Yuzhou Properties : Re-selected as CMS’s Top Pick for China’s Property Stocks with a Raised Target Price of HKD4.99

(4 Aug 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 the Company was once again the top pick of China Merchants Securities (CMS) for China's property stocks, with a raised target price of HKD4.99.

China's property developers will announce interim results in mid-August. In view of the strong property sales and recovery in gross profit margins, CMS expected the core profits for property developers to grow 23% year-on-year. CMS preferred quality mid-caps to large caps on relative P/E discounts (28% cheaper than large-caps) and faster sales growth (31% for mid-caps vs 24% for large-caps in terms of estimated year-on-year growth). The top pick was Yuzhou Properties.

CMS expected Yuzhou Proeprties' interim core profit to grow 18% year on year, driven by the strong property sales and increase in GFA completion.

Yuzhou Properties' contracted sales in 6M17 reached RMB21.5 billion, achieving 72% of the RMB30 billion annual sales target. The management is expected to announce the revised annual sales target in the upcoming interim results presentation.

Yuzhou Properties continued to attract senior sales professional so as to strengthen the sales team, which could further enhance the group's sales capabilities. CMS expected the Company to achieve contracted sales of RMB34.3 billion for 2017 on a sell-through rate of 67% (higher than CMS's estimate of 62% previously and 65% achieved in 2016). CMS has also increased the sales forecasts for 2018 and 2019 to RMB42.2 billion and RMB51.7 billion respectively.

Factored in the revised contracted sales assumption, CMS uplifted the earnings per share (EPS) forecasts in 2017-2019 by 1.0%, 6.1% and 5.3% respectively. Based on the average EPS forecasts in 2017-2018, CMS raised the target price of Yuzhou Properties to HKD4.99 and maintained "Buy" on a 6x target P/E ratio, so as to reflect the 12% potential upside.

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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 first and second-tier coastal 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