Yuzhou Properties : Possesses High Growth & Earnings Visibility CMS Raises the Target Price to HKD4.89 and Maintains “Buy”

[For Immediate Release]

(15 June 2017, Hong Kong) One of China's top 40 real estate enterprises, Yuzhou Properties Company Limited ("Yuzhou Properties" or the "Company", together with its subsidiaries referred to as the "Group"; stock code: 01628.HK) is pleased to announce that CMS maintained "Buy" for the Group with a raised target price of HKD4.89. CMS believed Yuzhou Properties could achieve high sell-through rates with its quick turnaround cycle and flexible marketing strategy. At the same time, the Group has sufficient landbank for next 4-5 years development and thus can cherry-pick opportunities in replenishing the land reserves. CMS expected the Group can maintain the strong sales momentum at 29% (vs Peers' avg: 13%) with such fast churn model and rich landbank. In addition, the company's P/E ratio is at 10% discount to peers.

Attributable to its fast churn model, Yuzhou Properties achieved a solid 29% CAGR in contracted sales in 2013-16, well-ahead of its mid-cap peers' 11%. The company can turn newly acquired lands into saleable resources in 11 months (15% faster than its peers' 13 months), allowing it to time market opportunities more effectively. Yuzhou Properties tended to acquire land sites with smaller in GFA, such that these less sizeable projects involve fewer phases and thus enhance the sales. CMS expected the contracted sales of the Company will increase by 29% year-on-year in 2017 and continue to outpace its peers (avg. growth rate: 13%). The core profit will steadily grow with a CAGR of 19% in 2017-2019 (industry avg: 14%).

With rich landbank reserves, equivalent to sales in next 4-5 years, the Group could take time and cherry-pick opportunities in land acquisition to ensure profitability. At the same time, such sufficient landbank also gives visibility to future sales and earnings.

CMS raised the target price of Yuzhou Properties to HKD4.89, driven by: 1) 6x 17-18E PE, which is higher than the historical average of 3.8x and 0.5 S.D. above historical average P/E of its mid-cap peers; 2) superior track record of delivering higher-than-peers' sales/profit growth; and 3) improving financial positions.

-END-

About Yuzhou Properties Company Limited (01628.HK)

Yuzhou Properties Company Limited is a national property developer, which is based in Shanghai and continuously expands its business in eight core cities. Yuzhou Properties strives to become a leading property developer in China with a well-defined expansion strategy as Based in Yangtze River Region, Lead West Strait and Expand Nationwide Coverage.

Established in 1994, Yuzhou Properties specializes in the development of high quality residential, retail and commercial projects. As at 31 Dec 2016, the Company had 68 projects under various stages of development in Xiamen, Fuzhou, Shanghai, Tianjin, Nanjing, Hefei, Hangzhou, Quanzhou, Zhangzhou, Longyan, Bengbu and Hong Kong. Sites measuring a total GFA of over 9.54 million sq. m. are under development or held for future development, Yangtze River Delta Region, West Strait Economic Zone, Bohai Rim Region and Central Region accounting of 53%, 36%, 5% and 6% respectively. Known for its outstanding product quality and diversified product portfolio, strong brand awareness and its experienced management team, Yuzhou Properties has been named "Top 100 China Real Estate Enterprises" for eleven years in a row; and Top 50 China Real Estate Enterprises from 2011 to 2017. In May 2017, Yuzhou Properties has been incorporated into one of the constituent stocks of the "Hang Seng SCHK High Dividend Low Volatility Index".

For more information about Yuzhou Properties, please visit the Company's website: http://www.xmyuzhou.com.cn.

For inquiries, please contact:

Yuzhou Properties Company Limited (HKEX: 01628)

Head / Manager / Assistant Manager / Assistant Manager of Corporate Finance & Investor Relations

Camille Xiong/ Shikai Wu/Christine Huang/Jessica Li Tel: (852) 2508 1718

Fax: (852) 2510 0265

Email: camille.xiong@xmyuzhou.com.cn; shikai.wu@xmyuzhou.com.cn; huangl3@xmyuzhou.com.cn; jessica.li@xmyuzhou.com.cn

Yuzhou Properties Investor Relations QR Code:

Wonderful Sky Financial Group Holdings Limited (HKEX: 01260) Iris Au Yeung/ Shirley Chong/ Mel Lai

Tel: (852) 3970 2129 / 3970 2223/ 3641 1305

Fax: (852) 2598 1588

Email: po@wsfg.hk/ yuzhou@wsfg.hk