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<Research>BofAS: Shr Price Likely to React Negatively as NEW WORLD DEV (00017.HK) Defers Perpetual Bond Interest Payment
NEW WORLD DEV (00017.HK) reportedly made progress in bank loan refinancing recently, BofA Securities issued a research report saying. The Group also announced that its total contra...
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<Research>BofAS: Shr Price Likely to React Negatively as NEW WORLD DEV (00017.HK) Defers Perpetual Bond Interest Payment
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NEW WORLD DEV (00017.HK)  +0.050 (+1.101%)    Short selling $11.47M; Ratio 18.132%   reportedly made progress in bank loan refinancing recently, BofA Securities issued a research report saying. The Group also announced that its total contracted sales in mainland China and Hong Kong reached $24.8 billion, achieving over 95% of its full-year target.

However, after the market closed last Friday (30 May), NEW WORLD DEV unexpectedly announced the deferral of interest payments on 4 perpetual securities.

Related NewsHSBC Research Keeps Rating Reduce on NWD; Deferrals of Perpetual Distributions Signal Financial Pressure
Although the deferral does not constitute a default and is understood to be at the request of banks, the event may heighten investor concerns about its liquidity status and asset disposal, likely leading to a negative reaction in its share price, in BofA Securities' view.

Therefore, BofA Securities kept rating at Underperform on NEW WORLD DEV, with a target price of $3.4, and estimated that the Group has US$630 million bonds maturing in 2027. The broker also believed that NEW WORLD DEV may need to undertake debt management operations in 2027, which could pose liquidity pressure if its business units fail to generate more cash.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-05 16:25.)

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