NEW WORLD DEV(00017) 交银国际证券·2025-03-03 17:14Investment 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].