HSBC Global Research maintained its target price for Sino-Ocean Group (03377) unchanged at HK$2.3 but upgraded its rating to "buy" from "hold".
The research house believes the worst is behind us and there is now a good opportunity to build positions on the expectation of strong October sales. HSBC thinks investors have had time to digest the "three red lines" policy, while most stocks in HSBC's coverage have sufficient capacity to weather the policy uncertainty.
HSBC said the market has overly penalized Sino-Ocean, which is unrealistic in consideration of unbooked sales. It said Sino-Ocean is currently pricing in a 40% FY2021 earnings discount relative to HSBC's current estimate. HSBC said Sino-Ocean's current land bank is sufficient for 5.9 years of development.
29/10/2020 17:45
{I-bank focus}HSBC lifts Sino-Ocean Group (03377) to "buy"
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