DBS: Lower K. WAH INT'L (00173) target price to 2.8 Hong Kong dollars, maintain "buy" rating.

According to a research report by DBS, after K. WAH INT'L (00173) stock price dropped by 13% in the past three months, it is currently trading at a discount of 83% to its net asset value, with an average discount of 75% over the past ten years. The bank applies a target discount rate of 79% to the forecasted net asset value in June 2027, lowering the target price from HKD 3 to HKD 2.8, while maintaining a "buy" rating. The bank believes that K. WAH is an overlooked mid-sized developer, with a diversified portfolio of residential development projects in Hong Kong, the Greater Bay Area, and the Yangtze River Delta, providing a balanced and sustainable source of profitability for the company. Continuous sale of residential projects should further unlock the net asset value, and the company's sound financial condition allows for flexible acquisition of land that can enhance value. These factors are expected to support the company's valuation and stock performance.