J.P. Morgan lowered its target price for New World Development (00017) to HK$43.1 from HK$44 and maintained its "overweight" rating.
The research house said the target price cut was due to the changes in the market values of its listed subsidiaries, which is partially offset by the disposals of Eight Kwai Fong and Shun Tak Center in Hong Kong.
It revised down its core profit estimates for FY2020/21/22 by 9%/5%/5%, respectively, on the back of the lower profit estimates on both subsidiary and associate/JV levels derived from NWS Holdings' (00659) operations. JPM also factored in a larger estimated operating loss for NWD's hotel business.
JPM maintained its FY2020 DPS forecast at HK$2.04, flat versus that of FY2019. But it revised down the DPS estimates for FY2021/22 by 2%/3%, respectively, given the lower profit estimates.
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