HK$11.115b
  • Shares outstanding: 10.19b
  • Website: https://www.nwd.com.hk

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NDVL.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, invests in, develops, constructs, operates, manages, rents, and leases properties. Its property portfolio comprises residential projects, shopping malls, offices, hotels, and serviced apartments, as well as mixed-use commercial landmarks. The company also provides facility management, transport, and other services, as well as commercial aircraft leasing, container handling, storage, and bus and ferry services; and operates infrastructure projects, such as roads, environment, ports, logistics, and aviation facilities. In addition, it is involved in duty free operation and general trading, civil engineering and building construction, cultural and creation, retail and corporate sales, loyalty program, marketing, promotion, fashion retailing and trading, and piling and ground investigation businesses. Further, the company manages Hong Kong Convention and Exhibition Centre; operates hotels, golf clubs, shopping malls, and toll roads; operates and manages department stores; and provides information technology, healthcare, training course, financial, property agency management and consultancy, project management and consultancy, estate agency, management, car park management, advertising and media related, business and investment consultancy, and wireless telecommunication network services. Additionally, the company undertakes façade and foundation works; offers elderly residential and nursing care services; and sells LED lighting products and systems. It owns and operates a network of 22 New World branded, as well as 9 Ba Li Chun Tian branded department stores and shopping malls. As of June 30, 2019, the company had a total of 16 hotel properties with approximately 7,000 rooms in Hong Kong, Mainland China, and the Southeast Asia. New World Development Company Limited was founded in 1970 and is headquartered in Hong Kong, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 03:39
End of Day Share Price2020/06/04 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.