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Smartkarma AI

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

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<ul>
 <li>
<a href="https://smartkarma.com/entities/new-world-development">New World Development</a> (NWD) is a high-leverage property developer currently trading at a significant discount to its book value, positioning it as a high-risk, high-reward play on the Hong Kong property market and future interest rate cuts.</li>
 <li>The company has experienced severe financial distress, reporting substantial net losses and negative cash flows over the past two years, leading to a sharp dividend cut and a deeply negative growth track record across all key metrics.</li>
 <li>Management is actively pursuing a deleveraging strategy through asset disposals and debt management, such as the recent exchange offer for its perpetual securities. The success of these initiatives is critical to navigating the challenging market and restoring investor confidence.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
New World Development (NWD) is a high-leverage property developer currently trading at a significant discount to its book value, positioning it as a high-risk, high-reward play on the Hong Kong property market and future interest rate cuts.
  The company has experienced severe financial distress, reporting substantial net losses and negative cash flows over the past two years, leading to a sharp dividend cut and a deeply negative growth track record across all key metrics.
  Management is actively pursuing a deleveraging strategy through asset disposals and debt management, such as the recent exchange offer for its perpetual securities. The success of these initiatives is critical to navigating the challenging market and restoring investor confidence.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: New World Development (17 HK) - Dec 2025

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Credit

<ul><li>Further to our summary on the exchange offers on 3 Nov’25, we share below more of our thoughts on the LME after numerous client discussions and discussions with the LME advisor.</li><li>In brief, NWD launched holistic exchange offers for all of its 5 perps and 6 USD bonds with a total outstanding amount of cUSD6.8bn to exchange into new perp with an initial coupon rate of 9% and bond due 2031 with a coupon rate of 7%.</li><li>The maximum new perp and bond to be issued will be USD1.9bn, including the cap on new perp issue at USD1.6bn. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Further to our summary on the exchange offers on 3 Nov’25, we share below more of our thoughts on the LME after numerous client discussions and discussions with the LME advisor.In brief, NWD launched holistic exchange offers for all of its 5 perps and 6 USD bonds with a total outstanding amount of cUSD6.8bn to exchange into new perp with an initial coupon rate of 9% and bond due 2031 with a coupon rate of 7%.The maximum new perp and bond to be issued will be USD1.9bn, including the cap on new perp issue at USD1.6bn. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CMBI Fixed Income - NWD: A LME focusing on perps

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

<ul>
<li>We believe that New World Development's (NWD) focus for the proposed exchange offers is to reduce its outstanding debt, mainly by restructuring the existing perps.</li>
<li>Hence, the exercise, if completed, would be credit positive for the company.</li>
<li>This would in turn support the prices of the existing straight bonds.</li>
</ul>


We believe that New World Development's (NWD) focus for the proposed exchange offers is to reduce its outstanding debt, mainly by restructuring the existing perps.
Hence, the exercise, if completed, would be credit positive for the company.
This would in turn support the prices of the existing straight bonds.


New World Development - Event Flash - Exchange Offers For All USD Perps And Bonds - Lucror Analytics

Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

<ul>
<li>New World announced FY25 results, market reaction was initially negative, due to losses to shareholders.  Stock was down 10% post open but rebounded quickly to recover all the losses</li>
<li>However, we think the market has neglected the other positives: strong contract sales, resilient IP earnings, improved total debt, stabilized gearing and lower borrow cost</li>
<li>Market is forward-looking, we think NWD, as a leveraged play, will benefit the most in rate cut cycle.  At current valuation (0.12x PB) – we continue to stay bullish</li>
</ul>


New World announced FY25 results, market reaction was initially negative, due to losses to shareholders.  Stock was down 10% post open but rebounded quickly to recover all the losses
However, we think the market has neglected the other positives: strong contract sales, resilient IP earnings, improved total debt, stabilized gearing and lower borrow cost
Market is forward-looking, we think NWD, as a leveraged play, will benefit the most in rate cut cycle.  At current valuation (0.12x PB) – we continue to stay bullish


A Contrarian View on New World: Market Is Forward-Looking, Bet on Leveraged Play in Rate Cut Cycle

<ul>
<li>New World Development's (NWD) FY 2024-25 results were weak, with the company reporting another large net loss of HKD 16.3 bn (after the HKD 19.7 bn loss in FY 2023-24), mainly driven by impairment losses.</li>
<li>Underlying business performance was also soft, as core operating profit (excluding one-off items) fell 13% y-o-y.</li>
<li>That said, OCF was strong and FCF was positive. This was supported by higher property deliveries in Hong Kong, lower capex (for land and construction) and G&amp;A expenses, as well as the stoppage of dividend payments and perpetual distributions.</li>
</ul>


New World Development's (NWD) FY 2024-25 results were weak, with the company reporting another large net loss of HKD 16.3 bn (after the HKD 19.7 bn loss in FY 2023-24), mainly driven by impairment losses.
Underlying business performance was also soft, as core operating profit (excluding one-off items) fell 13% y-o-y.
That said, OCF was strong and FCF was positive. This was supported by higher property deliveries in Hong Kong, lower capex (for land and construction) and G&amp;A expenses, as well as the stoppage of dividend payments and perpetual distributions.


New World Development - Earnings Flash - FY 2024-25 Results - Lucror Analytics

Hong Kong

New World Development Company Limited, through its subsidiaries, develops and invests in properties, provides contracting services, property management, and transportation services.  The Company also operates infrastructure business, telecommunication services, department stores, hotels and restaurants, and media and technology business.

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New World Development (17 HK)

Primer: New World Development (17 HK) - Dec 2025

New World Development (NWD) is a high-leverage property developer currently trading at a significant discount to its book value, positioning it...

αSK

CMBI Fixed Income - NWD: A LME focusing on perps

Further to our summary on the exchange offers on 3 Nov’25, we share below more of our thoughts on the LME after numerous client discussions and...

CMB International

New World Development - Event Flash - Exchange Offers For All USD Perps And Bonds - Lucror Analytics

We believe that New World Development's (NWD) focus for the proposed exchange offers is to reduce its outstanding debt, mainly by restructuring...

Lucror Analytics

A Contrarian View on New World: Market Is Forward-Looking, Bet on Leveraged Play in Rate Cut Cycle

After FY25 results, NWD was down 10% post Monday's open but recovered all the losses. We are forward looking and think the worst is behind us -...

Jacob Cheng

New World Development - Earnings Flash - FY 2024-25 Results - Lucror Analytics

New World Development's (NWD) FY 2024-25 results were weak, with the company reporting another large net loss of HKD 16.3 bn (after the HKD...

Lucror Analytics

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