HSBC: New World Development (00016.HK) Benefits from Continued Recovery in Property Market, Property Development Profit Margin Rises.

According to the Wise Finance and Economics APP, DBS released a research report stating that New World Development (00016.HK) will benefit from the ongoing recovery of the Hong Kong residential property market. As the largest property developer in Hong Kong, the company has a development land reserve of approximately 19.1 million square feet, as well as a large agricultural land reserve, which will benefit from the accelerated development of the Northern Metropolis Area. At the same time, its high-quality investment property portfolio continues to bring steady recurring income. DBS has set a target price of 146.3 Hong Kong dollars for New World and maintains a "Buy" rating. The bank points out that as the Hong Kong residential prices continue to recover, New World's development business profitability is gradually improving. The bank expects that with the confirmation of high-profit projects one after another, the overall pre-tax development profit margin of its Hong Kong projects will rise from 8% in the first half of the 2026 fiscal year and approximately 12% for the whole year, to over 20% in the 2027 and 2028 fiscal years.