The analyst rating for New World Development (00017.HK) is maintained at "Buy" due to several key factors:
1. Strong Sales Performance: The company's 1HFY2026 results met expectations, with attributable contracted sales of $13.8 billion, which is over half of its full-year target of $27 billion. Notably, property sales in Hong Kong were robust, contributing $10.3 billion.
2. Future Sales Potential: Looking ahead, the company has over 1,300 units ready for sale and ongoing construction projects that will provide approximately 4,100 units expected to launch as early as FY2027.
3. Market Sentiment and Valuation: The current price-to-book (PB) ratio of approximately 0.14x reflects market sentiment. However, improvements in external financing and recent sales momentum suggest a potential for the company to enhance its debt situation and achieve a re-rating.
4. Target Price Increase: The broker raised the target price from $9.7 to $11.96, based on a 75% discount to net asset value, indicating confidence in the company's future performance.
These factors collectively support the positive outlook and the "Buy" rating from the analyst.
