Logan Property : 2017-08-21Logan Property’s Interim Results Delivered Superior Margin Ahead its Peers ABCI Maintains “Buy” with a Sharply Raised Target Price of HK$8.30

Logan Property's Interim Results Delivered Superior Margin Ahead its Peers ABCI Maintains 'Buy' with a Sharply Raised Target Price of HK$8.30

Datetime：[2017-08-21]

China/Hong Kong, 21 August2017- In its latest research report, renowned securities firm ABC International ('ABCI') have commented that the interim results ofLogan Property Holdings Company Limited('Logan Property' or 'the Group', HKEx stock code: 3380)is full of positive surprises. Its core profit surged 195% year-on-year to RMB 2.548 billion and core profit margin reached 20.6%, which is the highest among peers. The Group raised its annual sales target to RMB37 billion and expected to grow with a compound annual growth rate of 30% in 2017-2020.

ABCI believes the Group's key project, Logan City, with gross profit margin reaches 60% and saleable resources over RMB30 billion, will support a high profit margin for the next three years. The firm lifted the Group's core profit margin estimates to 29%-34% and is bullish about the Group's superior margin ahead its peers, as well as rapid growth of contract sales. In view of these, ABCI maintains its 'Buy' rating for Logan Property, with a target price raised sharply to HK$8.30 from HK$5.00.

ABCI also points that the Group continues to penetrate inGuangdong-Hong Kong-Macao Greater Bay Area ('Greater Bay Area'), with 80% of its RMB388 billion saleable resourceslocated in the Greater Bay Area. During the first half of the year, Logan Property has focusedon acquiring new projects through acquisition and urban renewalchannels and has obtained 21 projects, adding saleable resources of approximatelyRMB60 billion. Along with additional land bank acquired through public channel, the Group is confident in achieving contract sales of RMB80 billion by2020.