Citi has issued a research note indicating that SUNAC (01918) has achieved meaningful milestones in its debt restructuring efforts, which have alleviated financial strain and enhanced clarity on its balance sheet. Since April of last year, the group has reached an agreement with key creditors regarding its offshore debt restructuring plan, with the potential implementation of this plan expected to provide financial flexibility and a more stable operational environment.

However, Citi also highlighted persistent weaknesses in the group's business performance. Contracted sales for the first seven months of 2026 declined by 18% year-on-year to RMB 6.4 billion, resulting in limited earnings visibility. The recovery in property sales is anticipated to be gradual. Citi has maintained its "Neutral/High Risk" rating while lowering the target price from HK$1.2 to HK$0.6, reflecting a widened discount to net asset value per share from 70% to 85%.