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.