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].

Investment Rating - The report maintains a "Underperform" rating for New World Development (17 HK) [1] Core Views - New World Development faces a bleak profit outlook but has stabilized its financial position [2] - Management uncertainty persists in the medium to long term, hindering a potential re-rating [2] - Potential restructuring and market recovery opportunities exist, particularly with the possible sale of the Kai Tak Sports Park to its parent company, Chow Tai Fook Enterprises [2] Financial Performance Summary - New World Development reported a significant net loss of HKD 11.8 billion in FY24, driven by HKD 6.3 billion in development property impairment losses and HKD 2.7 billion in investment property revaluation losses [2] - Core losses widened from HKD 1.4 billion to HKD 4.6 billion, with core operating profit declining by 17.8% to HKD 6.9 billion [2] - Total interest expenses exceeded HKD 10 billion, surpassing core operating profit, leading to the suspension of dividends [2] - The company is actively deleveraging through asset sales (HKD 59/77/130 billion in FY23/24/25F) and reduced capital expenditures (HKD 190/150/150 billion in FY23/24/25F) [2] Management Uncertainty - The resignation of Adrian Cheng, the former CEO and third-generation family member, has introduced uncertainty, with the appointment of a new CEO seen as transitional [2] - This management instability is expected to negatively impact the company's operations and re-rating potential [2] Market Recovery and Restructuring Opportunities - The potential sale of the Kai Tak Sports Park to Chow Tai Fook Enterprises could be beneficial, as the project is nearing completion and expected to be operational by Q1 2025 [2] - The company may benefit from a market re-rating driven by US interest rate cuts and China's property support policies, but management uncertainty remains a key risk [2] Valuation and Target Price - The target price has been revised downward from HKD 8.75 to HKD 7.25, reflecting a 17% reduction due to lower net asset value expectations [2][9] - Earnings forecasts for FY25-26 have been cut by 20-34% [2] Financial Forecasts - Revenue is expected to remain flat in FY25F at HKD 35.9 billion, with a slight increase to HKD 36.6 billion in FY26F [3] - Net profit is projected to recover to HKD 867 million in FY25F and HKD 1.8 billion in FY26F, following a significant loss in FY24 [3] - Core earnings per share are forecasted at HKD 0.34 in FY25F and HKD 0.72 in FY26F [3] Key Financial Ratios - The net debt ratio increased to 57.2% in FY24, up from 49.6% in FY23, but is expected to decline to 53.1% in FY25F [3] - The price-to-book ratio remains at 0.1x, reflecting the company's undervaluation [3] Trading Data - The stock's 52-week price range is HKD 6.20 to HKD 15.96, with a market capitalization of USD 2.64 billion [4] - The 12-month expected return is -11%, indicating continued underperformance [4] Historical Performance - The stock has underperformed the Hang Seng Index over the past 12 months, with a -37% absolute return and -50% relative return [5] Segment Performance - Property sales revenue declined by 41% YoY in FY24, while rental income increased by 4% [6] - The construction segment saw a significant revenue drop of 45.7%, reflecting weak market conditions [6] Balance Sheet and Cash Flow - Total assets decreased to HKD 445.2 billion in FY24, down from HKD 609 billion in FY23, primarily due to asset sales and reduced capital expenditures [11] - Operating cash flow improved to HKD 10.99 billion in FY24, up from HKD 6.53 billion in FY23, driven by cost-cutting measures [11]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][3] Core Views - The company has experienced a contraction in revenue, with a significant decline in property development income, while investment properties have shown stable performance. The forecast for net profit has been revised downwards for 2025-2026 and a new forecast for 2027 has been added, expecting net profits of 370 million, 600 million, and 860 million HKD for 2025-2027 respectively. The current stock price corresponds to a PE ratio of 63.2, 39.4, and 27.2 times for 2025-2027 [3][4] Financial Performance Summary - For the fiscal year 2023/2024, the company reported total revenue of 35,782 million HKD, a year-on-year decrease of 62.4%, primarily due to reduced property development revenue in Hong Kong. The gross profit was 12,849 million HKD, down 22% year-on-year, with a gross margin of 35.9%, an increase of 13.38 percentage points year-on-year. The core operating profit from continuing operations was 6,898 million HKD, down 18% year-on-year, leading to a net profit of -11,807 million HKD due to non-cash impairment losses [3][4] Investment Property Performance - The investment properties generated revenue of 5,197 million HKD in the fiscal year 2023/2024, representing a year-on-year growth of 4.03%. The revenue from investment properties in Hong Kong was 3,356 million HKD, with significant increases in sales and foot traffic at K11 MUSEA and K11 Art Mall, which saw sales growth of 17% and 16% respectively, and total foot traffic growth of 20% and 10%. The occupancy rate for K11 Art Mall remained at 99% [3][4] Property Development and Capital Expenditure - The property development revenue for the fiscal year 2023/2024 was 16,125 million HKD, a decline of 40.95%. The revenue from property development in Hong Kong and mainland China was 2,412 million HKD and 13,713 million HKD, respectively, with year-on-year changes of -85.60% and +29.94%. The company has focused on the Greater Bay Area and Yangtze River Delta, contributing over 85% of contract sales in mainland China. Capital expenditures and administrative expenses have been significantly reduced by 23% and 17% respectively [3][4]

Financial Performance - Core operating profit from continuing operations was HKD 6,898 million, a year-on-year decrease of 18%[2] - Revenue from continuing operations was HKD 35,782 million, down 34% year-on-year, with gross profit declining 22% to HKD 12,849 million[2] - The group reported a loss attributable to shareholders of HKD 11,807 million, leading to a decision not to declare a final dividend of HKD 0.20 per share[2] - The company reported a net loss from continuing operations of HKD 9,810.8 million, compared to a profit of HKD 1,272.1 million in the previous year[40] - The total comprehensive loss for the year was HKD 12,344.4 million, compared to a loss of HKD 10,532.6 million in 2023[42] - The company reported a significant reduction in investment properties, which decreased to HKD 207,711.8 million from HKD 209,478.8 million, a decline of about 0.8%[43] - The company reported a net loss of HKD 17,125.9 million for the year, which includes a loss of HKD 8,257.1 million from discontinued operations[82] - The total comprehensive loss from discontinued operations was HKD (7,315.1) million for 2024, compared to a profit of HKD 2,229.0 million in 2023[101] Revenue Breakdown - Hong Kong property development revenue was HKD 2,412 million, while revenue from mainland China property development was HKD 13,713 million[2] - Property development revenue decreased to HKD 16,124.9 million in 2024 from HKD 27,308.1 million in 2023, representing a decline of 41.0%[79] - Revenue from property investment construction fell to HKD 9,388.7 million in 2024, down 45.4% from HKD 17,285.8 million in 2023[79] - The total revenue from discontinued operations was HKD 10,615.2 million in 2024, a decrease of 53.3% from HKD 22,791.1 million in 2023[79] - Revenue from property investment was HKD 16,266.4 million, down by HKD 141.5 million, while construction revenue was HKD 9,478.5 million, a decrease of HKD 89.8 million[81] Asset and Liability Management - Cash and bank balances amounted to approximately HKD 28 billion, with available bank loans of about HKD 18.3 billion, totaling around HKD 46.3 billion in available funds[2] - The group's net debt was HKD 123,657.1 million, a decrease from HKD 130,755.9 million on June 30, 2023[29] - Total assets as of June 30, 2024, decreased to HKD 445,157.6 million from HKD 609,014.0 million in the previous year, representing a decline of approximately 27%[43] - Total liabilities decreased to HKD 220,268.8 million from HKD 334,921.2 million, a reduction of approximately 34%[44] - Cash and bank deposits decreased significantly to HKD 27,399.6 million from HKD 53,263.9 million, representing a drop of approximately 49%[43] Cost Management - The group strictly controlled costs, with capital expenditures and administrative expenses decreasing approximately 23% and 17% year-on-year, respectively[2] - Financial expenses rose to HKD 5,895.2 million due to interest rate hikes, with HKD 5,508.1 million attributed to continuing operations[30] - The company incurred financial expenses of HKD 5,508.1 million, an increase from HKD 4,571.8 million in 2023[39] Property Development and Sales - Total property contract sales in mainland China amounted to RMB 12.48 billion, with the southern region and the Yangtze River Delta contributing over 85%[2] - The group expects to recognize approximately HKD 11,194 million in unrecognized property contract sales revenue in the fiscal years 2025 and 2026[3] - The total contracted sales in mainland China amounted to RMB 12.482 billion, with an average residential price exceeding RMB 44,000 per square meter[10] - The southern region (Greater Bay Area) contributed RMB 7.059 billion to the total contracted sales, while the eastern region (Yangtze River Delta) contributed RMB 3.53 billion[11] Market and Operational Insights - K11 MUSEA and K11 Art Mall saw sales and total foot traffic increase by 17% and 20% respectively, driven by luxury consumption and cultural events[5] - The office leasing market showed slight growth, with approximately 40% of the office space at the "83 Qionglin Street" project pre-leased, totaling about 400,000 square feet[6] - The overall occupancy rate of Shanghai K11 reached 94% by year-end, driven by diverse events and activities[17] - Guangzhou K11 Art Mall saw a nearly 40% increase in foot traffic post-pandemic, with double-digit sales growth[17] Strategic Initiatives - The company plans to expand its urban renewal projects, which are expected to yield better returns compared to public land auction projects[22] - The group anticipates approximately 112,000 units of new private residential supply in Hong Kong over the next three to four years, becoming a major market supply source[24] - The K11 MUSEA will see seven major international luxury brands upgrade and expand their business footprint by over 30,000 square feet over the next four years[24] - The group aims to enhance its presence in major Chinese cities, with significant projects like the Guangzhou Yau Shing New World Plaza expected to deliver office and residential units by 2025[26] Accounting and Financial Reporting - The company has adopted new accounting standards related to insurance contracts, which may impact future financial reporting[46] - The group announced the sale of all shares in a newly created entity, with the financial results classified as "discontinued operations" in the consolidated income statement for the year ending June 30, 2024[57] - The group has adopted Hong Kong Financial Reporting Standard No. 17, resulting in changes to the main accounting policies used in preparing the consolidated financial statements[58] - The group recognizes losses from onerous insurance contracts immediately in profit or loss upon initial recognition[65] Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code, except for C.1.3 regarding employee trading of company securities[115] - The audit committee reviewed the risk management framework and policies for the year ending June 30, 2024, ensuring compliance with financial reporting standards[114] - The auditors have issued unqualified reports for the financial statements of both years, with no emphasis of matter or reservations noted[116]

Investment Rating - The report assigns a "Buy" rating for the company New World Development (17 HK) [2][6]. Core Insights - The company is expected to report a core operating profit of HKD 6.5 billion to HKD 6.9 billion for the fiscal year 2024, representing a year-on-year decline of 18% to 23% due to a lack of revenue recognition from major projects completed in the previous fiscal year [2][5]. - A significant non-cash impairment loss is anticipated, estimated between HKD 8.5 billion to HKD 9.5 billion, primarily related to the revaluation of investment and development properties [2][5]. - The target price has been adjusted down to HKD 10.18, reflecting an 80% discount to the forecasted net asset value, with a potential upside of 49% from the current price of HKD 6.83 [2][6]. Financial Summary - For the fiscal year ending June 30, 2024, the projected revenue is HKD 55.93 billion, a decrease of 41.3% compared to the previous year [5][7]. - The core profit is expected to drop to HKD 1.17 billion, a decline of 80.8% year-on-year [5][7]. - The company anticipates a net loss attributable to shareholders of HKD 19 billion to HKD 20 billion for the fiscal year 2024 [2][5]. - The earnings per share (EPS) for 2024 is projected at HKD 0.47, with a significant downward adjustment of 63.7% from previous forecasts [5][7]. Market Performance - The stock has seen a year-to-date decline of 43.65% and has a market capitalization of approximately HKD 17.19 billion [4][5]. - The stock's 52-week high was HKD 15.65, while the low was HKD 6.83 [4][5].

房地产/房地产开发 公 司 研 究 深资历港商沉潜蓄势,双市场布局厚积薄发 新世界发展(00017.HK) 2024 年 07 月 19 日 ——港股公司首次覆盖报告 投资评级:买入(首次) | --- | --- | |--------------------|--------------| | 日期 | 2024/7/18 | | 当前股价(港元) | 7.890 | | 一年最高最低(港元) | 19.540/7.100 | | 总市值(亿港元) | 198.56 | | 流通市值(亿港元) | 198.56 | | 总股本(亿股) | 25.17 | | 流通港股(亿股) | 25.17 | | 近 3 个月换手率(%) | 18.47 | 股价走势图 新世界发展 恒生指数 -60% -40% -20% 0% 20% 2023-07 2023-11 2024-03 2024-07 数据来源:聚源 齐东(分析师) 胡耀文(分析师) qidong@kysec.cn 证书编号:S0790522010002 huyaowen@kysec.cn 证书编号:S0790524070001 深资历港商沉潜蓄势,双市场 ...

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新世界发展（17） 更新报告 买入 2024年3月6日 核心盈利同比增长 12%，旗舰项目深圳 K11 Eocast 年內开业 罗凡环  来自持续经营业务的核心盈利同比增长 12%：23/24 上半财年，公司的持 + 852-25321962 续经营业务收入 170.6 亿港元，同比下跌 25%，主要由于香港的物业发展收 入减少 40.2%至 67.4 亿元。公司严格控制成本，持续经营业务的资本开支 simon.luo@firstshanghai.com.hk 及营运费用分别减少 21%及 16%。来自持续经营业务核心盈利同比增长 12% 至48.6亿港元，拟派发中期股息每股0.2港元。  土储丰富，有望支持销售回稳：受高息环境影响，期内公司在香港合同销 主要资料 售额明显下降至1.43亿港元；内地实现合同销售额75.5亿元，已完成全年 目标的50%。2024年2月底，香港财政预算案宣布全面“撤辣”刺激楼市。 行业 地产 公司在香港拥有 800 万平方尺权益土储（其中物业发展面积 323.4 万平方 尺）；另外公司在新界约1634万平方尺的农地面积，其中90%位于“北部都 股价 8.77港元 会区”，发展 ...