Sunac Surges to Record High

Shares of Sunac Holdings (1918.HK) surged 7% in Hong Kong trading Tuesday to a record high of HKD25.15 and Nomura reckons there could be another 13% upside for the Chinese property developer.

Nomura analyst Elly Chen says high quality land acquisitions can support strong sales growth in the next 5-6 years:

Management has raised its 2017 sales target to CNY 300 billion from CNY210 billion previously and guided for saleable resources to grow at least 25% to CNY618.7 billion. Sunac is Chen's top pick among Chinese property developers. The analyst, who has a buy rating on the stock, has raised her target price to HKD26.26 a share (from HKD25.20) and raised its core earnings estimates for 2018/18/19 by 92%, 14% and 10%, respectively, after factoring in recent land acquisitions, higher gross margin assumptions and gains from business combination.

Shares in Sunac are up a whopping 290% so far this year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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