[ET Net News Agency, 15 March 2021] UOB Kay Hian lifted its target price for Sunac
China Holdings (01918) to HK$42 from HK$33.1 and maintained its "buy" rating.
The research house said Sunac delivered surprising results with stable growth and
obvious improvement in the gearing ratio. In 2020, core net profit grew 11.8%, while net
profit attributable to the owners rose 36.9%.
After successful efforts to reduce leverage, Sunac turned into a "yellow developer" from
a "red developer". Its land reserve is sufficient to support sales, and management is
confident that it can achieve its 2021 sales target, implying an 11.3% growth in
contracted sales. (KL)