Glonghui, March 6 | First Shanghai released a research report. The target price for New World Development is HK$15.6, which has room for a 78% increase compared to the closing price on March 4 (HK$8.77), maintaining the “buy” rating. The company has a twin-engine layout in mainland Hong Kong, with equal emphasis on developing and owning properties. It has maintained steady operation and a good financial structure, and the brand effect is remarkable. The company continues to improve operational efficiency, sell non-core assets, actively repurchase and redeem corporate bonds, and continuously optimize its financial structure. The bank expects the company's net profit to be HK$670 million, $710 million and HK$750 million for the next three years, respectively. The company recently announced its results for the first half of fiscal year 23/24, with revenue from continuing operations of HK$17.06 billion. Core profit from continuing operations increased 12% year over year to HK$4.86 billion, and plans to pay an interim dividend of HK$0.2 billion per share. According to the research report, 1) New World Development is rich in land reserves, which is expected to support sales stabilization: Hong Kong contract sales of HK$143 million during the period; Mainland contract sales of HK$7.55 billion, which has reached 50% of the annual target; 2) Investment revenue grew steadily, and the two major projects are progressing as scheduled: the company's rental revenue increased 12% year-on-year to HK$2.67 billion during the period. Shenzhen K11 ECOAST will open at the end of this year, and Hong Kong's Kai Tak Sports Park will also be completed by the end of this year; 3) The net debt ratio of the company is expected to drop by the end of 2023 Can be used With capital of approximately HK$52 billion, the company's net debt ratio is expected to enter a downward channel in the future.