[ET Net News Agency, 17 April 2020] Jefferies Research lowered its target price for
Sunac China Holdings (01918) to HK$47.55 from HK$49.5 and maintained its "buy" rating.
The research house said Sunac has pulled back 8% in the past two days after it guided
10% earnings growth to RMB30bn for FY2020 earlier this week.
Jefferies believes the market has over-reacted and advised that investors focus on
Sunac's good de-gearing progress and improving cost control to be a higher quality growth
player.
Jefferies also sees now a good buying opportunity and believes the potential spin-off of
its property management in 2H is a good medium-term catalyst. It conservatively estimated
the value of the business to be HK$16bn at spin-off. (KL)