In NWD (17 HK): Edging Towards A Bailout, I mentioned New World Development (17 HK) was reportedly in negotiations with the Hong Kong Airport Authority on its 11 Skies project.
In its FY26 results, ahead of the national holiday, NWD posted an HK$18.3bn writedown as part of an early termination agreement of the project with the AAHK.
NWD was expected to pay rent on 11 Skies of at least HK$1.8bn/annum from 2028 through to 2066; therefore, there is some consolation here from the termination.
The Trade:
NWD is, bit by bit, deleveraging to offset its massive debt obligations.
Still too early, in my view, to be picking up shares, despite a P/B <0.1x.