Update shared on 18 Sep 2025
Fair value Increased 4.44%A substantial improvement in net profit margin and a sharply lower future P/E ratio signal strengthened earnings potential and valuation appeal for New World Development, underpinning the modest increase in the consensus price target from HK$4.57 to HK$4.77.
What's in the News
- Board meeting scheduled to approve full-year results and consider a final dividend.
- Exploring sale of flagship 11 Skies mall, likely at a loss, to alleviate liquidity constraints.
- Accelerating asset sales, including China properties, and seeking up to USD 2 billion in new loans secured by Victoria Dockside.
- Missed self-imposed deadline for USD 2 billion loan deal; asset sales complicated by China’s real estate downturn.
- Net debt reached 95.5% of equity; challenging funding environment amid low property prices and tight bank lending.
Valuation Changes
Summary of Valuation Changes for New World Development
- The Consensus Analyst Price Target has risen slightly from HK$4.57 to HK$4.77.
- The Net Profit Margin for New World Development has significantly risen from 4.08% to 10.24%.
- The Future P/E for New World Development has significantly fallen from 10.00x to 4.13x.
Disclaimer
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