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中信证券:首予新世界发展“买入”评级 目标价19港元 第三代接班人领航新方向

CITIC Securities: First for New World Development, “Buy” Rating, Target Price HK$19, Third Generation Successor Leads New Direction

新浪港股 ·  11/03/2023 11:01

According to a research report released by CITIC Securities, New World Development (00017), as one of the few Hong Kong-funded developers located in mainland China and Hong Kong simultaneously, has some market influence and practical experience in both markets. The company's agricultural land reserves in Hong Kong have high conversion value, and there is good support for the mainland market strategy to focus on core regional sales and decontamination. Considering that the company's net debt ratio level is still high, and there are still some non-core assets in the report, but in the future, more high-quality projects will be invested in operations to contribute performance. CITIC Securities gave the company a PB valuation of 0.25x and a PE valuation of 4x for fiscal year 2024. The comprehensive average target stock price was HK$19/share, covering the first time, giving it a “buy” rating.

Since 2023, the number of visitors to consumer retail and shopping centers in Hong Kong and mainland China has continued to pick up. According to the Hong Kong Economic Times, the number of visitors to K11Musea and K11ArtMall, a subsidiary of the K11 Group, during the 2023 National Day and Mid-Autumn Festival holidays increased by more than 70% year on year, setting a record high since opening, and sales increased by more than 40% year on year.

CITIC Securities pointed out that the K11 series product line developed by New World has become the core force for investment and property management growth. The company expects to operate a total of 38 K11 series projects (including 4 asset-light management projects) by fiscal year 2026, providing strong growth momentum for the future performance of the investment property division.

CITIC Securities said that as consumption continues to pick up in the two places, the K11 series star's main product line developed by New World is expected to contribute to the long-term growth momentum of investment properties. The company continues to streamline and optimize its business structure around the main real estate business and continuously dispose of non-core assets. Financial leverage is expected to be steadily optimized. Furthermore, about 90% of the company's farmland reserves in Hong Kong are located within the northern metropolitan area, and it is expected that the potential value of farmland will continue to be unleashed through farmland conversion actions.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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