【For immediate release】

China Merchants Securities (HK) first time releases Yuzhou Properties Research Report, assigns Buy Rating with Target Price HK$2.40

(26 October 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), the leading Fujian-based property developer, is pleased to announce that China Merchants Securities (HK) first time releases Yuzhou Properties research report, assigns Buy Rating with Target Price HK$2.4.

CMS (HK) points out Yuzhou's well-established footholds in West Strait Economic Zone and its mid and mass-end focused strategies facilitate to achieve better sales and earnings growth than peers. CMS (HK) estimates 19% 2014-17E earnings CAGR vs industry average of 10%. Yuzhou is currently trading at 68% discount to NAV and offering 9% dividend yield in FY15E, CMS(HK) regards as attractive vs mid-sized peers at 58% discount.

On the other hand, CMS (HK) likes Yuzhou's business strategy of focusing on 7-8 major cities targeting at mid and mass-end residential demand. In 2015E, the core net profit of Yuzhou is estimated to be a YoY growth at 29%, thanks to the sales volume growth. Moreover, CMS (HK) estimates Yuzhou FY14-17E earnings CAGR to reach 19% vs peers' average of 10%. In FY15/16E, it estimates Yuzhou's contracted sales to reach RMB13 bn/14.5 bn, representing 8.3%/11.5% YoY growth, backed by the launch of more mass-end residential products.

Mr. Lam Lung On, Chairman of Yuzhou Properties, commented: "The first time release of research report from CMS (HK) fully affirmed the position of Yuzhou being a strong regional leader in West Strait Economic Zone. Yuzhou will deepen in footprint in cities that it already entered, i.e. Xiamen, Hefei, Shanghai, Fuzhou and Nanjing and will increase yearly contract sales to RMB 5 billion each in the future 3 to 5 years. We will devote to improve the financial strength, solidifying the market leadership, devoting ourselves to providing better returns to our shareholders."

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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 26 October 2015, the Company had around 50 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 8.87 million sq. m. are under development or held for future development. Those located in Xiamen measure a total GFA of 2.22 million sq. m and in Hefei measure a total GFA of 2.54 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 ten consecutive years; and Top 50 China Real Estate Enterprises from 2011 to 2015. "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)
Manager of Corporate Finance & Investor Relations/
Assistant Manager of Corporate Finance & Investor Relations
Sophie Zhang/ Minnie Li
Tel ：(852) 2508 1718
Fax ：(852) 2510 0265
Email ：zhangsy3@xmyuzhou.com.cn/ minnie.li@xmyuzhou.com.cn
Yuzhou Properties Investor Relations QR Code:

Wonderful Sky Financial Group Holdings Limited (HKEX: 01260)
Alice Wong / Sylvia Deng
Tel ：(852) 2851 1038
Fax ：(852) 2598 1588
Email ：alicewong@wsfg.hk/sylviadeng@wsfg.hk