【For Immediate Release】

Macquarie Reiterated Yuzhou Outperform Rating with 71% Upside to the Target Price of HK$3.16

(27 January 2015, Hong Kong) Yuzhou Properties Company Limited ("Yuzhou Properties" or the "Company", together with its subsidiaries referred to as the "Group"; stock code: 01628.HK), a leading Fujian-based property developer, is pleased to announce that Macquarie reiterated their outperform rating with 71% upside to the target price of HK$3.16.

With the ease of HPR in Xiamen, Macquarie pointed out that Yuzhou achieved Rmb12bn contracted sales during 2014 and they believed the contracted sales should rise from Rmb12bn to Rmb20bn due to higher market share and contribution from Hefei and sales ramp-up in Shanghai and Nanjing over the next 2 years. Currently the Company's balance sheet remains strong with over Rmb8.8bn of cash at the end of 2014 and formation of a JV alleviates near-term cash needs.

Macquarie also cited that the scale of Yuzhou Properties became its advantage in operation since resources can be distributed optimally and management can respond to market changes quickly. The company has two major cities--Xiamen and Hefei--while Hefei was one of the top performance Tier 2 cities last year. Macquarie expected Hefei will deliver a sales growth of 67% to Rmb6.0bn in 2015 for the company. Besides, there are two stable cities (Fuzhou and Quanzhou) plus two upcoming ones (Shanghai and Nanjing), which pre-sales of the projects will be the price catalyst. The current set up should support growth to Rmb20bn.

In the view of Macquarie, the earnings CAGR of Yuzhou Properties will reach 39% between 2014E and 2017E, inexpensive valuation of 3.1x 2015E PE and dividend yield of 6.7%. The Company offers unique strong exposure to two good Tier 2 cities: Xiamen and Hefei. Macquarie valued the NAV of the Company with HK$5.50 per share and reiterated their outperform rating with 71% upside to their target price of HK$3.16.

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About Yuzhou Properties
Yuzhou Properties Company Limited (01628.HK) is a leading property developer in the West Strait Economic Zone and is one of the largest property developers in Xiamen, in terms of land reserve and market share. Yuzhou Properties strives to become a leading property developer in China with a well-defined expansion strategy as to enhance its dominant market position in the West Strait Economic Zone and to establish footprints in the Yangtze River Delta Region and Bohai Rim Region respectively.

Established in 1994, Yuzhou Properties specializes in the development of high quality residential, retail and commercial projects. As at 27 January 2015, the Company had over 49 projects under various stages of development in Xiamen, Fuzhou, Quanzhou, Longyan, Shanghai, Hefei, Bengbu, Tianjin, Zhangzhou and Hong Kong. Sites measuring a total GFA of near 9.48 million sq. m. are under development or held for future development. Those located in Xiamen measure a total GFA of 2.35 million sq. m. 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 nine consecutive years; and Top 50 China Real Estate Enterprises from 2011 to 2014. "Yuzhou" brand has been recognized by the State Administration for Industry and Commerce as a "Renowned Brand in China" and a "Famous Brand" by the Fujian provincial government and the Xiamen municipal government.

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

Please feel free to contact us if you have any enquires:
Yuzhou Properties Company Limited (HKEX: 01628)
Head of Corporate Finance & Investor Relations
Venus Chiu
Tel ：(852) 2508 1718
Fax ：(852) 2510 0265
Email ：venus.chiu@xmyuzhou.com.cn
Yuzhou Properties Investor Relations QR Code:

Wonderful Sky Financial Group Holdings Limited (HKEX: 01260)
Kevin Mao/ Connie Li
Tel ：(852) 2851 1038
Fax ：(852) 2598 1588
Email ：kevinmao@wsfg.hk/ connieli@wsfg.hk