$28 Billion Shock: Hong Kong Giant Defers Debt Payments, Investors Blindsided
Warning! GuruFocus has detected 8 Warning Signs with NDVLY.
The developer, grappling with HK$220 billion ($28 billion) in liabilities, said the deferment is part of a broader effort to manage debt amid market volatility. But skepticism is rising. Morningstars Jeff Zhang noted the move, though not a default, adds to the future repayment burden. Nomura analysts called the action a credit negative, and floated the possibility of selective bond repurchases to ease pressure. Bondholder discussions with PJT Partners reportedly continue behind the scenes, though no formal action has been proposed. Its a stark reminder of the fragility still lingering in Hong Kongs real estate landscape, where rising vacancies and softening rents are squeezing even the most storied names.
There is, however, a thread of optimism. As of late May, New World had reportedly secured commitments for around 60% of the HK$87.5 billion in refinancing its targeting by end-June. Management expects more progress after the public holiday. On the sales front, year-to-date property sales have already hit 95% of its full-year goal, according to its latest business update. Still, with a share price trading at just 0.07 times book and a market cap of $1.4 billiondown from $17 billion in 2019investors will likely need more than sales milestones to regain confidence. The next few weeks could determine whether this is a short-term scare or the start of something deeper.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
6 hours ago
- Business Insider
J.P. Morgan downgrades Bilibili, Inc. Class Z (9626) to a Hold
J.P. Morgan analyst downgraded Bilibili, Inc. Class Z to a Hold today and set a price target of HK$185.00. The company's shares closed last Friday at HK$184.80. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Bilibili, Inc. Class Z with a HK$201.50 average price target. The company has a one-year high of HK$238.80 and a one-year low of HK$98.90. Currently, Bilibili, Inc. Class Z has an average volume of 5.21M.
Business Insider
6 hours ago
- Business Insider
Netease Inc (9999) was downgraded to a Hold Rating at J.P. Morgan
In a report released today, from J.P. Morgan downgraded Netease Inc to a Hold, with a price target of HK$220.00. The company's shares closed last Friday at HK$213.00. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Currently, the analyst consensus on Netease Inc is a Moderate Buy with an average price target of HK$228.60. The company has a one-year high of HK$222.80 and a one-year low of HK$116.00. Currently, Netease Inc has an average volume of 7.07M.
Yahoo
2 days ago
- Yahoo
HELLA GmbH & Co KGaA (HLLGY) (H1 2025) Earnings Call Highlights: Navigating Challenges with ...
Organic Sales: EUR4 billion, down 2.4% year on year. Reported Sales: Decreased by 1.3%. Lighting Sales: Down 7.4% in the first half. Electronics Sales: Grew by 6.6% to EUR1.6 billion. Life Cycle Solutions Sales: Down 6.6% year on year. Operating Income Margin: Stable at 6%. Net Cash Flow: Positive EUR114 million, up 34% from last year. Headcount Reduction: Reduced by 3.4% in the first six months. R&D Expenses: Reduced to below 10% of sales. Guidance for Full Year Sales: EUR7.6 billion to EUR8 billion. Guidance for Operating Income Margin: 5.3% to 6%. Guidance for Net Cash Flow: At least EUR200 million by year-end. CapEx Reduction: Reduced by 15% compared to last year. Warning! GuruFocus has detected 8 Warning Signs with HLLGY. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points HELLA GmbH & Co KGaA (HLLGY) reported a positive net cash flow of EUR114 million in the first half of 2025, marking a 34% increase compared to the previous year. The company's electronics division showed strong growth with a 6.6% increase, driven by the radar business and energy management division. HELLA GmbH & Co KGaA (HLLGY) has successfully implemented cost reduction measures, including a 3.4% reduction in headcount, contributing to improved cost efficiency. The company confirmed its guidance for the year, expecting sales between EUR7.6 billion and EUR8 billion, and operating income margins between 5.3% and 6%. HELLA GmbH & Co KGaA (HLLGY) achieved significant order wins in its lighting and electronics businesses, particularly in North America and China, supporting future growth. Negative Points Organic sales for the first half of 2025 were down by 2.4% year-on-year, with reported sales declining by 1.3%. The lighting business experienced a 7.4% decrease in sales, attributed to the end of larger volume projects and challenges in Asia, particularly with the Tesla model transition. The life cycle solutions division faced a 6.6% decline due to weak demand in the commercial vehicle sector. Gross profit margins decreased to 23.1% from 24.1% last year, impacted by write-offs and lower volumes in certain programs. The Asia Pacific region saw a 7.6% decrease in sales, underperforming the market due to challenges in the lighting business and the Tesla model transition. Q & A Highlights Q: How does HELLA view its financial guidance for the second half of the year, considering the positive sales trend? A: Bernard Schaferbarthold, CEO, indicated that historically, the second half of the year is comparable to the first half, suggesting they are on track to reach the upper end of their guidance range for both sales and operating income margins. However, he noted uncertainties in market demand and tariff issues, which make them cautious. Q: Can you provide more details on the gross margin decline in the electronics segment? A: Bernard Schaferbarthold explained that the decline was partly due to a EUR17 million gain from a business sale last year that was not repeated this year. Additionally, a significant write-off of EUR10 million occurred due to lower volumes in one program, impacting the first-quarter results. Q: Are there any expectations for Q3 margins compared to Q2? A: Bernard Schaferbarthold mentioned that Q3 typically has lower sales due to the summer break, making it one of the weaker quarters. However, they do not anticipate significant deviations from last year's performance, suggesting margins should remain stable. Q: Is HELLA experiencing any benefits from electronic cost deflation? A: Bernard Schaferbarthold stated that they are targeting a 4% reduction in material costs and are on track to achieve this, which should continue into the second half of the year. Q: How is the electronics segment performing in terms of sales growth? A: Philippe Vienney, CFO, reported that the electronics segment saw an organic growth of 7.2%, driven by strong performance in the radar business, particularly in America, and growth in Asia due to battery management systems and car access products. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
