China Everbright Data Research maintains Bestar Holdings' (1168.HK) opportunistic buying rating. The target price is HK$2.18, which is 35% off net asset value.

Bestar Holdings announced that it will place a net raise of HK$525 million through an old and new method. This placement involves 290 million existing shares (equivalent to 8.8% of the existing issued shares) at a price of HK$187 per share. Zhou Jianfeng of China Everbright Data Research said that the stock price has also been hit by profit take-back because the stock has risen 223.8% so far this year. Investors are concerned about whether the company plans to bid for three commercial residential lots in China (two of which are in Shanghai and one in Shenzhen), and the total development cost is expected to exceed RMB 10 billion, he said. If that happens, the company's cash position will be a key concern, and the latest placement activity means the company may be planning to expand its land reserves.

Bestar declined 17.16% throughout the day to close at HK$1.69.