【For immediate release】

Macquarie maintains Outperform rating on Yuzhou and target price is HK$3.13

(7 May 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 Macquarie maintains Outperform rating on Yuzhou and target price is HK$3.13.

The report points out that Yuzhou Properties is a strong regional leader who can plough deeply in the Yangtze River Delta and Strait West.

The report also notes that Yuzhou targets to reach Rmb30bn in 2018. Yuzhou plans to focus on T1/2 cities. The company is actively reviewing alternatives to go into the Qingdao market, and expects Shanghai and Nanjing project sales to pick up this year. Management has mentioned in multiple situations assorted measures to lower current net gearing of 60% and finance cost of 8.49%.

Macquarie thinks Yuzhou performs so far so good. Xiamen's insufficient land supply, continuous population inflow, and setting up of Free Trade Zone has made room for them to further raise ASP. April sales could increase more than 40% YoY to Rmb1bn roughly. YTD sales performance has reached around Rmb3.07bn, accounting for 23% of whole year target of Rmb13.5bn.

Macquarie expects Yuzhou will start to rise from a low base of Rmb12bn in 2014, loaded with abundant sellable resources to management target of Rmb13.5bn in 2015, Rmb17.6bn in 2016, then to Rmb30bn in 2018, implying 26% CAGR. Benefited by market recovery and ramp up of market share in core cities, Macquarie maintains target price to HK$3.13.

Mr. Lam Lung On, Chairman of Yuzhou Properties, commented: "The report from Macquarie fully affirmed the position of Yuzhou being a strong regional leader. Yuzhou Properties would consistently adhere to the brand concept of "Building Cities with Heart, Building Homes with Love", we will continue to conduct our business with integrity and utilize our brand equity and resources. We will firmly implement the vision of "Based on West Strait and Expand Nationwide Coverage in China", explore new markets actively as well as take advantages of new opportunities, 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 7 May 2015, the Company had over 48 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 8.7 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)
Manager of Corporate Finance & Investor Relations/
Assistant Manager of Corporate Finance & Investor Relations
Leo Yang/ Minnie Li
Tel ：(852) 2508 1718
Fax ：(852) 2510 0265
Email ：yangduo@xmyuzhou.com.cn/ minnie.li@xmyuzhou.com.cn

Yuzhou Properties Investor Relations QR Code:

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