Citi: Logan Group's Management Possesses Strong Execution Capabilities, High Certainty of Performance Growth over Next Three Years

(China / Hong Kong, December 22, 2020) Citi, an international investment bank, has recently published the 2021 China Property Outlook.  According to the outlook, Logan Group (3380.HK) continues to be recommended as a top stock pick within the industry with Citi analysts indicating a target price of HKD19.3. The report highlights that the property industry in China has entered an era of "delicacy management". Logan Group, possessing a management team with solid execution capabilities, high-quality and abundant landbank, and unique competitive edge in urban renewal, is forecasted to achieve an average annual attributable contract sales growth of 20% over the next three years. Citi also stated its belief that the Company has high certainty of growth, stable financials, and high dividend payout, making it a top pick for long-term investors.

Citi pointed out that the Group has demonstrated solid execution capabilities. Contract sales for the first 11 months of 2020 increased about 35% year-on-year and the Company will exceed its  full-year contract sales target of RMB110 billion. Moreover, Citi also outlined that the Company’s strengths in urban renewal gives it a unique competitive edge and can serve as its new growth engine. Citi expects the Company to convert urban renewal projects worth RMB150 billion over the next three years, with urban renewal set to contribute 20% of annual core profit, ensuring continuous growth of its performance across cycles and allowing the Company to outperform the industry in terms of profitability.

Citi also pointed out that the Company’s financial stability, excellent cost control measures, continuous reduction in financing costs, and outstanding delicacy management make it stand out as a winner during an era of increased consolidation within the property sector.