Yuzhou Properties : Citi Maintains “BUY” for Yuzhou Properties with a Raised Target Price of HKD4.9 in view of its - Strong Sales Beat 17E and Positioning for Next Leap in 2017-2020

[For Immediate Release]

Citi Maintains "BUY" for Yuzhou Properties with a Raised Target Price of HKD4.9 in view of its Strong Sales Beat 17E and Positioning for Next Leap in 2017-2020

(14 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 Citi raised its target price to HKD4.9 and maintained the "Buy". Citi believed Yuzhou Properties' earnings CAGR will exceed 25% with its rising scalability to broader geographical framework to reach a target of 100billion in 2020 as stated in the research report. Moreover, it is expected Yuzhou Properties will surpass the sales target while the Group keeps surprising the market with its strong sales performance, as well as the new interim dividend payout policy.

Rising scalability; 25% or above earnings CAGR; new target price HK$4.9: According to the five-year blueprint of Yuzhou Properties, the Company is targeted to reach a scale of RMB100 billion by 2020 with a sales CAGR of 40-50% in 2017-2020 (equity ratio: 70%). The Group aims for a higher scale of RMB40-60 billion in 2017-2018 while gradually expanding (e.g. Hefei and Nanjing) with a broader geographical framework (new entry into Wuhan, Suzhou, Hangzhou and potentially the Pearl River Delta). In view of this, Citi expected the Group will enjoy high earnings and dividend per share growth (CAGR: 25% or above) with outperforming margins (gross profit margin: 32% or above; net profit margin: 13% or above) and a dividend payout ratio of 35%. With the Company's attractive valuation (PE ratio: 5.4; dividend yield: 6.6%), Citi expected the share price will continue to rise. Citi thus maintained the "buy" for Yuzhou Properties with a raised target price of HK$4.9 to reflect the Company's strong sales and the value of new acquisitions. Positive sales surprises in 2017; 2017-2018 sales will reach RMB40-60 billion: With the strong sales in 5M17 (RMB18 billion, increased 73% year-on-year) and the new projects in Nanjing (contracted sales: RMB4.6 billion, year to date), Yuzhou Properties has already achieved 60% of its full-year sales target of RMB30 billion.Given its outstanding track record in 2016 and high flexibility in project launches in 3-4Q17 for profitability, Citi expected the Group would surpass its sales target in 2017(estimated to be RMB38-40 billion with a

65-70% growth rate), with room for a target revision in August 2017.

Broader framework gradually being shaped; next stop is Central and Southern China: Until now in 2017, Yuzhou Properties has built landbank reserves with over RMB190 billion . After entering the Yangtze River Delta (Shanghai, Nanjing, Hangzhou and Suzhou), Yuzhou Properties would gradually expand into Central China region (i.e. Wuhan, Changsha etc.) and Southern China (e.g. Dongguan, Huizhou etc., with a target to reach the scale of RMB20 billion in 3 years for these new cities), capitalizing on its merge and acquisition capability to achieve the RMB80-100 billion sales target in the next five years. 1H17 preview:: Citi expected Yuzhou Properties' performance in the first half of the year to be positive: 1) 20% revenue and core profit growth; ii) resilient margin (vs. the first half of 2016: 32.5% gross profit margin); iii) less than 6% finance costs (vs. 6.08% in 2016); and iv) new interim dividend -semi-annual payout from 2017E.

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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 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: [phone]

Fax: [phone]

Email: [e-mail]; [e-mail]; [e-mail]; [e-mail]

Yuzhou Properties Investor Relations QR Code:

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

Tel: [phone] 1305

Fax: [phone]

Email: [e-mail]/ [e-mail]