Citibank: WeChat and Real Estate (00083) maintain a “buy” rating of HK$14.3

The Zhitong Finance App learned that Citibank released a research report stating that the net cash of Sino Real Estate (00083) reached 55 billion yuan, equivalent to about 5.75 yuan per share, which is equivalent to about 56% of the market value. The bank believes this provides the Group with financial flexibility to seek growth opportunities while providing a strong buffer against macroeconomic and interest rate fluctuations. The bank reaffirmed Credit's “buy” rating, and the target price increased slightly from HK$14.2 to HK$14.3.

The bank believes that any initiative to improve the efficiency of capital use and return on equity, whether investing in new projects or increasing shareholder returns, will receive a positive response from investors and may drive valuation revaluation.