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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 2019 HKDUSD
Revenue76,246.20M9,725.18M
Gross Profit24,504.10M3,125.49M
Operating income11,627.30M1,483.05M
Income before tax29,128.90M3,715.38M
Net income18,160.10M2,316.31M
EBITDA14,081.40M1,796.07M
Diluted EPS1.770.22
Dividends Per Share0.510.06
Total Assets503,284.90M64,420.47M
Total liabilities249,425.90M31,926.51M
Total equity223,864.50M28,654.65M
Operating cash flow----
Currency in HKDCurrency in USD

Historical Data

 Jun 2015Jun 2016Jun 2017Jun 2018Jun 2019
Revenue 56,407M 61,892.50M 58,863.50M 62,301.20M 76,246.20M
Gross Profit 20,468M 20,844.90M 20,450.30M 22,175.90M 24,504.10M
Operating income 9,352.70M 9,488.20M 9,406.30M 10,640.50M 11,627.30M
Income before tax 27,479.20M 16,046.60M 15,230.30M 33,353.60M 29,128.90M
Net income 19,112M 8,666.30M 7,675.70M 23,338.10M 18,160.10M
EBITDA 13,194.90M 13,268.30M 13,446.40M 15,253M 14,081.40M
Diluted EPS 2.17 0.95 0.80 2.33 1.77
Dividends Per Share 0.42 0.44 0.46 0.48 0.51
Total Assets 397,930.70M 392,108.60M 437,056.30M 481,454.80M 503,284.90M
Total liabilities 175,572.70M 191,213.30M 225,563.60M 235,724.70M 249,425.90M
Total equity 178,918.60M 179,573.40M 186,091.20M 216,249.90M 223,864.50M
Operating cash flow 9,941.50M 5,887.10M 3,335.60M 7,170.40M --
 Jun 2015Jun 2016Jun 2017Jun 2018Jun 2019
Revenue 7,274.85M 7,976.39M 7,580.12M 7,962.17M 9,725.18M
Gross Profit 2,639.77M 2,686.38M 2,633.48M 2,834.10M 3,125.49M
Operating income 1,206.22M 1,222.79M 1,211.29M 1,359.86M 1,483.05M
Income before tax 3,544.01M 2,068.00M 1,961.27M 4,262.63M 3,715.38M
Net income 2,464.88M 1,116.86M 988.43M 2,982.63M 2,316.31M
EBITDA 1,701.75M 1,709.95M 1,731.55M 1,949.35M 1,796.07M
Diluted EPS 0.27 0.12 0.10 0.29 0.22
Dividends Per Share 0.05 0.05 0.05 0.06 0.06
Total Assets 51,329.00M 50,542.81M 55,986.56M 61,367.39M 64,420.47M
Total liabilities 22,647.09M 24,647.40M 28,894.51M 30,046.03M 31,926.51M
Total equity 23,078.67M 23,147.01M 23,838.13M 27,563.73M 28,654.65M
Operating cash flow 1,282.16M 758.69M 429.54M 916.38M --

Valuation Measures

Jun 2019
PER6.87
ROA3.68%
ROE8.25%
Operating margin15.24%
Profit margin23.81%

Key executives

  • Chairman & Managing Director: Kar-Shun Cheng
  • Executive Vice Chairman & General Manager: Chi Kong Cheng
  • Executive Director, Head-Finance & Accounts: Tak-Cheong Au
  • Senior Director-Sales & Marketing: Woon Melvin Yeo
  • Secretary, Legal & Company Secretarial Department: Man-Hoi Wong

Shareholders

  • Cheng Yu Tung Family Ltd. (44.3%)
  • The Vanguard Group, Inc. (1.9%)
  • BlackRock Fund Advisors (1.1%)
  • Norges Bank Investment Management (0.7%)
  • State Street Global Advisors Asia Ltd. (0.5%)
  • Dimensional Fund Advisors LP (0.5%)
  • Principal Real Estate Investors LLC (0.5%)
  • BlackRock Investment Management (UK) Ltd. (0.5%)
  • Cohen & Steers Capital Management, Inc. (0.5%)
  • BlackRock Advisors (UK) Ltd. (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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