Logan Property : 2017-08-02China Galaxy International is positive about Logan Property’s strategic footprint in the Guangdong-Hong Kong- Macao Greater Bay Area Shenzhen Project is expected to drive rapid growth of core profits for the next three years
China Galaxy International is positive about Logan Property’s strategic footprint in the Guangdong-Hong Kong- Macao Greater Bay Area Shenzhen Project is expected to drive rapid growth of core profits for the next three years
China/Hong Kong, 2August2017– Renowned securities firm China Galaxy International is bullish about the prospects ofLogan Property Holdings Company Limited (‘Logan Property’ or ‘the Group’, HKEx stock code: 3380) in its research report. The firm believes that Logan Property is already well-positioned in Guangdong, and its seven projects in particular are all well-located along or atop metro stations in Shenzhen. Thanks to its abundant, low-cost land bank, its stable contract sales growth in the region, and its newly appointed Executive Director Chen Guanzhan who brings with him extensive experience in the industry and real estate projects, the Group will enjoy more international exposure, which should help in lowering the risk associated with operating in a single market.
China Galaxy International states that the Group’s high-quality low-cost land bank combined with its specialty and network in the construction industry help to lower its construction costs and thus to generate high margins. In addition, Logan Property has RMB290 billion saleable resources in the Guangdong-Hong Kong-Macao Greater Bay Area (the ‘Greater Bay Area’). With the government focus on the development of the Greater Bay Area, Logan Property will be a prime beneficiary of land prices appreciation in Shenzhen as well as the Greater Bay Area.The firm expects the Group’s land bank to continue to support contract sales growth, and the Group’s contract sales and revenue to deliver a 30% CAGR over the next three years. As a result of the revenue booking of the Shenzhen projects which enjoy a higher profitability, the scale of growth in core profit may be even more astonishing.
The firm points out that Logan propertyhas a certain advantage over its peers in the face of the government’s policy to set a ceiling for the selling price of first-hand properties.In view of the scale and the profitability of the Group’s land bank and of its strategy to simultaneously develop thedomestic and overseas markets – including the allocation of assets to the Singapore and Hong Kong market – it is expected to be able to easily achieve its sales, revenue and profit margin targets for the coming years.
Logan Property Holdings Co. Ltd. published this content on 02 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 30 August 2017 07:27:00 UTC.