Logan Property : Deutsche Bank Recommends Logan Property as Top Pick and Lifts Target Price to HK$10.95 Expects Sales and Earnings to Accelerate

[For Immediate Release]

Deutsche Bank Recommends Logan Property as Top Pick

And Lifts Target Price to HK$10.95

Expects Sales and Earnings to Accelerate

China/Hong Kong, 18 January 2018 - In its latest research report, renowned investment bank Deutsche Bank recommends Logan Property Holdings Company Limited ("Logan Property" or "the Group", HKEx stock code: 3380) as its top pick, and lifts its target price by 13% to HK$10.95, on the back of the Group's rapid earnings growth driven by strong sales, and an attractive valuation.

Logan Property announced the attributable contract sales target for 2018 as RMB66 billion, representing a year-on-year growth of over 50%. In view of the Group's abundant saleable resources (amounting to over RMB500 billion including merger and acquisitions and urban renewal projects), Deutsche Bank believes that the Group will sustain its strong sales growth in the next few years. Deutsche Bank expects the Group's earnings may beat the market , and estimates the Group's earnings in 2017-2019 to grow at the highest growth rate among the firm's research coverage.

Logan Property acquired new land reserve with total gross floor area (on plot ratio basis) of 4.4 million square meter in 2017 through public market, 60% of which is located in the Guangdong-Hong Kong-Macau Greater Bay Area. These new projects adds substantial additional saleable resources to the Group's land bank. More importantly, the average land cost of these new projects only accounts for approximately 20% of its 2017 average selling price, representing a relatively low land cost. Deutsche Bank also expects the newly acquired Shenzhen Konka project to achieve a gross profit margin of over 40%, which will also strengthen Logan Property's leading position in Shenzhen. Besides, the firm expects the Group's urban renewal projects in the pipeline (amounting to over RMB300 billion of additional saleable resources) will further support the Group's rapid growth.

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