Company Reports

New World Development has seen solid property sales in Hong Kong, with Pavilia Farm generating HKD 5.9 billion in contracted sales and the high-end Pavilia Rosa attracting strong homebuyer interest through May 2026. The firm is also upgrading 30% of floor space at its flagship K11 Musea mall.

New World Development is a leading property developer in Hong Kong and mainland China under the Cheng family, with property development and investment as core businesses. As NWD aims to raise the revenue mix of investment properties, we think execution efficiency remains crucial for the group to maintain healthy top-line growth. We believe NWD is poised to leverage the success of its well-received K11 commercial project in Victoria Dockside to expand its portfolio of K11 malls in the wealthy cities of mainland China. With continued floor area expansion and upward rental reversion, we estimate that recurring earnings from investment properties should represent over 30% of NWD’s operating profit in fiscal 2030.

New World Development is a leading property developer in Hong Kong and mainland China under the Cheng family, with property development and investment as core businesses. As NWD aims to raise the revenue mix of investment properties, we think execution efficiency remains crucial for the group to maintain healthy top-line growth. We believe NWD is poised to leverage the success of its well-received K11 commercial project in Victoria Dockside to expand its portfolio of K11 malls in wealthy cities of mainland China. With continued floor area expansion and upward rental reversion, we estimate that recurring earnings from investment properties should represent over 30% of NWD’s operating profit in fiscal 2030.

New World Development's revenue and operating profit decreased by 50% and 18% year on year, respectively, in the first half of fiscal 2026 (ending June). While recovering property development margin lifted the firm's profitability, net gearing ratio stayed elevated at 60%.

New World Development achieved over HKD 33 billion in property sales in 2025, the highest in the past five years, according to media reports. The firm also cut its perpetual bonds and notes by HKD 9.1 billion combined through debt swaps, with perpetual bonds representing most of the reduction.

New World Development is a leading property developer in Hong Kong and mainland China under the Cheng family, with property development and investment as core businesses. As NWD aims to raise the revenue mix of investment properties, we think execution efficiency remains crucial for the group to maintain healthy top-line growth. We believe NWD is poised to leverage the success of its well-received K11 commercial project in Victoria Dockside to expand its portfolio of K11 malls in mainland China over the next few years. With continued floor area expansion and upward rental reversion, we estimate that recurring earnings from investment properties should represent over 30% of NWD’s operating profit in fiscal 2030.

New World Development's net loss widened to HKD 16.3 billion in fiscal 2025 (ended June) from HKD 11.8 billion in fiscal 2024. Despite seeing a net gearing ratio above 58%, NWD improved its liquidity through an HKD 5.9 billion loan by pledging Victoria Dockside commercial assets.

New World Development is a leading property developer in Hong Kong and mainland China under the Cheng family, with property development and investment as core businesses. As NWD aims to raise the revenue mix of investment properties, we think execution efficiency remains crucial for the group to maintain healthy top-line growth. We believe NWD is poised to leverage the success of its well-received K11 commercial project in Victoria Dockside to expand its portfolio of K11 malls in mainland China over the next few years. With continued floor area expansion and upward rental reversion, we estimate that recurring earnings from investment properties should represent over 30% of NWD’s operating profit in fiscal 2030.

New World Development is a leading property developer in Hong Kong and mainland China under the Cheng family, with property development and investment as core businesses. As NWD aims to raise the revenue mix of investment properties, we think execution efficiency remains crucial for the group to maintain robust top-line growth. We believe NWD is poised to leverage the success of its well-received K11 commercial project in Victoria Dockside to expand its portfolio of K11 malls in mainland China over the next few years. With continuing floor area expansion and upward rental reversion, we estimate that recurring earnings from investment properties should represent over 30% of NWD’s operating profit in fiscal 2029.

New World Development announced on May 30, 2025, the deferral of interest payments for four perpetual bonds originally due June 9-22. NWD previously shared that contracted sales for fiscal 2025 (ending June) reached about HKD 24.8 billion—over 95% of the annual sales target.

New World Development is a leading property developer in Hong Kong and mainland China under the Cheng family, with property development and investment as core businesses. As NWD aims to raise the revenue mix of investment properties, we think execution efficiency remains crucial for the group to maintain robust top-line growth. We believe NWD is poised to leverage the success of its well-received K11 commercial project in Victoria Dockside to expand its portfolio of K11 malls in mainland China over the next few years. With continuing floor area expansion and upward rental reversion, we estimate that recurring earnings from investment properties should represent over 30% of NWD’s operating profit in fiscal 2029.

New World Development posted an HKD 6.6 billion net loss for first-half fiscal 2025 (ended December 2024), in line with the profit warning. The net debt/equity ratio remains elevated at 57.5% mainly due to write-offs on property assets.

New World Development, or NWD, announced the resignation of CEO Ma Siu-Cheung and the appointment of Huang Shaomei as his successor on Nov. 29, 2024. This was unexpected, given that Ma just replaced Adrian Cheng as CEO in September. Despite scant details on the latest management reshuffle, we believe this reflects pronounced challenges for NWD to deleverage amid a weak property market in Hong Kong and mainland China, in our view. However, we expect no material impact on NWD's strategic focus on divesting noncore assets and accelerating new projects' sales to improve its balance sheet. As such, we maintain our key assumptions and an HKD 8.50 per share fair value estimate on the company. While NWD's shares become undervalued following the recent slump, we prefer its peer Henderson Land given better financial strength and more robust dividend yield.

New World Development’s HKD 19.7 billion net loss for fiscal 2024 (ended in June) aligns with its prior profit warning. The bigger surprise came from management’s reshuffle, in which the current COO, Ma Siu-Cheung, replaced Adrian Cheng as the new CEO on Sept. 26, 2024. While we do not expect any major change in NWD’s operations, we think the new management team will likely accelerate debt repayments to deleverage. This may revive investors' confidence in the company, which saw an elevated net gearing ratio of 55% as of June 2024. NWD reiterated ongoing plans of divesting noncore assets and containing operating costs to ease financial pressure. We think the positive shift in homebuyers’ sentiment in Hong Kong and mainland China amid policy tailwind and interest rate reduction is also conducive.

New World Development is a leading property developer in Hong Kong and mainland China under the Cheng family, with property development and investment as core businesses. As NWD aims to raise the revenue mix of investment properties, we think execution efficiency remains crucial for the group to maintain robust top-line growth. We believe NWD is poised to leverage the success of its well-received K11 commercial project in Victoria Dockside to deliver the new 11 Skies project in Hong Kong. We also expect the group to complete a rich portfolio of K11 malls over the next five years in mainland China. With continuing floor area expansion and upward rental reversion, we estimate that recurring earnings from investment properties should represent over 30% of NWD’s operating profit in fiscal 2029.

New World Development, or NWD, is a leading property developer in Hong Kong and mainland China under the Cheng family, with property development and investment as core businesses. As NWD aims to raise the revenue mix of investment properties, we think execution efficiency remains crucial for the group to maintain robust top-line growth. We believe NWD is poised to leverage the success of its well-received K11 commercial project in Victoria Dockside to deliver the new 11 Skies project in Hong Kong. We also expect the group to complete a rich portfolio of K11 malls over the next five years in mainland China. With continuing floor area expansion and upward rental reversion, we estimate that recurring earnings from investment properties should represent over 30% of NWD’s operating profit in fiscal 2028.

No-moat New World Development gave a brief business update for fiscal 2024 (ending June), saying that its net gearing ratio may not see material improvement in the near term amid weak home demand and consumption behavior in mainland China and Hong Kong. Nonetheless, it is more optimistic about the property market’s secular trend, given lower interest rates and a revival in homebuyer sentiment prospects in both regions, which should enhance NWD's financial strength. Despite respective downward tweaks of 14% and 7% for NWD’s fiscal 2024 contracted sales in Hong Kong and mainland China, we incorporate a more constructive outlook for sales in fiscal 2025-26, leading to minor changes in our three-year property development revenue compound annual growth rate forecast. Management also remains confident about achieving the HKD 8 billion asset disposal plan for fiscal 2024 as more deals may be closed by June. While this will mildly weigh on NWD’s top line, we expect new commercial projects to contribute to recurring income from fiscal 2025 onward. As such, we keep our HKD 10 per share fair value estimate and view shares as underpriced. However, we see limited short-run share price drivers for the firm as its property businesses will likely need a longer time to stabilize.

We cut our fair value estimate on New World Development, or NWD, to HKD 10 per share from HKD 17, given a more conservative outlook for its inventory turnover and top-line growth. For first-half fiscal 2024 (ending June), NWD reported a 25% year-on-year drop in its core property businesses’ revenue, mainly due to subdued homebuying sentiment in Hong Kong and mainland China. Despite policy tailwinds in both regions, we foresee a tempered sales rebound and slower housing inventory clearance amid price softness. While first-half rental income from investment properties was more resilient, we project the pickup to moderate, with normalizing shopping footfall and weak demand for office space. As such, we lower our fiscal 2024-28 property businesses revenue compound annual growth rate assumption to 6.7% from 9.7%. That said, we like the firm’s debt redemption to contain the high net ratio of around 50%, and expect more repayment through the proceeds from the disposal of its nonproperty businesses. Given NWD’s limited valuation upside and lower regular dividend payouts, we prefer peer Henderson Land, given its stronger balance sheet and better risk/reward.

New World Development, or NWD, is a leading property developer in Hong Kong and mainland China under the Cheng family, with property development and investment as core businesses. As NWD aims to raise the revenue mix of investment properties, we think execution efficiency remains crucial for the group to maintain robust top-line growth. We believe NWD is poised to leverage the success of its well-received K11 commercial project in Victoria Dockside to deliver the new 11 Skies project in Hong Kong. We also expect the group to complete a rich portfolio of K11 malls over the next five years in mainland China. With continuing floor area expansion and upward rental reversion, we estimate that recurring earnings from investment properties should represent over 30% of NWD’s operating profit in fiscal 2028.

We lower our fair value estimate of New World Development, or NWD, to HKD 17 from HKD 21, as its fiscal 2023 (ended June 30) revenue and operating profit both missed Refinitiv consensus, which we think was due to compressed home prices and profit margins for residential properties. We are more concerned about NWD’s cut of its regular dividend by over 60% for fiscal 2023 (stripping out special dividend). While NWD’s net gearing ratio of 47% stayed elevated even after factoring in NWS’ business spinoff, we view the firm’s liquidity risk as manageable given limited short-term refinancing needs and pressure on cash flow. As soft homebuying demand in Hong Kong and mainland China should persist, we trim our forecast of NWD’s average selling price for residential projects, as well as of the gross margins and dividend payout through fiscal 2028, but are more positive on investment properties’ earnings amid retail sales pickup and floor area expansion. Despite our valuation revision, NWD’s shares remain slightly underpriced as we think the recent selloff on financing concerns is overdone.