Jin Wu Financial News | Lyon reported that in New World Development's (00017) 2023 fiscal year's annual results, the dividend was much lower than market expectations. Excluding the one-time special dividend that may be generated from the sale of NWS Group (00659), the dividend yield is currently only 5%, the lowest of all Hong Kong property developers. The bank believes that New World Development's balance sheet will be strengthened after that, but will inevitably see some negative impact on future earnings and dividends.
The bank cut New World Development's target price by 63.3 per cent from HK $29.9 to HK $10.96 and its rating from "buy" to "sell".