[ET Net News Agency, 22 December 2020] Citi Research cut its target price for Sunac
China (01918) to HK$46.8 from HK$60 to reflect the sector's slower asset turns and
retained its "buy" rating.
The research house said Sunac made encouraging progress on its focus to lower finance
costs (8% by 2020) on a well-controlled debt scale by optimizing its debt structure.
Management's delicate touch on costs controls (2% of sales) supports a more balanced 5-10%
earnings growth in 2021-22 versus the margin pressure after a flattish 2020.
Citi said Sunac is evolving as a value stock with on-track deleveraging (targets
120/100% gearing by 2020/21) and attractive valuation (3.8x 2021 PER; 62% NAV discount;
4.3% yield). It trimmed its 2020-22 EPS forecasts by 9-14% after factoring in its sector
physical market and margin assumption. (KL)
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01918 SUNAC
Nominal 
0.970 +0.020 (+2.105%) Research Report
22/12/2020 15:37
{I-bank focus}Citi lowers Sunac China (01918) to HK$46.8
| Remark: | Real time quote last updated: 24/04/2024 09:10 |
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