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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 2021 HKDUSD
Revenue68,495.90M8,831.15M
Gross Profit18,078.50M2,330.85M
Operating income7,953.70M1,025.46M
Income before tax8,582.20M1,106.49M
Net income1,171.60M151.05M
EBITDA12,170.70M1,569.16M
Diluted EPS0.460.05
Dividends Per Share2.060.26
Total Assets627,077.40M80,748.07M
Total liabilities371,823.20M47,879.26M
Total equity223,328.80M28,757.80M
Operating cash flow6,939.70M894.73M
Currency in HKDCurrency in USD

Historical Data

 Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021
Revenue 58,863.50M 62,301.20M 76,885M 59,251.60M 68,495.90M
Gross Profit 20,450.30M 22,175.90M 25,142.90M 18,888.20M 18,078.50M
Operating income 11,558.30M 12,820M 14,215.90M 9,478.60M 7,953.70M
Income before tax -- -- 24,445.80M 10,024.50M 8,582.20M
Net income 7,675.70M 23,338.10M 18,160.10M 1,096.20M 1,171.60M
EBITDA 13,446.40M 15,253M 16,626.90M 13,310M 12,170.70M
Diluted EPS 3.20 9.32 7.10 0.42 0.46
Dividends Per Share 1.84 1.92 2.04 2.04 2.06
Total Assets 437,056.30M 481,454.80M 503,284.90M 600,195.90M 627,077.40M
Total liabilities 225,563.60M 235,724.70M 249,425.90M 357,542.80M 371,823.20M
Total equity 186,091.20M 216,249.90M 223,864.50M 213,023.30M 223,328.80M
Operating cash flow 3,335.60M 7,170.40M 5,560.70M -13,150.50M 6,939.70M
 Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021
Revenue 7,580.12M 7,962.17M 9,806.66M 7,601.56M 8,831.15M
Gross Profit 2,633.48M 2,834.10M 3,206.97M 2,423.22M 2,330.85M
Operating income 1,488.41M 1,638.41M 1,813.23M 1,216.03M 1,025.46M
Income before tax -- -- 3,118.05M 1,286.07M 1,106.49M
Net income 988.43M 2,982.63M 2,316.31M 140.63M 151.05M
EBITDA 1,731.55M 1,949.35M 2,120.75M 1,707.58M 1,569.16M
Diluted EPS 0.41 1.19 0.90 0.05 0.05
Dividends Per Share 0.23 0.24 0.26 0.26 0.26
Total Assets 55,986.56M 61,367.39M 64,420.47M 77,440.13M 80,748.07M
Total liabilities 28,894.51M 30,046.03M 31,926.51M 46,131.87M 47,879.26M
Total equity 23,838.13M 27,563.73M 28,654.65M 27,485.27M 28,757.80M
Operating cash flow 429.54M 916.38M 709.26M -1,687.11M 894.73M

Valuation Measures

Jun 2021
PER87.66
ROA0.19%
ROE0.53%
Operating margin11.61%
Profit margin1.71%

Key executives

  • Chairman & Managing Director: Kar Shun Cheng
  • Executive Vice Chairman & Chief Executive Officer: Chi Kong Cheng
  • Chief Financial Officer: Fu Keung Lau
  • General Manager: Yin Pan Cheng
  • Legal Counsel: Yan Guan

Shareholders

  • Cheng Yu Tung Family Ltd. (45.2%)
  • The Vanguard Group, Inc. (1.4%)
  • BlackRock Fund Advisors (1.3%)
  • Norges Bank Investment Management (0.8%)
  • APG Asset Management NV (0.7%)
  • BlackRock Advisors (UK) Ltd. (0.6%)
  • State Street Global Advisors Asia Ltd. (0.5%)
  • Dimensional Fund Advisors LP (0.5%)
  • BlackRock Investment Management (UK) Ltd. (0.4%)
  • Geode Capital Management LLC (0.4%)

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

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Competitors

  • Lifestyle International Holdings Limited
  • DTXS Silk Road Investment Holdings Company Limited
  • New World Department Store China Limited
  • New Century Healthcare Holding Co. Ltd.
Last Updated on 30 Sep, 2022

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