Prompt and decisive risk management

■ We think NWD has handled safety issues at Pavilia Farm III in a prompt and
responsible manner, and estimate extra cost of less than HK$1bn.
■ We assess that most buyers of the two affected blocks would keep their
purchases on the positive price outlook and NWD’s generous compensation.
■ We believe the impact of the incident will be more on reputation in near term,
while impact on NAV should be <1%. Reiterate Add and a TP of HK$52.7.