[ET Net News Agency, 3 December 2020] HSBC Global Research lowered its target price for
New World Development (NWD) (00017) to HK$49.2 from HK$50.3 and maintained its "buy"
rating.
The research house said the growing tenants' sales performance in its "Victoria
Dockside" project and strong sales performance of "The Pavilia Farm" during the
challenging time in Hong Kong have shown strong execution capabilities.
With an expected improvement of the overall real estate market, NWD's solid project
pipeline should help it to recover faster than most of the peers. HSBC expects its HK
rental portfolio to increase by 150%, while its mainland China rental portfolio to
increase by 240% in terms of GFA, in the coming five years. Dividend distribution is also
of high visibility. HSBC believes NWD's earnings have bottomed in FY2020 and is set to
improve with an expected earnings CAGR of 21% in FY2020-23. (KL)