Sunac China Holdings (1918.HK)

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Property Developer Sunac Slumps as $2.2 Billion Bet on China's LeEco Questioned

Sunac China Holdings Ltd. fell the most in more than 16 months in Hong Kong as investors questioned the real estate developer’s $2.2 billion bet on Chinese tech tycoon Jia Yueting’s cash-strapped LeEco empire.

The stock slumped as much as 10 percent, the biggest intraday decline since Aug. 26, 2015, and traded 5.4 percent lower at HK$6.90 as of 11:06 a.m. local time, paring this year’s gain to 6 percent.

The investment in three companies affiliated with LeEco marks Sunac’s first foray beyond its mainstay property holdings. Chairman Sun Hongbin said in a briefing in Beijing that while he expects “very rapid” growth for Sunac and other leading developers as the real estate industry consolidates over the next five to 10 years, he’s looking at other opportunities to propel growth beyond that period. Areas of interest include healthcare, finance and natural resources, he said.

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The SUNAC shares ( 01918.HK) closed at HK $20.30 ( = 3.03 times BV ). Another overvalued share.
This May Be China's Most Debt-Strapped Developer

Bloomberg News
September 1, 2017, 6:36 AM GMT+8 September 1, 2017, 11:32 AM GMT+8

Sunac China Holdings Ltd. shares fell as investors focused on the struggle by China’s most-leveraged developer to control its debt, instead of a surge in net income that was fueled by unrealized gains from acquisitions.

Excluding one-off gains, Sunac recorded a core loss of 530 million yuan ($81 million) in the first half, almost double the loss of 283 million yuan a year earlier, CIMB Securities Ltd. estimated. Sunac reported core profit of 1.4 billion yuan, a figure that included some one-off gains, while saying its first-half net income surged 1683 percent to 1.3 billion yuan.

“It is a set of very disappointing results,” CIMB analyst Raymond Cheng wrote in a note. Gearing jumped to “an alarming level,” he said.

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The shares started around $24.50 and closed at $22.80 and must be still very much overvalued.
This company is even more gutsy than Evergrande... I'm pretty sure Evergrande has strong political backings... Sunac however seemed to be a Tuah Peh Gong

Sunac Throws $270 Million Lifeline to Troubled Leshi Internet
By Peter Vercoe
(Bloomberg) -- Sunac China Holdings Ltd., China’s most indebted developer, has thrown Leshi Internet Information & Technology a $270 million lifeline, just days after the Internet company’s controlling shareholder Jia Yueting said he was unable to lend to, or increase his stake in, his troubled empire.
Sunac units will provide Leshi Internet, the video streaming and TV giant, a 1.29 billion yuan ($195 million) loan for general working capital, and 3 billion yuan of entrusted guarantees, the developer said in a statementThursday. Separately, Leshi Zhixin the TV unit, will receive a 500 million yuan loan, the statement said.
It’s not the first time Sunac has come to Jia’s rescue, after agreeing in January to invest almost $2.3 billion and buy stakes in three of the sprawling conglomerate’s units. Sunac’s net gearing rose to almost 400 percent this year to rank it as China’s most leveraged developer, according to some analyst estimates, amid a debt-fueled acquisition spree.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Chinese tech firm that once vowed to disrupt Tesla and Apple faces delisting under pile of unpaid debt
Top businessman who had briefly stepped in as chairman tells Chinese media that Leshi Internet Information & Technology is ‘insolvent’

Xie Yu
PUBLISHED : Monday, 26 March, 2018, 4:22pm
UPDATED : Monday, 26 March, 2018, 4:22pm

The Chinese tech company that once called Apple “outdated” and vowed to disrupt Tesla is facing delisting in China, leaving billions of yuan in unpaid debts and hundreds of thousands of retail investors out of pocket.

Leshi Internet Information & Technology, founded in 2004 by Jia Yueting – who went on to become a poster boy for China’s emerging tech prowess, had trading in its shares suspended on Monday after a former chairman of the company, who poured some 15 billion yuan (US$2.4 billion) into it in a rescue bid, resigned earlier in the month.

“Basically Leshi has become insolvent. It has 7.5 billion yuan worth of debts due by this year, mostly directly owed by unlisted related parties … but it has no valuable assets that could be sold to repay the debts for now … the company is facing an extremely big risk of delisting,” Sun Hongbin, the former chairman, told mainland media firm

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Sunac China makes US$2.62 billion provision for investment losses related to Leshi

Zheng Yangpeng
PUBLISHED : Thursday, 29 March, 2018, 11:39am
UPDATED : Thursday, 29 March, 2018, 12:30pm

Sunac China has set aside 16.6 billion yuan (US$2.62 billion) for possible losses related to its investment and guarantees in the debt-laden Leshi Internet Information and Technology, after conceding that efforts to revitalise the company have been inconclusive.

Sunac, the fourth-largest developer in China by sales value, announced the provision in its 2017 annual results filed Thursday morning. The provision figure includes 9.98 billion yuan for a debt write down, 2.1 billion yuan of impaired loans, and 4.48 billion yuan for investment losses.

The company also reported a net profit of 11 billion yuan related to its property business for 2017, representing an increase of 344 per cent compared to last year.

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Sunac China plans $1 billion share sale to enlarge shareholders' base

Reporting by Donny Kwok; Editing by Kim Coghill
JANUARY 10, 2020 / 8:15 AM

HONG KONG (Reuters) - Sunac China Holdings Ltd (1918.HK) said on Friday it planned to sell HK$8 billion ($1.03 billion) worth of new shares to third party investors to enlarge its shareholders’ equity base and optimize the capital structure.

The Chinese property developer plans to sell 186.92 million shares, representing 4.03% of its enlarged share capital, to not less than six independent investors, raising capital for general corporate purposes.

The new shares will be sold at HK$42.80 each, representing 8.25% discount to Thursday’s close of HK$46.65 each.

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2019, especially 2H 2019 has been to PRC developers. Good sales growth over 2018. Spinoffs of Property Mgt subsidary.

Good time to deleverage.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
Most PRC developer shares are currently priced at PE ratio between 5-10 but the company may be operating at high debt level.

The Property Mgt subsidiary share price, after IPO can rise up to PE ratio 20 and higher.

Sunac's total sales for 2019 was reported at RMB 556 Billion which is 21% higher than in 2018.

So I would be looking for Sunac's annual profit for 2019 to be 21% or higher .

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