Sunac shares jump 6pc on positive profit alert
Sunac China shares jumped 6 per cent on Monday after the developer said its first-half interim profit will increase by “more than 15 times” owing to gains from property acquisitions and improved profit margins.
The company, one of China’s most acquisitive property developers, said revenue for the six months through June climbed 25 per cent while gross profit rose about 80 per cent and profit attributable to shareholders rose more than 15 times.
Sunac’s profit in the year-earlier period totalled 102 million yuan.
Shares of Sunac surged as much as 6 per cent to HK$19.04 in early morning trade on Monday, a five-day high, following the positive profit alert.
The increase in profits was mainly driven by “the increase in the gains from business combination resulting from the acquisition of property projects” and “increase in the gross profit margin”, the company said in a filing to the stock exchange.
The real estate developer, founded by Shanxi tycoon Sun Hongbin in 2003, made headlines after it agreed to pay 43.8 billion yuan (US$6.57 billion) for 13 theme parks and tourism-related projects from magnate Wang Jianlin’s Dalian Wanda Group in July.