china / hong kong industry focus china property sector · 813 hk shimao 6.95 18.42 19.94 -8% 165%...

www.dbsvickers.com

ed-JS / sa- AH

Who will place shares next?

Recent pick up in share prices has raised concerns over developers potentially placing out shares

However, placements may not necessarily trigger de-rating during the market upcycle

Some developers have higher risk for placements than others

Top picks are COLI and Vanke A; mid-cap names Franshion and Sino-Ocean can also offer good returns

Placements may not necessarily trigger de-rating in a

loosening cycle. Share prices of most of the developers that had placed out shares at the beginning of the previous two market upcycles (early 2009 and early 2012) had continued to rise during the three months after the placement (see details on page 2) as investors held a positive sector view or remained confident in the companies’ fundamentals. We expect more positive news flow on relaxation of policies for the property sector and mortgage regulations to support sales recovery and share prices.

Who are more likely to place out shares? Share prices of many developers have reached one year highs and most are trading above book value or at prices where placements were done in the past upcycles. These developers may leverage on the strong equity market to strengthen their balance sheets. We compared developers’ current share prices/valuations to levels when they had last placed out shares (if any), and the past 52-week peak share price. We also factored in developers’ current P/BV and net gearing levels. Using these parameters, we identified Evergrande, Agile, Shenzhen Investment, Central China, CIFI, Yuzhou, Sunac and Hopson as potential candidates to issue new shares if share prices continue to rise. COLI and CG are unlikely to do so since they have issued new equity recently. Vanke, BJ Capital Land, and R&F have to obtain CSRC approval before placing out shares given their H-listed status. Greenland HK will only consider this route for potential strategic shareholders.

COLI and Vanke A are top picks, while mid-caps such as Franshion, Sino-Ocean, and BJ Capital Land also offer good investment values. The sector is currently trading at 8.1x FY15F PE. With a better credit environment, recovering buying sentiment and continued liquidity flow from China to invest in Hong Kong, we expect the sector’s valuation to trade up to its 2012 peak level of 8.9x forward PE.

HSI: 27,718

ANALYST Carol WU · (852) 2863 8841· [email protected] Danielle WANG, CFA · (852) 2820 4915· danielle_wang @hk.dbsvickers.com Ken HE, CFA +86 21 6888 3375 [email protected] Andy YEE · (852) 2971 1773· [email protected]

Recommendation & valuation

F Y 15F

PEHK $ HK $ HK $bn x

China Ov erseas(688 HK)

30.60 38.96 Buy 250 9.8

F ranshion(817 HK)

3.12 4.08 Buy 28 7.9

China V anke 'A'(000002 CH)*~

14.07 n.a. NR 155 7.7

Company Pric eM k tCapRec

T argetPric e

* Consensus

~ Denominated in RMB for price and market cap

Source: Thomson Reuters, DBS Vickers

Developers with higher possibility to place out shares

Company ReasonEv ergrande Current price higher than last placement price;

reached one y ear high; high gearingAgile Current price higher than last right issue price;

high short term debtShenzhen Inv estment Current price higher than last placemenet price;

heading to 1x PBCentral China Current price higher than right issue price;

heading to 1x PBCIF I Current price much higher than last placement

price; much higher than IPO price; eager togrow

Sunac Current price higher than last placemenet price;reached historical high; eager to grow

Hopson Current share price reached one-y ear high; highgearing

Source: DBS Vickers

DBS Group Research . Equity 12 May 2015

China / Hong Kong Industry Focus

China Property Sector Refer to important disclosures at the end of this report

Industry Focus

China Property Sector

Current share price vs. last placement price and 52w high

T icker Company

Latestplace-mentprice

11-MayPrice

52whigh

Currentprice

v s.52w

Currentprice v s.

lastplacement Possibilit y

813 HK Shimao 6.95 18.42 19.94 -8% 165% Unlikely at this level as its subsidiary Shanghai Shimao

YLLG SP Yanlord 2.08 1.2 1.28 -6% -42% Unlikely at current price as current P/B is too low

817 HK Franshion 2.52 3.12 3.26 -4% 24% Unlikely given potential dilution from its PCS securities

1224 HK C C Land 5.92 2.08 2.26 -8% -65% Unlikely as current low PB and low gearing

119 HK Poly Property 8.80 4.87 5.2 -6% -45% Unlikely if not asset injection

81 HK COGO 5.00 4.96 6.43 -23% -1% Unlikely if not asset injection

832 HK Central China 1.71 2.6 2.59 0% 52% Higher possibility

1109 HK CR Land 18.01 27.15 28.25 -4% 51% Just did the placement

2007 HK Country Garden 2.82 4.15 4.45 -7% 47% Did placement to Ping An

960 HK Longfor 11.88 13.58 14.3 -5% 14% Unlikely as company consider domestic debt market as

405 HK Yuexiu REIT 3.30 4.37 4.56 -4% 32% Unlikely if not for acquisition

1918 HK Sunac 6.70 9.81 10.68 -8% 46% Higher possibility

272 HK Shui On Land 1.84 2.57 2.67 -4% 40% Unlikely given current low PB

337 HK Greenland HK 1.90 7.83 8.15 -4% 312% Won't place shares to public, but may introduce

3377 HK Sino-Ocean Land 4.74 6.02 6.52 -8% 27% Unlikely as China Life is unwilling to be diluted

604 HK SZI 3.29 4.16 4.32 -4% 27% Higher possibility

3900 HK Greentown 12.00 10.54 10.6 -1% -12% Unlikely given its current shareholding structure

3333 HK Evergrande 4.35 7 7.9 -11% 61% Higher possibility

688 HK China Overseas 25.38 30.6 32.45 -6% n.a Did asset injection with placement

2202 HK China Vanke 'H' n.a 19.56 20.75 -6% n.a Unlikely as the company has sufficient cash on hand,

3383 HK Agile Property 3.80 6.69 6.92 -3% 76% Higher possibility

2777 HK Guangzhou R&F n.a 9.95 11.44 -13% n.a Technically it needs to hand in approval for CSRC before

754 HK Hopson Dev n.a 9.36 10.32 -9% n.a Higher possibility

1813 HK KWG Property n.a 7.99 8.39 -5% n.a Not at this level

410 HK Soho China n.a 5.81 6.64 -13% n.a Unlikely as its share price underperformed

123 HK Yuexiu Property 1.25 1.92 2.03 -5% 54% Unlikely as the company will prefer to use other funding

2868 HK BJ Cap Land 'H' n.a 7.03 7.2 -2% n.a Technically it needs to hand in approval for CSRC before

588 HK BJ North Star 'H' n.a 3.52 3.88 -9% n.a Technically it needs to hand in approval for CSRC before

1966 HK China SCE n.a 1.75 1.74 1% n.a n.a

884 HK CIF I Holdings n.a 2.54 2.62 -3% n.a Higher possibility

845 HK Glorious Property n.a 1.17 1.4 -16% n.a Can't be done

1638 HK Kaisa Group n.a 1.56 3.2 -51% n.a Can't be done

1125 HK Lai Fung n.a 0.185 0.196 -6% n.a n.a

230 HK Minmetals Land n.a 1.18 1.28 -8% n.a n.a

1238 HK Powerlong n.a 1.81 1.94 -7% n.a Unlikely given current low PB

1387 HK Renhe n.a 0.43 0.49 -12% n.a n.a

1098 HK Road King n.a 8.08 8.19 -1% n.a n.a

1207 HK SRE Group n.a 0.56 0.68 -18% n.a Maybe for introducing strategic shareholders

1628 HK Yuzhou n.a 2.44 2.44 0% n.a Not at this level

672 HK Zhong An n.a 1.1 2.03 -46% n.a Unlikely given current low PBA v erage -11%

Source: Bloomberg Finance L.P., DBS Vickers

Industry Focus


Sector valuation vs. developers’ share placement

10

30

50

70

90

110

130

Jan/

08M

ar/0

8M

ay/0

8Ju

l/08

Sep/

08N

ov/0

8Ja

n/09

Mar

/09

May

/09

Jul/0

9Se

p/09

Nov

/09

Jan/

10M

ar/1

0M

ay/1

0Ju

l/10

Sep/

10N

ov/1

0Ja

n/11

Mar

/11

May

/11

Jul/1

1Se

p/11

Nov

/11

Jan/

12M

ar/1

2M

ay/1

2Ju

l/12

Sep/

12N

ov/1

2Ja

n/13

Mar

/13

May

/13

Jul/1

3Se

p/13

Nov

/13

Jan/

14M

ar/1

4M

ay/1

4Ju

l/14

Sep/

14N

ov/1

4Ja

n/15

Mar

/15

May

/15

China property share price index

Rebased (1 Jan 08 = 100)

1

2

3-56-8 21

9

10

11 12 1314

15-16

17-18

19

2022

2324

25-26

27

28

29

30

31

Dat e Comp any Share p ric e 3M ret u rn 1Day ret u rn1 07-04-09 Shimao 7.70 95% -13%2 19-05-09 CR Land 14.84 15% -3%3 11-06-09 Shui On Land 5.08 -5% 3%4 12-06-09 Poly (HK) 3.72 110% -9%5 18-06-09 Yanlord* 2.28 4% 2%6 22-07-09 F ranshion 2.50 -2% 2%7 28-07-09 C C Land 6.58 -34% -12%8 04-08-09 Shenzhen inv estment 3.73 -14% 0%9 14-10-09 Poly (HK) 8.89 5% 8%10 06-05-10 COGO 2.20 -5% -1%11 04-08-10 Poly (HK) 9.43 -13% -6%12 26-05-11 Central China 1.94 -7% 0%13 19-08-11 CR Land ^ 12.78 -16% -7%14 29-02-12 Country Garden 3.35 -10% -9%15 19-09-12 Longfor 12.90 20% 0%16 27-09-12 Yuexiu REIT ^ 3.61 1% 4%17 17-01-13 Ev ergrande 4.30 -27% 0%18 21-01-13 Sunac 7.19 -11% -8%19 28-03-13 Shui On Land 3.34 -27% -13%20 08-05-13 Greenland HK 3.82 146% 87%21 27-09-13 Sino-Ocean Land 4.66 8% -2%22 15-01-14 China South City 2.17 64% 61%23 28-01-14 Shenzhen Inv estment ^ 2.70 -12% -1%24 22-05-14 Greentown 7.69 3% 7%25 27-08-14 Country Garden 3.57 -11% -5%26 03-09-14 Yuexiu 1.58 -4% -1%27 15-10-14 Agile 4.16 14% -5%28 08-12-14 CR Land ^ 19.70 -1% 1%29 24-03-15 COLI ^ 23.55 n.a 2%30 01-04-15 Country Garden 3.13 n.a 5%31 12-05-15 CR Land 27.15 n.a n.a

* Share price in SGD

^ Placement for asset injection

Source: DBS Vickers

Industry Focus


Current valuation vs. last placement valuation

T ick er CompanyImplied

forw ard PEImplied

P/BV F Y 15 PE P/BV

813 HK Shimao 2.57 0.41 6.80 1.09

YLLG SP Yanlord 20.56 0.97 11.86 0.56

817 HK F ranshion 6.34 0.70 7.85 0.86

1224 HK C C Land 22.35 1.04 7.85 0.36

119 HK Poly Property 22.45 1.08 12.42 0.60

81 HK COGO 4.83 0.93 4.79 0.92

832 HK Central China 3.57 0.52 5.43 0.79

1109 HK CR Land 9.78 1.09 14.74 1.64

2007 HK Country Garden 4.94 0.75 7.27 1.10

960 HK Longfor 7.24 1.16 8.27 1.32

405 HK Yuexiu REIT 24.09 0.56 31.90 0.75

1918 HK Sunac 4.19 1.11 6.14 1.62

272 HK Shui On Land n.a. 0.31 n.a. 0.43

337 HK Greenland HK 8.19 0.71 33.73 2.93

3377 HK Sino-Ocean Land 8.14 0.67 10.34 0.86

604 HK Shenzhen Investment 10.11 0.72 12.80 0.91

3900 HK Greentown 6.35 0.88 5.57 0.77

3333 HK Evergrande 6.99 0.50 11.25 0.80

688 HK China Overseas 8.13 1.56 9.80 1.88

2202 HK China V anke 'H' n.a. n.a. 9.07 1.96

3383 HK Agile Property 3.43 0.28 6.03 0.49

2777 HK Guangzhou R&F n.a. n.a. 4.42 0.71

754 HK Hopson Dev n.a. n.a. 15.10 0.38

1813 HK KWG Property n.a. n.a. 5.88 0.92

410 HK Soho China* n.a. n.a. 33.04 0.62

123 HK Yuexiu Property 6.83 0.43 10.48 0.66

2868 HK BJ Cap Land 'H' n.a. n.a. 6.14 1.25

588 HK BJ North Star 'H' n.a. n.a. 10.06 0.59

1966 HK China SCE n.a. n.a. n.a. 0.73

884 HK CIF I Holdings n.a. n.a. 5.00 1.20

845 HK Glorious Property n.a. n.a. 9.18 0.59

1638 HK Kaisa Group n.a. n.a. 2.21 0.34

1125 HK Lai Fung n.a. n.a. 13.08 0.24

230 HK Minmetals Land n.a. n.a. n.a. 0.49

1238 HK Powerlong n.a. n.a. 5.23 0.31

1387 HK Renhe Commercial n.a. n.a. n.a. 0.40

1098 HK Road King n.a. n.a. n.a. 0.45

1207 HK SRE Group n.a. n.a. n.a. 0.35

1628 HK Yuzhou Properties n.a. n.a. 4.14 0.82672 HK Zhong An n.a. n.a. n.a. 0.34

9.55 0.78 10.23 0.83

Lat est p lacement / issuance Current v aluat ion

Source: Bloomberg Finance L.P., DBS Vickers

Industry Focus


Valuation comparison

3- mt h

daily Net Disc /M k t t rad ing 12- m EPS gt h PE PE Y ield Y ield RO E RO E G earing P/Bk NA V (Prem)

Pric e Cap v alue Recom t arget 15F 16F 15F 16F 14A 15F 15F 16F 14A 14A t o NA VCompany Name Code HK $ HK $bn US$m HK $ % % x x % % % % % x HK $ %

Large c apChina Overseas* 688 HK 30.6 250.1 105.4 Buy 38.96 (8) 7 9.8 9.2 1.8 2.1 17.2 15.5 31.7 1.9 25.5 (20.2)Country Garden* 2007 HK 4.15 93.7 32.4 Buy 5.25 (16) 3 7.3 7.0 4.1 4.5 16.1 14.8 54.2 1.1 3.7 (11.3)CR Land* 1109 HK 27.15 177.3 44.7 Buy 32.50 (27) 13 14.7 13.0 1.8 1.8 11.2 11.1 42.7 1.6 27.1 (0.0)Evergrande* 3333 HK 7 103.5 68.4 Hold 3.81 (42) 14 11.2 9.9 7.6 2.2 6.9 8.0 85.9 0.8 9.4 25.6Longfor 960 HK 13.58 79.0 10.8 NR n.a. (14) 13 8.3 7.4 2.6 2.7 15.4 15.3 57.1 1.3 n.a. n.a.Shimao Property* 813 HK 18.42 64.0 31.6 Buy 25.16 (7) 9 6.8 6.3 4.9 5.0 15.2 15.0 58.6 1.1 28.5 35.4China V anke 'H' 2202 HK 19.56 215.9 31.7 NR n.a. 21 16 9.1 7.8 3.2 3.7 20.0 20.3 5.4 2.0 21.7 9.8A v erage (13) 11 9.6 8 .6 3 .7 3 .1 14 .6 14.3 47 .9 1.4 6 .6

M id c apAgile Property* 3383 HK 6.69 26.2 13.3 Hold 5.87 (27) (5) 6.0 6.3 5.9 4.1 8.8 7.9 75.2 0.5 16.9 60.4China South City^^ 1668 HK 3.34 26.7 28.0 NR n.a. 22 13 6.8 6.0 3.9 4.6 14.6 16.1 78.4 1.1 n.a. n.a.COGO* 81 HK 4.96 11.3 3.3 Buy 6.53 86 29 4.8 3.7 1.0 1.0 17.5 18.8 70.4 0.7 10.1 50.8F ranshion* 817 HK 3.12 28.3 6.1 Buy 4.08 (27) 15 7.9 6.8 3.7 3.8 10.2 10.9 58.1 0.9 4.8 35.4Greentown 3900 HK 10.54 22.8 10.5 NR n.a. 89 2 5.6 5.5 0.0 2.9 12.4 11.3 76.7 0.8 18.5 43.0Guangzhou R&F 2777 HK 9.95 32.1 18.7 NR n.a. 10 13 4.4 3.9 0.0 5.4 16.4 16.4 91.7 0.7 18.1 45.0Hopson Dev 754 HK 9.36 21.0 3.5 NR n.a. (53) (10) 15.1 16.7 0.0 0.0 2.0 2.0 73.6 0.4 n.a. n.a.KWG Property 1813 HK 7.99 23.5 9.8 NR n.a. (3) 21 5.9 4.9 5.2 5.7 14.6 15.8 66.8 0.9 10.8 26.1Poly (Hong Kong) 119 HK 4.87 17.8 15.2 NR n.a. 54 19 12.4 10.5 1.6 2.2 5.2 5.8 103.9 0.6 13.1 62.8Shenzhen Inv 604 HK 4.16 27.9 13.7 NR n.a. (39) 8 12.8 11.9 3.8 3.8 6.1 6.3 73.9 0.9 n.a. n.a.Shui On Land* 272 HK 2.57 20.6 6.1 Hold 1.97 (133) n.a. n.a. n.a. 2.4 0.3 (1.5) (0.3) 79.1 0.4 4.9 47.8Sino-Ocean Land* 3377 HK 6.02 45.3 10.4 Buy 7.06 (21) 28 10.3 8.1 4.0 3.2 8.4 9.9 65.9 0.9 8.5 29.5Soho China* 410 HK 5.81 30.2 5.7 Hold 5.39 (82) (30) 33.0 47.3 5.1 5.1 1.9 1.3 19.3 0.6 10.8 46.1Sunac China 1918 HK 9.81 33.3 22.7 NR n.a. 33 20 6.1 5.1 2.4 2.9 22.8 22.1 44.5 1.6 n.a. n.a.Yanlord Land*^ YLLG SP 1.20 2.3 2.1 Hold 0.99 (29) 44 11.9 8.2 1.2 1.2 4.6 6.4 44.9 0.6 2.0 40.3Yuexiu Property* 123 HK 1.92 23.8 13.6 Hold 1.67 (36) 18 10.5 8.8 3.8 3.8 6.1 6.9 63.1 0.7 3.2 40.6A v erage# 4 15 8.6 7 .6 2 .6 3 .2 10 .7 11.2 70 .5 0.8 43 .4

Small c apBJ Cap Land 'H' 2868 HK 7.03 14.3 3.9 NR n.a. 10 36 6.1 4.5 4.4 4.9 16.2 19.6 87.0 1.3 n.a. n.a.BJ North Star 'H' 588 HK 3.52 11.9 4.6 NR n.a. 21 14 10.1 8.8 2.1 2.1 5.7 6.3 73.0 0.6 n.a. n.a.C C Land* 1224 HK 2.08 5.4 1.0 Hold 1.93 (36) (8) 7.9 8.6 2.4 2.5 4.5 4.0 18.5 0.4 4.8 56.4Central China* 832 HK 2.60 6.3 0.5 Buy 3.02 6 28 5.4 4.2 5.2 5.5 13.8 15.9 43.4 0.8 6.5 59.9China SCE 1966 HK 1.75 6.0 0.7 NR n.a. n.a. n.a. n.a. n.a. 0.0 n.a. n.a. n.a. 68.0 0.7 n.a. n.a.CIF I Holdings 884 HK 2.54 15.3 2.2 NR n.a. 32 24 5.0 4.0 5.4 5.0 22.3 22.7 58.2 1.2 n.a. n.a.F irst Sponsor*^ F SG SP 1.27 0.7 0.1 Buy 1.57 112 13 13.8 12.2 1.6 1.3 5.9 6.4 n.a. 0.7 2.0 38.0Glorious Property 845 HK 1.17 9.1 2.9 NR n.a. (127) (63) 9.2 24.6 0.0 0.0 1.2 1.9 100.0 0.6 5.9 80.1Kaisa Group 1638 HK 1.56 8.0 5.0 NR n.a. 10 22 2.2 1.8 12.0 13.5 16.5 16.8 70.4 0.3 n.a. n.a.Lai Fung* 1125 HK 0.185 3.0 0.2 NR n.a. (79) 50 13.1 8.7 1.7 1.7 1.8 2.6 10.8 0.2 0.6 68.1Minmetals Land 230 HK 1.18 3.9 0.8 NR n.a. n.a. n.a. n.a. n.a. 1.3 n.a. n.a. n.a. 49.2 0.5 n.a. n.a.Powerlong 1238 HK 1.81 7.2 1.0 NR n.a. (20) 5 5.2 5.0 4.3 4.6 n.a. n.a. 66.2 0.3 n.a. n.a.Renhe Commercial 1387 HK 0.43 13.6 3.5 NR n.a. n.a. n.a. n.a. n.a. 0.0 n.a. n.a. n.a. 41.5 0.4 2.7 84.3Road King 1098 HK 8.08 5.9 0.7 NR n.a. n.a. n.a. n.a. n.a. 7.2 n.a. n.a. n.a. 0.0 0.4 n.a. n.a.Greenland* 337 HK 7.83 13.3 9.5 Buy 7.72 354 213 33.6 10.8 0.0 0.0 8.3 22.2 154.5 2.9 5.0 (55.5)SRE Group 1207 HK 0.56 3.2 3.2 NR n.a. n.a. n.a. n.a. n.a. 0.0 n.a. n.a. n.a. 182.1 0.4 n.a. n.a.Ying Li^ YINGLI SP 0.25 0.6 0.6 NR n.a. n.a. n.a. n.a. n.a. 0.0 n.a. n.a. n.a. 0.0 0.7 0.9 72.8Yuzhou Properties* 1628 HK 2.44 8.4 1.5 NR n.a. 31 39 4.1 3.0 5.5 7.2 18.3 21.7 59.8 0.8 5.0 51.2Zhong An 672 HK 1.1 2.6 0.5 NR n.a. n.a. n.a. n.a. n.a. 0.0 n.a. n.a. n.a. 76.9 0.3 n.a. n.a.A v erage** (8 ) 11 6.1 7 .2 3 .1 5 .0 12 .3 13.6 62 .1 0.6 67 .4

A v erage (O v erall)@ (4 ) 13 8.1 7 .7 3 .0 3 .7 12 .1 12.6 62 .6 0.8 39 .9~

11- M ay

^ Denominated in SGD for price and market cap

~ Simple average discount to NAV; Market cap weighted average NAV = 13%

# Exclude Soho China & Shui On Land

** Exclude Greenland, First Sponsor & Lai Fung

@ Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung ^^ FY15: 16F; FY16: FY17F

Source: Thomson Reuters, *DBS Vickers

Industry Focus


PE valuations, 2007 to 2014 (based on earnings forecasts)

11- M ay M k t 15F 16F PE

Company Name CodePric eHK $

CapHK $bn

PEx

PEx

T rough07- 08

Peak07- 08

T rough2009

Peak2009

T rough2010

Peak2010

T rough2011

Peak2011

T rough2012

Peak2012

T rough2013

Peak2013

T rough2014

Peak2014

China Ov erseas* 688 HK 30.60 250.1 9.8 9.2 9.8 37.8 11.2 25.3 12.9 17.2 6.6 12.2 7.2 12.5 7.9 11.4 6.2 8.6Country Garden* 2007 HK 4.15 93.7 7.3 7.0 3.6 50.2 5.2 20.3 10.7 16.7 5.2 11.6 5.8 9.2 6.5 10.0 4.0 6.4CR Land* 1109 HK 27.15 177.3 14.7 13.0 15.9 69.0 13.1 30.4 14.4 21.1 7.2 15.2 10.1 17.6 11.9 16.2 7.1 10.7Evergrande* 3333 HK 7.00 103.5 11.2 9.9 n.a. n.a. n.a. n.a. 3.8 9.1 2.9 8.9 3.3 6.1 4.2 6.4 3.4 4.6Longfor 960 HK 13.58 79.0 8.3 7.4 n.a. n.a. 17.8 24.4 13.8 21.7 6.3 14.2 5.6 11.9 7.4 10.4 5.3 6.9Shimao Property* 813 HK 18.42 64.0 6.8 6.3 3.7 29.4 4.1 18.0 8.4 13.1 3.5 9.5 3.8 9.3 6.3 8.7 4.2 6.0China V anke 'H' 2202 HK 19.56 215.9 9.1 7.8 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6.3 9.0A v erage 9.6 8 .6 8 .2 46.6 10.3 23.7 10.7 16.5 5 .3 11.9 6 .0 11.1 7 .4 10.5 5 .2 7 .4

Agile Property * 3383 HK 6.69 26.2 6.0 6.3 1.6 36.9 4.7 21.0 8.5 13.7 2.7 11.1 3.8 7.1 4.0 7.6 2.4 4.3China South City^^ 1668 HK 3.34 26.7 6.8 6.0 n.a. n.a. 17.7 19.6 6.9 20.4 4.3 12.3 5.9 6.6 4.3 6.9 5.1 11.8COGO* 81 HK 4.96 11.3 4.8 3.7 n.a. n.a. n.a. n.a. n.a. n.a. 3.6 9.8 5.0 9.8 6.3 10.0 3.1 5.1F ranshion* 817 HK 3.12 28.3 7.9 6.8 5.5 48.2 6.9 21.8 15.0 19.1 6.1 16.8 6.0 10.3 7.3 9.3 4.8 6.8Greentown 3900 HK 10.54 22.8 5.6 5.5 1.9 15.7 2.3 18.3 6.3 10.2 2.0 6.1 1.5 6.3 3.3 6.6 2.3 4.5Guangzhou R&F 2777 HK 9.95 32.1 4.4 3.9 2.4 41.2 4.8 17.8 6.8 10.5 3.2 8.0 3.2 7.4 4.7 8.1 3.8 4.8Hopson Dev 754 HK 9.36 21.0 15.1 16.7 1.0 21.0 2.2 10.3 4.9 7.5 2.8 6.4 2.8 16.0 5.6 13.7 3.9 16.1KWG Property 1813 HK 7.99 23.5 5.9 4.9 2.1 34.3 2.9 22.1 8.0 14.2 3.1 9.9 2.8 6.6 3.7 6.6 2.9 5.2Poly (Hong Kong) 119 HK 4.87 17.8 12.4 10.5 10.0 30.0 3.8 51.0 14.9 25.2 4.2 16.1 4.9 9.8 5.2 9.9 3.9 6.4Shenzhen Inv 604 HK 4.16 27.9 12.8 11.9 2.1 22.8 4.2 14.9 6.5 9.5 3.8 9.0 4.6 8.6 6.2 11.8 5.3 8.0Shui On Land* 272 HK 2.57 20.6 n.a. n.a. 1.7 25.0 3.4 21.3 9.4 16.6 5.2 16.2 6.5 12.6 9.1 17.6 10.6 13.8Sino-Ocean Land* 3377 HK 6.02 45.3 10.3 8.1 4.7 82.2 9.0 24.8 11.3 15.7 4.1 10.3 5.4 12.1 6.7 11.4 6.0 7.8Soho China* 410 HK 5.81 30.2 33.0 47.3 6.4 23.6 4.5 12.4 5.2 8.8 10.1 19.9 5.0 6.9 7.1 8.6 9.9 13.3Sunac China 1918 HK 9.81 33.3 6.1 5.1 n.a. n.a. n.a. n.a. 4.5 5.8 1.4 3.5 1.4 5.5 3.1 4.9 2.2 5.1Yanlord Land*^ YLLG SP 1.20 2.3 11.9 8.2 4.1 28.7 6.6 19.8 9.3 14.5 5.0 10.5 6.7 15.0 9.3 14.4 7.5 9.8Yuexiu Property * 123 HK 1.92 23.8 10.5 8.8 1.9 31.9 2.9 25.5 8.9 15.7 4.5 11.0 4.5 9.1 5.8 9.5 5.9 7.9A v erage# 8.6 7 .6 3 .4 35.7 5 .7 22.3 8 .6 14.0 3 .6 10.0 4 .2 9 .3 5 .4 9 .3 4 .2 7 .4

BJ Cap Land 'H' 2868 HK 7.03 14.3 6.1 4.5 1.6 18.8 3.1 15.9 5.1 9.6 1.9 5.9 2.0 4.7 3.3 5.3 2.6 3.3BJ North Star 'H' 588 HK 3.52 11.9 10.1 8.8 3.5 49.9 5.0 18.0 7.5 12.7 3.6 10.5 6.5 8.9 4.0 7.0 3.8 8.2C C Land* 1224 HK 2.08 5.4 7.9 8.6 18.7 536.5 n.a. n.a. n.a. n.a. 5.2 17.4 3.9 12.7 6.7 10.9 3.5 6.4Central China* 832 HK 2.60 6.3 5.4 4.2 1.3 10.8 1.5 9.4 3.9 6.6 2.8 5.6 2.8 6.3 3.5 5.2 2.6 3.8China SCE 1966 HK 1.75 6.0 n.a. n.a. n.a. n.a. n.a. n.a. 4.7 6.9 3.7 5.5 2.9 3.5 2.4 6.6 5.6 5.6CIF I Holdings 884 HK 2.54 15.3 5.0 4.0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3.8 5.9 3.2 4.3F irst Sponsor*^ FSG SP 1.27 0.7 13.8 12.2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 29.9 31.3Glorious Property 845 HK 1.17 9.1 9.2 24.6 n.a. n.a. 12.9 17.7 6.4 10.8 2.8 7.3 2.8 6.3 4.8 11.0 4.4 9.1Kaisa Group 1638 HK 1.56 8.0 2.2 1.8 n.a. n.a. n.a. n.a. 3.5 8.4 3.7 10.0 2.9 6.9 2.8 5.9 1.9 3.9Lai Fung* 1125 HK 0.19 3.0 13.1 8.7 0.8 7.9 3.2 11.1 6.7 17.4 3.1 19.0 2.6 4.9 4.0 4.0 4.0 4.0Minmetals Land 230 HK 1.18 3.9 n.a. n.a. 0.8 3.4 2.2 13.2 6.9 20.1 3.8 n.a. 2.3 7.1 4.2 6.6 3.6 5.9Powerlong 1238 HK 1.81 7.2 5.2 5.0 n.a. n.a. 4.7 7.0 5.3 8.2 1.5 6.5 1.6 5.6 3.6 6.7 2.8 3.8Renhe Commercial 1387 HK 0.43 13.6 n.a. n.a. 10.5 12.5 5.7 10.7 5.4 7.2 3.2 7.0 2.7 9.4 4.7 23.9 7.7 7.7Road King 1098 HK 8.08 5.9 n.a. n.a. 1.1 11.0 4.4 7.2 5.4 7.3 2.2 7.0 2.4 7.6 6.5 7.3 6.8 6.8Greenland* 337 HK 7.83 13.3 33.6 10.8 0.1 2.8 1.1 11.9 3.6 6.7 1.2 3.2 1.0 7.6 0.6 44.8 11.7 28.2SRE Group 1207 HK 0.56 3.2 n.a. n.a. 1.0 8.8 1.5 4.6 2.0 3.7 2.3 2.9 0.9 1.4 1.1 1.1 1.1 1.1Ying Li^ YINGLI SP 0.25 0.6 n.a. n.a. n.a. n.a. 64.8 196.2 22.4 331.2 6.9 42.9 4.7 13.0 7.8 16.1 4.1 14.7Yuzhou Properties* 1628 HK 2.44 8.4 4.1 3.0 n.a. n.a. 9.6 11.7 5.5 9.9 2.7 5.8 3.6 6.5 3.6 6.5 2.4 3.3Zhong An 672 HK 1.10 2.6 n.a. n.a. 1.7 128.9 2.9 22.3 7.8 13.8 3.0 12.3 9.9 14.9 5.3 10.3 8.3 8.3A v erage** 6.1 7 .2 4 .5 86.7 9 .9 27.8 6 .5 32.6 3 .3 10.5 3 .5 7 .7 4 .3 8 .5 4 .0 6 .0

A v erage (O v erall)@ 8.1 7 .7 4 .6 56.7 8 .2 24.8 8 .1 22.3 3 .8 10.6 4 .2 8 .9 5 .2 9 .2 4 .3 6 .8


# Exclude Soho China & Shui On Land for 15F & 16F PE

** Exclude Greenland, First Sponsor & Lai Fung for 15F & 16F PE

@ Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung for 15F & 16F PE

^^ FY15: 16F; FY16: FY17F


Industry Focus


PE valuations, 2007 to 2014 (based on reported earnings)

3- mt h daily

M k t t rad ing F Y 15 F Y 16Pric e Cap v alue PE PE A v g Peak T rough Peak Peak Peak Peak Peak Peak Peak

Company Name Code HK $ HK $bn US$m x x PE (x ) 2007 2008 2008 2009 2010 2011 2012 2013 2014China Ov erseas* 688 HK 30.6 250.1 105.4 9.8 9.2 10.7 34.3 10.2 26.0 21.2 12.0 9.7 10.4 9.0 7.1Country Garden* 2007 HK 4.15 93.7 32.4 7.3 7.0 14.9 41.7 11.3 86.8 25.3 10.6 9.0 8.2 9.5 6.9CR Land* 1109 HK 27.15 177.3 44.7 14.7 13.0 12.1 52.0 13.1 35.6 21.6 14.5 10.2 11.5 9.3 7.8Ev ergrande* 3333 HK 7 103.5 68.4 11.2 9.9 6.2 n.a. n.a. n.a. 52.1 7.0 6.6 6.3 4.5 3.7Longfor 960 HK 13.58 79.0 10.8 8.3 7.4 6.8 n.a. n.a. n.a. 14.8 11.7 9.2 10.2 8.7 6.0Shimao Property* 813 HK 18.42 64.0 31.6 6.8 6.3 9.4 18.7 11.4 63.7 14.2 9.6 6.7 7.4 7.6 6.5China V anke 'H' 2202 HK 19.56 215.9 31.7 9.1 7.8 9.0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 9.9 10.0A v erage 9 .6 8 .6 9 .9 36 .7 11 .5 53 .0 24 .9 10 .9 8 .6 9 .0 8 .4 6 .9

Agile Property * 3383 HK 6.69 26.2 13.3 6.0 6.3 6.2 28.8 1.2 7.9 20.9 6.1 9.6 5.9 7.2 5.5China South City ^^ 1668 HK 3.34 26.7 28.0 6.8 6.0 4.4 n.a. n.a. n.a. n.a. n.a. 5.8 4.3 7.0 11.8COGO* 81 HK 4.96 11.3 3.3 4.8 3.7 7.6 12.4 32.9 188.9 n.a. 4.9 8.0 8.9 9.2 13.3F ranshion* 817 HK 3.12 28.3 6.1 7.9 6.8 9.4 7.4 8.4 33.1 24.9 17.0 9.6 9.5 6.8 5.1Greentown 3900 HK 10.54 22.8 10.5 5.6 5.5 8.4 25.5 4.2 30.5 18.9 10.7 5.2 4.3 6.2 12.1Guangzhou R&F 2777 HK 9.95 32.1 18.7 4.4 3.9 7.5 26.4 3.3 28.6 20.6 10.2 8.3 6.0 5.2 5.7Hopson Dev 754 HK 9.36 21.0 3.5 15.1 16.7 5.6 12.3 1.1 16.2 4.1 3.9 11.7 7.3 8.2 7.1KWG Property 1813 HK 7.99 23.5 9.8 5.9 4.9 8.5 9.7 6.4 n.a. 20.4 12.3 7.2 5.1 5.1 4.6Poly (Hong Kong) 119 HK 4.87 17.8 15.2 12.4 10.5 11.4 44.2 11.4 59.7 40.1 18.6 10.8 8.3 9.1 16.4Shenzhen Inv 604 HK 4.16 27.9 13.7 12.8 11.9 7.1 13.6 2.2 20.5 13.7 8.9 6.7 5.5 6.6 5.4Shui On Land* 272 HK 2.57 20.6 6.1 n.a. n.a. 7.3 15.1 1.6 11.7 7.8 6.3 4.7 9.1 10.4 9.7Sino-Ocean Land* 3377 HK 6.02 45.3 10.4 10.3 8.1 10.0 24.0 4.5 25.5 22.5 16.2 12.8 8.5 8.3 6.9Soho China* 410 HK 5.81 30.2 5.7 33.0 47.3 9.9 20.5 n.a. n.a. 6.7 7.9 8.0 2.4 3.8 6.9Sunac China 1918 HK 9.81 33.3 22.7 6.1 5.1 3.4 n.a. n.a. n.a. n.a. n.a. 3.2 5.4 6.0 6.6Yanlord Land*^ YLLG SP 1.2 2.3 2.1 11.9 8.2 11.1 33.4 4.1 27.4 17.6 11.0 11.6 8.0 10.4 8.6Yuexiu Property * 123 HK 1.92 23.8 13.6 10.5 8.8 7.1 15.9 3.4 20.2 n.a. 12.0 2.5 5.7 6.8 6.2A v erage# 8 .6 7 .6 7 .8 20 .6 6 .5 39 .2 18 .2 10 .4 7 .9 6 .5 7 .3 8 .2

BJ Cap Land 'H' 2868 HK 7.03 14.3 3.9 6.1 4.5 7.4 23.6 2.3 21.7 13.2 6.3 5.4 4.7 4.0 3.1BJ North Star 'H' 588 HK 3.52 11.9 4.6 10.1 8.8 7.8 46.9 1.6 12.7 6.1 6.9 5.2 5.7 7.7 9.3C C Land* 1224 HK 2.08 5.4 1.0 7.9 8.6 10.1 36.3 n.a. n.a. n.a. 36.8 27.0 13.7 16.1 4.7Central China* 832 HK 2.60 6.3 0.5 5.4 4.2 4.7 n.a. 1.1 6.7 11.0 7.4 6.6 6.3 6.1 5.6China SCE 1966 HK 1.75 6.0 0.7 n.a. n.a. 10.3 n.a. n.a. n.a. n.a. 5.9 6.1 6.3 5.8 5.6CIF I Holdings 884 HK 2.54 15.3 2.2 5.0 4.0 3.5 n.a. n.a. n.a. n.a. n.a. n.a. 2.6 4.6 4.5F irst Sponsor*^ F SG SP 1.27 0.7 0.1 13.8 12.2 14.5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 33.3Glorious Property 845 HK 1.17 9.1 2.9 9.2 24.6 8.4 n.a. n.a. n.a. 8.8 6.3 8.5 10.1 39.2 (3.6)Kaisa Group 1638 HK 1.56 8.0 5.0 2.2 1.8 3.3 n.a. n.a. n.a. 20.2 3.2 7.0 4.8 3.9 5.0Lai F ung* 1125 HK 0.185 3.0 0.2 13.1 8.7 5.8 n.a. 2.1 15.2 5.9 7.8 5.4 2.5 5.7 2.9Minmetals Land 230 HK 1.18 3.9 0.8 n.a. n.a. 11.8 19.8 2.2 16.4 38.4 12.1 9.5 15.6 11.8 8.5Powerlong 1238 HK 1.81 7.2 1.0 5.2 5.0 2.8 n.a. n.a. n.a. 3.0 3.7 3.2 3.1 5.4 3.8Renhe Commercial 1387 HK 0.43 13.6 3.5 n.a. n.a. 6.8 n.a. 7.8 9.3 9.1 9.4 5.7 17.4 (8.4) (4.9)Road King 1098 HK 8.08 5.9 0.7 n.a. n.a. 7.2 14.7 2.1 15.9 6.8 8.8 6.7 6.1 6.0 5.4Greenland* 337 HK 7.83 13.3 9.5 33.6 10.8 17.5 13.1 2.4 39.3 7.2 4.9 4.2 (1.8) 364.4 108.3SRE Group 1207 HK 0.56 3.2 3.2 n.a. n.a. 7.0 7.9 3.2 20.7 4.7 4.8 6.7 6.8 13.3 (13.9)Ying Li^ YINGLI SP 0.25 0.6 0.6 n.a. n.a. 26.7 n.a. 1.8 4.8 112.2 33.8 17.6 11.5 26.6 18.1Yuzhou Properties* 1628 HK 2.44 8.4 1.5 4.1 3.0 4.1 n.a. n.a. n.a. 3.2 4.7 4.6 7.1 4.1 4.4Zhong An 672 HK 1.1 2.6 0.5 n.a. n.a. 9.2 21.8 4.2 29.4 15.4 12.4 10.4 7.2 9.1 15.8A v erage** 6 .1 7 .2 8 .9 23 .0 2 .8 17 .5 17 .7 10 .3 8 .2 7 .2 29 .2 11 .4

A v erage (O v erall)@ 8 .1 7 .7 8 .8 23 .8 5 .8 32 .4 19 .2 10 .4 8 .1 7 .2 17 .1 9 .4HSI Index HSI 19 .2 9 .1 23 .1 18 .2 13 .6 11 .7 11 .0 11 .3 12 .0

PE ( x )11- M ay


# Exclude Soho China & Shui On Land for 15F & 16F PE

** Exclude Greenland, First Sponsor & Lai Fung for 15F & 16F PE

@ Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung for 15F & 16F PE

^^ FY15: 16F; FY16: FY17F


Industry Focus


Share price performance

Price Performance 20071-wk 2-wk 1-mth 2-mth 3-mth 4-mth 5-mth 6-mth YTD 1-y r 2011 2012 2013 2014 high

% % % % % % % % % % % % % % %Tier 1 play ersChina Overseas 688 HK (4.2) (2.7) 4.4 39.1 32.2 24.9 33.3 42.0 32.8 69.6 (9.7) 78.0 (5.6) 5.7 58.4Country Garden 2007 HK (6.7) 6.1 18.2 39.3 37.0 28.1 37.4 40.2 33.9 46.2 (2.3) 46.4 15.3 (32.8) (67.9)CR Land 1109 HK (1.1) 3.0 9.5 43.2 39.2 27.3 42.8 62.2 37.2 96.3 (12.1) 69.1 (8.9) 6.4 31.1Evergrande 3333 HK (11.4) 13.1 66.3 105.9 117.4 104.7 121.5 134.9 122.9 120.8 (14.8) 32.0 (30.4) 6.1 n.a.Longfor Properties 960 HK (5.0) 3.3 18.1 39.3 35.8 23.0 41.0 50.4 35.9 40.9 (18.9) 72.9 (28.6) (7.8) n.a.Shimao Property 813 HK (7.6) 3.5 4.1 18.5 14.6 0.3 5.5 12.0 6.2 30.8 (43.5) 120.5 21.9 (2.7) (36.6)China Vanke 'H' 2202 HK (2.7) (4.4) 1.1 24.0 14.5 7.2 17.1 38.9 13.1 n.a. n.a. n.a. n.a. n.a. n.a.A v erage (5.5) 3.1 17.4 44.2 41.5 30.8 42.7 54.4 40.3 67.4 (16.9) 69.8 (6.1) (4.2) (3.7)

T ier 2 play ersAgile Property 3383 HK (3.3) 10.2 26.2 50.3 49.3 34.3 64.8 60.0 51.7 18.9 (39.2) 56.6 (23.8) (46.9) (66.0)China South City 1668 HK (3.7) (2.3) (5.6) 58.3 39.7 (4.0) (9.7) (13.9) (5.6) 11.0 (32.0) 17.0 88.0 60.9 n.a.COGO 81 HK (5.9) 9.7 12.7 27.2 31.6 16.4 26.5 24.3 25.9 14.8 88.6 105.6 (20.7) (46.7) 9.2Franshion 817 HK (4.3) 2.6 18.2 41.8 41.8 28.9 43.8 56.0 40.5 35.1 (35.9) 85.9 (3.2) (17.4) (50.0)Greentown 3900 HK (0.6) 15.7 35.8 61.9 59.9 40.5 42.4 31.4 36.9 53.0 (60.8) 321.4 (16.6) (35.0) (46.1)GZ R&F 2777 HK (4.7) 5.6 13.3 15.3 13.3 3.0 8.0 17.3 4.8 3.6 (44.8) 110.1 (12.1) (16.3) (77.1)Hopson Dev 754 HK (9.3) 15.6 26.1 67.7 44.2 25.6 36.6 33.7 31.8 33.7 (51.8) 207.2 (24.6) (24.0) (70.0)KWG 1813 HK (4.8) 3.6 22.7 70.7 63.7 45.8 46.6 44.7 50.5 115.3 (55.8) 122.2 (26.1) 33.5 (43.8)Poly HK 119 HK (6.3) 6.3 15.1 41.2 41.2 25.8 61.3 64.0 52.7 51.7 (55.7) 79.8 (31.7) (22.9) (57.4)Shenzhen Inv 604 HK (3.7) 3.0 18.9 77.0 79.3 69.1 91.7 91.7 86.5 74.8 (48.7) 125.9 (7.0) (23.6) (46.4)Shui On Land 272 HK (3.7) 10.3 20.7 53.0 47.7 36.7 41.2 36.0 40.4 28.5 (36.9) 58.9 (31.1) (23.1) (74.0)Sino-Ocean 3377 HK (7.7) (3.8) 8.1 28.4 23.1 22.4 35.3 32.0 36.5 54.4 (29.3) 60.8 (12.1) (13.4) (59.9)SOHO China 410 HK (3.6) (1.0) 0.9 13.9 9.0 2.7 5.1 2.1 6.0 (3.2) (10.6) 20.3 7.4 (18.0) (51.3)Sunac China 1918 HK (8.1) 3.4 15.8 47.1 43.2 32.7 45.5 40.7 24.3 167.3 (42.1) 272.7 (22.5) 69.7 n.a.Yanlord Land YLLG SP (4.0) (7.0) 20.2 25.3 20.2 12.3 12.3 8.2 14.4 5.3 (43.2) 59.2 (19.4) (15.1) (71.8)Yuexiu Property 123 HK (5.4) 3.8 11.6 34.3 27.2 19.3 28.9 31.5 28.9 42.2 (46.2) 118.8 (22.0) (16.8) (33.4)A v erage (5.0) 4.7 16.3 44.6 39.7 25.7 36.3 35.0 32.9 44.2 (34.0) 113.9 (11.1) (9.7) (52.7)

T ier 3 play ersBJ Cap. Land 2868 HK (0.4) 18.2 43.8 71.9 91.6 111.7 153.8 157.5 139.1 184.6 (41.2) 110.5 (18.0) 11.4 (5.8)BJ North Star 588 HK (6.9) (0.3) 38.0 40.2 51.1 34.9 44.9 37.0 42.5 98.9 (45.5) 82.6 (16.7) 41.1 (55.4)C C Land 1224 HK (8.0) 17.5 35.9 57.6 56.4 43.4 48.6 48.6 54.1 58.8 (45.0) 88.9 (28.3) (30.8) (87.6)Central China 832 HK 7.0 18.2 28.7 39.0 39.0 36.1 51.2 44.4 48.6 39.0 (31.2) 76.8 (12.8) (26.8) n.a.China SCE Property 1966 HK 4.2 12.9 21.5 22.4 19.0 11.5 22.4 17.4 8.0 6.1 (27.7) 20.2 16.2 (12.4) n.a.CIF I Holdings 884 HK (3.1) 5.8 34.4 53.0 72.8 53.0 60.8 68.2 64.9 81.4 n.a. n.a. 17.1 (6.1) n.a.F irst Sponsor FSG SP 0.4 0.8 3.3 5.4 4.5 3.3 3.3 2.8 1.6 n.a. n.a. n.a. n.a. n.a. n.a.Glorious Property 845 HK (7.1) 1.7 10.4 13.6 23.2 0.0 10.4 5.4 (2.5) 5.4 (49.1) 7.4 14.4 (28.1) n.a.Kaisa Group 1638 HK 0.0 0.0 0.0 4.7 (6.6) (1.9) (25.0) (45.8) (1.9) (31.0) (42.0) 79.1 4.2 (36.4) n.a.Lai Fung 1125 HK (4.6) (0.5) 20.9 21.7 14.2 17.1 16.4 14.2 17.8 14.2 (47.3) 25.5 (5.3) (19.9) (60.4)Minmetals Land 230 HK (7.8) 1.7 14.6 35.6 31.1 21.6 34.1 28.3 32.6 38.8 (53.4) 70.7 (19.5) (13.6) (68.1)Powerlong 1238 HK (6.7) 11.0 17.5 63.1 69.2 56.0 67.6 66.1 66.1 58.8 (59.1) 58.7 0.6 (34.3) n.a.Renhe Commercial 1387 HK (8.5) 3.6 (12.2) 24.6 32.3 16.2 19.4 36.5 26.5 7.2 (34.6) (8.9) (38.9) (28.1) n.a.Road King 1098 HK (1.3) 3.9 9.6 21.5 22.6 20.2 22.4 19.4 23.4 12.5 (36.9) 52.1 9.6 (11.7) (52.7)Greenland 337 HK (3.9) 7.6 53.2 60.8 112.2 151.0 177.7 160.1 154.2 141.7 (66.1) 53.5 90.4 (18.3) 4.8SRE Group 1207 HK (17.6) 62.3 159.3 173.2 175.9 153.4 152.3 151.1 166.7 147.8 (55.7) 24.2 (32.9) (20.8) (83.6)Ying Li YINGLI SP (5.7) (9.1) 2.0 13.6 4.2 (3.8) 4.2 (2.0) 2.0 (7.4) (41.4) 45.1 6.8 (38.0) (79.2)Yuzhou Properties 1628 HK 1.7 9.9 29.8 30.5 36.3 26.4 28.4 36.3 25.1 41.9 (18.6) 37.1 2.9 1.0 n.a.Zhong An 672 HK (10.6) 7.8 19.6 31.0 19.6 (4.3) (9.1) (1.8) (3.5) (35.3) (43.9) 7.5 26.3 (20.8) (81.0)A v erage (4.2) 9.1 27.9 41.2 45.7 39.3 46.5 44.4 45.5 48.0 (43.4) 48.9 0.9 (16.3) (56.9)

A v erage (Ov erall) (4.7) 6.4 21.7 43.0 42.7 32.7 42.0 42.5 39.8 49.4 (35.5) 78.8 (4.9) (11.8) (47.2)

Hang Seng Index (1.4) (2.5) 1.6 16.9 14.0 15.9 18.9 16.4 17.4 26.8 (20.0) 22.9 2.9 1.3 (12.4)MSCI China (3.0) (4.7) 0.2 21.6 20.3 18.8 26.5 27.0 22.5 41.4 (20.4) 18.7 0.4 4.7 (22.2)

Source: Thomson Reuters

Industry Focus


Discount to NAV

Sector average (DBSV coverage only) Agile Property (3383 HK)

(80)

(60)

(40)

(20)

0

20

40

Oct

-06

Sep

-07

Sep

-08

Au

g-0

9

Au

g-1

0

Jul-

11

Jun

-12

Jun

-13

May

-14

May

-15

%

M

+2SD: -6.6%

+1SD: -23%

Mean: -39.4%

-1SD: -55.7%

-2SD: -72.1%

(100)

(80)

(60)

(40)

(20)

0

20

Jul-

08

No

v-0

9

Mar

-11

Au

g-1

2

Dec

-13

May

-15

%

+1SD -28.3%

Avg: -50.1%

-1SD -71.9%

C C Land (1224 HK) Central China (832 HK)

(100)(90)(80)(70)(60)(50)(40)(30)(20)(10)

0

Jul-

08

No

v-0

9

Mar

-11

Au

g-1

2

Dec

-13

May

-15

%

+1SD -50.1%

-1SD -79.2%

Avg: -64.6%

(100)

(90)

(80)

(70)

(60)

(50)

(40)

(30)

Jan

-09

Au

g-0

9

Feb

-10

Sep

-10

Ap

r-1

1

No

v-1

1

Jun

-12

Jan

-13

Au

g-1

3

Mar

-14

Oct

-14

May

-15

%

Avg: -65.8%

+1SD -59.1%

-1SD -72.6%

China Overseas (688 HK) COGO (81 HK)

(80)

(60)

(40)

(20)

0

20

40

60

80

Jan

-05

Jan

-07

Feb

-09

Mar

-11

Ap

r-1

3

May

-15

%

+1SD 6.5%

Avg: -11.1%

-1SD -28.7%

(90)

(80)

(70)

(60)

(50)

(40)

(30)

(20)

(10)

0

Jan

-10

Oct

-10

Jul-

11

Ap

r-1

2

Jan

-13

Oct

-13

Au

g-1

4

May

-15

%

+1SD -30%

Avg: -49%

-1SD -67.9%


Industry Focus


Discount to NAV (continued)

CR Land (1109 HK) Country Garden (2007 HK)

(80)(70)(60)(50)(40)(30)(20)(10)

0 10 20 30

Jan

-05

Jan

-07

Feb

-09

Mar

-11

Ap

r-1

3

May

-15

%

+1SD -15%

Avg: -29.8%

-1SD -44.7%

(80)

(60)

(40)

(20)

0

20

40

Jan

-09

Au

g-0

9

Feb

-10

Sep

-10

Ap

r-1

1

No

v-1

1

Jun

-12

Jan

-13

Au

g-1

3

Mar

-14

Oct

-14

May

-15

%

+1SD -20.9%

Avg: -35.6%

-1SD -50.2%

Evergrande (3333 HK) Franshion Property (817 HK)

(90)

(80)

(70)

(60)

(50)

(40)

(30)

(20)

(10)

0

No

v-0

9

May

-10

No

v-1

0

May

-11

No

v-1

1

May

-12

No

v-1

2

May

-13

No

v-1

3

May

-14

No

v-1

4

May

-15

%

+1SD -46.4%

Avg: -57.5%

-1SD -68.6%

(80)

(75)

(70)

(65)

(60)

(55)

(50)

(45)

(40)

(35)

(30)

No

v-0

9

Oct

-10

Sep

-11

Au

g-1

2

Jul-

13

Jun

-14

May

-15

%

+1SD -44.4%

Avg: -52.9%

-1SD -61.4%

Greenland (337 HK) Shimao Property (813 HK)

(100)(80)

(60)(40)

(20)0

20 40

60 80

100

No

v-0

8

Oct

-09

Sep

-10

Sep

-11

Au

g-1

2

Jul-

13

Jun

-14

May

-15

%

+1SD -10.6%

Avg: -42.1%

-1SD -73.5%

(100)

(80)

(60)

(40)

(20)

0

20

40

60

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Ap

r-1

1

Ap

r-1

2

Ap

r-1

3

May

-14

May

-15

%

+1SD -21.5%

Avg: -38.5%

-1SD -55.5%


Industry Focus


Discount to NAV (continued)

Shui On Land (272 HK) Sino-Ocean Land (3377 HK)

(100)(90)(80)(70)(60)(50)(40)(30)(20)(10)

0

Oct

-06

Sep

-07

Sep

-08

Au

g-0

9

Jul-

10

Jul-

11

Jun

-12

Jun

-13

May

-14

May

-15

%

+1SD -45.6%

Avg: -56.2%

-1SD -66.8%

(100)

(80)

(60)

(40)

(20)

0

20

40

60

Oct

-07

No

v-0

8

Dec

-09

Jan

-11

Feb

-12

Mar

-13

Ap

r-1

4

May

-15

%

+1SD -17%

Avg: -38.7%

-1SD -60.4%

SOHO China (410 HK) Yanlord Land (YLLG SP)

(80)(60)(40)(20)

0 20 40 60 80

100 120

Oct

-07

Jan

-09

Ap

r-1

0

Jul-

11

Oct

-12

Feb

-14

May

-15

%

+1SD -13.6%

Avg: -34.2%

-1SD -54.8%

(100)

(80)

(60)

(40)

(20)

0

20

40

60

Oct

-07

No

v-0

8

Dec

-09

Jan

-11

Feb

-12

Mar

-13

Ap

r-1

4

May

-15

%

+1SD -24.4%

Avg: -42.2%

-1SD -60%

Yuexiu Property (123 HK)

(75)

(70)

(65)

(60)

(55)

(50)

(45)

(40)

Feb

-13

May

-13

Jul-

13

Oct

-13

Dec

-13

Feb

-14

May

-14

Jul-

14

Oct

-14

Dec

-14

Feb

-15

May

-15

%

+1SD -54.2%

Avg: -60.2%

-1SD -66.3%


Industry Focus


PE charts

Sector average Agile Property (3383 HK)

(10)(5)0 5

10 15 20 25 30 35 40 45

Jan

-05

Jun

-06

Dec

-07

Jun

-09

No

v-1

0

May

-12

No

v-1

3

May

-15

x

+2SD: 20.8x

+1SD: 14.8x

Mean: 8.7x

-1SD: 2.7x

-2SD: -3.3x

0

2

4

6

8

10

12

14

16

Dec

-05

No

v-0

7

Sep

-09

Au

g-1

1

Jun

-13

May

-15

x

Avg: 6.2x

+1SD: 8.2x

-1SD: 4.2x


0

5

10

15

20

25

30

35

40

Jan

-05

Jan

-07

Feb

-09

Mar

-11

Ap

r-1

3

May

-15

x

Avg: 10.1x

+1SD: 18.7x

-1SD: 1.4x

0123456789

10

Jun

-08

Dec

-08

Jun

-09

Jan

-10

Jul-

10

Feb

-11

Au

g-1

1

Feb

-12

Sep

-12

Mar

-13

Sep

-13

Ap

r-1

4

Oct

-14

May

-15

x

Avg: 4.7x

+1SD: 5.9x

-1SD: 3.5x


0

5

10

15

20

25

30

35

Jan

-05

Jan

-07

Feb

-09

Mar

-11

Ap

r-1

3

May

-15

x

Avg: 10.5x

+1SD: 15.7x

-1SD: 5.3x

-10-505

10152025303540

Jan

-99

Ap

r-0

2

Jul-

05

Oct

-08

Feb

-12

May

-15

x 190x (Dec-07)

Avg: 7.6x

+1SD: 19.2x

-1SD: -3.9x


Industry Focus


PE charts (continued)


05

101520253035404550

Jan

-05

Jan

-07

Feb

-09

Mar

-11

Ap

r-1

3

May

-15

x

Avg: 12.1x

+1SD: 19.1x

-1SD: 5.2x

-20

0

20

40

60

80

100

Ap

r-0

7

Ap

r-0

8

Ap

r-0

9

Ap

r-1

0

May

-11

May

-12

May

-13

May

-14

May

-15

x

Avg: 14.9x

+1SD: 33.6x

-1SD: -3.9x

Evergrande (3333 HK) First Sponsor (FSG SP)

2

7

12

17

22

27

No

v-0

9

May

-10

No

v-1

0

May

-11

No

v-1

1

May

-12

No

v-1

2

May

-13

No

v-1

3

May

-14

No

v-1

4

May

-15

x

Avg: 6.3x

-1SD: 2.6x

+1SD: 9.9x

12

13

14

15

16

17

18

19

20

21

Jul-

14

Sep

-14

Oct

-14

Dec

-14

Feb

-15

Mar

-15

May

-15

x

Avg: 14.5x

+1SD: 16.2x

-1SD: 12.8x

Franshion Properties (817 HK) Greenland (337 HK)

0

5

10

15

20

25

30

Au

g-0

7

Mar

-09

Sep

-10

Ap

r-1

2

Oct

-13

May

-15

x

Avg: 9.5x

+1SD: 14.4x

-1SD: 4.5x

-20

0

20

40

60

80

100

120

Oct

-06

Jan

-08

Mar

-09

Jun

-10

Sep

-11

No

v-1

2

Feb

-14

May

-15

x

Avg: 17.6x

+1SD: 37.1x

-1SD: -1.9x


Industry Focus


PE charts (continued)

Shimao Property (813 HK) Shui On Land (272 HK)

-10

0

10

20

30

40

50

60

70

Jul-

06

Au

g-0

7

Sep

-08

Oct

-09

Dec

-10

Jan

-12

Feb

-13

Ap

r-1

4

May

-15

x

Avg: 9.4x

+1SD: 19.3x

-1SD: -0.4x

0

2

4

6

8

10

12

14

16

18

Oct

-06

Sep

-07

Sep

-08

Au

g-0

9

Jul-

10

Jul-

11

Jun

-12

Jun

-13

May

-14

May

-15

x

Avg: 7.3x

+1SD: 9.8x

-1SD: 4.7x

Sino-Ocean Land (3377 HK) SOHO China (410 HK)

0

5

10

15

20

25

30

35

40

Sep

-07

Jun

-08

Feb

-09

Oct

-09

Jul-

10

Mar

-11

No

v-1

1

Au

g-1

2

Ap

r-1

3

Dec

-13

Sep

-14

May

-15

x

Avg: 10x

+1SD: 15.4x

-1SD: 4.7x

-100

102030405060708090

Oct

-07

Jan

-09

Ap

r-1

0

Jul-

11

Oct

-12

Feb

-14

May

-15

x

Avg: 10x

+1SD: 23.2x

-1SD: -3.2x

Yanlord (YLLG SP) Yuexiu Property (123 HK)

0

5

10

15

20

25

30

35

40

Jun

-06

Dec

-07

Jun

-09

Dec

-10

May

-12

No

v-1

3

May

-15

x

+1SD: 16.6x

Avg: 11.1x

-1SD: 5.6x

0

5

10

15

20

25

30

35

Jan

-03

Jan

-05

Feb

-07

Mar

-09

Mar

-11

Ap

r-1

3

May

-15

x

Avg: 7.1x

+1SD: 12x

-1SD: 2.2x


Industry Focus


PB charts

Sector average Agile Property (3383 HK)

(0.5)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Jan

-05

Jan

-07

Feb

-09

Mar

-11

Ap

r-1

3

May

-15

x

Mean 1.0x

+1SD 1.5x

-1SD 0.5x

+2SD 2.0x

-2SD -0.02x

0.0

1.0

2.0

3.0

4.0

5.0

Dec

-05

No

v-0

7

Sep

-09

Au

g-1

1

Jun

-13

May

-15

x

Avg: 1.4x

+1SD: 2.2x

-1SD: 0.5x


0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Jan

-05

Jan

-07

Feb

-09

Mar

-11

Ap

r-1

3

May

-15

x

Avg: 0.7x

+1SD: 1.3x

-1SD: 0.1x

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Jun

-08

Dec

-08

Jun

-09

Jan

-10

Jul-

10

Feb

-11

Au

g-1

1

Feb

-12

Sep

-12

Mar

-13

Sep

-13

Ap

r-1

4

Oct

-14

May

-15

x

Avg: 0.7x

+1SD: 0.9x

-1SD: 0.5x


0.00.51.01.52.02.53.03.54.04.55.0

Jan

-05

Jan

-07

Feb

-09

Mar

-11

Ap

r-1

3

May

-15

x

Avg: 1.9x

+1SD: 2.7x

-1SD: 1.1x

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Jan

-99

Ap

r-0

2

Jul-

05

Oct

-08

Feb

-12

May

-15

x

Avg: 0.8x

+1SD: 1.4x

-1SD: 0.2x


Industry Focus


PB charts (continued)


0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Jan

-05

Jan

-07

Feb

-09

Mar

-11

Ap

r-1

3

May

-15

x

Avg: 1.3x

+1SD: 1.7x

-1SD: 0.8x

0.0

2.0

4.0

6.0

8.0

10.0

Ap

r-0

7

Ap

r-0

8

Ap

r-0

9

Ap

r-1

0

May

-11

May

-12

May

-13

May

-14

May

-15

x

Avg: 1.9x

+1SD: 3.6x

-1SD: 0.2x

Evergrande (3333 HK) First Sponsor (FSG SP)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

No

v-0

9

May

-10

No

v-1

0

May

-11

No

v-1

1

May

-12

No

v-1

2

May

-13

No

v-1

3

May

-14

No

v-1

4

May

-15

x

Avg: 1x

-1SD: 0.4x

+1SD: 1.6x

0.70

0.75

0.80

0.85

0.90

0.95

Jul-

14

Sep

-14

Oct

-14

Dec

-14

Feb

-15

Mar

-15

May

-15

x

Avg: 0.8x

+1SD: 0.8x

-1SD: 0.7x

Franshion Properties (817 HK) Greenland (337 HK)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Au

g-0

7

Mar

-09

Sep

-10

Ap

r-1

2

Oct

-13

May

-15

x

Avg: 0.9x

+1SD: 1.4x

-1SD: 0.4x

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Oct

-06

Jan

-08

Mar

-09

Jun

-10

Sep

-11

No

v-1

2

Feb

-14

May

-15

x

Avg: 0.9x

+1SD: 1.5x

-1SD: 0.4x


Industry Focus


PB charts (continued)

Shimao Property (813 HK) Shui On Land (272 HK)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Jul-

06

Au

g-0

7

Sep

-08

Oct

-09

Dec

-10

Jan

-12

Feb

-13

Ap

r-1

4

May

-15

x

Avg: 1.3x

+1SD: 1.9x

-1SD: 0.6x

0.0

0.5

1.0

1.5

2.0

2.5

Oct

-06

Sep

-07

Sep

-08

Au

g-0

9

Jul-

10

Jul-

11

Jun

-12

Jun

-13

May

-14

May

-15

x

Avg: 0.7x

+1SD: 1.1x

-1SD: 0.3x

Sino-Ocean Land (3377 HK) SOHO China (410 HK)

0.2

0.7

1.2

1.7

2.2

2.7

3.2

3.7

Sep

-07

Jun

-08

Feb

-09

Oct

-09

Jul-

10

Mar

-11

No

v-1

1

Au

g-1

2

Ap

r-1

3

Dec

-13

Sep

-14

May

-15

x

Avg: 0.8x

+1SD: 1.3x

-1SD: 0.4x

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Oct

-07

Jan

-09

Ap

r-1

0

Jul-

11

Oct

-12

Feb

-14

May

-15

x

Avg: 0.9x

+1SD: 1.3x

-1SD: 0.5x

Yanlord (YLLG SP) Yuexiu Property (123 HK)

0.00.51.01.52.02.53.03.54.04.55.0

Jun

-06

Dec

-07

Jun

-09

Dec

-10

May

-12

No

v-1

3

May

-15

x

+1SD: 2.1x

Avg: 1.3x

-1SD: 0.4x

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Jan

-03

Jan

-05

Feb

-07

Mar

-09

Mar

-11

Ap

r-1

3

May

-15

x

Avg: 0.6x

+1SD: 0.8x

-1SD: 0.4x


Industry Focus


DBSV recommendations are based an Absolute Total Return* Rating system, defined as follows:

STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)

BUY (>15% total return over the next 12 months for small caps, >10% for large caps)

HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)

FULLY VALUED (negative total return i.e. > -10% over the next 12 months)

SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)

Share price appreciation + dividends GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Vickers (Hong Kong) Limited (“DBSVHK”), a direct wholly-owned subsidiary of DBS Vickers Securities Holdings Pte Ltd ("DBSVH"). This report is intended for clients of DBSV Group only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBSVHK. The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to DBSVHK and/or DBSVH) do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legal or financial advice. DBSVHK accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of profit) arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. DBSVH is a wholly-owned subsidiary of DBS Bank Ltd. DBS Bank Ltd along with its affiliates and/or persons associated with any of them may from time to time have interests in the securities mentioned in this document. DBSVHK, DBS Bank Ltd and their associates, their directors, and/or employees may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and other banking services for these companies. Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there can be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments. The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the company (or companies) referred to in this report. The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED UPON as a representation and/or warranty by DBSVHK and/or DBSVH (and/or any persons associated with the aforesaid entities), that:

a. such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and

b. there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments stated therein.

Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies) mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to the commodity referred to in this report. DBS Vickers Securities (USA) Inc ("DBSVUSA"), a U.S.-registered broker-dealer, does not have its own investment banking or research department, nor has it participated in any investment banking transaction as a manager or co-manager in the past twelve months. ANALYST CERTIFICATION The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views. The analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report. As of the date the report is published, the analyst and his / her spouse and/or relatives and/or associate who are financially dependent on the analyst, do not hold interests in the securities recommended in this report (“interest” includes direct or indirect ownership of securities, directorships and trustee positions).

Industry Focus


COMPANY-SPECIFIC / REGULATORY DISCLOSURES 1. DBSVHK and its subsidiaries do not have a proprietary position in the securities recommended in this report as of the date the report is

published.

2. DBSVHK, DBSVUSA, DBS Bank Ltd and/or other affiliates may beneficially own a total of 1% or more of any class of common equity securities of the subject companies mentioned in this document as of the latest available date of the updated information.

3. Compensation for investment banking services: DBSVHK, DBSVUSA, DBS Bank Ltd and/or other affiliates have received compensation, within the past 12 months, and within the next 3 months may receive or intends to seek compensation for investment banking services from China Resources Land (1109 HK), Franshion Properties (817 HK), Yuexiu Property Company Limited (123 HK) and First Sponsor (FSG SP) mentioned in this document.

DBSVUSA does not have its own investment banking or research department, nor has it participated in any investment banking transaction as a manager or co-manager in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively.

RESTRICTIONS ON DISTRIBUTION General This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or

located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

Australia This document is being distributed in Australia by DBSVHK, which is exempted from the requirement to hold an Australian Financial Services Licence under the Corporation Act 2001 [“CA”] in respect of financial services provided to the recipients. DBSVHK is regulated by the Securities and Futures Commission under the laws of Hong KONG, which differ from Australian laws. Distribution of this report is intended only for “wholesale investors” within the meaning of the CA.

Hong Kong This report is being distributed in Hong Kong by DBS Vickers (Hong Kong) Limited which is licensed and regulated by the Hong Kong Securities and Futures Commission.

Indonesia This report is being distributed in Indonesia by PT DBS Vickers Securities Indonesia.

Malaysia This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR") (formerly known as HwangDBS Vickers Research Sdn Bhd). Recipients of this report, received from ADBSR are to contact the undersigned at 603-2604 3333 in respect of any matters arising from or in connection with this report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised that ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connected and associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with any of them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek to perform broking, investment banking/corporate advisory and other services for the subject companies. They may also have received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other services from the subject companies.

Wong Ming Tek, Executive Director, ADBSR

Singapore This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS (Company Regn No. 198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 6327 2288 for matters arising from, or in connection with the report.

Thailand This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd. Research reports distributed are only intended for institutional clients only and no other person may act upon it.

United Kingdom

This report is being distributed in the UK by DBS Vickers Securities (UK) Ltd, who is an authorised person in the meaning of the Financial Services and Markets Act and is regulated by The Financial Conduct Authority. Research distributed in the UK is intended only for institutional clients.

Dubai

This research report is being distributed in The Dubai International Financial Centre (“DIFC”) by DBS Bank Ltd., (DIFC Branch) having its office at PO Box 506538, 3rd Floor, Building 3, East Wing, Gate Precinct, Dubai International Financial Centre (DIFC), Dubai, United Arab Emirates. DBS Bank Ltd., (DIFC Branch) is regulated by The Dubai Financial Services Authority. This research report is intended only for professional clients (as defined in the DFSA rulebook) and no other person may act upon it.

United States Neither this report nor any copy hereof may be taken or distributed into the United States or to any U.S. person except in compliance with any applicable U.S. laws and regulations. It is being distributed in the United States by DBSV US, which accepts responsibility for its contents. Any U.S. person receiving this report who wishes to effect transactions in any securities referred to herein should contact DBS Vickers Securities (USA) Inc (“DBSVUSA”) directly and not its affiliate.

Other jurisdictions

In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified, professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

DBS Vickers (Hong Kong) Limited

18th Floor Man Yee building, 68 Des Voeux Road Central, Central, Hong Kong

Tel: (852) 2820-4888, Fax: (852) 2868-1523

china / hong kong industry focus china property sector · 813 hk shimao 6.95 18.42 19.94 -8% 165%...

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