NEW WORLD DEVELOPMENT COMPANY LIMITED 1HFY2023
INTERIM PRESENTATION
ANALYST BRIEFING
23 February 2023
SUMMARY FINANCIALS
1HFY23 FINANCIAL SUMMARY
Continued Covid-19 disruptions hindered 1HFY23 financial performance
Revenue
HK$40,193M
+13% YoY
Capital resources
HK$92 BN
HK$ 57 bn cash and bank
balances
HK$ 35 bn undrawn lines
Net profit attributable to
shareholders
HK$1,209M
-15% YoY
Net gearing ratio
46.9%
+3.7 ppts HoH
Already peaked in Dec 22
Underlying profit
HK$3,360M
-14% YoY
Interim dividend
HK$0.46/share
1HFY22: HK$0.56/share
1
KEY HIGHLIGHTS IN 1HFY23
SOLID DP AND K11 RESULTS AMIDST CHALLENGING ENVIRONMENT NON-CORE DISPOSALS ON TRACK OF FULL YEAR TARGET
1HFY23 financial highlights
Strong HK DP performance driven by Pavilia | Resilient Mainland China contracted |
Farm I booking | sales with strong presence in 1st tier cities |
Development
properties
Revenue (HK$ M)
5,542 | |
767 | |
1HFY22 | 1HFY23 |
Segment results (HK$ M)
909 | |
542 | |
1HFY22 | 1HFY23 |
~60%
of full year target
(RMB 15 bn) achieved
K11 YoY growth (HK and Mainland China) | Resilient K11 performance amidst | |
Revenue | Segment results | tough retail environment |
Investment properties
1HFY22 | 1HFY23 | 1HFY22 | 1HFY23 |
Non-core disposals (HK$ bn) | Confident to exceed full year target | ||||
Non-core | ~10 | Full year | Penta | KOHO | |
disposals | target | Hotel | HK$2.1 bn | ||
HK$2.0 bn | |||||
5.6 | on track | Status: | Status: | ||
Completed | |||||
SPA signed | |||||
1HFY23 | FY23 target |
2
POSITIVE OUTLOOK IN 2023
NWD A KEY BENEFICIARY OF IMPROVING OPERATING ENVIRONMENT IN HK & MAINLAND CHINA
Despite the headwinds in 1HFY23, we are seeing positive catalysts going forward
2019
Social unrest
2020-2022
Covid-19
2023 and beyond
Full relaxation of covid restrictions and full border reopening
Key catalysts in 2023 | Key business segments benefiting from catalysts | |||||||||
DP | IP | Hotel | NWS | |||||||
Mainland China | Market | ||
ended covid | recovery and | Guangzhou Hanxi | Shanghai K11 |
sentiment | |||
zero policy | |||
improvement | |||
Shanghai Putuo 1 & 2 | Wuhan Hankou K11 | ||
Border reopening | |||
between HK and | Kaitak runway projects X4 | ||
Mainland China | |||
Market | |||
recovery and | |||
sentiment | |||
improvement | Wong Chuk Hang Phase 5 |
Interest rate
stabilizing
infrastructure
Mainland China businesses
Road and logistics
Hospitality and
insurance
Hong Kong Businesses
State Theatre Project
3
POSITIVE OUTLOOK IN 2023
HK: SIGNIFICANT INCREASE IN MAINLAND CHINESE VISITORS (MCV) FROM BORDER REOPENING BENEFITED OUR BUs
Full border reopening | Management alpha | ||||||
Since full border reopening (from 6 Feb 23), | Brand | Good | Strong | Differentiated | |||
no. of daily average MCV was 18X of Dec 22 daily average | customer | ||||||
value | tenant mix | CRM | |||||
experience | |||||||
Source: HK Immigration Department | Significant improvement in BUs | ||||||
performances | |||||||
K11 MUSEA | FTLife | ||||||
Feb 23 MTD | Mall sales | 100% YoY | CNY period | APE | 30% YoY | ||
Footfall | 100% YoY | Policies to MCV | 60% YoY | ||||
2023 forecast | Mall sales | Exceed 15% of original budget | |||||
Humansa | |||||||
K11 Art Mall | CNY period | Revenue | 4X YoY | ||||
Feb 23 MTD | Mall sales | 80% YoY | (~80% of revenue from Mainland China business) | ||||
Footfall | 85% YoY | FreeDuty | |||||
20% of pre-covid level, expect to | |||||||
2023 forecast | Mall sales | Exceed 20% of original budget | Feb 23 YTD | Sales | |||
recover in phases | |||||||
K11 ARTUS | |||||||
After full border reopening (from 6 Feb 23)
Revenue | >50% YoY |
Mainland customers # | 4X YoY |
Office leasing
Jan 23
Leasing and sales enquiries | 200% MoM |
Note: 1. CNY period YoY comparison between 15-28 Jan 23 and 25 Jan 22 - 7 Feb 22 | 4 |
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Disclaimer
New World Development Co. Ltd. published this content on 23 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2023 08:42:02 UTC.
