Morgan Stanley: Logan Group's Future Performance Growth is Highly Visible, Rating Upgraded to ”Overweight”

(China / Hong Kong, November 18, 2020) International investment bank Morgan Stanley has issued its latest research report. According to the report, based on the high-quality and abundant landbank and strong execution ability,  Logan Group’s contract sales continued to grow rapidly in October and has already achieved nearly 90% of its full-year sales target. The management of Logan Group is confident it will beat the RMB110 billion contract sales target of 2020. Morgan Stanley believes that Logan Group’s contract sales will maintain a compound annual growth rate of 20% in the next three years and its urban redevelopment and transformation will accelerate, contributing about 20% of the current year's profit every year. Morgan Stanley also sees the future performance growth of Logan Group is of high visiblility, profitability is expected to be stable with favorable dividend payout. The bank upgraded the rating of Logan Group to "Overweight".

Morgan Stanley pointed out that urban redevelopment is the high-value source of the Group’s landbank. At present, Logan Group has over RMB550 billion potential saleable resources from urban redevelopment projects, of which approximately RMB320 billion are located in Pan-Shenzhen area (Shenzhen, Dongguan and Huizhou), which is the main beneficiary of the favorable policies of the Shenzhen Pilot Demonstration Zone. In the past three years, Logan Group has converted more than RMB30 billion saleable resources from urban redevelopment projects each year. Morgan Stanley predicts that the Group can convert no less than RMB50 billion of saleable resources from urban redevelopment projects per annum in the coming three years, to ensure the continuous and stable growth performance of the Group.