[ET Net News Agency, 30 December 2019] Goldman Sachs raised its target price for New
World Development (NWD)(000017) to HK$11.8 from HK$11.3 and maintained its "buy" rating.
The research house factored in its latest assumptions on development properties and
revised its FY2020/21/22 EPS forecasts by -1/0/+3%. It does not view these changes as
material, and there is no change to its investment thesis or rating.
Goldman said upside risks include (1) Better-than-expected synergies from the focus on
eco-system build-up, (2) A better-than-expected earnings contribution from the entire
"Victoria Dockside" complex could materially improve its recurring cash flow and hence its
capacity to pay a higher dividend, and (3) Non-core asset monetization in China. Downside
risks are (1) Slower-than-expected property sales in China, and (2) Higher-than-expected
finance costs. (KL)