Logan Property : Morgan Stanley：Logan Property Likely to Reach RMB10 Billion Core Profit Target Ahead of Schedule

[For Immediate Release]

Morgan Stanley: Logan Property Likely to Reach RMB10 Billion Core Profit

Target Ahead of Schedule

China/Hong Kong, 22 January 2018 - In its latest research report, renowned investment bank Morgan Stanley is bullish about the sales performance of Logan Property Holdings Company Limited ("Logan Property" or "the Group", HKEx stock code: 3380) with its ample land bank.

The firm believes that the Group is likely to reach the core profit target of RMB10 Billion ahead of schedule in 2019, thus reiterating the "Overweight" rating.

Considering the Group's saleable resources of RMB130 billion in 2018, and the new launches in the first half of 2018 should be more than that in the second half of the year, thus Morgan Stanley believes that the new attributable contract sales target of RMB66 billion for 2018 is conservative. It also thinks that the abundant land bank of the Group is sufficient to support its sales to grow for another 52% to reach RMB100 billion in 2019. Besides, given the low land cost, Morgan Stanley believes that the Group will maintain a core profit margin of 15%-16% over the next few years, continue to be higher than that of its peers.

Morgan Stanley is positive about the long-term development of the property market in the Guangdong-Hong Kong-Macau Greater Bay Area, which is in line with the development strategy of Logan Property to continue its strong presence in the area. The firm also points out the Group will remain opportunistic in expanding overseas market, including Hong Kong and Singapore, as well as in cities surrounding Shanghai and Beijing.

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