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    Is Sunac China’s Diverging Selling Prices Reframing Its Project Mix Strategy (SEHK:1918)?

    Simply Wall St·12/10/2025 18:19:03
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    • Sunac China Holdings Limited reported that, in November 2025, it achieved unaudited contracted sales of about RMB1.12 billion on 92 thousand sq.m. of floor area, while year-to-date contracted sales reached about RMB33.89 billion on 1,181 thousand sq.m.
    • The data show a large gap between the lower average selling price of around RMB12,170 per sq.m. in November and the much higher year-to-date average of about RMB28,700 per sq.m., highlighting a shift in the mix of projects sold.
    • We will now examine how this divergence between monthly and year-to-date average selling prices shapes Sunac China’s broader investment narrative.

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    What Is Sunac China Holdings' Investment Narrative?

    For anyone considering Sunac China, the core belief is that this is a distressed, deeply out‑of‑favor developer that still has a path to stabilizing its operations and balance sheet. The recent November sales update, with contracted sales of about RMB1.12 billion at a much lower average selling price than the year‑to‑date level, reinforces how dependent the story is on project mix, pricing power and cash conversion rather than headline volume alone. Near term, the key catalysts remain progress on restructuring, execution on existing projects and any sign that losses can narrow from the 2024 and first half 2025 levels. The sharp year‑to‑date share price fall suggests the latest data have not changed the market’s cautious stance in a material way, but they do underline the risk that lower‑margin sales could limit any recovery in financial performance.

    However, there is one balance sheet related risk that investors should not ignore. Sunac China Holdings' shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

    Exploring Other Perspectives

    SEHK:1918 1-Year Stock Price Chart
    SEHK:1918 1-Year Stock Price Chart

    Three fair value estimates from the Simply Wall St Community span a very wide HK$0.04 to HK$5.27 range, underlining how far apart individual views are on Sunac China. Against that backdrop, the recent weak pricing in November sales and the company’s ongoing losses keep questions around balance sheet strength and execution firmly in focus, which readers may want to weigh against these differing community valuations.

    Explore 3 other fair value estimates on Sunac China Holdings - why the stock might be worth less than half the current price!

    Build Your Own Sunac China Holdings Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.