[ET Net News Agency, 18 November 2020] Morgan Stanley lifted its target price for Logan
Group (03380) to HK$16.18 from HK$13.87 and upgraded its rating to "overweight" from
"equal-weight".
The research house said Logan has Rmb550bn potential saleable resources from urban
redevelopment projects, of which Rmb320bn are located in Pan-Shenzhen area. The urban
redevelopment scale is large compared to its landbank of Rmb479bn as of end-1H 2020.
In the past three years, Logan converted Rmb90bn saleable resources from urban
redevelopment projects. In the next three years, management aims to accelerate the
conversion speed with a target of Rmb50bn saleable resources p.a. (versus the previous
Rmb30bn p.a.), and expects urban redevelopment projects to contribute 20% of core profit
(including selling project stake). (KL)