china property weekly digest 17-jan-2017 hk if ying li longfor cr land china jinmao large caps lai...

ed-TH / sa- AH

Sales momentum remains weak • Chongqing imposes 0.5% property tax of the

housing transaction price on first-home buyers who are non-residents and do not work or own a business in the city. The policy is aimed at curbing speculation, in our view.

• Last week (9-15 January), overall GFA sold declined

slightly by 0.1% w-o-w. GFA sold in Tier I/II/III cities recorded changes of -16%/4%/2% w-o-w. YTD GFA sold was 6% lower than last year’s

• Overall ASP increased slightly by 1% w-o-w. ASPs

in Tier I/II/III cities were up by 2%/2%/1% w-o-w respectively

• Inventory level of key cities decreased to 36 weeks

due to low supply. Sell-through rates of new launches in major Tier I & II cities recovered w-o-w to 79% (versus previous week’s 74%)

Inventory (no. of weeks of sales) of 16 cities*

0102030405060708090

100

Jan-

11

Mar

-12

Jun-

13

Aug-

14

Nov-

15

Jan-

17

Inventory (no. of weeks) 26 weeks rolling avg

New launches in 10 major cities and sell-through rate

0%10%20%30%40%50%60%70%80%90%100%

0

5,000

10,000

15,000

20,000

25,000

32W

12

50W

12

14W

13

32W

13

50W

13

18W

14

35W

14

2W15

19W

15

36W

15

1W16

18W

16

35W

16

52W

16

Total units launched (LHS)Sell-through rate (RHS)6 mths average sell-Through (RHS)

Source: CREIS, Fang.com, DBS Vickers * Rolling 26 weeks inventory

HSI: 22,841 ANALYST Trista QIN +852 2863 8820 [email protected] Carol WU +852 2863 8841 [email protected] Danielle Wang, CFA +852 2820 4915 [email protected] Ken HE CFA, +86 21 6888 3375 [email protected] Andy YEE CFA, +852 2971 1773 [email protected]

Weekly sales performance of major cities (Jan 9 –Jan 15)

w - o- wY T D v s

2016Y T D v s

2015

Av g weekly GF A sold ↓ 0.1% ↓ 4.0% ↑ 7.9%

ASP ↑ 0.8% ↑ 7.3% ↑ 17.5%

Inv entory (no. of weeks) ↓ 1.7 ↓ 7.8 ↓ 26.7

v s sameperiod

2016

v s sameperiod

2015

YTD GF A sold ↓ 6.0% ↑ 17.4% YTD share price performance

-10% -5% 0% 5% 10% 15% 20%

Poly HKSunacVanke

EvergrandeYing Li

LongforCR Land

China JinmaoLarge caps

Lai FungChina South City

GZ R&FCC Land

SOHOYuzhou

Mid capsMSCI China

CIFISRE

AgileHSI Index

BJ North StarChina SCE

BJ Cap LandYuexiu

ShimaoRenhe

Small capsKWG

PowerlongSino-OceanMinmetals

KaisaFirst Sponsor

C GardenShui On Land

HopsonGreentown

GloriousZhong An

Greenland HK

Sector avg: +4%

Source: Bloomberg Finance L.P., CREIS, Fang.com, DBS Vickers

DBS Group Research . Equity 17 Jan 2017

China / Hong Kong

China Property Weekly Digest (Issue No. 207) Refer to important disclosures at the end of this report

China / Hong Kong

China Property Weekly Digest

Share price performance

YTD Share price performance

-10% -5% 0% 5% 10% 15% 20%

Poly HKSunacVanke

EvergrandeYing Li

LongforCR Land

China JinmaoLarge caps

Lai FungChina South City

GZ R&FCC Land

SOHOYuzhou

Mid capsMSCI China

CIFISRE

AgileHSI Index

BJ North StarChina SCE

BJ Cap LandYuexiu

ShimaoRenhe

Small capsKWG

PowerlongSino-OceanMinmetals

KaisaFirst Sponsor

C GardenShui On Land

HopsonGreentown

GloriousZhong An

Greenland HK

Sector avg: +4%

Daily trading volume (Jan 9 – Jan 13)

0

5

10

15

20

25

30

35

40

CR

Lan

d

Van

ke

Ever

gra

nd

e

Sun

ac

C G

ard

en

Poly

HK

GZ

R&

F

Lon

gfo

r

Shu

i On

Lan

d

Ch

ina

Sou

th C

ity

Shim

ao

Sin

o-O

cean

Yu

zho

u

Gre

ento

wn

Yu

exiu

KW

G

SOH

O

Ch

ina

Jin

mao

Yin

g L

i

Ch

ina

SCE

CIF

I

BJ C

ap L

and

Ag

ile

BJ N

ort

h S

tar

Pow

erlo

ng

Gre

enla

nd

HK

Glo

rio

us

CC

Lan

d

Ren

he

SRE

Ho

pso

n

Lai F

un

g

Firs

t Sp

on

sor

Min

met

als

Zho

ng

An

US$ mn

Source: Bloomberg Finance L.P, DBS Vickers

China / Hong Kong


Average weekly trading volume

0

50

100

150

200

250

300

CR

Lan

dV

anke

Ever

gra

nd

eG

Z R

&F

C G

ard

enSu

nac

Lon

gfo

rSh

imao

Sin

o-O

cean

Yu

exiu

KW

GSO

HO

Gre

ento

wn

Poly

HK

Ag

ileC

hin

a Ji

nm

aoSh

ui O

n L

and

Yu

zho

uB

J Cap

Lan

dG

reen

lan

d H

KR

enh

eC

hin

a SC

EH

op

son

Yin

g L

iG

lorio

us

BJ N

ort

h S

tar

CC

Lan

dSR

EM

inm

etal

sZh

on

g A

nC

hin

a So

uth

Cit

yC

IFI

Firs

t Sp

on

sor

Kai

saLa

i Fu

ng

Pow

erlo

ng

YTD 2015 2014

US$ mn

Source: Bloomberg Finance L.P, DBS Vickers

New projects launched (Jan 9 – Jan 15):

26 projects were launched in Major Tier I&II cities. 9 projects were launched in Chengdu

Total of 7k units were launched in Major Tier I&II cities. Sell-through increased w-o-w to 79%

0%

20%

40%

60%

80%

100%

0

2

4

6

8

10

Bei

jing

Shan

gh

ai

Shen

zhen

Gu

ang

zho

u

Wu

han

Han

gzh

ou

Tian

jin

Ch

on

gq

ing

Nan

jing

Ch

eng

du

Launches (LHS) Sell-through rate (RHS)

Unit

0%10%20%30%40%50%60%70%80%90%100%

0

5,000

10,000

15,000

20,000

25,000

32

W1

2

50

W1

2

14

W1

3

32

W1

3

50

W1

3

18

W1

4

35

W1

4

2W

15

19

W1

5

36

W1

5

1W

16

18

W1

6

35

W1

6

52

W1

6

Total units launched (LHS)Sell-through rate (RHS)6 mths average sell-Through (RHS)

Source: CREIS, DBS Vickers Source: CREIS, DBS Vickers

China / Hong Kong


Weekly sales performance of major cities

Tier I cities

Tier I cities: Weekly GFA sales of key cities

G F A % change as compared t o

Cit yLast w eek

(000 sm) w - o- w y - o- y

A v g ofprev ious4 w eek s A v g 2016 A v g 2015 A v g 2014 A v g 2013 A v g 2012

Beijing 163 -36% -32% -28% -11% -26% -13% -34% -35%

Shanghai 255 -24% -45% -14% -40% -42% -19% -26% -8%

Shenzhen 40 -65% -77% -37% -50% -68% -48% -52% -43%

Guangzhou 276 57% 46% 14% 3% 33% 74% 36% 33%

T ier I t o t al 734 - 16% - 31% - 16% - 25% - 26% - 2% - 19% - 13%

Source: CREIS, DBS Vickers

Tier I cities: Weekly ASP of key cities

A SP % change as compared to

Cit yLast week(Rmb/sm) w-o-w y -o-y

A v g ofprev ious4 week s A v g 2016 A v g 2015 A v g 2014 A v g 2013 A v g 2012

Beijing 36,524 -7% 18% -9% 1% 36% 43% 55% 77%

Shanghai 24,760 17% -7% 0% -7% 7% 31% 33% 59%

Shenzhen 53,556 -3% 19% -2% -2% 62% 127% 143% 186%

Guangzhou 16,752 2% 12% 2% 2% 11% 13% 31% 40%

T ier I total 32,898 2% 11% -2% -1% 29% 54% 65% 91%


Tier I cities: YTD GFA sales of key cities Tier I cities: Avg ASP of key cities

-70%-60%-50%-40%-30%-20%-10%0%10%20%

0200400600800

1,0001,2001,4001,600

Shan

gh

ai

Bei

jing

Gu

ang

zho

u

Shen

zhen

Yoy (%)000 sm

2017 (LHS) 2016 (LHS)

-12%-10%-8%-6%-4%-2%0%2%4%6%

(15,000)(5,000)5,000

15,000 25,000 35,000 45,000 55,000 65,000

Bei

jing

Shen

zhen

Shan

gh

ai

Gu

ang

zho

u

Yoy (%)RMB/sm

2017 avg (LHS) 2016 avg (LHS) Yoy (RHS)

Source: CREIS, DBS Vickers Source: CREIS, DBS Vickers

China / Hong Kong


Tier II cities

Tier II cities: Weekly GFA sales of key cities

G F A % c hange as c o mpared t o

Cit yL ast w eek

(00 0 sm) w - o - w y - o - y

A v g o fp rev ious4 w eek s A v g 2016 A v g 2015 A v g 2 014 A v g 20 13 A v g 20 12

Tianjin n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Hangzhou 89 2% -25% -25% -44% -23% 9% 0% -46%Suzhou 111 17% -52% 23% -34% -51% -30% -29% -52%Xiamen n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Changsha n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Ningbo n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Wuhan 425 -22% -24% -35% -36% -14% 5% 13% 31%Chengdu 119 -20% -27% -18% -37% -30% -33% -43% -36%Chongqing 547 -10% 83% -9% 16% 34% 29% 26% 28%Qingdao 501 20% 134% 6% 27% 95% 182% 114% 189%Xi'an 207 -48% -35% -49% -41% -25% -9% -12% 11%Nanjing 234 35% -31% 111% -16% 0% 53% 21% 57%Dalian 38 -8% 6% -50% -39% -32% -13% -34% -14%F uzhou 26 105% -17% -5% -50% -50% -38% -42% -44%Wuxi n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Sheny ang 148 10% -4% -50% -50% -43% -39% -55% -33%J inan 217 -19% 41% -26% -33% 6% 52% 44% n.a.Nanchang 119 26% 91% -11% -15% 7% 12% 55% 50%Hefei n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Shijiazhuang n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Changchun 114 16% 1% -39% -33% -24% -17% -22% -4%Harbin n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Haikou n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Nanning 186 23% -7% -27% -8% 17% 69% 72% 131%Lanzhou n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Kunming 228 39% 18% -17% 17% 16% 4% 9% 69%Guiy ang n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Wenzhou 99 24% 75% -23% -9% 37% 60% 53% 185%Sany a 99 23% 65% 8% 104% 220% 266% 225% 395%T ier II t o t al 3 ,507 4% 16 % - 13% - 16% 8% 31% 2 2% 54 %


Tier II cities: Weekly ASP of key cities




Tianjin n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Ningbo 16,499 14% 22% 5% 18% 23% n.a. n.a. n.a.Chongqing 7,870 2% 18% -1% 7% 7% 5% 8% 17%Xi'an 6,293 -24% -5% -20% -10% -11% -19% -14% -7%Wuxi n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Shenyang 7,240 0% 26% 5% 6% 14% 5% 4% 10%Lanzhou n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Sanya 24,562 15% 49% 5% 27% 25% 8% 9% 3%T ier II total 12,493 2% 22% -1% 9% 12% 0% 2% 6%


China / Hong Kong


Tier II cities: YTD GFA sales of key cities

-150%

-100%

-50%

0%

50%

100%

150%

(1,500)

(1,000)

(500)

0

500

1,000

1,500

2,000

2,500

Wu

han

Cho

ngq

ing

Ch

ang

sha

Kun

min

g

Xian

Qin

gda

o

Shen

yan

g

Hef

ei

Nan

jing

Suzh

ou

Ch

eng

du

Gu

iyan

g

Tian

jin

Nan

chan

g

Wu

xi

Han

gzh

ou

Wen

zho

u

Fuzh

ou

Sany

a

Xia

men

Hai

kou

Lanz

hou

Nan

nin

g

Dal

ian

Ch

ang

chu

n

Yoy (%)000 sm

2017 (LHS) 2016 (LHS) Yoy (RHS)


Tier II cities: Avg ASP of key cities

0%

2%

4%

6%

8%

10%

12%

14%

(26,000)(21,000)(16,000)(11,000)

(6,000)(1,000)4,000 9,000

14,000

Ch

ang

sha

Xia

n

Ch

on

gq

ing

Shen

yan

g

Shen

yan

g

Yoy (%)RMB/sm



China / Hong Kong


Tier III cities

Tier III cities: Weekly GFA sales of key cities

G F A % c hange as c ompared t o

Cit yL ast w eek

(000 sm) w - o - w y - o - y

A v g o fp rev ious4 w eek s A v g 2016 A v g 2015 A v g 2014 A v g 2013 A v g 2012

Dongguan 113 12% -68% 16% -35% -41% 4% -21% 0%Weifang n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Baotou 48 -6% 21% -44% -28% -15% -14% -11% -33%Guilin n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Xuzhou 367 11% 36% -1% 26% 74% 102% 84% 152%Bengbu 54 -16% 86% -14% -24% 60% 46% 23% 128%Yangzhou 110 11% 88% 50% 71% 140% 177% 95% 237%Huizhou 84 -3% -31% 39% -17% 23% 64% 31% 33%Liany ungang 153 13% 26% 23% 23% 53% 79% 42% 73%Shantou 69 8% 112% -13% 13% 100% 279% 219% 268%Zhongshan n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Dandong n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.J iujiang n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Shaoguan 26 -5% 53% -49% -29% 15% 34% 25% 69%Luzhou n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Nanchong n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Zhoushan 25 -67% 135% -48% -9% 12% 54% 23% 107%Dongy ing 45 9% 46% -31% 23% 25% 38% -7% 69%Huaian 373 10% 154% -5% 99% 197% 285% 238% 304%Wuhu 28 2% -31% -49% -69% -41% -29% -36% -50%Guan n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.J iaozuo 5 29% -57% -87% -77% -75% -53% -78% -79%Zhaoqing 82 39% 96% 21% 60% 99% 201% 147% 149%T ier III t o t al 1 ,581 2% 42% - 13% 2% 42% 84% 52% 95%


Tier III cities: Weekly ASP of key cities




Dongguan n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Weifang n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Baotou 5,247 0% 8% 2% 3% 2% 3% 2% 14%Bengbu n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Shantou 8,367 -2% 1% -4% 2% 3% 4% -6% 18%Dandong n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.J iujiang n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Shaoguan 5,727 10% 7% 42% 28% 13% 9% 6% 9%Dongying n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Huaian 5,181 2% 24% 21% 19% 24% 19% 19% 28%J iaozuo n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Zhaoqing 5,759 -2% 10% 2% 6% 10% 1% -4% 11%T ier III total 6,056 1% 10% 13% 12% 10% 7% 3% 16%


China / Hong Kong


Tier III cities: YTD GFA sales of key cities

-150%-100%-50%0%50%100%150%200%250%

(600)(400)(200)

0 200 400 600 800

1,000 1,200 1,400

Xuz

hou

Wuh

u

Don

ggua

n

Lian

yun

gan

g

Wei

fan

g

Hui

zho

u

Zhou

shan

Baot

ou

Jiujia

ng

Yan

gzh

ou

Wuh

u

Beng

bu

Zhao

qing

Shan

tou

Shao

guan

Hua

ian

Don

gyin

g

Yoy (%)000 sm

2017 (LHS) 2016 (LHS) Yoy (RHS)


Tier III cities: Avg ASP of key cities

0%2%4%6%8%10%12%14%16%18%

0

5,000

10,000

15,000

Shao

xin

g

Jiu

jian

g

Zhao

qin

g

Bao

tou

Shao

gu

an

Yoy (%)RMB/sm



China / Hong Kong


Inventory level

No. of weeks to digest inventory

0

10

20

30

40

50

60

70

80

90

Fuzh

ou

Shen

zhen

Han

gzho

u

Suzh

ou

Zhou

shan

Don

gyin

g

Hui

zhou

Beijin

g

Gua

ngzh

ou

Nan

ning

Beng

bu

Shan

ghai

Nin

gbo

Nan

jing

Avg = 36


Trend: No. of weeks to digest inventory

0

20

40

60

80

100

120

Jan-

11

Mar

-12

Jun-

13

Aug

-14

Nov

-15

Jan-

17

Tier I average Tier II average Tier III average

Tier 1

Tier 2

Tier 3

weeks


Notes: 1. Based on 26 weeks average sales

2. Only Huizhou, Jiujiang, Nanchong, Zhoushan and Dongying are included in Tier III cities

China / Hong Kong


Centaline Price Index and Management Index – 2nd hand housing

Centaline Price Index – 2nd hand housing

0

10

20

30

40

50

60

70

80

90

2W

09

14

W0

92

6W

09

38

W0

95

0W

09

10

W1

02

2W

10

34

W1

04

6W

10

6W

11

18

W1

13

0W

11

42

W1

12

W1

21

4W

12

26

W1

23

8W

12

50

W1

29

W1

32

1W

13

33

W1

34

5W

13

6W

14

18

W1

43

0W

14

42

W1

42

W1

51

4W

15

26

W1

53

8W

15

50

W1

59

W1

62

1W

16

33

W1

64

5W

16

Beijing Shanghai Guangzhou Shenzhen Tianjin

Source: CCPR, DBS Vickers

Centaline Management Index – 2nd hand housing

0

10

20

30

40

50

60

70

80

90

100

34

W1

04

1W

10

48

W1

03

W1

11

0W

11

17

W1

12

4W

11

31

W1

13

8W

11

45

W1

15

2W

11

7W

12

14

W1

22

1W

12

28

W1

23

5W

12

42

W1

24

9W

12

3W

13

10

W1

31

7W

13

24

W1

33

1W

13

38

W1

34

5W

13

1W

14

8W

14

15

W1

42

2W

14

29

W1

43

6W

14

43

W1

45

0W

14

5W

15

12

W1

51

9W

15

26

W1

53

3W

15

40

W1

54

7W

15

1W

16

8W

16

15

W1

62

2W

16

29

W1

63

6W

16

43

W1

65

0W

16

Shenzhen Shanghai Guangzhou Tianjin

Source: CCPR, DBS Vickers

China / Hong Kong


Share price performance and peer valuations

Valuation comparison

3- mt hdaily Net Disc /

M k t t rad ing 12- m EPS g t 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 17F 18F 17F 18F 17F 18F 17F 18F 1H16 1H16 t o NA V

Company Name Code HK $ US$bn US$m HK $ % % x x % % % % % x HK $ %

Large c apChina Overseas* 688 HK 22.55 31.9 60.9 BUY 28.82 7 14 6.8 6.0 2.9 3.3 13.9 14.2 6.6 1.1 32.3 30.1Country Garden* 2007 HK 4.27 11.9 12.2 HOLD 4.02 39 8 7.5 6.8 4.1 4.4 20.8 19.4 46.9 1.2 3.8 (12.9)CR Land* 1109 HK 18.88 16.9 29.4 BUY 23.52 13 10 7.3 6.7 3.7 4.1 13.4 13.4 23.0 1.1 28.0 32.6China V anke 'H' Susp 2202 HK 19.6 32.7 24.2 HOLD 20.20 16 12 8.3 7.4 5.3 6.0 19.5 19.4 19.3 2.0 22.0 10.9Evergrande* 3333 HK 5.22 9.2 13.1 HOLD 5.30 22 n.a. 15.7 n.a. 3.2 0.0 8.0 0.0 93.5 1.3 9.6 45.6Longfor 960 HK 10.72 8.1 6.3 FAIL FAIL 15 12 5.9 5.3 4.8 5.4 14.5 14.6 54.6 0.9 n.a. n.a.Shimao Property* 813 HK 10.28 4.5 4.4 HOLD 10.83 21 9 5.9 5.4 7.0 7.6 9.9 10.2 58.1 0.6 28.5 64.0A v erage 19 11 6 .9 6 .3 4 .4 4 .4 14.3 13 .0 43.1 1 .2 28 .4

M id c apAgile Property* 3383 HK 4.12 2.1 1.4 FV 3.50 26 10 6.5 5.9 3.9 4.3 5.4 5.7 64.0 0.4 14.9 72.3China South City*^^ 1668 HK 1.68 1.7 2.1 FV 1.30 38 n.a. 12.2 n.a. 4.5 0.0 4.1 0.0 65.3 0.6 2.6 34.7COGO* 81 HK 2.65 0.8 0.8 BUY 2.88 13 4 3.8 3.6 0.0 0.0 12.0 11.1 48.0 0.5 7.0 62.3China J inmao Hldgs* 817 HK 2.23 3.1 1.6 BUY 3.20 27 15 5.6 4.8 4.4 5.1 10.4 10.9 55.3 0.7 4.8 53.3Greentown 3900 HK 6.12 1.7 1.5 NR n.a. 14 8 6.2 5.7 3.2 2.8 7.7 7.0 73.0 0.5 18.5 66.9Guangzhou R&F 2777 HK 9.98 4.1 6.4 NR n.a. 12 7 3.9 3.6 9.6 10.7 15.5 15.5 124.3 0.6 18.1 44.9Hopson Dev 754 HK 6.87 2.0 0.2 NR n.a. 12 10 19.9 18.1 1.5 1.7 n.a. n.a. 73.0 0.3 n.a. n.a.KWG Property 1813 HK 4.45 1.8 2.5 NR n.a. 12 8 3.5 3.2 8.9 9.8 13.3 13.2 69.0 0.5 10.8 58.9Logan Property 3380 HK 2.94 2.1 1.1 NR n.a. 25 8 3.7 3.5 8.6 10.3 21.2 22.0 63.7 0.8 n.a. n.a.Poly (Hong Kong) 119 HK 3.16 1.5 3.2 NR n.a. 174 49 34.0 22.7 0.6 0.7 1.3 2.2 105.3 0.5 13.1 75.9Shui On Land* 272 HK 1.63 1.7 4.5 HOLD 2.18 (64) 44 31.3 21.7 2.2 2.5 1.0 1.4 81.0 0.3 5.5 70.1Sino-Ocean Land* 3377 HK 3.41 3.3 2.7 BUY 4.61 22 8 5.3 4.9 6.6 7.1 9.1 9.3 58.5 0.5 7.8 56.4Soho China* 410 HK 3.94 2.6 2.2 HOLD 4.03 18 61 60.9 37.8 0.9 1.5 0.9 1.4 24.5 0.5 8.1 51.2Sunac China 1918 HK 6.69 3.3 11.3 NR n.a. 57 63 8.1 4.9 2.4 4.1 11.6 14.8 75.9 1.0 n.a. n.a.Yuexiu Property* 123 HK 1.1 1.8 2.3 HOLD 1.00 8 n.a. 10.5 n.a. 3.8 0.0 3.8 0.0 73.1 0.4 2.5 55.9A v erage# 32 17 7 .4 5 .9 4 .4 4 .4 9 .5 9 .5 65.7 0 .6 56 .0

Small c apBJ Cap Land 'H' 2868 HK 3.01 2.0 1.0 NR n.a. 24 27 4.6 3.6 7.8 10.0 20.7 23.0 121.0 0.6 n.a. n.a.BJ North Star 'H' 588 HK 2.47 1.1 0.4 NR n.a. 33 n.a. 6.1 n.a. 2.7 n.a. 6.6 n.a. 88.1 0.4 n.a. n.a.C C Land* 1224 HK 2.35 0.8 0.2 Hold 2.06 6 (79) 5.4 25.9 3.7 0.8 7.4 1.5 (16.6) 0.5 2.8 15.1Central China* 832 HK 1.62 0.5 0.2 BUY 1.76 6 16 4.6 4.0 7.8 9.0 10.1 11.0 25.4 0.5 6.1 73.2China SCE 1966 HK 2.4 1.1 1.9 NR n.a. 33 23 4.7 3.9 6.3 7.8 17.9 18.9 70.7 1.0 n.a. n.a.CIF I Holdings 884 HK 2.2 1.9 2.3 NR n.a. 21 14 3.7 3.2 9.4 10.5 21.3 21.4 59.2 1.0 n.a. n.a.F irst Sponsor*^ FSG SP 1.335 0.6 0.0 NR 1.57 (38) 13 14.6 12.9 1.3 1.3 5.9 6.4 37.3 0.9 4.1 67.4Glorious Property 845 HK 0.74 0.7 1.9 NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 190.1 0.5 5.9 87.4Hydoo Int'l 1396 HK 0.61 0.3 0.1 NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Cash 0.5 n.a. n.a.Kaisa Group 1638 HK 1.56 1.0 0.0 NR n.a. 15 23 2.4 1.9 n.a. 0.0 16.4 14.9 69.8 n.a. n.a. n.a.Lai F ung* 1125 HK 0.177 0.4 0.1 NR n.a. (73) n.a. 10.3 n.a. 1.9 0.0 2.0 0.0 31.6 0.2 0.5 64.2Minmetals Land 230 HK 0.94 0.4 0.1 NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13.8 0.4 n.a. n.a.Modern Land (China) 1107 HK 1.02 0.3 0.4 NR n.a. 13 20 2.1 1.7 10.8 12.6 20.7 19.8 63.7 0.3 n.a. n.a.Powerlong 1238 HK 2.27 1.2 1.1 NR n.a. 21 19 3.4 2.9 3.9 4.4 13.2 14.1 70.0 0.4 n.a. n.a.Renhe Commercial 1387 HK 0.196 1.1 0.8 NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 27.0 1.1 2.7 92.8Greenland* 337 HK 1.74 0.6 0.5 BUY 4.97 70 n.a. 1.5 n.a. 0.0 0.0 13.8 0.0 172.5 0.6 5.7 69.6SRE Group 1207 HK 0.193 0.5 0.3 NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 97.9 0.5 n.a. n.a.Sunshine 100 China 2608 HK 2.95 0.9 0.3 NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 63.7 0.8 n.a. n.a.Times Property 1233 HK 3.83 0.9 1.1 NR n.a. 35 15 2.6 2.2 9.4 11.4 24.6 25.3 63.7 1.1 n.a. n.a.Wuzhou Int'l 1369 HK 0.77 0.2 0.2 NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 162.0 0.9 n.a. n.a.Ying Li^ YINGLI SP 0.164 0.3 1.1 NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 74.0 0.5 0.9 82.2Yuzhou Properties 1628 HK 2.77 1.4 2.4 NR n.a. 23 24 4.0 3.2 9.0 10.9 19.0 20.1 79.4 0.9 5.0 44.6Zhong An 672 HK 0.62 0.2 0.1 NR n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 60.6 0.2 n.a. n.a.A v erage** 21 10 4 .1 5 .6 7 .1 8 .6 16.2 17 .2 67.0 0 .6 61 .6

A v erage (O v erall)@ 25.4 13 6 .3 6 .0 5 .4 5 .8 13.0 13 .1 60.3 0 .7 51.4~

17- J an

^ Denominated in SGD for price ~ Simple average discount to NAV; Market cap weighted average NAV = 32%

# 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; FY17: FY18F

Source: Thomson Reuters, *DBS Vickers

China / Hong Kong


PE valuations, 2007 to 2016 trough (based on earnings forecasts)

17- J an M k t 17F 18F

Company Name CodePric eHK $

CapUS$bn

PEx

PEx

T rough2008

T rough2009

T rough2010

T rough2011

T rough2012

T rough2013

T rough2014

T rough2015

T rough2016

China Ov erseas* 688 HK 22.55 31.9 6.8 6.0 9.7 11.1 12.8 6.5 7.1 7.8 6.1 6.7 5.8Country Garden* 2007 HK 4.27 11.9 7.5 6.8 3.6 5.2 10.7 5.2 5.8 6.5 4.0 4.2 4.9CR Land* 1109 HK 18.88 16.9 7.3 6.7 15.9 13.1 14.4 7.2 10.1 11.9 7.1 8.2 7.0China V anke 'H' Susp 2202 HK 19.60 32.7 8.3 7.4 n.a. n.a. n.a. n.a. n.a. n.a. 6.3 6.8 6.5Ev ergrande* 3333 HK 5.22 9.2 15.7 n.a. n.a. n.a. 3.8 2.9 3.3 4.2 3.4 4.3 6.4Longfor 960 HK 10.72 8.1 5.9 5.3 n.a. 17.8 13.8 6.3 5.6 7.4 5.3 5.4 5.5Shimao Property * 813 HK 10.28 4.5 5.9 5.4 3.7 4.2 8.5 3.6 3.9 6.4 4.3 3.3 3.1A v erage 6 .9 6 .3 8 .2 10.3 10 .7 5 .3 6 .0 7 .4 5 .2 5 .5 5 .6

Agile Property * 3383 HK 4.12 2.1 6.5 5.9 1.5 4.4 7.9 2.6 3.6 3.8 2.3 2.8 3.1China South City *^^ 1668 HK 1.68 1.7 12.2 n.a. n.a. 17.7 6.9 4.3 5.9 4.3 5.1 5.7 5.8COGO* 81 HK 2.65 0.8 3.8 3.6 n.a. n.a. n.a. 3.6 5.0 6.3 3.1 3.1 2.7China J inmao Hldgs* 817 HK 2.23 3.1 5.6 4.8 5.5 6.9 15.0 6.1 6.0 7.3 4.8 5.1 5.1Greentown 3900 HK 6.12 1.7 6.2 5.7 1.9 2.3 6.3 2.0 1.5 3.3 2.3 3.1 3.4Guangzhou R&F 2777 HK 9.98 4.1 3.9 3.6 2.4 4.8 6.8 3.2 3.2 4.7 3.8 3.1 3.5Hopson Dev 754 HK 6.87 2.0 19.9 18.1 1.0 2.2 4.9 2.8 2.8 5.6 3.9 10.7 12.1KWG Property 1813 HK 4.45 1.8 3.5 3.2 2.1 2.9 8.0 3.1 2.8 3.7 2.9 3.2 3.1Logan Property 3380 HK 2.94 2.1 3.7 3.5 n.a. n.a. n.a. n.a. n.a. n.a. 3.5 3.6 3.8Poly (Hong Kong) 119 HK 3.16 1.5 34.0 22.7 10.0 3.8 14.9 4.2 4.9 5.2 3.9 5.4 13.0Shui On Land* 272 HK 1.63 1.7 31.3 21.7 1.7 3.4 9.4 5.6 6.5 9.1 10.6 5.8 6.5Sino-Ocean Land* 3377 HK 3.41 3.3 5.3 4.9 4.7 9.0 11.3 4.1 5.4 6.7 6.0 5.9 5.1Soho China* 410 HK 3.94 2.6 60.9 37.8 4.9 3.4 3.9 7.6 3.8 5.3 7.5 13.4 15.4Sunac China 1918 HK 6.69 3.3 8.1 4.9 n.a. n.a. 4.5 1.4 1.4 3.1 2.2 2.7 3.1Yuexiu Property * 123 HK 1.10 1.8 10.5 n.a. 1.9 2.9 8.9 4.5 4.5 5.8 5.9 6.3 5.3A v erage# 7 .4 5 .9 3 .4 5 .6 8 .6 3 .6 4 .2 5 .4 4 .2 4 .9 5 .5

BJ Cap Land 'H' 2868 HK 3.01 2.0 4.6 3.6 1.6 3.1 5.1 1.9 2.0 3.3 2.6 3.1 3.5BJ North Star 'H' 588 HK 2.47 1.1 6.1 n.a. 3.5 5.0 7.5 3.6 6.5 4.0 3.8 5.0 5.6C C Land* 1224 HK 2.35 0.8 5.4 25.9 18.7 n.a. n.a. 5.2 3.9 6.7 3.5 5.2 7.7Central China* 832 HK 1.62 0.5 4.6 4.0 1.3 1.5 3.9 2.8 2.8 3.5 2.6 2.5 2.3China SCE 1966 HK 2.40 1.1 4.7 3.9 n.a. n.a. 4.7 3.7 2.9 2.4 5.6 4.5 3.7CIF I Holdings 884 HK 2.20 1.9 3.7 3.2 n.a. n.a. n.a. n.a. n.a. 3.8 3.2 2.7 2.8F irst Sponsor*^ FSG SP 1.34 0.6 14.6 12.9 n.a. n.a. n.a. n.a. n.a. n.a. 29.9 13.4 13.6Glorious Property 845 HK 0.74 0.7 n.a. n.a. n.a. 12.9 6.4 2.8 2.8 4.8 4.4 3.6 17.3Hydoo Int'l 1396 HK 0.61 0.3 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3.6 2.3 2.3 7.0Kaisa Group 1638 HK 1.56 1.0 2.4 1.9 n.a. n.a. 3.5 3.7 2.9 2.8 1.9 1.7 1.9Lai F ung* 1125 HK 0.18 0.4 10.3 n.a. 0.8 3.2 6.7 3.1 2.6 4.0 4.0 4.0 4.0Minmetals Land 230 HK 0.94 0.4 n.a. n.a. 0.8 2.2 6.9 3.8 2.3 4.2 3.6 4.5 7.5Modern Land (China) 1107 HK 1.02 0.3 2.1 1.7 n.a. n.a. n.a. n.a. n.a. n.a. 2.4 2.4 2.0Powerlong 1238 HK 2.27 1.2 3.4 2.9 n.a. 4.7 5.3 1.5 1.6 3.6 2.8 3.2 2.7Renhe Commercial 1387 HK 0.20 1.1 n.a. n.a. 10.5 5.7 5.4 3.2 2.7 4.7 7.7 7.7 7.7Greenland* 337 HK 1.74 0.6 1.5 n.a. 0.7 1.1 3.6 1.2 1.0 0.6 11.7 8.0 4.8SRE Group 1207 HK 0.19 0.5 n.a. n.a. 1.0 1.5 2.0 2.3 0.9 1.1 1.1 1.1 1.1Sunshine 100 China 2608 HK 2.95 0.9 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5.7 5.8 5.3Times Property 1233 HK 3.83 0.9 2.6 2.2 n.a. n.a. n.a. n.a. n.a. n.a. 2.5 2.2 1.9Wuzhou Int'l 1369 HK 0.77 0.2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7.3 5.2 22.3Ying Li^ YINGLI SP 0.16 0.3 n.a. n.a. n.a. 64.8 22.4 6.9 4.7 7.8 4.1 5.1 9.5Yuzhou Properties 1628 HK 2.77 1.4 4.0 3.2 n.a. 9.6 5.5 2.7 3.6 3.6 2.4 2.1 3.3Zhong An 672 HK 0.62 0.2 n.a. n.a. 1.7 2.9 7.8 3.0 9.9 5.3 8.3 8.3 8.3A v erage** 4 .1 5 .6 4 .5 9 .9 6 .5 3 .3 3 .5 4 .2 4 .0 4 .0 6 .2

A v erage (O v erall)@ 6 .3 6 .0 5 .1 5 .6 12 .1 4 .3 4 .4 5 .7 5 .5 6 .2 6 .9 ^ Denominated in SGD for price

# Exclude Soho China & Shui On Land for 16F & 17F PE ** Exclude Greenland, First Sponsor & Lai Fung for 16F & 17F PE

@ Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung for 16F & 17F PE

^^ FY15: 16F; FY16: FY17F; FY17: FY18F


China / Hong Kong


PE valuations, 2007 to 2016 peak (based on earnings forecasts)

17- J an M k t 17F 18F

Company Name CodePric eHK $

CapUS$bn

PEx

PEx

Peak2008

Peak2009

Peak2010

Peak2011

Peak2012

Peak2013

Peak2014

Peak2015

Peak2016

China Ov erseas* 688 HK 22.55 31.9 6.8 6.0 22.7 25.0 17.0 12.1 12.4 11.2 8.5 9.9 8.6Country Garden* 2007 HK 4.27 11.9 7.5 6.8 19.8 20.3 16.7 11.6 9.2 10.0 6.4 7.3 8.8CR Land* 1109 HK 18.88 16.9 7.3 6.7 28.6 30.4 21.1 15.2 17.6 16.2 10.7 12.8 9.6China V anke 'H' Susp 2202 HK 19.60 32.7 8.3 7.4 n.a. n.a. n.a. n.a. n.a. n.a. 9.0 11.8 11.3Ev ergrande* 3333 HK 5.22 9.2 15.7 n.a. n.a. n.a. 9.1 8.9 6.1 6.4 4.6 14.2 13.1Longfor 960 HK 10.72 8.1 5.9 5.3 n.a. 24.4 21.7 14.2 11.9 10.4 6.9 8.7 8.1Shimao Property * 813 HK 10.28 4.5 5.9 5.4 14.8 18.3 13.2 9.6 9.5 8.8 6.0 6.1 5.5A v erage 6 .9 6 .3 21 .5 23 .7 16 .5 11 .9 11 .1 10 .5 7 .4 10 .1 9 .3

Agile Property * 3383 HK 4.12 2.1 6.5 5.9 15.1 19.7 12.9 10.4 6.7 7.2 4.0 5.4 6.0China South City *^^ 1668 HK 1.68 1.7 12.2 n.a. n.a. 19.6 20.4 12.3 6.6 6.9 11.8 9.5 10.8COGO* 81 HK 2.65 0.8 3.8 3.6 n.a. n.a. n.a. 9.8 9.8 10.0 5.1 6.1 6.2China J inmao Hldgs* 817 HK 2.23 3.1 5.6 4.8 22.9 21.8 19.1 16.8 10.3 9.3 6.8 8.4 8.1Greentown 3900 HK 6.12 1.7 6.2 5.7 9.7 18.3 10.2 6.1 6.3 6.6 4.5 6.1 7.0Guangzhou R&F 2777 HK 9.98 4.1 3.9 3.6 16.6 17.8 10.5 8.0 7.4 8.1 4.8 4.8 6.0Hopson Dev 754 HK 6.87 2.0 19.9 18.1 9.6 10.3 7.5 6.4 16.0 13.7 16.1 24.6 22.4KWG Property 1813 HK 4.45 1.8 3.5 3.2 12.4 22.1 14.2 9.9 6.6 6.6 5.2 6.2 4.6Logan Property 3380 HK 2.94 2.1 3.7 3.5 n.a. n.a. n.a. n.a. n.a. n.a. 3.8 6.6 6.0Poly (Hong Kong) 119 HK 3.16 1.5 34.0 22.7 30.0 51.0 25.2 16.1 9.8 9.9 6.4 27.9Shui On Land* 272 HK 1.63 1.7 31.3 21.7 16.2 21.3 16.6 17.6 12.6 17.6 13.8 87.1 11.7Sino-Ocean Land* 3377 HK 3.41 3.3 5.3 4.9 13.2 24.8 15.7 10.3 12.1 11.4 7.8 9.9 7.8Soho China* 410 HK 3.94 2.6 60.9 37.8 12.5 9.4 6.7 15.1 5.2 6.5 10.0 20.8 52.0Sunac China 1918 HK 6.69 3.3 8.1 4.9 n.a. n.a. 5.8 3.5 5.5 4.9 5.1 6.3 12.4Yuexiu Property * 123 HK 1.10 1.8 10.5 n.a. 11.0 25.5 15.7 11.0 9.1 9.5 7.9 11.1 10.2A v erage# 7 .4 5 .9 15 .0 22 .1 13 .9 10 .0 9 .3 9 .3 7 .1 10 .4 9 .0

BJ Cap Land 'H' 2868 HK 3.01 2.0 4.6 3.6 9.5 15.9 9.6 5.9 4.7 5.3 3.3 6.3 5.9BJ North Star 'H' 588 HK 2.47 1.1 6.1 n.a. 20.6 18.0 12.7 10.5 8.9 7.0 8.2 13.0 10.9C C Land* 1224 HK 2.35 0.8 5.4 25.9 n.a. n.a. n.a. 17.4 12.7 10.9 6.4 8.7 7.7Central China* 832 HK 1.62 0.5 4.6 4.0 10.8 9.4 6.6 5.6 6.3 5.2 3.8 4.4 4.5China SCE 1966 HK 2.40 1.1 4.7 3.9 n.a. n.a. 6.9 5.5 3.5 6.6 5.6 5.6 7.6CIF I Holdings 884 HK 2.20 1.9 3.7 3.2 n.a. n.a. n.a. n.a. n.a. 5.9 4.3 5.1 5.5F irst Sponsor*^ F SG SP 1.34 0.6 14.6 12.9 n.a. n.a. n.a. n.a. n.a. n.a. 31.3 13.9 13.6Glorious Property 845 HK 0.74 0.7 n.a. n.a. n.a. 17.7 10.8 7.3 6.3 11.0 9.1 41.0 19.0Hy doo Int'l 1396 HK 0.61 0.3 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5.5 5.9 7.8 7.0Kaisa Group 1638 HK 1.56 1.0 2.4 1.9 n.a. n.a. 8.4 10.0 6.9 5.9 3.9 2.3 8.9Lai F ung* 1125 HK 0.18 0.4 10.3 n.a. 7.8 11.1 17.4 19.0 4.9 4.0 4.0 4.0 4.0Minmetals Land 230 HK 0.94 0.4 n.a. n.a. 3.4 13.2 20.1 n.a. 7.1 6.6 5.9 7.6 7.5Modern Land (China) 1107 HK 1.02 0.3 2.1 1.7 n.a. n.a. n.a. n.a. n.a. n.a. 2.9 5.8 5.8Powerlong 1238 HK 2.27 1.2 3.4 2.9 n.a. 7.0 8.2 6.5 5.6 6.7 3.8 4.6 5.8Renhe Commercial 1387 HK 0.20 1.1 n.a. n.a. 12.5 10.7 7.2 7.0 9.4 23.9 7.7 7.7 7.7Greenland* 337 HK 1.74 0.6 1.5 n.a. 9.3 11.9 6.7 3.2 7.6 44.8 28.2 21.6 8.6SRE Group 1207 HK 0.19 0.5 n.a. n.a. 4.2 4.6 3.7 2.9 1.4 1.1 1.1 1.1 1.1Sunshine 100 China 2608 HK 2.95 0.9 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6.7 7.4 8.0Times Property 1233 HK 3.83 0.9 2.6 2.2 n.a. n.a. n.a. n.a. n.a. n.a. 3.5 3.2 3.6Wuzhou Int'l 1369 HK 0.77 0.2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12.4 29.6 22.3Ying Li YINGLI SP 0.16 0.3 n.a. n.a. n.a. 196.2 331.2 42.9 13.0 16.1 14.7 16.4 15.3Yuzhou Properties 1628 HK 2.77 1.4 4.0 3.2 n.a. 11.7 9.9 5.8 6.5 6.5 3.3 5.2 5.3Zhong An 672 HK 0.62 0.2 n.a. n.a. 8.8 22.3 13.8 12.3 14.9 10.3 8.3 8.3 8.3A v erage** 4 .1 5 .6 10 .0 27 .8 32 .6 10 .5 7 .7 8 .3 6 .1 9 .4 8 .3

A v erage (O v erall)@ 6 .3 6 .0 15 .0 33 .2 22 .6 11 .2 8 .4 7 .9 7 .6 10 .2 9 .4 ^ Denominated in SGD for price # Exclude Soho China & Shui On Land for 16F & 17F PE

** Exclude Greenland, First Sponsor & Lai Fung for 16F & 17F PE


^^ FY15: 16F; FY16: FY17F; FY17: FY18F


China / Hong Kong


PE valuations, 2007 to 2016 trough (based on reported earnings)

3- mt h dailyM k t t rad ing F Y 17F F Y 18F

Pric e Cap v alue PE PE A v g T rough T rough T rough T rough T rough T rough T rough T rough T rough

Company Name Code HK $ US$bn US$m x x PE (x ) 2008 2009 2010 2011 2012 2013 2014 2015 2016China Ov erseas* 688 HK 22.55 31.9 60.9 6.8 6.0 9.8 9.9 10.0 8.9 5.3 5.3 6.4 5.1 6.1 6.5Country Garden* 2007 HK 4.27 11.9 12.2 7.5 6.8 14.1 11.3 9.2 6.3 4.3 5.2 5.8 4.4 4.9 6.8CR Land* 1109 HK 18.88 16.9 29.4 7.3 6.7 11.5 13.1 8.5 10.6 4.9 6.4 7.3 5.3 6.8 7.4China V anke 'H' Susp 2202 HK 19.60 32.7 24.2 8.3 7.4 8.8 n.a. n.a. n.a. n.a. n.a. 6.5 6.3 8.6 7.1Ev ergrande* 3333 HK 5.22 9.2 13.1 15.7 n.a. 7.0 n.a. 42.7 3.0 2.4 3.6 2.7 2.7 3.9 17.2Longfor 960 HK 10.72 8.1 6.3 5.9 5.3 6.6 n.a. 11.8 7.2 4.5 5.1 5.8 4.7 4.9 5.8Shimao Property* 813 HK 10.28 4.5 4.4 5.9 5.4 9.4 11.4 3.1 6.6 2.7 3.0 4.9 4.8 4.9 6.5A v erage 6 .9 6 .3 9 .6 11.4 14 .2 7 .1 4 .0 4 .8 5 .6 4 .7 5 .7 8 .2

Agile Property * 3383 HK 4.12 2.1 1.4 6.5 5.9 7.2 1.2 4.2 3.6 2.9 3.5 4.2 2.6 8.6 6.8China South City*^^ 1668 HK 1.68 1.7 2.1 12.2 n.a. 5.1 n.a. n.a. n.a. 3.6 2.9 3.1 4.3 3.6 13.8COGO* 81 HK 2.65 0.8 0.8 3.8 3.6 7.7 32.9 (3.5) 2.9 2.9 4.0 5.3 6.8 5.9 3.6China J inmao Hldgs* 817 HK 2.23 3.1 1.6 5.6 4.8 8.6 8.4 12.3 12.6 4.4 4.8 5.2 3.3 5.0 5.7Greentown 3900 HK 6.12 1.7 1.5 6.2 5.7 9.7 4.2 2.8 6.6 1.7 0.9 3.9 6.7 18.8 5.8Guangzhou R&F 2777 HK 9.98 4.1 6.4 3.9 3.6 7.0 3.3 6.3 6.6 3.7 2.7 3.4 4.0 3.3 3.3Hopson Dev 754 HK 6.87 2.0 0.2 19.9 18.1 6.4 1.1 0.8 2.3 4.6 2.1 3.9 5.1 7.0 20.8KWG Property 1813 HK 4.45 1.8 2.5 3.5 3.2 6.9 5.8 3.5 6.0 2.2 2.0 2.6 2.2 3.2 3.6Logan Property 3380 HK 2.94 2.1 1.1 3.7 3.5 4.3 n.a. n.a. n.a. n.a. n.a. 3.6 3.6 3.6 3.4Poly (Hong Kong) 119 HK 3.16 1.5 3.2 34.0 22.7 14.1 11.4 5.0 11.5 2.9 4.2 5.2 11.1 (2.5) 55.3Shui On Land* 272 HK 1.63 1.7 4.5 31.3 21.7 10.1 1.6 2.1 4.2 1.9 5.1 5.9 6.5 13.1 11.3Sino-Ocean Land* 3377 HK 3.41 3.3 2.7 5.3 4.9 10.2 4.5 8.3 9.5 5.2 4.1 5.1 5.4 11.6 5.7Soho China* 410 HK 3.94 2.6 2.2 60.9 37.8 20.4 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25.3 55.4Sunac China 1918 HK 6.69 3.3 11.3 8.1 4.9 4.2 n.a. n.a. n.a. 1.3 1.5 3.8 3.1 3.6 8.4Yuexiu Property* 123 HK 1.1 1.8 2.3 10.5 n.a. 8.4 3.4 (4.6) 8.0 1.1 2.5 4.2 4.9 12.6 9.4A v erage# 7 .4 5 .9 8 .7 6 .5 3 .5 6 .7 3 .1 3 .2 4 .4 5 .0 7 .9 13.3

BJ Cap Land 'H' 2868 HK 3.01 2.0 1.0 4.6 3.6 7.1 2.3 2.4 3.6 2.3 2.0 2.8 2.5 2.7 4.8BJ North Star 'H' 588 HK 2.47 1.1 0.4 6.1 n.a. 7.8 1.6 1.9 4.6 2.3 3.1 5.4 5.8 7.8 6.7C C Land* 1224 HK 2.35 0.8 0.2 5.4 25.9 25.0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3.2 4.7Central China* 832 HK 1.62 0.5 0.2 4.6 4.0 5.0 1.1 2.4 5.1 3.7 3.3 3.8 3.9 3.7 3.8China SCE 1966 HK 2.4 1.1 1.9 4.7 3.9 5.2 n.a. n.a. 4.0 4.1 5.1 4.4 4.5 4.6 4.1CIF I Holdings 884 HK 2.2 1.9 2.3 3.7 3.2 3.8 n.a. n.a. n.a. n.a. 2.4 2.9 3.6 3.7 2.8F irst Sponsor*^ FSG SP 1.335 0.6 0.0 14.6 12.9 10.2 n.a. n.a. n.a. n.a. n.a. n.a. 13.8 8.8 8.1Glorious Property 845 HK 0.74 0.7 1.9 n.a. n.a. 10.3 n.a. 6.7 3.7 2.9 5.7 23.6 (2.2) (1.4) n.a.Hydoo Int'l 1396 HK 0.61 0.3 0.1 n.a. n.a. 11.1 n.a. n.a. n.a. n.a. n.a. n.a. 10.1 5.1 n.a.Kaisa Group 1638 HK 1.56 1.0 0.0 2.4 1.9 3.6 n.a. 16.2 1.6 2.8 2.5 2.2 n.a. n.a. 2.7Lai Fung* 1125 HK 0.177 0.4 0.1 10.3 n.a. 7.7 2.1 1.6 5.6 2.4 1.5 3.2 10.6 1.8 1.8Minmetals Land 230 HK 0.94 0.4 0.1 n.a. n.a. 13.3 2.2 6.1 6.3 3.8 9.0 7.1 6.5 8.4 n.a.Modern Land (China) 1107 HK 1.02 0.3 0.4 2.1 1.7 3.3 n.a. n.a. n.a. n.a. n.a. 2.5 2.9 3.1 2.0Powerlong 1238 HK 2.27 1.2 1.1 3.4 2.9 2.7 n.a. 2.6 2.8 1.1 1.8 3.2 2.4 1.8 2.4Renhe Commercial 1387 HK 0.196 1.1 0.8 n.a. n.a. n.a. 7.8 4.8 6.0 2.5 5.2 (3.6) (3.2) (2.3) n.a.Greenland* 337 HK 1.74 0.6 0.5 1.5 n.a. 10.0 2.4 1.0 2.9 1.2 (1.1) 71.8 22.8 13.0 2.8SRE Group 1207 HK 0.193 0.5 0.3 n.a. n.a. 7.0 3.2 1.5 3.6 2.7 3.8 6.7 (10.6) (0.6) n.a.Sunshine 100 China 2608 HK 2.95 0.9 0.3 n.a. n.a. 8.7 n.a. n.a. n.a. n.a. n.a. n.a. 5.7 8.3 n.a.Times Property 1233 HK 3.83 0.9 1.1 2.6 2.2 3.0 n.a. n.a. n.a. n.a. n.a. 3.6 3.2 2.5 2.4Wuzhou Int'l 1369 HK 0.77 0.2 0.2 n.a. n.a. 10.2 n.a. n.a. n.a. n.a. n.a. 3.7 18.4 (5.7) n.a.Ying Li^ YINGLI SP 0.164 0.3 1.1 n.a. n.a. 28.8 1.8 32.6 18.6 7.8 6.8 18.4 9.5 12.1 n.a.Yuzhou Properties 1628 HK 2.77 1.4 2.4 4.0 3.2 4.0 n.a. 2.6 3.6 2.6 4.2 2.8 3.4 3.0 2.9Zhong An 672 HK 0.62 0.2 0.1 n.a. n.a. 10.8 4.2 3.4 8.6 5.5 4.2 5.1 5.2 3.6 n.a.A v erage** 4 .1 5 .6 8 .9 2 .8 5 .9 5 .5 3 .2 3 .7 8 .7 5 .6 4 .1 3 .7

A v erage (O v erall)@ 6 .3 6 .0 9 .1 5 .7 6 .4 6 .2 3 .3 3 .7 6 .6 5 .3 5 .7 8 .8HSI Index HSI 9 .1 9 .0 10.3 7.8 8 .8 9 .4 9 .3 10 .4 9.2

17- J an

^ Denominated in SGD for price

# Exclude Soho China & Shui On Land for 16F & 17F PE

** Exclude Greenland, First Sponsor & Lai Fung for 16F & 17F PE


^^ FY15: 16F; FY16: FY17F; FY17: FY18F Source: Thomson Reuters, *DBS Vickers

China / Hong Kong


PE valuations, 2007 to 2016 peak (based on reported earnings)

3- mt h dailyM k t t rad ing F Y 17F F Y 18F

Pric e Cap v alue PE PE A v g Peak Peak Peak Peak Peak Peak Peak Peak Peak

Company Name Code HK $ US$bn US$m x x PE (x ) 2008 2009 2010 2011 2012 2013 2014 2015 2016China Ov erseas* 688 HK 22.55 31.9 60.9 6.8 6.0 9.8 25.2 20.6 11.6 9.4 10.1 8.7 6.9 9.3 8.8Country Garden* 2007 HK 4.27 11.9 12.2 7.5 6.8 14.1 86.8 25.3 10.6 9.0 8.2 9.5 7.2 8.6 10.8CR Land* 1109 HK 18.88 16.9 29.4 7.3 6.7 11.5 35.6 21.6 14.5 10.2 11.5 9.3 7.8 10.9 10.3China V anke 'H' Susp 2202 HK 19.60 32.7 24.2 8.3 7.4 8.8 n.a. n.a. n.a. n.a. n.a. 9.9 10.5 12.5 11.7Evergrande* 3333 HK 5.22 9.2 13.1 15.7 n.a. 7.0 n.a. 52.1 7.0 6.6 6.3 4.5 3.9 9.9 25.0Longfor 960 HK 10.72 8.1 6.3 5.9 5.3 6.6 n.a. 14.8 11.7 9.2 10.2 8.7 6.3 8.3 8.2Shimao Property* 813 HK 10.28 4.5 4.4 5.9 5.4 9.4 63.7 14.2 9.6 6.7 7.4 7.6 6.8 10.1 9.6A v erage 6 .9 6 .3 9 .6 52 .8 24 .8 10 .8 8 .5 9 .0 8 .3 7 .1 9 .9 12 .0

Agile Property * 3383 HK 4.12 2.1 1.4 6.5 5.9 7.2 7.9 20.9 6.1 9.6 5.9 7.2 5.7 17.3 9.8China South City*^^ 1668 HK 1.68 1.7 2.1 12.2 n.a. 5.1 n.a. n.a. n.a. 5.8 4.3 7.0 9.7 8.6 18.8COGO* 81 HK 2.65 0.8 0.8 3.8 3.6 7.7 188.9 n.a. 4.9 8.0 8.9 9.2 13.3 14.1 5.3China J inmao Hldgs* 817 HK 2.23 3.1 1.6 5.6 4.8 8.6 33.1 24.9 17.0 9.6 9.5 6.8 5.1 9.3 8.4Greentown 3900 HK 6.12 1.7 1.5 6.2 5.7 9.7 30.5 18.9 10.7 5.2 4.3 6.2 12.7 42.0 8.8Guangzhou R&F 2777 HK 9.98 4.1 6.4 3.9 3.6 7.0 28.6 20.6 10.2 8.3 6.0 5.2 6.0 5.3 6.0Hopson Dev 754 HK 6.87 2.0 0.2 19.9 18.1 6.4 16.2 4.1 3.9 11.7 7.3 8.2 7.1 14.0 28.3KWG Property 1813 HK 4.45 1.8 2.5 3.5 3.2 6.9 n.a. 18.2 11.0 6.4 4.5 4.5 4.3 5.8 4.8Logan Property 3380 HK 2.94 2.1 1.1 3.7 3.5 6.9 n.a. n.a. n.a. n.a. n.a. 3.7 4.5 5.5 5.7Poly (Hong Kong) 119 HK 3.16 1.5 3.2 34.0 22.7 14.1 59.7 40.1 18.6 10.8 8.3 9.1 16.4 (6.8) 78.8Shui On Land* 272 HK 1.63 1.7 4.5 31.3 21.7 10.1 11.7 7.8 6.3 4.7 9.1 10.4 9.6 24.7 15.8Sino-Ocean Land* 3377 HK 3.41 3.3 2.7 5.3 4.9 10.2 25.5 22.5 16.2 12.8 8.5 8.3 7.3 20.1 9.5Soho China* 410 HK 3.94 2.6 2.2 60.9 37.8 20.4 n.a. 6.7 7.9 8.0 2.4 3.8 7.2 52.1 87.3Sunac China 1918 HK 6.69 3.3 11.3 8.1 4.9 4.2 n.a. n.a. n.a. 3.2 5.4 6.0 6.9 9.8 12.9Yuexiu Property * 123 HK 1.1 1.8 2.3 10.5 n.a. 8.4 20.2 n.a. 12.0 2.5 5.7 6.8 6.5 22.2 13.7A v erage# 7 .4 5 .9 8 .8 39 .2 18 .0 10 .3 7 .8 6 .5 7 .0 8 .0 15 .5 19 .6

BJ Cap Land 'H' 2868 HK 3.01 2.0 1.0 4.6 3.6 7.1 21.7 13.2 6.3 5.4 4.7 4.0 3.3 7.1 6.7BJ North Star 'H' 588 HK 2.47 1.1 0.4 6.1 n.a. 7.8 12.7 6.1 6.9 5.2 5.7 7.7 9.8 15.5 9.4C C Land* 1224 HK 2.35 0.8 0.2 5.4 25.9 25.0 n.a. n.a. 36.8 27.0 13.7 16.1 4.7 5.9 6.1Central China* 832 HK 1.62 0.5 0.2 4.6 4.0 5.0 6.7 11.0 7.4 6.6 6.3 6.1 5.9 7.1 5.6China SCE 1966 HK 2.4 1.1 1.9 4.7 3.9 5.2 n.a. n.a. 5.9 6.1 6.3 5.8 5.9 6.2 7.0CIF I Holdings 884 HK 2.2 1.9 2.3 3.7 3.2 3.8 n.a. n.a. n.a. n.a. 2.6 4.6 4.7 7.2 5.5F irst Sponsor*^ F SG SP 1.335 0.6 0.0 14.6 12.9 10.2 n.a. n.a. n.a. n.a. n.a. n.a. 16.6 9.7 9.2Glorious Property 845 HK 0.74 0.7 1.9 n.a. n.a. 10.3 n.a. 8.8 6.3 8.5 10.1 39.2 (3.8) (2.3) n.a.Hy doo Int'l 1396 HK 0.61 0.3 0.1 n.a. n.a. 11.1 n.a. n.a. n.a. n.a. n.a. n.a. 28.2 12.4 n.a.Kaisa Group 1638 HK 1.56 1.0 0.0 2.4 1.9 3.6 n.a. 20.2 3.2 7.0 4.8 3.9 n.a. n.a. 2.7Lai Fung* 1125 HK 0.177 0.4 0.1 10.3 n.a. 7.7 15.2 5.9 7.8 5.4 2.5 5.7 14.1 3.4 2.8Minmetals Land 230 HK 0.94 0.4 0.1 n.a. n.a. 13.3 16.4 38.4 12.1 9.5 15.6 11.8 8.5 15.4 n.a.Modern Land (China) 1107 HK 1.02 0.3 0.4 2.1 1.7 3.3 n.a. n.a. n.a. n.a. n.a. 3.4 3.7 6.5 5.1Powerlong 1238 HK 2.27 1.2 1.1 3.4 2.9 2.7 n.a. 3.0 3.7 3.2 3.1 5.4 4.0 3.5 4.9Renhe Commercial 1387 HK 0.196 1.1 0.8 n.a. n.a. n.a. 9.3 9.1 9.4 5.7 17.4 (8.4) (5.5) (7.3) n.a.Greenland* 337 HK 1.74 0.6 0.5 1.5 n.a. 10.0 39.3 7.2 4.9 4.2 (1.8) 364.4 48.0 36.7 5.0SRE Group 1207 HK 0.193 0.5 0.3 n.a. n.a. 7.0 20.7 4.7 4.8 6.7 6.8 13.3 (13.9) (2.7) n.a.Sunshine 100 China 2608 HK 2.95 0.9 0.3 n.a. n.a. 8.7 n.a. n.a. n.a. n.a. n.a. n.a. 7.9 13.0 n.a.Times Property 1233 HK 3.83 0.9 1.1 2.6 2.2 3.0 n.a. n.a. n.a. n.a. n.a. 3.7 3.9 3.8 3.7Wuzhou Int'l 1369 HK 0.77 0.2 0.2 n.a. n.a. 10.2 n.a. n.a. n.a. n.a. n.a. 4.2 32.2 (15.0) n.a.Ying Li^ YINGLI SP 0.164 0.3 1.1 n.a. n.a. 28.8 4.8 112.2 33.8 17.6 11.5 26.6 17.7 27.1 n.a.Yuzhou Properties 1628 HK 2.77 1.4 2.4 4.0 3.2 4.0 n.a. 3.2 4.7 4.6 7.1 4.1 4.5 5.0 5.3Zhong An 672 HK 0.62 0.2 0.1 n.a. n.a. 10.8 29.4 15.4 12.4 10.4 7.2 9.1 16.6 6.1 n.a.A v erage** 4.1 5 .6 8 .9 17 .5 17 .7 10 .3 8 .2 7 .2 25 .6 9 .7 7 .5 5 .6

A v erage (O v erall)@ 6.3 6 .0 9 .1 32 .4 19 .1 10 .4 8 .1 7 .2 15 .9 8 .7 10 .7 13 .1HSI Index HSI 23 .1 18 .2 13 .6 11 .7 11 .0 11 .3 11 .1 14 .3 12 .2

17- J an

^ Denominated in SGD for price

# Exclude Soho China & Shui On Land for 16F & 17F PE

** Exclude Greenland, First Sponsor & Lai Fung for 16F & 17F PE @ Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung for 16F & 17F PE

^^ FY15: 16F; FY16: FY17F; FY17: FY18F


China / Hong Kong


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 2012 2013 2014 2015 2016 high

% % % % % % % % % % % % % % % %Tier 1 play ersChina Overseas 688 HK 2.5 8.7 7.6 2.7 (4.7) (11.7) (15.1) (12.6) 9.7 2.0 78.0 (5.6) 5.7 21.5 (24.4) 20.2Country Garden 2007 HK (0.7) (0.9) (0.9) 1.4 5.4 4.7 25.6 32.6 (1.6) 44.7 46.4 15.3 (32.8) 2.6 36.5 (66.9)CR Land 1109 HK 2.1 7.3 6.9 2.8 (2.7) (13.0) (12.2) (2.1) 8.3 6.7 69.1 (8.9) 6.4 14.2 (22.8) (8.8)China Vanke 'H' 2202 HK 6.4 10.1 1.3 (7.8) 1.6 1.4 (3.4) 24.7 10.7 12.1 n.a. n.a. n.a. 32.4 (22.7) n.a.Evergrande 3333 HK 0.2 5.5 3.6 (1.1) (1.5) (1.3) (9.5) 7.6 8.1 (2.4) 32.0 (30.4) 6.1 117.2 (29.2) n.a.Longfor Properties 960 HK 2.7 6.3 6.1 7.6 0.0 (11.0) (9.2) (0.9) 8.9 6.1 72.9 (28.6) (7.8) 15.7 (14.9) n.a.Shimao Property 813 HK (1.0) 0.4 0.0 0.4 1.2 (4.8) (6.2) (0.4) 1.4 (8.1) 120.5 21.9 (2.7) (20.5) (26.4) (64.6)A v erage 1.7 5.3 3.5 0.9 (0.1) (5.1) (4.3) 7.0 6.5 8.7 69.8 (6.1) (4.2) 26.2 (14.9) (30.1)

T ier 2 play ersAgile Property 3383 HK (0.7) 2.2 0.2 (3.3) (4.0) (9.3) (14.3) (9.5) 4.3 8.4 56.6 (23.8) (46.9) (2.0) (8.6) (79.1)China South City 1668 HK 3.1 4.3 0.6 2.4 5.7 (2.9) (2.3) 4.3 3.7 14.3 17.0 88.0 60.9 (50.6) (7.4) n.a.COGO 81 HK 1.1 3.9 (1.9) (8.9) 5.2 11.3 6.9 12.3 4.7 (1.1) 105.6 (20.7) (46.7) (16.8) (22.9) (41.7)China J inmao Hldgs 817 HK (0.4) 5.7 4.7 8.8 3.2 (11.5) (7.5) (1.3) 6.7 0.9 85.9 (3.2) (17.4) 19.4 (21.1) (64.3)Greentown 3900 HK (1.3) (2.5) (3.3) (2.7) (2.7) (7.6) (1.6) 4.4 (2.5) 0.8 321.4 (16.6) (35.0) 0.0 (18.4) (68.7)GZ R&F 2777 HK 1.9 5.9 3.7 (2.2) (7.4) (20.2) (18.1) (14.6) 6.4 22.5 110.1 (12.1) (16.3) 0.6 (1.8) (77.0)Hopson Dev 754 HK 0.0 (0.3) (2.6) (3.5) (4.3) (10.0) (7.2) (2.7) (0.6) 5.4 207.2 (24.6) (24.0) 8.7 (10.5) (78.0)KWG 1813 HK 0.9 1.1 (0.4) 2.1 (3.3) (13.6) (17.3) (4.3) 1.1 5.7 122.2 (26.1) 33.5 13.1 (17.8) (64.9)Logan Property 3380 HK 0.0 0.3 (2.6) (4.9) (9.3) (14.8) (13.5) (1.0) 0.3 30.7 n.a. n.a. 10.0 9.1 11.4 n.a.Poly HK 119 HK 18.4 22.0 24.4 25.4 25.9 31.1 36.2 41.7 23.0 50.5 79.8 (31.7) (22.9) (20.7) 1.6 (72.4)Shui On Land 272 HK (1.2) (1.8) (1.2) (9.4) (16.0) (24.5) (24.5) (22.0) (2.4) (12.4) 58.9 (31.1) (23.1) 16.4 (21.6) (83.5)Sino-Ocean 3377 HK (1.4) (1.4) (1.7) 4.6 0.9 (8.3) (4.7) (2.3) (1.7) (14.5) 60.8 (12.1) (13.4) 12.7 (30.2) (77.3)SOHO China 410 HK 0.3 1.0 1.3 (0.3) (4.6) (13.8) (9.4) 1.8 3.1 25.1 20.3 7.4 (18.0) (31.4) 1.6 (66.9)Sunac China 1918 HK (4.3) 1.5 (1.9) 19.0 29.7 22.1 17.4 33.8 3.7 48.3 272.7 (22.5) 69.7 (24.0) 7.5 n.a.Yuexiu Property 123 HK 1.9 0.9 (1.8) 0.0 (4.3) (9.1) (1.8) 10.0 3.8 (2.7) 118.8 (22.0) (16.8) (10.1) (20.9) (61.8)A v erage 1.0 2.9 1.0 1.5 0.4 (5.6) (3.8) 4.0 3.6 13.3 113.9 (11.1) (8.5) (0.9) (8.4) (68.7)

T ier 3 play ersBJ Cap. Land 2868 HK 0.3 2.7 2.0 2.0 (1.0) (3.2) (11.7) (2.9) 3.4 6.4 110.5 (18.0) 11.4 20.7 (18.0) (59.7)BJ North Star 588 HK (1.2) 2.5 5.1 (3.5) (5.0) (13.0) (6.4) (0.8) 3.8 8.3 82.6 (16.7) 41.1 3.6 (7.0) (68.7)C C Land 1224 HK (2.1) 4.4 8.8 11.4 16.9 14.1 7.8 11.9 4.0 (2.9) 88.9 (28.3) (30.8) 79.3 (6.6) (85.9)Central China 832 HK 0.6 (1.8) (1.8) (1.2) (9.5) (8.0) (4.7) 5.2 (4.1) 14.1 76.8 (12.8) (26.8) (7.4) 4.3 n.a.China SCE Property 1966 HK (0.8) 2.1 (3.6) (5.9) 11.1 37.1 34.8 50.0 3.0 44.6 20.2 16.2 (12.4) 8.0 33.1 n.a.CIFI Holdings 884 HK 3.8 2.8 (0.5) (1.8) (0.9) (14.4) (0.9) 13.4 5.3 50.7 n.a. 17.1 (6.1) 12.3 20.8 n.a.F irst Sponsor FSG SP 0.0 0.0 (0.4) 1.1 3.9 4.3 4.3 9.0 0.0 8.1 n.a. n.a. n.a. 0.8 6.0 n.a.Glorious Property 845 HK 0.0 (1.3) (5.1) (40.8) (18.7) (23.7) (17.8) 7.2 (2.6) (10.8) 7.4 14.4 (28.1) (25.0) (15.6) n.a.Hydoo Int'l 1396 HK (14.1) 0.0 13.0 (16.4) (20.8) (19.7) (31.5) (34.4) 5.2 (40.2) n.a. n.a. (13.5) (44.0) (46.3) n.a.Kaisa Group 1638 HK 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 79.1 4.2 (36.4) (1.9) 0.0 n.a.Lai Fung 1125 HK 7.9 9.3 5.4 13.5 13.5 6.0 25.5 27.3 9.9 42.7 25.5 (5.3) (19.9) (17.2) 23.8 (62.1)Minmetals Land 230 HK 1.1 3.3 (3.1) (4.1) (4.1) (3.1) (3.1) 0.0 1.1 17.5 70.7 (19.5) (13.6) 1.1 3.3 (74.6)Modern Land (China) 1107 HK 0.0 1.0 (3.8) (2.9) (8.1) (8.9) (17.7) (23.3) (1.0) (45.7) n.a. n.a. 1.6 98.4 (53.2) n.a.Powerlong 1238 HK (1.7) (3.0) (3.0) 1.8 (8.1) 0.9 13.5 42.8 (0.4) 53.4 58.7 0.6 (34.3) 50.5 39.0 n.a.Renhe Commercial 1387 HK (3.4) (1.5) (3.9) 0.5 (2.0) 0.5 (9.7) (2.0) (1.5) (38.8) (8.9) (38.9) (28.1) 5.9 (44.7) n.a.Greenland 337 HK (3.9) (7.9) (9.4) (12.1) (15.9) (23.3) (30.4) (34.1) (9.8) (22.3) 53.5 90.4 (18.3) (1.9) (36.1) (76.7)SRE Group 1207 HK (3.5) (3.5) (1.0) (6.3) (20.2) (27.2) (16.8) (9.0) (3.0) (42.4) 24.2 (32.9) (20.8) 73.8 (45.5) (94.3)Sunshine 100 China 2608 HK (4.8) (8.7) (3.9) (9.8) (13.5) (4.8) (9.5) (15.5) (20.3) (15.7) n.a. n.a. n.a. 21.7 4.8 n.a.Times Property 1233 HK (2.0) 1.3 (6.4) 3.5 10.1 4.4 9.4 25.6 1.1 42.4 n.a. n.a. (5.7) (18.2) 40.4 n.a.Wuzhou Int'l 1369 HK 0.0 (1.3) (1.3) (2.5) (2.5) 0.0 (1.3) (2.5) (1.3) (4.9) n.a. n.a. 14.0 (44.9) (3.7) n.a.Ying Li YINGLI SP (1.8) 9.3 6.5 1.9 (1.8) 20.6 18.0 18.0 10.1 16.3 45.1 6.8 (38.0) (32.2) (10.2) (86.3)Yuzhou Properties 1628 HK 2.2 2.6 2.2 (6.7) (1.1) 3.0 9.5 20.4 2.6 48.1 37.1 2.9 1.0 7.7 28.6 n.a.Zhong An 672 HK (1.6) (1.6) 0.0 (12.7) (13.9) (13.9) (20.5) (13.9) (3.1) (20.5) 7.5 26.3 (20.8) (28.9) (21.0) (89.3)A v erage (1.1) 0.5 (0.1) (3.8) (3.8) (3.1) (2.6) 4.0 0.2 4.7 48.9 0.9 (13.5) 6.9 (4.5) (75.9)

A v erage (Ov erall) 0.1 2.0 0.8 (1.2) (1.8) (4.2) (3.3) 4.4 2.3 8.3 78.8 (4.9) (10.4) 6.9 (7.4) (65.8)

Hang Seng Index 0.4 3.1 3.7 2.6 (0.9) (2.1) 0.2 5.5 3.8 17.0 22.9 2.9 1.3 (7.2) 0.4 (27.8)MSCI China 0.6 4.5 5.1 3.0 (1.5) (2.4) (0.3) 6.8 5.0 19.5 18.7 0.4 4.7 (10.1) (1.4) (40.9)

Source: Thomson Reuters

China / Hong Kong


Historical valuations

17 - J anCompanyname

Code Pric eHK $

Curren t H istav g

+ 1s.d .

- 1s.d .

Cu rren t(F Y 17 )

H istav g

+ 1s.d .

- 1s .d .

Cu rren t H istav g

+ 1s.d .

- 1s .d .

Agile Property 3383 HK 4.12 72.3 54.6 32.9 76.2 6.5 7.1 9.3 4.9 0.4 1.3 2.1 0.4C C Land 1224 HK 2.35 15.1 57.5 36.9 78.0 5.4 15.1 37.4 (7.2) 0.5 0.7 1.3 0.1Central China 832 HK 1.62 73.2 67.4 60.4 74.3 4.6 4.9 6.0 3.7 0.5 0.7 0.9 0.5China Ov erseas 688 HK 22.55 30.1 13.6 (2.9) 30.1 6.2 9.8 14.6 5.0 1.1 1.7 2.5 1.0China V anke-H 2202 HK 19.60 10.9 15.3 7.2 23.4 8.6 4.9 6.0 3.7 2.0 0.7 0.9 0.5China V anke-A* 000002 CH 20.80 (11.6) (12.9) (38.6) 12.9 10.2 9.8 14.6 5.0 2.1 1.7 2.5 1.0COGO 81 HK 2.65 62.3 53.0 34.8 71.3 3.8 7.8 18.7 (3.2) 0.5 0.8 1.3 0.2Country Garden 2007 HK 4.27 (12.9) 31.8 14.8 48.9 7.5 14.0 32.2 (4.1) 1.2 1.8 3.5 0.2CR Land 1109 HK 18.88 32.6 29.3 15.1 43.5 7.3 11.5 18.2 4.8 1.1 1.3 1.7 0.9Ev ergrande 3333 HK 5.22 45.6 54.3 42.7 66.0 15.7 6.7 11.8 1.6 1.3 1.2 1.6 0.8F irst Sponsor F SG SP 1.34 67.4 n.a. n.a. n.a. 14.6 2.4 2.7 2.1 0.9 0.2 0.4 0.0China J inmao 817 HK 2.23 53.3 52.6 44.5 60.7 5.6 8.7 13.4 4.0 0.7 0.9 1.3 0.5Shimao Property 813 HK 10.28 64.0 41.9 24.4 59.4 5.9 9.3 18.4 0.3 0.6 1.2 1.8 0.6Shui On Land 272 HK 1.63 70.1 57.1 47.2 67.1 31.3 9.6 14.6 4.6 0.3 0.7 1.1 0.3Sino-Ocean Land 3377 HK 3.41 56.4 40.8 20.3 61.2 5.3 10.2 15.2 5.1 0.5 0.8 1.2 0.4SOHO China 410 HK 3.94 51.2 38.1 17.5 58.8 60.9 19.3 42.3 (3.7) 0.5 0.9 1.3 0.5Greenland 337 HK 1.74 69.6 43.4 13.6 73.2 1.5 10.0 18.8 1.1 0.6 0.9 1.5 0.4Yuexiu Property 123 HK 1.10 55.9 58.5 52.5 64.5 10.5 8.2 13.4 3.0 0.4 0.6 0.8 0.4Sec t o r av erage 51 .4** 46 .4~ 39 .9~ 53 .0~ 6 .3 7 .0~ 8 .1~ 5 .9~ 0 .7 0 .8~ 0 .9~ 0 .6~

NA V d isc oun t / (p remium) (% ) PE ( x ) PB (x )

^ Share price denominated in SGD

** Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung

~ 2010-YTD

Source: Thomson Reuters, DBS Vickers

China / Hong Kong


DBSVHK 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 Completed Date: 17 Jan 2017 19:09:34 (HKT) Dissemination Date: 17 Jan 2017 19:14:54 (HKT)

GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Vickers (Hong Kong) Limited (“DBSVHK”). This report is solely intended for the clients of DBS Bank Ltd., DBS Vickers Securities (Singapore) Pte Ltd. (“DBSVS”) and DBSVHK, its respective connected and associated corporations and affiliates 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 DBS Bank Ltd., DBSVS and DBSVHK, its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively, the “DBS Group”)) 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. The DBS Group 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. The DBS Group, 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. The DBS Group 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, it may not contain all material information concerning the company (or companies) referred to in this report and the DBS Group is under no obligation to update the information in this report. This publication has not been reviewed or authorized by any regulatory authority in Singapore, Hong Kong or elsewhere. There is no planned schedule or frequency for updating research publication relating to any issuer. 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 the DBS Group (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

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China / Hong Kong


ANALYST CERTIFICATION The research analyst(s) 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(s) 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 the report. The DBS Group has procedures in place to eliminate, avoid and manage any potential conflicts of interests that may arise in connection with the production of research reports. As of 17 January 2017, the analyst(s) and his/her spouse and/or relatives who are financially dependent on the analyst(s), do not hold interests in the securities recommended in this report (“interest” includes direct or indirect ownership of securities). The research analyst(s) responsible for this report operates as part of a separate and independent team to the investment banking function of the DBS Group and procedures are in place to ensure that confidential information held by either the research or investment banking function is handled appropriately.

COMPANY-SPECIFIC / REGULATORY DISCLOSURES 1. DBSVHK and its subsidiaries do not have a proprietary position in the securities recommended/mentioned in this report as of 16 Jan

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DBS Bank Ltd., DBSVS, DBSVHK, their subsidiaries and/or other affiliates of DBSVUSA have received compensation, within the past 12 months for investment banking services from China South City Holdings Limited (1668 HK), China Overseas Grand Oceans Group (81 HK), Yuexiu Property Company Limited (123 HK) and Central China Real Estate Limited (832 HK) as of 31 Dec 2016. DBS Bank Ltd., DBSVS, DBSVHK, their subsidiaries and/or other affiliates of DBSVUSA, within the next 3 months, will receive or intend to seek compensation for investment banking services from China Overseas Grand Oceans Group (81 HK) as of 31 Dec 2016. DBS Bank Ltd., DBSVS, DBSVHK, their subsidiaries and/or other affiliates of DBSVUSA have managed or co-managed a public offering of securities for China South City Holdings Limited (1668 HK), Yuexiu Property Company Limited (123 HK) and Central China Real Estate Limited (832 HK) in the past 12 months, as of 31 Dec 2016. DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction 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.

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China / Hong Kong


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