[ET Net News Agency, 2 June 2020] Goldman Sachs initiated coverage on Sunac China
Holdings (01918) with a "buy" rating and a target price of HK$44.
Though the headroom for scale growth will be increasingly limited amid the downward
trend in China's housing market, Sunac is better off than the rest of the top-five
developers given the depth of its land bank portfolio (size, geographic exposure and
competitive cost), combined with strong execution, said the research house.
Goldman expects 11%/20% pre-sales/earnings CAGRs for Sunac in 2020-22, both higher than
average flattish/+3% for the rest of the top five peers. (KL)