【港股通】新世界发展(00017)午后跌幅扩至5.28% 大摩指其利润率前景疲弱 削目标价20%

[Hong Kong Stock Connect] The decline of New World Development (00017) widened to 5.28% in the afternoon, and the weakening profit margin prospects reduced the target price by 20%

金吾財訊 ·  Apr 17 01:55

Jinwu Financial News | New World Development (00017)'s intraday stock price weakened and the decline widened in the afternoon. As of press release, it reported HK$7.53, down 5.28%, with a turnover of HK$82.558 million.

Damo said that although sales volume and property prices in the Hong Kong housing market have risen recently, New World is not the main beneficiary. The bank indicates that the company's dividend payment capital is not provided by recurring profit, and the annualized dividend ratio is still lower than that of peers.

The bank continued that New World Hong Kong's exposure to the Hong Kong property market is small; its Hong Kong housing development business accounts for about 15% of the Group's total asset value (GAV), which is 29% lower than the industry average. Due to high land costs, profit margin prospects are weak, and the profit margin before interest and tax of the New World Hong Kong property development project is expected to be only about 10%; the company's debt ratio remains at a high level after New World sells shares in Xinchuang Group (00659); the source of New World's dividend payment funding is uncertain, and the dividend ratio is lower than that of peers. Combining the above factors, Damo maintains a cautious attitude towards the New World.

The bank lowered New World's earnings estimates per share for the 2024, 2025 and 2026 fiscal years by 53%, 40% and 16%, respectively, to reflect the company's higher financial costs and lower property development profits. The target price for New World was also lowered from HK$10 to HK$8, and the “reduced holdings” rating was reiterated.

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