New World Development Likely to See Higher Cash Flows, but Risks Remain
Dow Jones
Yesterday
0257 GMT - Investor concerns over higher interest rates and potential rights issues or placements remain for New World Development, says Citi analyst Cindy Li in a note. A 25-basis-point interest rate increase could add 200 million Hong Kong dollars to the company's finance costs, with management yet to clarify its plans regarding a potential equity raise, the note says. On the positive side, Citi expects FY2027 cash flows to improve from property sales, asset divestments and a REIT IPO. The analyst also expects the developer's net debt to fall in 1H. Citi maintains its neutral rating with a HK$6.90 target. Shares closed 0.9% higher at HK$6.05 Wednesday.
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