Core Insights - New World Development reported a core profit of HKD 3.6 billion for the first half of the 2026 fiscal year, with contract sales reaching HKD 13.8 billion, exceeding half of the annual target [1][3] - The investment property segment recorded a 5% year-on-year growth [1] Financial Performance - Revenue for the first half of the fiscal year was approximately HKD 8.391 billion, a decline of about 50% year-on-year, primarily due to reduced construction income and fewer property deliveries in mainland China [3] - Gross profit was approximately HKD 5.038 billion, down about 25% year-on-year [3] - The company has available funds totaling approximately HKD 37.4 billion and completed a debt swap of about HKD 20 billion by December 5, 2025 [3] Market Outlook - The Hong Kong property market saw record transaction volumes in 2025, with market institutions generally optimistic about the 2026 outlook; JPMorgan raised its forecast for Hong Kong property price increases to 10% to 15% [3] - New World achieved contract sales of HKD 13.8 billion in the first half of 2026, with the Hong Kong market contributing HKD 10.3 billion, marking the highest level since 2021 [3] Project Developments - New World plans to launch over 1,300 residential units in Hong Kong in the second half of the fiscal year, including several projects in prime locations [3][4] - In mainland China, the company reported contract sales of RMB 3.2 billion, with notable projects in Guangzhou achieving high sales prices and strong buyer interest [4] - The company is also developing projects in the Northern Metropolis area, with nearly 15 million square feet of quality land reserves [4][5] Commercial Performance - The rental market for New World's core commercial and office projects is steadily improving, with high occupancy rates reported across various properties [4] - As of December 31, 2025, K11 Art Mall maintained nearly 100% occupancy, while K11 MUSEA and K11 Atelier Victoria Dockside reported occupancy rates of 98% and 99%, respectively [4]

Group 1 - The core viewpoint is that the recent rumors about the founder of Centaline Property, Shih Yongqing, "sweeping up" the Hong Kong property market are clarified as actions taken by his fund, not personal investments [1][3] - Since October 2025, Shih Yongqing's fund has purchased a total of 6 residential units in Hong Kong, including properties in Sai Wan and Tsim Sha Tsui, with a total expenditure exceeding HKD 93.14 million [1] - Shih Yongqing expressed that the timing of investment is more critical than price levels, noting that the Hong Kong property market has only declined by 30%, and the investment outlook is not as favorable as in 2023 [3] Group 2 - Shih Yongqing emphasized the cyclical nature of the Hong Kong property market, indicating that a bottoming signal has been confirmed, and the market is showing a "U" shaped trend [3] - He anticipates that the property market will see a significant increase in 2026, while noting that the secondary market is experiencing a lag in response to market changes [3]

Core Viewpoint - The Hong Kong property market has shown signs of stabilization, with the "Mei Lun Property Price Index" indicating a year-to-date increase of approximately 0.44% in property prices, marking a shift from decline to growth [1] Group 1: Market Performance - Among the top ten housing estates, seven have seen an increase in average practical price per square foot compared to the end of last year, with the largest increase observed in Huangpu Garden at approximately 8% [1] - The average practical price per square foot for the top ten estates is expected to rise further if favorable measures are introduced in the upcoming Policy Address and if the U.S. implements interest rate cuts [1] Group 2: Price Changes in Specific Estates - The other estates with notable price increases include: - Ocean Park with an increase of about 5.3% - Shatin First City and Lai King City with increases of approximately 2.8% and 2.2% respectively - Mei Foo Sun Chuen, New Town Plaza, and 嘉湖山庄 with increases ranging from about 0.5% to 1.8% [1] - Conversely, three estates experienced price declines, with Ying Wan Garden down approximately 2.9%, and Taikoo Shing and 康怡花园 down about 1.5% and 1.3% respectively [1] Group 3: Price Levels of Specific Estates - Three estates still have average practical prices below HKD 10,000, specifically: - Mei Foo Sun Chuen at approximately HKD 9,630 - Ying Wan Garden at about HKD 9,403 - 嘉湖山庄 at around HKD 8,146 [2] - Newer estates have also performed well, with Park Yoho seeing an average price increase of about 4.6%, surpassing HKD 10,000 [2]