[ET Net News Agency, 14 February 2018] Nomura initiated coverage on New World
Development (NWD)(00017) with a "buy" rating and target price of HK$14.
It believes that there is room for outperformance in the next 12 months, with multiple
company-specific drivers: (1) "Victoria Dockside" completion; (2) farmland conversion; and
(3) scaling up its Hong Kong and China property development businesses.
Nomura believes that "Victoria Dockside" will contribute a rental revenue of
HK$1.1bn/2bn for FY2019-20, and expects the DPS growth to accelerate to 6.6% CAGR in
FY2019-21, even when DPS as a percentage of recurring EPS to decline from 148% in FY2017
to 113% in FY2021, with the shortfall covered by the HK property development's
contribution. (KL)