Investment Rating - The investment rating for the company is "Buy" (maintained) [5][17]. Core Views - The company reported a slight decline in revenue, with fair value changes eroding profits. However, the financial condition remains stable, and land reserves are sufficient. The profit forecast for FY2025-2027 is maintained, with expected net profits of 370 million, 600 million, and 860 million HKD, respectively, corresponding to EPS of 0.15, 0.24, and 0.34 HKD [5][6]. Revenue and Profitability - For FY2025, the company achieved revenue of 16.79 billion HKD, a year-on-year decrease of 1.6%. Core operating profit was 4.42 billion HKD, down 18% year-on-year, and the net profit attributable to shareholders was -6.633 billion HKD, primarily due to fair value changes in property projects that eroded profits by 4.95 billion HKD [6][8]. - The property development revenue increased to 8.38 billion HKD, a year-on-year growth of 24.27%. Specifically, Hong Kong property development revenue was 1.73 billion HKD, up 39.2%, while mainland property development revenue was 6.64 billion HKD, up 20.9% [7]. Property Investment and Land Reserves - The property investment revenue slightly decreased to 2.56 billion HKD, down 4.31% year-on-year. The company has a robust land reserve, with 3.46 million square feet in Hong Kong and 2.99 million square meters in mainland China [8][9]. Financial Summary and Valuation Metrics - The financial summary indicates a projected revenue decline from 95.214 billion HKD in FY2023 to 31.812 billion HKD in FY2025, with a significant drop in net profit from 4.081 billion HKD to 372 million HKD in the same period. The projected P/E ratios for FY2025, FY2026, and FY2027 are 36.3, 22.6, and 15.6, respectively [9][12].

Investment Rating - The report assigns a "Buy" rating for the company [2][11]. Core Views - The company is expected to improve operational efficiency and reduce debt levels in the future. The new management team has shown promising sales progress, with an upward revision of sales targets in mainland China [5][6]. - The company has achieved a core profit of 4.42 billion HKD for the first half of the fiscal year 2025, which is a 17.6% decrease year-on-year [5][6]. - The target price has been adjusted downwards to 6.94 HKD, reflecting a potential upside of 43.9% from the current price of 4.82 HKD [5][11]. Financial Overview - For the fiscal year ending June 30, 2023, the company reported revenues of 54,566 million HKD, with a projected revenue of 42,999 million HKD for 2025, indicating a year-on-year growth of 20.2% [4][13]. - The company’s net profit for the first half of fiscal year 2025 was reported at -6,633 million HKD, a significant decline compared to the previous year [6][13]. - The net debt ratio increased slightly to 57.5%, primarily due to the repurchase of perpetual bonds and other adjustments [5][6]. Sales and Revenue Performance - The company reported a slight revenue decline of 1.6% to 16,789 million HKD for the first half of fiscal year 2025, with a notable increase in real estate development revenue by 24.3% [6][5]. - The company achieved contract sales of 7.5 billion RMB in mainland China, raising its annual sales guidance from 11 billion RMB to 14 billion RMB [5][6]. Market Position and Future Outlook - The company is expected to see rental income growth of approximately 15-20% annually from fiscal years 2025 to 2027, driven by new property completions [5][6]. - The report suggests that the market's concerns regarding the company's debt levels are already reflected in its low price-to-book ratio of approximately 0.07, compared to the industry average of 0.3-0.4 [5][11].

Investment Rating - The report assigns a "Buy" rating for the company [2][11]. Core Insights - The company reported a slight revenue decline of 1.6% year-on-year to HKD 16.79 billion for the first half of the 2025 fiscal year, which met expectations. However, gross profit decreased by 8% to HKD 6.67 billion due to a decline in gross margin [5][6]. - The new management team is expected to enhance operational efficiency, with sales performance exceeding expectations. The company has raised its sales target for mainland China from RMB 11 billion to RMB 14 billion [5][6]. - The company aims to reduce debt through accelerated sales, releasing land value, selling non-core assets, and suspending dividends to improve cash flow [5][6]. Financial Overview - For the fiscal year ending June 30, 2023, the company reported revenues of HKD 54.57 billion, with a projected revenue of HKD 42.99 billion for 2025, reflecting a year-on-year growth of 20.2% [4][13]. - The core profit for 2025 is estimated at HKD 1.19 billion, down 13.5% from the previous year [4][13]. - The company’s net debt ratio increased slightly to 57.5%, primarily due to perpetual bond repurchases and asset revaluation [5][6]. Price Target - The target price for the company has been adjusted down to HKD 6.94, reflecting an 85% discount to net asset value, with a potential upside of 43.9% from the current price of HKD 4.82 [5][11].

Financial Performance - The group's revenue for the six months ended December 31, 2024, was HKD 16,789 million, a year-on-year decrease of 1.6%, with gross profit declining 8% to HKD 6,675 million[4]. - Core operating profit was HKD 4,416 million, representing an 18% year-on-year decline[5]. - The group recorded a loss attributable to shareholders of HKD 6,633 million, primarily due to rapid changes in macroeconomic factors and a decline in market value of development and investment properties[5]. - For the six months ending December 31, 2024, the group reported a loss from continuing operations of HKD 5,700.6 million, compared to a profit of HKD 1,543.1 million in the same period of 2023[48]. - The company reported a net loss of HKD 5,700.6 million for the six months ended December 31, 2024, compared to a loss of HKD 5,772.0 million in the previous year[59]. - The operating profit decreased significantly to HKD 731.1 million from HKD 5,729.0 million in the prior year, reflecting a decline of 87.2%[57]. - The company incurred a net loss of HKD 5,700.6 million for the six months ended December 31, 2024, primarily due to changes in the fair value of property projects[67]. Property Development and Investment - Hong Kong property development revenue was HKD 1,734 million, with attributable contract sales of approximately HKD 5,222 million during the review period[7]. - The group anticipates recognizing approximately HKD 12,320 million in unrecognized attributable contract sales revenue in the second half of the 2025 fiscal year and 2026 fiscal year[8]. - The Hong Kong residential market is expected to become more active in the second half of 2024 due to favorable policies, with a reported increase of over 70% in the number of first-hand residential sale agreements from July to December 2024[6]. - In mainland China, the group's property development revenue for the period was HKD 6,644 million, with a segment profit of HKD 2,699 million, driven by projects in Hangzhou, Shenyang, and Guangzhou[17]. - The group's total contracted sales in mainland China reached approximately RMB 7.5 billion, with a total sales area of about 315,400 square meters, averaging over RMB 23,600 per square meter[20]. - The group anticipates unrecognized contracted sales revenue of approximately RMB 8.3 billion to be recognized in the second half of the 2025 fiscal year and in the 2026 fiscal year[21]. - The new residential project in Guangzhou, Guangyue Guandi, achieved sales of RMB 2 billion upon its launch, showcasing strong market demand[19]. - The group is actively developing multiple new projects, including a large commercial and residential project in Fanling, with a total floor area exceeding 1.11 million square feet[13]. Financial Position and Debt Management - As of December 31, 2024, the group's net debt was HKD 124,630.0 million, with a debt-to-equity ratio of 57.5%, an increase of 2.5 percentage points from June 30, 2024[51]. - The group successfully refinanced approximately HKD 18,677.6 million of existing bank loans from July 2024 to the announcement date[54]. - The group maintains a total of HKD 21,858.3 million in cash and bank deposits as of December 31, 2024, down from HKD 27,990.1 million on June 30, 2024[51]. - The total amount of outstanding cross-currency swap contracts as of December 31, 2024, was approximately HKD 23,105.4 million[50]. - The total liabilities were HKD 210,925.8 million as of December 31, 2024, compared to HKD 220,268.8 million as of June 30, 2024[66]. - The group is implementing asset disposal plans to improve liquidity by monetizing certain assets[69]. - The group is focused on controlling operating costs and capital expenditures to enhance financial stability[69]. Market Outlook and Strategic Plans - The group plans to continue focusing on the Greater Bay Area and key regions in the Yangtze River Delta for strategic expansion and development of diverse business models[34]. - The group anticipates a significant increase in market confidence by 2025, focusing on core property development and investment in first-tier cities in Hong Kong and mainland China[40]. - The company plans to launch the "STATE PAVILIA" residential project in North Point in January 2025, offering 388 units, with 279 units sold within a month for a total transaction value of nearly HKD 3.2 billion[42]. - The group is optimistic about property investment prospects in Hong Kong despite a weak retail market, aiming to enhance customer experience and attract international brands[43]. - The group plans to expand its operations in mainland China, with property development revenue from this region reaching HKD 6,643.7 million[88]. Operational Highlights - The rental rates for prime office buildings remained satisfactory, with K11 ATELIER King's Road and K11 ATELIER office building at 93% and 99% occupancy rates, respectively[11]. - The overall occupancy rate of the Guangzhou CBD project, Guangyue Tiandi, remained at 97% as of December 31, 2024, with a year-on-year increase in foot traffic of 10%[31]. - The hotel operations in Hong Kong saw a 4% year-on-year increase in overall occupancy, with visitor numbers rising by 10% to 23 million, despite challenges in the long-haul market[35]. - The group operates 17 hotel properties across Hong Kong, mainland China, and Southeast Asia, providing a total of 6,595 rooms[39]. - The company’s segment assets for property investment reached HKD 211,393.8 million, indicating a strong position in this area[81]. Corporate Governance and Compliance - The company adhered to the corporate governance code, except for a deviation regarding employee trading guidelines due to the large and diverse workforce[107]. - The company's unaudited interim results for the six months ending December 31, 2024, were reviewed by the audit committee but not by external auditors[108]. - The company submitted its financial statements for the year ending June 30, 2024, to the Companies Registry, which were reported without any reservations by the auditors[109].

Investment Rating - The report assigns a positive outlook on New World Development, indicating a new development cycle under the leadership of the new management team [2]. Core Insights - The appointment of Huang Shaomei as the CEO is expected to enhance the company's operations in both Hong Kong and mainland China, leveraging her extensive experience in real estate [2]. - The company has a land reserve of 3.72 million square meters, with 58% located in the Greater Bay Area and Yangtze River Delta, which supports its long-term growth strategy [2]. - The company has successfully divested non-core assets, with sales reaching HKD 8 billion in the fiscal year 2024 and projected to reach HKD 13 billion in fiscal year 2025 [2]. - Financing activities have been robust, with over HKD 50 billion in loans arranged and debt repayments completed in 2024, including the issuance of USD 400 million bonds [2]. - Recent policy adjustments in the real estate sector are expected to stabilize the mainland property market, particularly in the key regions of Guangzhou and Shanghai [2]. Summary by Sections Management Changes - Huang Shaomei has been appointed as the CEO, bringing over 20 years of real estate experience, which is anticipated to strengthen the company's strategic direction [2]. Financial Performance - The company reported a market capitalization of HKD 16.132 billion and a share price of HKD 6.41, with a 52-week high of HKD 11.98 and a low of HKD 6.20 [2]. Asset Management - The company is focusing on core assets in prime locations and has ongoing urban renewal projects, which differentiate its competitive position [2]. Financing Strategy - The company has completed significant financing arrangements, including long-term, low-interest loans totaling RMB 5.8 billion, with an average cost of 3.1% [2].

Investment Rating - The report maintains a **Buy** rating for New World Development (17 HK) with a target price of HKD 11.44, representing a potential upside of **74.5%** from the current price of HKD 6.56 [1][3] Core Views - New management is expected to improve operational efficiency, particularly in the mainland China business, with the appointment of Ms. Wong Siu Mui as CEO [1] - The company has completed the sale of NEW WORLD SPORTS DEVELOPMENT LIMITED (NWSPL) for HKD 416.7 million, which is expected to help recover investment costs and reduce financial burdens [2] - Sales progress is strong, with HKD 3.7 billion in attributable sales completed in Hong Kong (62% of FY2025 guidance) and RMB 4.8 billion in contracted sales in mainland China, with expectations to reach RMB 7 billion by the end of 2024 (64% of full-year guidance) [2] - The stock is currently trading at around **0.1x P/B**, which is believed to reflect most negative factors, with potential re-rating catalysts including improved operational efficiency, strong FY2025 sales progress, reduced capex, and potential interest rate cuts [3] Financial Summary - Revenue is expected to decline by **34.4% YoY** in FY2024 to HKD 35,782 million but rebound by **20.2% YoY** in FY2025 to HKD 42,999 million [4] - Core profit is projected to decrease by **47.5% YoY** in FY2024 to HKD 1,377 million but recover by **19.8% YoY** in FY2025 to HKD 1,648 million [4] - The company's P/E ratio is expected to improve from **12.0x** in FY2024 to **10.0x** in FY2025 [4] - Dividend yield is forecasted to increase from **3.0%** in FY2024 to **4.0%** in FY2025 [4] Operational Highlights - The company has established separate operating committees for Hong Kong and mainland China businesses to enhance operational efficiency [1] - The launch of Guangzhou Kaixuan New World is expected to contribute to mainland China sales, with contracted sales projected to reach RMB 7 billion by the end of 2024 [2] Industry Context - The report covers other Hong Kong and mainland China real estate companies, including Sun Hung Kai Properties (16 HK), Link REIT (823 HK), and Henderson Land (12 HK), with varying ratings and target prices [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The management team has undergone a significant change, with the appointment of Huang Shaomei as the CEO, who has over 20 years of experience in the real estate sector. This leadership change is expected to enhance the company's operational capabilities in both Hong Kong and mainland China [2][6] - The company has maintained its profit forecasts, expecting net profits for FY2025-2027 to be HKD 370 million, HKD 600 million, and HKD 860 million respectively, with corresponding EPS of HKD 0.15, HKD 0.24, and HKD 0.34. The current stock price corresponds to P/E ratios of 44.7, 27.9, and 19.3 times [2][6] - The company reported a revenue of HKD 35.826 billion for FY2024, a decrease of 62% year-on-year, and a core operating profit of HKD 6.898 billion, down 18% year-on-year. The net profit for continuing operations was negative HKD 11.807 billion due to non-cash impairments and losses [2][6] Financial Summary - For FY2023, the company achieved a revenue of HKD 95.214 billion, with a year-on-year growth of 39.6%. However, for FY2024, the revenue is projected to drop to HKD 35.782 billion, reflecting a significant decline of 62.4% [8] - The net profit for FY2023 was HKD 4.081 billion, but it is expected to turn negative in FY2024 at HKD -17.126 billion, indicating a drastic year-on-year decline of 519.7% [8] - The gross margin for FY2024 is projected to be 35.9%, while the net margin is expected to be -55.1% [8] - The company’s total assets are projected to decrease from HKD 616.483 billion in FY2023 to HKD 445.158 billion in FY2024 [8]

Financial Performance - The core operating profit from continuing operations was HKD 6,898 million, a year-on-year decrease of 18%[12]. - Revenue from continuing operations was HKD 35,782 million, down 34% year-on-year, primarily due to reduced property development revenue in Hong Kong and mainland China[12]. - The gross profit decreased by 22% year-on-year to HKD 12,849 million[12]. - The board decided not to recommend a final dividend for the year ending June 30, 2024, due to a reported loss attributable to shareholders, with a total dividend of HKD 0.20 per share for the year[12]. - The net debt-to-equity ratio increased to 55.0% from 47.7% year-on-year[11]. Property Development - Revenue from Hong Kong property development was HKD 2,412 million, while revenue from mainland China property development was HKD 13,713 million[12]. - The company reported property development revenue from mainland China of HKD 13,713 million, with a segment profit of HKD 5,258 million, primarily from residential projects in Hangzhou, Guangzhou, and Shenyang[27]. - The total contracted sales in mainland China amounted to RMB 12.48 billion, with over 85% contributed by the southern region led by the Greater Bay Area and the eastern region led by the Yangtze River Delta[12]. - The group's attributable property contract sales in Hong Kong amounted to approximately HKD 1,509 million, mainly from residential projects and a Grade A office project[17]. - As of June 30, 2024, the group had 2,039 unsold residential units in Hong Kong, with HKD 11,194 million expected to be recognized in revenue during the fiscal years 2025 and 2026[17]. Investment and Financial Strategy - Available funds totaled approximately HKD 46.3 billion, including cash and bank balances of about HKD 28 billion and available bank loans of about HKD 18.3 billion[12]. - The company strictly controlled costs, with capital expenditures and administrative expenses decreasing by approximately 23% and 17% year-on-year, respectively[12]. - The company sold non-core assets in mainland China, generating revenue of approximately RMB 676 million during the year[30]. - The company plans to accelerate the conversion of agricultural land to meet housing demand and enhance land reserves[22]. - The company aims to enhance its strategic layout in key regions, leveraging policy benefits and market opportunities for sustainable growth[44]. Retail and Cultural Engagement - K11 MUSEA's sales and total foot traffic increased by 17% and 20% year-on-year, driven by luxury consumption and cultural events[19]. - The overall occupancy rate of K11 MUSEA reached 97%, supported by the expansion of international luxury brand stores[19]. - The group actively engaged in various cultural and artistic events to attract customers and enhance the shopping experience[18]. - K11 Art Mall's sales and foot traffic increased by 16% and 10% year-on-year, respectively, maintaining an overall occupancy rate of 99%[20]. - The group is currently developing seven urban renewal projects in core cities like Guangzhou and Shenzhen, with a total floor area of 1,622,000 square meters[40]. Sustainability and Corporate Responsibility - The company is committed to integrating environmental, social, and governance factors into its business operations to create shared value for stakeholders[50]. - New World Development has been recognized as one of the "Top 50 Most Sustainable Companies" by TIME magazine for 2024, standing out from over 5,000 evaluated companies[79]. - The updated SV2030+ sustainable development vision focuses on three pillars: "Future-Ready Places," "Corporate Resilience," and "Prosperous Living," with a commitment to achieving net-zero emissions by 2050[80]. - The company aims to ensure all relevant investments and operations implement climate adaptation measures and resilience planning by the fiscal year 2030[76]. - The company is committed to maintaining transparency in corporate disclosures and leading the industry in key ESG indices and ratings[76]. Leadership and Governance - Dr. Zheng Jiachun has been the Chairman since March 2012 and has extensive experience in strategic direction and property development[55]. - Mr. Ma Shaoxiang was appointed as Chief Operating Officer in January 2024 and will become CEO in September 2024, indicating a leadership transition[60]. - The board includes experienced members with backgrounds in engineering and public service, enhancing corporate governance[61]. - The company has appointed several independent non-executive directors with extensive experience in finance and management, enhancing corporate governance[62][63][64][65][66]. - The management team has significant experience in both local and international markets, which may facilitate future market expansion and investment opportunities[62][63][64][65][66]. Climate Change and Resilience - The company aims to achieve climate adaptation measures and resilience planning for all relevant investments and operations by the fiscal year 2030[111]. - By the fiscal year 2050, the company targets net-zero emissions across all assets and operations, covering Scope 1, 2, and 3 emissions[111]. - The company has established new goals for energy, water resource, and waste efficiency, aiming for a total recovery rate of 30% in relevant investments and operations[111]. - The company is committed to using 100% renewable energy for its investment properties in the Greater Bay Area[111]. - The company is focusing on optimizing operational efficiency to reduce resource consumption and is seeking more green building certifications across its property portfolio[124]. Community Engagement and Development - The company continues to engage with stakeholders to support learning, skills training, and employment initiatives, fostering community collaboration[82]. - The company is actively involved in community service and charitable foundations, which may enhance its brand reputation and stakeholder relationships[62][63]. - The company has established approximately 20,000 square meters of urban parks in Ningbo New World Plaza, utilizing sponge city concepts to manage and conserve water[182]. - The project includes a rooftop solar photovoltaic system to generate renewable energy, contributing to sustainability goals[190]. - The company is committed to minimizing the impact of development projects on natural habitats and biodiversity through its biodiversity policy[187].

Investment Rating - The report maintains a "Buy" rating for New World Development (17 HK) with a target price of HKD 11.44, indicating a potential upside of 21.9% from the current closing price of HKD 9.39 [1][7]. Core Insights - New World Development reported a core profit decline of 47.5% year-on-year to HKD 1.377 billion, primarily due to a decrease in the number of deliverable projects in Hong Kong. The company's revenue for FY2024 fell by 34% to HKD 35.782 billion [2][6]. - Rental income showed resilience, with K11 and overall rental income increasing by 11.9% and 9.3% year-on-year, respectively. The occupancy rates for K11 MUSEA and K11 Art Mall remained high at 97% and 99% [2][6]. - The company plans to reduce leverage, targeting the disposal of HKD 13 billion in non-core assets by FY2025, which is expected to help save interest costs and restore profitability [2][6]. Financial Summary - For FY2024, New World Development's revenue is projected at HKD 35.782 billion, down from HKD 54.566 billion in FY2023, reflecting a year-on-year decline of 34.4% [5][8]. - Core profit is expected to be HKD 1.377 billion for FY2024, down from HKD 2.620 billion in FY2023, marking a 47.5% decrease [5][8]. - The company plans to pay a total dividend of HKD 0.2 per share for FY2024, significantly lower than HKD 0.76 per share in FY2023 [6][8]. Market Performance - The stock has experienced a year-to-date decline of 22.52%, with a 52-week high of HKD 14.23 and a low of HKD 6.28 [4][6]. - The market capitalization stands at approximately HKD 23.631 billion, with an average daily trading volume of 49.55 million shares [4][6]. Future Projections - Revenue is expected to recover in FY2025 with a projected increase of 20.2% to HKD 42.999 billion, followed by a slight decline in subsequent years [5][8]. - Core earnings per share are forecasted to rise gradually from HKD 0.55 in FY2024 to HKD 0.79 by FY2027 [5][8]. Conclusion - The report suggests that despite the current challenges, the company's strong rental performance and strategic asset disposals could provide a foundation for recovery and growth in the coming years [2][6].

Investment Rating - The report maintains a "Buy" rating for New World Development (17 HK) with a target price of HKD 11.44, indicating a potential upside of 21.9% from the current closing price of HKD 9.39 [1][7]. Core Insights - New World Development reported a core profit decline of 47.5% year-on-year to HKD 1.377 billion, primarily due to a decrease in the number of deliverable projects in Hong Kong. The company's revenue for FY2024 fell by 34% to HKD 35.782 billion [2][6]. - Rental income showed resilience, with K11 and overall rental income increasing by 11.9% and 9.3% year-on-year, respectively. The occupancy rates for K11 MUSEA and K11 Art Mall remained high at 97% and 99% [2][6]. - The company plans to reduce leverage, targeting the disposal of HKD 13 billion in non-core assets by FY2025, which is expected to help save interest costs and restore profitability [2][6]. Financial Summary - For FY2024, total revenue is projected at HKD 35.782 billion, down from HKD 54.566 billion in FY2023, reflecting a year-on-year decline of 34.4% [5][8]. - Core profit is expected to be HKD 1.377 billion for FY2024, a decrease of 47.5% compared to HKD 2.620 billion in FY2023 [5][8]. - The company plans to pay a total dividend of HKD 0.2 per share for FY2024, significantly lower than HKD 0.76 per share in FY2023 [5][8]. Market Performance - The stock has a 52-week high of HKD 14.23 and a low of HKD 6.28, with a market capitalization of HKD 23.631 billion and an average daily trading volume of 49.55 million shares [4][6]. - Year-to-date performance shows a decline of 22.52% [4][6]. Future Projections - Revenue is expected to recover slightly in FY2025 to HKD 42.999 billion, with a projected year-on-year growth of 20.2% [5][8]. - Core earnings per share are forecasted to increase gradually from HKD 0.55 in FY2024 to HKD 0.79 by FY2027 [5][8].