＜Research＞HSBC Global Research Cuts TP of NWD to $6.5; Deleveraging Sees Progress But No Fundamental Turnarounds Yet

　　HSBC Global Research commented that more patience would be needed for NEW WORLD DEV (00017.HK) -0.050 (-0.650%) Short selling $22.70M; Ratio 53.303% . While the broker saw progress in deleveraging, the company's fundamentals have yet to turn. NWD's three major shopping centres should start to bring in rental income, but there is still a risk of further downgrades to the forecast.

　　HSBC expected NWD to complete and start operating three major commercial projects in the next 12 months, including 11 SKIES and Kai Tak Sports Park in Hong Kong and K11 ECOAST in Shenzhen. Kai Tak Sports Park's pre-occupancy rate of over 70% should help ease some of the pressure on its deleveraging process to spend less on capital and would start to gradually contribute recurring rental income. The upcoming interest rate cut cycle will also help reduce NWD's interest burden. However, the broker believed that steady property sales and asset disposals are more important to effectively reduce the developer's debt burden.

　　HSBC trimmed its target price of NWD from $8.8 to $6.5 and maintained its Reduce rating.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-19 16:25.)

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