The Zhitong Finance App learned that Sunac China (01918) continued to fall more than 10% in early trading. As of press release, it fell 10.9% to HK$1.39, with a turnover of HK$3.61 million. The company previously announced that in May 2023, the group achieved a contract sales amount of about RMB 7.79 billion, a contract sales area of about 558,000 square meters, and an average contract sales price of about RMB 13,960 per square meter.

Xiaomo previously released a research report saying that Sunac China's “holdings reduction” rating was given, and trading resumed on April 13 (today) after being suspended for more than a year. It is expected that the stock price will drop sharply, with a target price of 1 Hong Kong dollar. The bank expects Sunac China's book value to continue to decline. According to its forecast of 0.1 times the target market account rate this year, it believes that the stock should only be worth 1 yuan, that is, there is a potential decline of 78%. If the book value continues to shrink, there is still a risk of further decline in the future.