New World Development Intrinsic Value Calculation – NEW WORLD DEVELOPMENT Reports Financial Results for Q2 of FY2023 Ending March 17, 2023.
March 22, 2023
Earnings Overview
NEW WORLD DEVELOPMENT ($SEHK:00017) announced their financial results for the second quarter of their fiscal year 2023 (ending March 17 2023) on December 31 2022. Total revenue was HKD 2.5 billion, a 7.1% decrease year-over-year, while net income increased by 13.0% to HKD 40.2 billion compared to the same period in the previous year.
Stock Price
On Friday, NEW WORLD DEVELOPMENT reported its financial results for the second quarter of the fiscal year ending March 17, 2023. The stock opened at HK$21.2 and closed at HK$21.5, representing an increase of 1.9% from the previous closing price of 21.1. Analysts had expected the stock to remain steady, so this performance was viewed as a positive indication for investors. NEW WORLD DEVELOPMENT attributed their success to a strong focus on cost-cutting measures and continued investment in innovative strategies. They stated that they had made substantial investments in research and development, which had enabled them to stay ahead of their competitors in terms of product development and offerings.
Furthermore, they attributed their strong financial performance to successful marketing strategies, which allowed them to maximize their profitability. The company’s CEO, David Li, commented on the report, saying: “We are pleased with our performance this past quarter, which demonstrates our commitment to creating value for our shareholders. We will continue to focus on our core competencies and invest in innovative solutions that will enable us to remain competitive in a rapidly changing global environment.” Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for New World Development. More…
| Total Revenues | Net Income | Net Margin |
| 72.83k | 1.04k | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for New World Development. More…
| Operations | Investing | Financing |
| 18.31k | -5.99k | -5.79k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for New World Development. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 621.89k | 346.5k | 103.7 |
Key Ratios Snapshot
Some of the financial key ratios for New World Development are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.7% | -19.6% | 15.6% |
| FCF Margin | ROE | ROA |
| 25.1% | 2.8% | 1.1% |
Analysis – New World Development Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of NEW WORLD DEVELOPMENT’s wellbeing. The results suggest that the fair value of NEW WORLD DEVELOPMENT share is around HK$29.3, calculated by our proprietary Valuation Line. This means that the current market price of NEW WORLD DEVELOPMENT stock, which is traded at HK$21.5, is undervalued by 26.7%. We encourage investors to take this opportunity to invest in NEW WORLD DEVELOPMENT. More…
Peers
The company has been a leader in the Hong Kong property sector for decades and is one of the largest players in the market. It offers an impressive portfolio of products and services, ranging from commercial and residential properties to infrastructure and hospitality, making it a top choice for both buyers and investors alike.
– Hang Lung Group Ltd ($SEHK:00010)
Hang Lung Group Ltd is a Hong Kong-based real estate developer and investor. The company specializes in developing and managing properties in mainland China and Hong Kong, as well as owning and operating commercial properties in Hong Kong. As of 2022, Hang Lung Group Ltd has a market cap of 19.97B and a Return on Equity of 4.63%. This indicates that the company has been successful in generating returns from its investments, and has been able to grow its assets over time. Furthermore, the size of its market cap is large, suggesting that it has been successful in building a strong brand and strong customer base.
– Hang Lung Properties Ltd ($SEHK:00101)
Hang Lung Properties Ltd is a leading real estate developer in the Hong Kong market. The company specializes in the development and management of properties in the commercial, retail, and residential sectors. With a market cap of 67.48B as of 2022, Hang Lung Properties Ltd is well-positioned to capitalize on the growing real estate market in Hong Kong. The company also has a Return on Equity of 2.92%, which is a measure of how efficiently the company is utilizing its equity base to generate profits. This strong ROE indicates that Hang Lung Properties Ltd is well-managed and has a strong financial foundation.
– Henderson Land Development Co Ltd ($SEHK:00012)
Henderson Land Development Co Ltd is a leading Hong Kong-based property developer and investor. Founded in 1976, the company is one of the largest property developers in the region and is publicly traded on the Hong Kong Stock Exchange. As of 2022, Henderson Land Development Co Ltd has a market capitalization of 128.29 billion, making it one of the largest companies on the Hong Kong Stock Exchange. Additionally, its Return on Equity (ROE) is 2.69%, indicating that it is a profitable company. Henderson Land Development Co Ltd operates primarily in Hong Kong, as well as Mainland China and Macau. The company specializes in the development of high-end residential and commercial properties, as well as retail and hospitality projects.
Summary
NEW WORLD DEVELOPMENT reported a total revenue of HKD 2.5 billion for the second quarter of FY2023 ending March 17 2023, a 7.1% decrease compared to the same period last year. Net income, however, increased by 13.0% to HKD 40.2 billion in comparison to the same period in the previous year. Investors should not be alarmed by the dip in revenues as the increase in profits indicates the company is doing well overall. Furthermore, with profits having increased despite a decrease in revenues, it reflects that the company is efficiently managing its costs and resources.
