Core Insights - New World Development reported a strong performance for the first half of the 2026 fiscal year, with core profit reaching HKD 3.6 billion and total debt reduced by HKD 1.7 billion [1] - The company achieved contract sales of HKD 13.8 billion, exceeding half of its annual target, with the Hong Kong market reaching its highest level since 2021 [1][3] Sales Performance - In the first half of the fiscal year 2026, the property sales segment showed robust performance, with contract sales amounting to HKD 13.8 billion, which is over half of the annual target of HKD 27 billion [3] - The Hong Kong market performed particularly well, with contract sales of HKD 10.3 billion, marking the highest record since 2021, reflecting the company's strong brand and product competitiveness in the high-end property market [3] - In mainland China, contract sales for the first half of the fiscal year were approximately RMB 3.2 billion, with key projects like the Kaixuan New World in Guangzhou achieving a record average selling price of RMB 21,800 per square meter [3] Future Development Strategy - For the second half of the 2026 fiscal year and long-term development, the company has established a clear business layout, with a focus on launching new properties and enhancing land reserves [4] - The company plans to launch over 1,300 premium units in the Hong Kong market and key projects in mainland China, including the New World 188 project in Shenzhen [5] - New World is actively promoting land reserve activation and agricultural land value release, with two major projects in collaboration with state-owned enterprises already underway [5] Financial Health and Growth Potential - The company is confident in completing its annual targets, supported by a strong financial position and strategic planning [4][6] - With the upcoming launch of quality new properties and the gradual release of agricultural land value, New World aims to consolidate its development advantages and create greater value for shareholders and the market [6]

Macro and Strategy Research - The economic data for December 2025 shows a stable overall economy with a GDP growth of 4.5% year-on-year, matching expectations, but down from 4.8% in the previous quarter [2] - The industrial output value increased by 5.2% year-on-year, exceeding expectations, while retail sales growth was lower at 0.9% [2] - Fixed asset investment saw a decline of 3.8% year-on-year, indicating a weakening investment environment [2] - The economic growth pattern for 2025 indicates a stronger supply than demand, with external demand outpacing internal demand, which is expected to continue into 2026 [2][3] - The first quarter of 2026 is anticipated to see continued structural support from net exports, with potential stabilization in government-led investment projects [2] Production Structure - The industrial output growth in December 2025 showed a slight recovery, with high-tech manufacturing outpacing overall growth, indicating an optimization in production structure [3] - The production capacity utilization and sales rates reached their highest levels of the year, suggesting an improvement in supply-demand dynamics [3] Consumer Behavior - Retail sales growth in December 2025 was lower than expected, with service consumption outperforming goods consumption [3] - The decline in disposable income growth indicates a constraint on consumer spending capacity, although new policies are expected to support consumption in early 2026 [3] Investment Trends - Fixed asset investment saw an expanded decline, particularly in the manufacturing sector, where investment growth rates fell significantly [4] - Infrastructure investment is expected to stabilize due to government initiatives, while real estate investment continues to struggle with a year-on-year decline of 35.8% [5] Fixed Income Research - Credit bond issuance increased, with a downward trend in overall interest rates, indicating a favorable environment for credit bonds despite a reduction in net financing [6] - The credit spread for various bond types is at historical lows, suggesting a cautious but optimistic outlook for credit bonds [6][8] Metal Industry Research - The steel industry is facing limited short-term demand pressure, with expectations of price stabilization due to pre-holiday inventory replenishment [9] - Copper prices are expected to remain stable despite weak supply dynamics, supported by positive long-term demand forecasts [10] - The aluminum sector is anticipated to improve due to demand from electric vehicles and high-pressure power grids, despite current oversupply issues [11] - Gold prices are supported by geopolitical tensions and mixed U.S. economic data, with long-term demand expected to rise [12]