Morningstar: Strong sales growth and price increases in the new world support profit margin recovery.

Morningstar's Jeff Zhang stated in a report that New World Development's strong real estate sales and gradual price increases in Hong Kong may support the long-term profitability recovery of the real estate company. He believes that the company has effectively capitalized on favorable real estate market conditions in the city to boost its sales. The analyst expects that its operating profit margin could reach 35%, significantly higher than the 21.3% in the 2025 fiscal year. He added that the company may also accelerate the sale of its non-core assets to ease debt pressures. Morningstar maintains its fair value estimate of HK$6.60 and anticipates stronger real estate sales in the 2026 fiscal year.