Logan Property : Citi Raises Logan Property Target Price to HK$10.38 - Earnings Upgrade and Supportive Policy on the Greater Bay Area drive Further Revaluation

[For Immediate Release] Citi Raises Logan Property Target Price to HK$10.38 Earnings Upgrade and Supportive Policy on the Greater Bay Area drive Further Revaluation

China/Hong Kong, 19 September 2017 - In its latest research report, renowned investment bank Citi points out that the results for the first half of 2017 of Logan Property Holdings Company Limited ("Logan Property" or "the Group", HKEx stock code: 3380) beat market expectations by a wide margin. In view of its metropolitan business model, ample resources and the government policy in support of the development of the Guangdong-Hong Kong-Macau Greater Bay Area (the "Greater Bay Area"), Logan Property will enjoy a tremendous earnings upcycle in the next three years. The value of the Group is expected to be continuously reappraised and further increased. Citi believes Logan Property's valuation is attractive and maintains its "Buy" rating for Logan Property, with a target price raised from HK$8.88 to HK$10.38.

The firm believes that the Group's core profit could reach RMB10 billion by 2020 and also expects Logan Property to comfortably sustain superior profit margins, with a gross profit margin as high as over 35% and a net profit margin between 16%-18%. The Group effectively controls its leverage and growth. It will accumulate investment properties in prime areas, while excelling in property development.

Citi mentions that the Group has ample saleable resources worth RMB388 billion and, through mergers and acquisitions and urban renewal projects, has further penetrated the Greater Bay Area. At present, 80% of its projects are located in the Greater Bay Area. Citi expects the compound annual growth rate of the Group's sales revenue and profit to be over 30% in 2017- 2020, which would provide strong support for achieving its sales target for 2020. Citi is bullish about the Group's plan for the next three years because it believes that the Group is adept at using its edge in urban renewal projects to replenish its land bank and assure strong margins.

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Hill+Knowlton Strategies Asia Linda Pui Tel: [phone] Email: [e-mail]

Sam Fang Tel: [phone] Email: [e-mail]

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