BOCOM International Maintains “Buy” Rating for New World ⁤Development with Target Price of HK$10.18

BOCOM International Research Report pointed out that New World Development (0017.HK) ⁣announced ⁣the latest financial situation for fiscal year⁤ 2024 and ⁣made preliminary estimates of annual ⁣profits and⁣ some provisions. It is expected to record a core operating​ profit of HK$6.5 billion to HK$6.9 billion.

The bank pointed out ⁢that based on the‌ preliminary results of property revaluation (including goodwill assessment), New World needed to make a one-time non-cash revaluation loss totaling ‍between HK$8.5 billion and 9.5 billion, while the⁤ sale of NWS Group shares recorded a one-time loss Non-cash losses were HK$8.26 billion.

The⁢ bank ⁤pointed out that the⁤ loss on the ‍sale of NWS shares was within expectations, while‍ other investment properties, development properties and revaluation of goodwill⁢ were all non-cash losses. The bank believes this partly reflects the impact of the high interest ⁢rate environment and economic adjustment process on Hong Kong’s real estate market over the past two years. It‍ is⁤ expected that there will be no ⁣loss in​ core profit. The target price is‍ HK$10.18, which corresponds to an 80%⁣ discount to the forecast net‌ asset value. The “buy” rating is maintained. It is believed that the potential interest⁢ rate cut by the Federal Reserve in September may provide ‌some support⁣ to the stock‍ price ⁤and the future Hong Kong real estate market.

News source: Gelonghui

BOCOM International ⁣Research ‌Report provides an in-depth analysis of New World Development’s financial situation and ​market trends. The⁤ report highlights the company’s expected core operating profit and ⁣non-cash losses,⁣ and provides‌ a target price and rating for investors.

Investors can use ‌this information to make informed decisions about their investments in New World Development. However, ⁢it is essential to conduct thorough research and‍ consider multiple sources before making any investment decisions.

The report also notes​ that ​the potential interest rate cut by the Federal Reserve⁢ in September may have a positive impact on the stock ⁢price and ​the future Hong Kong real estate ​market.⁢ This information can be useful for investors who are looking to invest in the Hong Kong real estate market.

BOCOM International Research Report provides valuable insights⁤ into New World Development’s financial situation and market trends.⁤ Investors can use this information to make informed⁢ decisions about their investments and stay up-to-date with the latest market ⁤developments.