NEW WORLD DEV(00017) 开源证券·2025-03-04 19:11Investment Rating - The investment rating for New World Development (00017.HK) is maintained as "Buy" [5][6]. Core Insights - The company reported a slight decline in revenue, with fair value changes eroding profits. The financial condition remains stable, and land reserves are sufficient. The profit forecast for FY2025-2027 is maintained, with expected net profits of HKD 370 million, HKD 600 million, and HKD 860 million, respectively, corresponding to EPS of HKD 0.15, HKD 0.24, and HKD 0.34. The current stock price corresponds to P/E ratios of 36.3, 22.6, and 15.6 times [5][6]. Revenue Performance - For FY2025, the company achieved revenue of HKD 16.79 billion, a year-on-year decrease of 1.6%. Core operating profit was HKD 4.42 billion, down 18% year-on-year, and the net profit attributable to shareholders was a loss of HKD 66.33 billion, primarily due to fair value changes in property projects eroding profits by HKD 49.5 billion [6][7]. Property Development - The property development revenue increased to HKD 8.38 billion, representing a year-on-year growth of 24.27%. Revenue from property development in Hong Kong was HKD 1.73 billion, up 39.2%, while revenue from mainland property development was HKD 6.64 billion, up 20.9%. The unrecognized contract sales amount in Hong Kong was HKD 12.32 billion, and in mainland China, it was HKD 8.3 billion, expected to be recognized in the second half of FY2025 and FY2026 [7][8]. Property Investment - The property investment revenue slightly decreased to HKD 2.56 billion, down 4.31% year-on-year. The revenue from Hong Kong was HKD 1.62 billion, and from mainland China was HKD 0.94 billion. The K11 division's performance increased by 5% year-on-year. Upcoming projects K11 ECOAST and Guangzhou Hanxi K11 Select are set to open in 2025 [8]. Financial Summary - The financial summary indicates that the company had total assets of HKD 445.187 billion for FY2025E, with a net debt ratio of 57.5%. The cash and bank deposits amounted to HKD 22 billion, with available bank loans of HKD 12 billion. The short-term debt decreased by HKD 9.4 billion year-on-year [6][9].