Glonghui, March 1 | BOC International released a research report showing that New World Development (0017 HK) had stable results in the first half of fiscal year 2024, with revenue reaching HK$17 billion. Core profit from continuing operations increased 12% year over year to HK$4.86 billion, mainly due to increased profit margins and cost savings. Interim dividend of HK$0.2 per share. Real estate development revenue was HK$6.74 billion, and operating profit increased 9.7% year over year to HK$3.95 billion. Furthermore, the company expects the Hong Kong market's turnover to increase by 40-50% after policy relaxation, and will accelerate the sale of its Kai Tak and Wong Chuk Hang projects in the second half of the fiscal year, while raising the target for disposal of non-core assets to HK$8 billion. Rental income in Hong Kong/the Mainland increased by 17.0%/3.7%, respectively, and the comprehensive operating margin increased 1.3 percentage points to 65.6%. New World expects the overall rent contribution to revenue to increase from about 30% this year to about 50% in 2026, and the bank expects rental revenue to achieve a compound annual growth rate of about 23% in the 2024-2026 fiscal year. The bank believes that the net market ratio of about 0.13 times (0.3 to 0.4 times the average of peers) fully reflects market concerns about its debt, and may be re-valued due to the government's recent easing of property market measures. Based on the net asset value estimate of HK$63.2 per share and a 75% discount (both unchanged), the target price was maintained at HK$15.8 and the “buy” rating was maintained.