[ET Net News Agency, 8 December 2020] Guotai Junan International initiated coverage on
Redsun Properties (01996) with a "buy" rating and a target price of HK$3.6.
It said Redsun is building its reputation in the greater Jiangsu region with its deep
penetration strategy. During 2018-2019, Redsun accelerated its nationwide expansion by
entering more selected cities. Redsun has accumulated 18.37 mn sq.m GFA land reserves as
of 30 June 2020, of which Jiangsu accounted for 54.9%.
Alongside its fast expansion, Redsun's contracted sales (including JVs and associates)
grew at a CAGR of 59.2% in 2017-2019, and solid sales momentum continued this year, which
is likely to exceed the target of RMB75bn in 2020.
Guotai Junan expects Redsun's 2020-22 net profit at RMB1,755mn/RMB2,183/RMB2,600mn. (KL)