Jacob Cheng

Greater China property focus

Equity Bottom-Up

<ul>
<li>NWD has the highest gearing among all HK real estate names.  It has significantly underperformed since the rate hike cycle begun.  Now it has the biggest potential to rebound</li>
<li>The stock is trading at attractive valuation, 0.27x P/B, like a distressed Chinese developer.  The major market concerns are potential earnings downgrade and dividend cut</li>
<li>I am quite convicted on the stock for rebound given 1) company has clear de-leveraging plan 2) no plans for equity-raise 3) lots of corporate actions ahead to unlock value</li>
</ul>

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

New World Development

New World Development(17 HK):High Leverage in HKRE but Likely the First to Rebound if Rate Peaks Out