Bank of America Merrill Lynch: Upgrades New City Development (01030.HK) to "Buy" with target price raised to 3.2 Hong Kong dollars.

According to the Zhitong Financial APP, Bank of America released a research report stating that it has upgraded its rating on China New Town Development (01030.HK) from "Neutral" to "Buy", and has raised the target price from 2.2 Hong Kong dollars to 3.2 Hong Kong dollars. This is due to the successful transformation of the group from a real estate developer to a leading shopping mall operator, with strong brand and excellent operational capabilities promoting market integration. In addition, the group recently successfully issued USD bonds for refinancing, which can further reduce the group's liquidity risk, allowing investors to focus on its fundamental value. The report mentions that the group's rental income in the first quarter of this year increased by 13% year-on-year, and the bank expects double-digit growth for the full year. It is also expected that the group's profit can reach 3 billion yuan by the 2028/29 financial year, and losses due to property development will gradually decrease by then.