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00017
NEW WORLD DEV
HKD
7.950-0.120
(-1.49%)
1D
AI Analysis for 00017
AI Analysis
High
8.070
Open
8.050
VWAP
7.95
Vol
9.08M
Mkt Cap
27.00B
Low
7.880
Amount
72.20M
EV/EBITDA(TTM)
--
Total Shares
2.52B
EV
159.11B
EV/OCF(TTM)
49.11
P/S(TTM)
1.04
New World Development Co Ltd is an investment holding company mainly engaged in the property development. The Company operates its business through eight segments. The Property Development segment engages in the construction of the residential units, including MOUNT PAVILIA, The Masterpiece, FLEUR PAVILIA and the Double Cove series, among others. The Construction segment constructs commercial and residential projects, and government and institutional related projects. The Insurance segment sells life insurance and medical insurance products. The Property Investment segment engages in the property investment, its property investment portfolio includes commercial buildings and offices. The Roads segment operates toll roads and expressways. The Hotel Operations segment operates hotel business in China and Southeast Asia. The Aviation segment engages in commercial aircraft leasing business. The Other segment is engaged in facility management and free duty business.
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News
4.0
03-12aastocks<Research>BOCOMI: NEW WORLD DEV (00017.HK) Anticipated to Enhance Debt Situation and Achieve Re-rating; Target Price Raised to $11.96
Company Performance: NEW WORLD DEV reported $13.8 billion in attributable contracted sales for 1HFY2026, meeting expectations and achieving over half of its full-year target of $27 billion, with strong performance in Hong Kong.
Future Developments: The company plans to offer more than 1,300 units for sale in 2HFY2026, with ongoing construction at Ma Sik Road and Lung Tin Estate, potentially launching around 4,100 units by FY2027.
Market Sentiment and Valuation: The current price-to-book (PB) ratio of approximately 0.14x reflects market sentiment, but improvements in external financing and sales momentum may enhance the company's debt situation and lead to a re-rating.
Broker Recommendations: A broker raised the target price from $9.7 to $11.96 based on a 75% discount to net asset value, maintaining a "Buy" rating for the company.
6.5
03-11aastocksJPM: Market Excessively Worries About Rate Hike Effects on HK Homebuilders; Rates Anticipated to Remain Steady for the Next Year
Market Concerns: JPMorgan's research indicates worries about potential rate hikes due to inflation or geopolitical factors, which could negatively impact the Hong Kong property sector's valuations.
Interest Rate Outlook: The broker expects interest rates to remain stable for the next four quarters, allowing homebuyers to benefit from a positive interest margin, which may help the sector endure unchanged rates.
Sensitivity to Rate Changes: NEW WORLD DEV and HENDERSON LAND are identified as the most sensitive to interest rate fluctuations, while other sector fundamentals remain strong, leading to a positive outlook from JPMorgan.
Top Picks: JPMorgan's preferred stocks include SHK PPT and SINO LAND among developers, and SWIRE PROPERTIES, Hongkong Land, and HANG LUNG PPT among landlords.
4.0
03-10aastocksCiti's Ratings and Target Prices for Hong Kong Developers (Table)
Stock Performance Overview: Various Hong Kong stocks showed mixed performance, with WHARF HOLDINGS declining by 1.505% while HENDERSON LAND and SHK PPT saw slight increases of 0.564% and 1.461%, respectively.
Short Selling Activity: Significant short selling was noted across several stocks, with SHK PPT having the highest ratio at 34.944%, indicating investor skepticism about its future performance.
Analyst Recommendations: Citi has identified SHK PPT, CK ASSET, and SWIREPROPERTIES as top picks, suggesting potential growth driven by increased demand for residential and office properties due to geopolitical factors.
Market Sentiment: HSBC Research has maintained a "Reduce" rating on NEW WORLD DEV, indicating a cautious outlook on its financial recovery amidst ongoing market challenges.
4.5
03-09aastocksHSI Plummets 656 Points at Noon; Weakness in Developers, Airlines, and Local Financials; CNOOC Rises 7%
Oil Prices Surge: Production cuts in several Middle Eastern countries have driven oil prices above USD 110 per barrel, negatively impacting global stock markets, including a significant drop in Hong Kong's Hang Seng Index (HSI).
Stock Market Declines: The HSI fell 2.6% to 25,101 points, with notable declines in various sectors, including energy, financials, and airlines, as inflation concerns and short selling pressures weighed heavily on market performance.
Energy Sector Movements: While major oil companies like PetroChina and CNOOC saw gains, other energy and commodity stocks, including Kunlun Energy and Sinopec, experienced declines, reflecting mixed performance within the sector.
Tech and Financial Stocks Struggle: Major tech companies like Tencent and JD-SW faced losses, while financial institutions such as HSBC and AIA also saw significant declines, indicating broader market challenges amid rising inflation concerns.
8.5
03-04aastocksNEW WORLD DEV Shares Drop 5% Amid Rumors of Blackstone Capital Investment Talks Stalling Due to Cheung Family's Hesitation to Relinquish Control
Negotiation Challenges: Blackstone's negotiations to become the largest shareholder of New World Development are hindered by the Cheng family's reluctance to give up control, despite a proposed $2.5 billion investment from Blackstone.
Cheng Family's Strategy: The Cheng family is exploring deals with other investors while maintaining control, which has slowed the negotiation process with Blackstone.
Market Reaction: New World Development's stock opened lower and experienced a decline of 5.33%, with significant trading volume reported.
Analyst Update: Citi has upgraded New World Development's rating to neutral, raising the target price and estimating continued debt reduction for the company.
Money Flow
Over the past 66 trading days, overall net money flow is 8.01M, with retail investors contributing 778.12K and major investors adding 6.87M.
Net Buy $ Volume
Net Sell $ Volume
BOCOMI
maintain
2026-03-12
Reason
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.
BOCOMI
Price Target
2026-03-12
maintain
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.
HSBC
HSBC Research
maintain
$6.2
2026-03-03
Reason
The analyst rating from HSBC Research for NEW WORLD DEV (00017.HK) is a "Reduce" with a target price of HKD 6.2. The reasoning behind this rating is based on the company's continued financial struggles, as it recorded a net loss of HKD 3.7 billion for the first half of fiscal year 2026, marking the third consecutive year of losses. Despite efforts by management to improve the financial condition and a reduction in losses, HSBC Research believes there is still a significant gap between the current performance and the substantial improvement expected by investors. Additionally, the upcoming maturity of bank loan refinancing starting in 2028 may necessitate significant asset disposals or strong support from the parent company to enhance the company's situation.
HSBC
Price Target
$6.2
2026-03-03
maintain
The analyst rating from HSBC Research for NEW WORLD DEV (00017.HK) is a "Reduce" with a target price of HKD 6.2. The reasoning behind this rating is based on the company's continued financial struggles, as it recorded a net loss of HKD 3.7 billion for the first half of fiscal year 2026, marking the third consecutive year of losses. Despite efforts by management to improve the financial condition and a reduction in losses, HSBC Research believes there is still a significant gap between the current performance and the substantial improvement expected by investors. Additionally, the upcoming maturity of bank loan refinancing starting in 2028 may necessitate significant asset disposals or strong support from the parent company to enhance the company's situation.
UBS
UBS
downgrade
$4
2026-03-02
Reason
UBS issued a "Sell" rating for NEW WORLD DEV (00017.HK) with a target price of HKD4 due to concerns about the company's underlying loss, which is estimated to reach HKD2.6 billion after excluding revaluation gains and deducting perpetual bonds. Although there has been a reduction in short-term liquidity concerns following a debt exchange plan that reduced perpetual bonds and senior debt, UBS noted that the pace of internal deleveraging is expected to be slow and there is potential risk of equity financing. The company's statement that it has no intention to conduct further debt exchanges or share placements also contributed to the cautious outlook.
UBS
Price Target
$4
2026-03-02
downgrade
UBS issued a "Sell" rating for NEW WORLD DEV (00017.HK) with a target price of HKD4 due to concerns about the company's underlying loss, which is estimated to reach HKD2.6 billion after excluding revaluation gains and deducting perpetual bonds. Although there has been a reduction in short-term liquidity concerns following a debt exchange plan that reduced perpetual bonds and senior debt, UBS noted that the pace of internal deleveraging is expected to be slow and there is potential risk of equity financing. The company's statement that it has no intention to conduct further debt exchanges or share placements also contributed to the cautious outlook.
Citi
Sell
to
Neutral
upgrade
2026-03-02
Reason
Citi upgraded NEW WORLD DEV's rating from Sell to Neutral and raised its target price due to the improvement in the group's long-term value. The analyst noted that NEW WORLD DEV is expected to achieve better asset turnover thanks to its abundant saleable resources during the property price upcycle. Additionally, the company is optimizing its debt structure and reducing financing costs, which, along with growth in rental income and significant property transactions, is contributing to improved cash flow. Despite these positive developments, it is acknowledged that it will take time for the company to return to profitability.
Citi
Sell
to
Neutral
Price Target
2026-03-02
upgrade
Citi upgraded NEW WORLD DEV's rating from Sell to Neutral and raised its target price due to the improvement in the group's long-term value. The analyst noted that NEW WORLD DEV is expected to achieve better asset turnover thanks to its abundant saleable resources during the property price upcycle. Additionally, the company is optimizing its debt structure and reducing financing costs, which, along with growth in rental income and significant property transactions, is contributing to improved cash flow. Despite these positive developments, it is acknowledged that it will take time for the company to return to profitability.
CLSA
Hold
to
Hold
upgrade
$10
2026-03-02
Reason
The analyst rating for NEW WORLD DEV (00017.HK) is maintained at "Hold" despite an increase in the target price from $4.1 to $10. The reasoning behind this rating is based on the company's narrowed losses in the first half of FY2026 due to a recovery in Hong Kong's property market and expected profit gains from debt exchange. The management's confidence in achieving a $27 billion contract sales target is also noted, which is anticipated to improve full-year operating cash flow. However, CLSA highlights that while cash flow pressure is expected to decrease over the next 12 months, uncertainties remain due to a lack of high-quality saleable resources and upcoming debt maturities.
CLSA
Hold
to
Hold
Price Target
$10
2026-03-02
upgrade
The analyst rating for NEW WORLD DEV (00017.HK) is maintained at "Hold" despite an increase in the target price from $4.1 to $10. The reasoning behind this rating is based on the company's narrowed losses in the first half of FY2026 due to a recovery in Hong Kong's property market and expected profit gains from debt exchange. The management's confidence in achieving a $27 billion contract sales target is also noted, which is anticipated to improve full-year operating cash flow. However, CLSA highlights that while cash flow pressure is expected to decrease over the next 12 months, uncertainties remain due to a lack of high-quality saleable resources and upcoming debt maturities.
BofA Securities
BofA Securities
Underperform
maintain
$4.8
2026-03-02
Reason
BofA Securities maintains an "Underperform" rating on New World Development (00017.HK) due to several key reasons:
1. Unsurprising Results: The company's results for 1HFY2026 were viewed as largely unsurprising, indicating that there were no significant positive developments to warrant a more favorable rating.
2. Limited Discount to RNAV: The stock is currently trading at only a 10% discount to BofA's estimated Revalued Net Asset Value (RNAV), which suggests limited upside potential.
3. No Dividend: The absence of a dividend further diminishes the attractiveness of the stock for investors seeking income.
4. Market Expectations: The current share price is believed to have already factored in market expectations for potential investments by third-party investors, which may not lead to significant price appreciation.
5. Dilution Risks: Even if third-party investments materialize, there are concerns about potential equity and/or warrant issuance leading to underestimated dilution risks for existing shareholders.
6. High Leverage and Financing Uncertainty: The company faces uncertainty in bank financing channels due to high leverage, which has led BofA to set a target price of $4.8 based on a 60% discount to net asset value, reflecting a wider discount than average since 2018.
Overall, these factors contribute to BofA Securities' cautious outlook on the stock.
BofA Securities
Underperform
Price Target
$4.8
2026-03-02
maintain
BofA Securities maintains an "Underperform" rating on New World Development (00017.HK) due to several key reasons:
1. Unsurprising Results: The company's results for 1HFY2026 were viewed as largely unsurprising, indicating that there were no significant positive developments to warrant a more favorable rating.
2. Limited Discount to RNAV: The stock is currently trading at only a 10% discount to BofA's estimated Revalued Net Asset Value (RNAV), which suggests limited upside potential.
3. No Dividend: The absence of a dividend further diminishes the attractiveness of the stock for investors seeking income.
4. Market Expectations: The current share price is believed to have already factored in market expectations for potential investments by third-party investors, which may not lead to significant price appreciation.
5. Dilution Risks: Even if third-party investments materialize, there are concerns about potential equity and/or warrant issuance leading to underestimated dilution risks for existing shareholders.
6. High Leverage and Financing Uncertainty: The company faces uncertainty in bank financing channels due to high leverage, which has led BofA to set a target price of $4.8 based on a 60% discount to net asset value, reflecting a wider discount than average since 2018.
Overall, these factors contribute to BofA Securities' cautious outlook on the stock.
Morgan Stanley
Morgan Stanley
downgrade
$6.5
2026-02-06
Reason
The analyst rating from Morgan Stanley for NEW WORLD DEV is Underweight, with a target price of HKD6.5. The reasoning behind this rating is based on the expectation that, despite improved residential sales in Hong Kong and reduced administrative expenses, the company is still anticipated to deliver a net loss and may continue to keep dividend distribution on hold.
Morgan Stanley
Price Target
$6.5
2026-02-06
downgrade
The analyst rating from Morgan Stanley for NEW WORLD DEV is Underweight, with a target price of HKD6.5. The reasoning behind this rating is based on the expectation that, despite improved residential sales in Hong Kong and reduced administrative expenses, the company is still anticipated to deliver a net loss and may continue to keep dividend distribution on hold.
JPMorgan
JPMorgan
upgrade
2026-01-21
Reason
JPMorgan upgraded NEW WORLD DEV (00017.HK) to Neutral because the market's biggest concerns have largely been reflected in the stock's performance, and the upcoming results are expected to show slight improvement. The broker anticipates that the results season may mark the trough for most companies, with a significant chance of earnings rebounding in the next fiscal year, despite expected continued declines in earnings for most companies in the near term.
JPMorgan
Price Target
2026-01-21
upgrade
JPMorgan upgraded NEW WORLD DEV (00017.HK) to Neutral because the market's biggest concerns have largely been reflected in the stock's performance, and the upcoming results are expected to show slight improvement. The broker anticipates that the results season may mark the trough for most companies, with a significant chance of earnings rebounding in the next fiscal year, despite expected continued declines in earnings for most companies in the near term.
Morgan Stanley
Morgan Stanley
Underweight
maintain
$5.5
2025-11-05
Reason
The analyst rating for New World Development (00017.HK) is Underweight, with a target price of $5.5. The reasoning behind this rating is that while the company's US$1.9 billion debt exchange offer is seen as marginally positive for equity holders, it does not fully address the company's high debt situation. The stock is currently trading at a projected price-to-book (PB) ratio of 0.1x and is at a 34% discount to its anticipated net asset value (NAV) per share, indicating concerns about its financial health and valuation.
Morgan Stanley
Underweight
Price Target
$5.5
2025-11-05
maintain
The analyst rating for New World Development (00017.HK) is Underweight, with a target price of $5.5. The reasoning behind this rating is that while the company's US$1.9 billion debt exchange offer is seen as marginally positive for equity holders, it does not fully address the company's high debt situation. The stock is currently trading at a projected price-to-book (PB) ratio of 0.1x and is at a 34% discount to its anticipated net asset value (NAV) per share, indicating concerns about its financial health and valuation.
UBS
UBS
maintain
$4
2025-11-05
Reason
The analyst rating for NEW WORLD DEV (00017.HK) is a "Sell" with a target price of $4, as per UBS' research report. The reasoning behind this rating includes the belief that the announced debt exchange offer could be beneficial to shareholders by potentially achieving a net debt reduction of $13 billion, lowering the adjusted net debt from $160 billion to $147 billion, and reducing the net debt-to-equity ratio from 93% to 80%. However, UBS also noted that the exchange offer would result in an additional $1.2 billion in incremental cash interest expenses, which they do not expect to significantly impact the company's cash flow.
UBS
Price Target
$4
2025-11-05
maintain
The analyst rating for NEW WORLD DEV (00017.HK) is a "Sell" with a target price of $4, as per UBS' research report. The reasoning behind this rating includes the belief that the announced debt exchange offer could be beneficial to shareholders by potentially achieving a net debt reduction of $13 billion, lowering the adjusted net debt from $160 billion to $147 billion, and reducing the net debt-to-equity ratio from 93% to 80%. However, UBS also noted that the exchange offer would result in an additional $1.2 billion in incremental cash interest expenses, which they do not expect to significantly impact the company's cash flow.
Valuation Metrics
Forward PE
N/A
5Y Average PE
9.54
Current PE
49.00
Overvalued PE
23.21
Undervalued PE
-4.13
Forward EV/EBITDA
5Y Average EV/EBITDA
17.05
Current EV/EBITDA
30.44
Overvalued EV/EBITDA
22.17
Undervalued EV/EBITDA
11.92
Forward PS
5Y Average PS
0.74
Current PS
0.62
Overvalued PS
1.02
Undervalued PS
0.45
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