Logan Property : 2017-08-15Citi Affirms Logan Property as Top-pick, Raises Target Price to HK$8.88 Strong Interim Results and Earnings Upgrade drive Further Revaluation

Citi Affirms Logan Property as Top-pick, Raises Target Price to HK$8.88 Strong Interim Results and Earnings Upgrade drive Further Revaluation

Datetime：[2017-08-15]

China/Hong Kong, 15 August2017- In its latest research report, renowned investment bank Citi points out that theresults for the first half of 2017 of Logan Property Holdings Company Limited ('Logan Property' or 'the Group', HKEx stock code: 3380) beat market expectations,and believes that the Group will continue to be revalued. Logan Property has strategic presence in the Guangdong-Hong Kong-Macau Greater Bay Area (the 'Greater Bay Area') with ample resources which worth RMB388 billion, Citi expects theannual growth rate of its sales or earnings to over30% in 2017-20. Citi believs the Group has an attractive valuationand thusmaintains its 'Buy' rating for Logan Property, with a target price raised to HK$8.88 from HK$8.81 and continues to recommend the Group as its top-pick.

Citi believes that Logan Property's three-year growth plan is positive and it expects that the Group may attain its RMB80 billion sales volume target and its RMB10 billion profit target by 2020. Citi also expects Logan Property to comfortably sustain superior profit margins, withgross profit margin and net profit margin to reach over 35% and between 16%-18%, respectively, by 2020. Citi believes that the Group will further penetrate the Greater Bay Areathrough lucrative mergers and acquisitions, and urban renewal projects. Also, the Group can leverage onits competitive edges to replenish its land bank and ensure a strong margin.

Furthermore,Citi points out Logan Propertydelivered strong results for the first half of the year, and surprised the market when it declaredboth an interim dividend and a special dividend of HK$0.22 in total, and the dividend payout ratio was 40%.Logan Property also raised its annual sales target to RMB37 billion, Citi therefore remains bullish about the prospects of the Group.