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Finance

New World Development Co. Ltd.

  • 11.40 HKD
  • +0.02
  • +0.18%
  • Hong Kong
    Apr 19, 2018
  • Ticker
    HKG(17)
  • Prev. close
    11.38
  • Market cap (HKD)
    114,948.35M
  • Market cap (USD)
    14,645.98M
  • Shares
    10,100.91M

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 2017 HKDUSD
Revenue58,863.50M7,580.12M
Gross Profit20,450.30M2,633.48M
Operating income9,406.30M1,211.29M
Income before tax15,230.30M1,961.27M
Net income7,675.70M988.43M
EBITDA13,446.40M1,731.55M
Diluted EPS0.800.10
Dividends Per Share0.460.05
Total Assets437,056.30M55,986.56M
Total liabilities225,563.60M28,894.51M
Total equity186,091.20M23,838.13M
Operating cash flow3,335.60M429.54M
Currency in HKDCurrency in USD

Historical Data

 Jun 2013Jun 2014Jun 2015Jun 2016Jun 2017
Revenue 47,987.10M 57,831.80M 56,407M 61,892.50M 58,863.50M
Gross Profit 19,632.50M 22,884.20M 20,468M 20,844.90M 20,450.30M
Operating income 10,137.60M 12,154.80M 9,352.70M 9,488.20M 9,406.30M
Income before tax 18,591.50M 15,979.50M 27,479.20M 16,046.60M 15,230.30M
Net income 14,148.70M 9,725.40M 19,112M 8,666.30M 7,675.70M
EBITDA 13,631.20M 16,268.60M 13,194.90M 13,268.30M 13,446.40M
Diluted EPS 2.10 1.37 2.17 0.95 0.80
Dividends Per Share 0.38 0.41 0.42 0.44 0.46
Total Assets 332,189.10M 369,227.40M 397,930.70M 392,108.60M 437,056.30M
Total liabilities 155,249M 168,950.90M 175,572.70M 191,213.30M 225,563.60M
Total equity 138,325.70M 159,808.30M 178,918.60M 179,573.40M 186,091.20M
Operating cash flow 5,547.20M 5,214.30M 9,941.50M 5,887.10M 3,335.60M
 Jun 2013Jun 2014Jun 2015Jun 2016Jun 2017
Revenue 6,187.06M 7,457.12M 7,274.85M 7,976.39M 7,580.12M
Gross Profit 2,531.25M 2,950.80M 2,639.77M 2,686.38M 2,633.48M
Operating income 1,307.06M 1,567.30M 1,206.22M 1,222.79M 1,211.29M
Income before tax 2,397.03M 2,060.47M 3,544.01M 2,068.00M 1,961.27M
Net income 1,824.21M 1,254.04M 2,464.88M 1,116.86M 988.43M
EBITDA 1,757.49M 2,097.75M 1,701.75M 1,709.95M 1,731.55M
Diluted EPS 0.27 0.17 0.27 0.12 0.10
Dividends Per Share 0.04 0.05 0.05 0.05 0.05
Total Assets 42,828.01M 47,640.09M 51,329.00M 50,542.81M 55,986.56M
Total liabilities 20,015.72M 21,799.13M 22,647.09M 24,647.40M 28,894.51M
Total equity 17,833.86M 20,619.49M 23,078.67M 23,147.01M 23,838.13M
Operating cash flow 715.21M 672.35M 1,282.16M 758.69M 429.54M

Valuation Measures

Jun 2017
PER12.38
ROA1.85%
ROE4.19%
Operating margin15.97%
Profit margin13.03%

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. (1.7%)
  • BlackRock Fund Advisors (1.2%)
  • Norges Bank Investment Management (0.8%)
  • Thornburg Investment Management, Inc. (0.7%)
  • State Street Global Advisors Asia Ltd. (0.5%)
  • Dimensional Fund Advisors LP (0.5%)
  • BlackRock Advisors (UK) Ltd. (0.5%)
  • JPMorgan Whitefriars (UK) (0.5%)
  • APG Asset Management NV (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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  • Hyatt Regency Hong Kong
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  • Grand Hyatt Hong Kong
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  • Land Source Investment Ltd.
  • NWS Finance Ltd.
  • Kiu Lok Service Management Co., Ltd.
  • Bright Scope Holdings Ltd.
  • Winner World Group Ltd.
  • Chi Lam Investment Co. Ltd.
  • Fita International Ltd.
  • Cosmostar Holdings Ltd.
  • Citiplus Investment Ltd.
  • Prosperity Developments Ltd.
  • Polyworth Ltd.
  • Pearls Ltd.

Competitors

  • Hanison Construction Holdings Limited
Last Updated on 19 Apr, 2018

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