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Finance

New World Development Co. Ltd.

Company Background

New World Development is a Hong Kong conglomerate mainly focused on property development, hotels, department stores, infrastructure and services. The company operates businesses in more than 50 cities in Asia with a total asset value of 300 billion Hong Kong dollars ($39.4 billion).

It owns three listed companies -- New World China Land, NWS Holdings and New World Department Store China. The company is expanding its businesses in mainland China, investing $16 billion in more than 20 provinces across the country.

New World Development plans to improve the efficiency of the group's hotel operations. In 2015, it sold interests in three upscale hotels to a joint venture with Abu Dhabi Investment Authority for HK$18.5 billion. The hotels are Grand Hyatt Hong Kong, Renaissance Harbour View, and Hyatt Regency TST.

Hong Kong billionaire Henry Cheng Kar-shun became chairman of New World Development in 2012. His family holds a 42% stake in the company as the largest shareholder. He also leads Chow Tai Fook Jewellery Group, Hong Kong's largest jewelry retailer.

Business Summary

New World Development Co. Ltd. operates as an holding company, which engages in the property development and investment businesses. It operates through the following business segments: Property Development, Property Investment, Service and Infrastructure, Hotel Operations, Department Stores and Others. The Property Development segment focuses on the residential usage of company properties in China and Hong Kong. The Property Investment segment handles lands and buildings that are for lease or rent. The Service segment comprises of facilities management, contracting and transport, and strategic investments. The Infrastructure segment includes development of roads and ports, and energy, water and logistics projects. The Hotel Operations segment manages major hotel projects in Hong Kong, namely, Grand Hyatt Hong Kong, Hyatt Regency Hong Kong, Tsim Sha Tsui, Hyatt Regency Hong Kong, Sha Tin and Renaissance Harbour View Hotel. The Department Store segment operates department store retail chain in China. The Others segment includes media and technology businesses. The company was founded on May 29, 1970 and is headquartered in Hong Kong.

Financial Highlights

Jun 2020 HKDUSD
Revenue59,251.60M7,601.56M
Gross Profit18,888.20M2,423.22M
Operating income9,478.60M1,216.03M
Income before tax10,024.50M1,286.07M
Net income1,096.20M140.63M
EBITDA13,310M1,707.58M
Diluted EPS0.420.05
Dividends Per Share2.040.26
Total Assets600,195.90M77,440.13M
Total liabilities357,542.80M46,131.87M
Total equity213,023.30M27,485.27M
Operating cash flow-13,150.50M-1,687.11M
Currency in HKDCurrency in USD

Historical Data

 Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020
Revenue 61,892.50M 58,863.50M 62,301.20M 76,885M 59,251.60M
Gross Profit 20,844.90M 20,450.30M 22,175.90M 25,142.90M 18,888.20M
Operating income 11,423.90M 11,558.30M 12,820M 14,215.90M 9,478.60M
Income before tax 16,046.60M -- -- 24,445.80M 10,024.50M
Net income 8,666.30M 7,675.70M 23,338.10M 18,160.10M 1,096.20M
EBITDA 13,268.30M 13,446.40M 15,253M 16,626.90M 13,310M
Diluted EPS 3.80 3.20 9.32 7.10 0.42
Dividends Per Share 1.76 1.84 1.92 2.04 2.04
Total Assets 392,108.60M 437,056.30M 481,454.80M 503,284.90M 600,195.90M
Total liabilities 191,213.30M 225,563.60M 235,724.70M 249,425.90M 357,542.80M
Total equity 179,573.40M 186,091.20M 216,249.90M 223,864.50M 213,023.30M
Operating cash flow 5,887.10M 3,335.60M 7,170.40M 5,560.70M -13,150.50M
 Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020
Revenue 7,976.39M 7,580.12M 7,962.17M 9,806.66M 7,601.56M
Gross Profit 2,686.38M 2,633.48M 2,834.10M 3,206.97M 2,423.22M
Operating income 1,472.25M 1,488.41M 1,638.41M 1,813.23M 1,216.03M
Income before tax 2,068.00M -- -- 3,118.05M 1,286.07M
Net income 1,116.86M 988.43M 2,982.63M 2,316.31M 140.63M
EBITDA 1,709.95M 1,731.55M 1,949.35M 2,120.75M 1,707.58M
Diluted EPS 0.48 0.41 1.19 0.90 0.05
Dividends Per Share 0.22 0.23 0.24 0.26 0.26
Total Assets 50,542.81M 55,986.56M 61,367.39M 64,420.47M 77,440.13M
Total liabilities 24,647.40M 28,894.51M 30,046.03M 31,926.51M 46,131.87M
Total equity 23,147.01M 23,838.13M 27,563.73M 28,654.65M 27,485.27M
Operating cash flow 758.69M 429.54M 916.38M 709.26M -1,687.11M

Valuation Measures

Jun 2020
PER85.76
ROA0.19%
ROE0.50%
Operating margin15.99%
Profit margin1.85%

Key executives

  • Chairman & Managing Director: Kar-Shun Cheng
  • Executive Vice Chairman & Chief Executive Officer: Chi-Kong Cheng
  • Executive Director: Wai-Han Chiu
  • Secretary, Legal & Company Secretarial Department: Man-Hoi Wong

Shareholders

  • Cheng Yu Tung Family Ltd. (44.7%)
  • The Vanguard Group, Inc. (1.5%)
  • BlackRock Fund Advisors (1.3%)
  • APG Asset Management NV (0.6%)
  • BlackRock Advisors (UK) Ltd. (0.5%)
  • Principal Real Estate Investors LLC (0.5%)
  • State Street Global Advisors Asia Ltd. (0.4%)
  • BlackRock Investment Management (UK) Ltd. (0.4%)
  • Dimensional Fund Advisors LP (0.4%)
  • Henderson Global Investors Ltd. (0.3%)

Contact Details

  • Website:http://www.nwd.com.hk
  • Address: 30/F, New World Tower, 18 Queen's Road Central, Hong Kong, Hong Kong
  • Phone: +852.2523.1056

Related Companies

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  • Steadfast International Ltd. (British Virgin Islands)
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  • Crown Success Ltd.
  • Roxy Ltd. (Hong kong)
  • Housing Finance Ltd.
  • Beijing Xintong Media & Advertising Co., Ltd.
  • Beijing NW Project Management Consultancy Services Ltd.
  • K11 Business Management (Wuhan) Co., Ltd.
  • K11 Concepts (Beijing) Ltd.
  • K11 Concepts (Shanghai) Ltd.
  • NW Project Management Ltd. (Hong Kong)
  • Shanghai New World Xinying Department Store Co., Ltd.
  • Shanghai Luxba Trading Ltd.
  • Shang Shun Properties (Shenzhen) Co., Ltd.
  • Shanghai New World Department Store Co., Ltd.
  • Shanghai New World Huiya Department Store Co., Ltd.
  • Shanghai New World Huizi Department Store Co., Ltd.
  • Shanghai New World Huiying Department Store Co., Ltd.
  • Shang Ji Properties (Shenzhen) Co., Ltd.
  • New World Anderson (Tianjin) Development Co., Ltd.
  • Nanjing New World Real Estate Co., Ltd.
  • Foshan International Country Club Co., Ltd.
  • Foshan Da Hao Hu Real Estate Development Co., Ltd.
  • Beijing Wanya Department Store Co., Ltd.
  • Shenyang Sheng Xin Yi Le Property Co., Ltd.
  • Allied Win Investments Ltd.
  • Login SCM (Shenzhen) Co., Ltd.
  • Tianjin Xin Guang Development Co., Ltd.
  • Xi'an New World Department Store Co., Ltd.

Competitors

  • New World Department Store China Limited
  • DTXS Silk Road Investment Holdings Company Limited
  • New Century Healthcare Holding Co. Ltd.
Last Updated on 16 Jun, 2021

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