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hsbc upgrades china jinmao to buy raises target to hk dollar 1.50
HSBC has upgraded China Jinmao Holdings from Hold to Buy, raising the price target to HK$1.50 from HK$1.10, following the company's shift from a net loss in 2023 to a net profit in 2024. The improvement in property development gross margin to 11% and a positive outlook for new projects support this optimistic forecast. Despite challenges with vintage landbank, the company is positioned for margin recovery, indicating a potential industry turnaround.
new world development faces liquidity challenges amid falling stock prices
New World Development (NWD) faces a liquidity crisis, prompting analysts at HSBC to suggest a debt-reduction plan or cash injection from the Cheng family. The company's shares have plummeted 37% since late November, leading to a revised stock-price target of HK$3.66. A comprehensive deleveraging strategy is recommended to alleviate investor concerns, as NWD attempts to boost sales by pricing its residential units at multi-year lows.
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