Haitong International reported that Xinjiang's (00016.HK) core net profit for the year ended June fell 9% year-on-year. Results were broadly in line with expectations, taking into account slowing sales and inflows of its development properties, lowered revenue forecasts for FY2025 and 2026 by 9% and 2%, respectively, and year-on-year net profit forecasts down 9% and 4%, respectively. The latest target price of $90 represents a 58% discount to the estimated net asset value (NAV) per share (NAV) and a target dividend yield of 4.2%. The bank maintained a “better than major” rating for NDI, citing a healthy net debt ratio in New Zealand from 21% to 18%, and a good track record of a four to five per cent basic-earnings ratio, and believes the company can maintain the dividend policy for years to come.

The bank also noted that the profit on sales of new development properties fell 31% year-on-year, but the profit margin was still reasonable compared to its Hong Kong peers by 10 percentage points to 26% year-on-year. The profit margin on investment property remained stable in the previous financial year, with recurring income close to its all-time high of $23.9 billion. The investment property business of the feed company will continue to support results.