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News

6.0

01-12aastocks

Citi's Projections for Ratings, Target Prices, and Valuations of HK Real Estate Stocks (Table)

7.5

01-05aastocks

NWD's K11 MUSEA Sees Approximately 50% Increase in Visitors Over New Year's Holiday

4.5

2025-12-30aastocks

NWD: Two Residential Developments in Northern Metropolis Set to Begin This Year, Anticipating Approximately 3,000 Units to Launch in FY27

7.5

2025-12-24aastocks

NWD and Orient Securities International Sign Strategic Partnership Agreement

8.5

2025-12-18aastocks

PressLogic Finalizes Purchase of Parenting Site Baby Kingdom

Money Flow

Over the past 66 trading days, overall net money flow is 82.80M, with retail investors contributing 11.34M and major investors adding 50.88M.

Net Buy $ Volume

Net Sell $ Volume

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

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.

BofA Securities

Underperform

maintain

$4

2025-11-05

Reason

The analyst rating for NEW WORLD DEV (00017.HK) is set at "Underperform" by BofA Securities due to several factors. While the recent exchange offer could potentially reduce the company's total debt by up to USD1.9 billion and lower annual interest expenses by USD44 million, there are significant concerns regarding the company's financial stability. The need for another debt management operation in 2026 raises red flags about its long-term viability. Additionally, the likelihood of attracting new third-party investors for capital injection appears low, especially considering the potential delay in dividend payments on the new perpetual bonds. The target price of HKD4 reflects a 64% discount to net asset value, indicating uncertainty regarding the company's access to bank loans due to its high leverage. Overall, these factors contribute to the cautious outlook and the Underperform rating.

BofA Securities

Underperform

Price Target

$4

2025-11-05

maintain

The analyst rating for NEW WORLD DEV (00017.HK) is set at "Underperform" by BofA Securities due to several factors. While the recent exchange offer could potentially reduce the company's total debt by up to USD1.9 billion and lower annual interest expenses by USD44 million, there are significant concerns regarding the company's financial stability. The need for another debt management operation in 2026 raises red flags about its long-term viability. Additionally, the likelihood of attracting new third-party investors for capital injection appears low, especially considering the potential delay in dividend payments on the new perpetual bonds. The target price of HKD4 reflects a 64% discount to net asset value, indicating uncertainty regarding the company's access to bank loans due to its high leverage. Overall, these factors contribute to the cautious outlook and the Underperform rating.

Morgan Stanley

M Stanley

Underweight

maintain

$5.5

2025-10-06

Reason

The analyst rating for NEW WORLD DEV (00017.HK) was maintained as a "Buy" due to expectations of a potential recovery in the Hong Kong real estate market and the assumption that interest rates may further decline in the next 12-18 months. Despite a projected revenue decline and lower core operating profit, the broker raised the target price to HK$9.7, indicating a positive outlook based on these factors.

Morgan Stanley

Underweight

Price Target

$5.5

2025-10-06

maintain

The analyst rating for NEW WORLD DEV (00017.HK) was maintained as a "Buy" due to expectations of a potential recovery in the Hong Kong real estate market and the assumption that interest rates may further decline in the next 12-18 months. Despite a projected revenue decline and lower core operating profit, the broker raised the target price to HK$9.7, indicating a positive outlook based on these factors.

Morgan Stanley

Underweight

maintain

2025-10-03

Reason

The analyst rating for NEW WORLD DEV (00017.HK) was kept at Underweight by Morgan Stanley due to the company's high net gearing ratio of 77.5%, despite reducing its debt by $3.5 billion and completing loan refinancing. The broker believes that the company needs to dispose of more assets to accelerate deleveraging. Although there is an expectation for the net gearing ratio to decline to 74.5% in FY2026 and further to 73% in FY2027, the high current ratio and the need for asset disposals influenced the Underweight rating. The target price was lifted from $4.2 to $5.5, reflecting a 50% discount to net asset value per share, but the overall outlook remains cautious.

Morgan Stanley

Underweight

Price Target

2025-10-03

maintain

The analyst rating for NEW WORLD DEV (00017.HK) was kept at Underweight by Morgan Stanley due to the company's high net gearing ratio of 77.5%, despite reducing its debt by $3.5 billion and completing loan refinancing. The broker believes that the company needs to dispose of more assets to accelerate deleveraging. Although there is an expectation for the net gearing ratio to decline to 74.5% in FY2026 and further to 73% in FY2027, the high current ratio and the need for asset disposals influenced the Underweight rating. The target price was lifted from $4.2 to $5.5, reflecting a 50% discount to net asset value per share, but the overall outlook remains cautious.

DBS Group Research

Hold

maintain

$7.02

2025-09-30

Reason

The analyst rating from DBS Group Research for NEW WORLD DEV (00017.HK) is a "Hold" with a target price of HKD 7.02. This rating is based on the belief that the company's stock performance will depend on the dynamics of deleveraging news, particularly in light of the company's significant net loss of HKD 16.3 billion for FY25 due to impairment provisions and one-off expenses. However, the successful refinancing of HKD 88.2 billion in loans has alleviated its short-term debt burden, which is a positive factor in the analysis.

DBS Group Research

Hold

Price Target

$7.02

2025-09-30

maintain

The analyst rating from DBS Group Research for NEW WORLD DEV (00017.HK) is a "Hold" with a target price of HKD 7.02. This rating is based on the belief that the company's stock performance will depend on the dynamics of deleveraging news, particularly in light of the company's significant net loss of HKD 16.3 billion for FY25 due to impairment provisions and one-off expenses. However, the successful refinancing of HKD 88.2 billion in loans has alleviated its short-term debt burden, which is a positive factor in the analysis.

Valuation Metrics

Forward PE

N/A

5Y Average PE

9.67

Current PE

49.00

Overvalued PE

23.06

Undervalued PE

-3.71

Forward EV/EBITDA

5Y Average EV/EBITDA

16.95

Current EV/EBITDA

30.44

Overvalued EV/EBITDA

21.99

Undervalued EV/EBITDA

11.91

Forward PS

5Y Average PS

0.76

Current PS

0.62

Overvalued PS

1.06

Undervalued PS

0.46

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