ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Nikkei Markets

MARKET BUZZ: Sunac China Up After Dalian Wanda Deal

By Hong Kong Newsroom
NewsRise
HONG KONG (Jul 11) -- Sunac China Holdings rallies 8.8% to HK$16.12 after it resumes trading following trading halt on Monday. Mainland developer yesterday announced 63.2 billion yuan ($9.3 billion) proposal to purchase 91% of 13 tourism projects and 76 hotels in China from conglomerate Dalian Wanda Group. "We think this is a good deal," Morgan Stanley says in note. House estimates total saleable resources of 770 billion yuan ($113 billion) considering land bank; estimates development cycle of 15 years given large scale of individual projects, i.e. 51 billion yuan contribution to contract sales of Sunac. "Following further discussion with the company, we estimate it may generate 15-20% net margin based on Sunac's acquisition costs and ASP (average selling price)," it adds. Keeps Overweight rating on the stock with unchanged target price of HK$18.50.
- By Hong Kong Newsroom; hkeditorial@nikkeinewsrise.com; +852 3960 5102
- Edited by Nimesh Vora
- Send Feedback to feedback@nikkeinewsrise.com
- Copyright (c) 2017 Nikkei NewsRise Asia Pte Ltd.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends April 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media