See the last page for disclaimer Source

Shares in issue (m) 2017F 2016F 2015F 2014A 12/31 年结 Year End 2013A Market cap. (HK$Market cap. m) 3 month average vol. 3 52 Weekshigh/low 52 (HK$) z z z z z z z z 公司报告：华润置地 Report:CRLand(01109Company HK)

rftRvsdu,Miti iuf Profit Revisedup,MaintainfiBuyfl Placing 400millionNewShares 以

: : h opn,Goa ua nentoa. the Company, Guotai Junan International. 入”评级。 相当于 加之 维持“买入”。 acquisition, developmentcostsand E n .x21 B.Miti By netetrtn. PBR.Maintain‘Buy’ 2015 PER and1.6x investmentrating. NAV torevised2015E an 15%discount underlying 2015 12.3x pershare, which represents HK$29.40, to price target Weupside potential. revise upthe sales reboundinApril2015arelikely todr Expectations oflooseningpoliciesands ‘Buy’. Maintain salesenvironment. therebounding growth under translate intoearnings set upplan house acceleration andnew replenishment help theCompany’s placing will share land from Raised capital 13.0 pptsin2015E. profitbeingrevised to theunderlying after theshareplacingcompletion,EPS will theunderlying increase 0.3%due sheet. balance stronger effects with diluted Limited share. of HK price sharesata new million 400 by placing HK toraise approximately plans Companyfl) (fithe CR Land 金用途。 净额 华润置地（“公司”）计划以 增加， 有限的摊薄效应和更强的资产负债表。 的大环境下转化为盈利的增长。 通过配股获得的资金将会帮助公司土地储备的补充和新房推盘计划的加速 25.25 101 4 2015 月房屋销售的反弹很有可能提高房地产公司的估值。我们调升目标价至 2015

(HKDm)

The management intends to use the raised capital for further land land further capitalfor raised tousethe intends management The 亿元。 港元配售 Turnover 126,9052.931 20,315 8.6 108,2912.395 16,242 13.8 10.6 14.3

114,1562.575 17,848 9.8 7.5 每股核心净利将会增长 88,3812.095 12,226 12.1 18.1 71,3891.775 10,357 14.3 27.5 年 总股数 市值 收入 NAV 配股完成获得的资金将有利于销售增长。宽松政策释放和资金南下的预期 公司管理层打算将募集的资金用于收购土地储备、开发成本及一般运营资 个月平均成交股数 (01109 HK) Raised capitalfrom share pricing will helpsales increase.

(HK$ m) 有 (m)

周高 15% 4 Underlying Net Profit Profit Net 亿股 / (HKD m) 低 折让, 核心净利

25.25

12.3 , (‘000) 0.3% 调高核心净利，维持“买入”

港元每股的价格配售股数为 倍 根据我们的测算，随着配股完成，由于核心净利的 每股核心净利 ， 15 Underlying general working capitalpurposes. general 同时

年核心市盈率和 up andnetwill gearing ratio decrease (HKD) outhbound capitalinflowwith housing outhbound EPS 2015 ive property companies’ive property valuation

年的净负债率会下降 每股净利变动 Underlying 29.100/13.620 ( 1.6 165,232.8 △ 23,212.4 EPS 6,930.9 倍 As per our estimates, estimates, our Asper

%) 4 $ 15 亿股的股份来募集港币 25.25 per placing placing per 25.25 , 年市净率

which isableto Underlying $

13.0 , 10.1 billion 并在消费反弹 市盈率 PER Major shareholder Free float (%) FY15 Netgearing (%) FY15 FY15 Est. NAV (HK$) FY15 (x) , 29.40 并维持 个百分点。 atHKD25.25,Underlying

“买 港元 每股净资产 (HKD)

657 . 054 21 16.2 2.1 0.544 1.5 16.547 328 . 072 28 16.7 16.8 18.1 2.8 2.4 2.4 0.702 0.614 0.605 1.1 1.2 1.4 23.218 20.281 18.094 451 . 047 17 19.1 1.7 0.437 1.7 14.531 BPS 自由流通比率

Source: Bloomberg, Guotai Junan International. Guotai Junan Bloomberg, Source: 大股东 股价表现 performance Stock 100.0 (20.0) 平均股价（港元） Avg. share price(HK$) 相对恒指变动 index %toHS Rel. 绝对变动 Abs. % 股价变动 Change in Share Price

Share price Revised from 6-18m TP 评级： Rating:

20.0 40.0 60.0 80.0

0.0 a-4Jl1 e-4Ot1 e-4Fb1 a-5May-15 Mar-15 Feb-15 Dec-14 Oct-14 Sep-14 Jul-14 May-14

市净率 % of return% of % 每股估值（港元）

(%) 净负债 PBR (x)

%

目标价 原目标价 股价： /

股东资金 HSI Index 每股股息 (HKD) :

DPS :

(%) 1

(1.5) 9.5 64.9 (1.7) 22.5 43.0 60 2. 19.0 23.0 26.0 个月

1 M

CR (Holdings) Ltd 61.2% CR Land [email protected] 股息率 +86 75523976672 Van Liu Yield 3 (%) 个月

3 M 25 May 2015 2015 25 May

HK$29.40 HK$25.300 净资产收益率 买入 Maintained Page 1of 7 HK$28.70 刘斐凡 Buy 1 1 Y

年 ( ROE (%) 38.7 28.8 34.6 维持

)

Company Report CR Land 华润置地 (01109 HK) GTJA Research 国泰君安研究

Limited diluted effects and stronger balance sheet. purposes. forfurtherla capital tousetheraised intend managements HKD10 approximately raise to plans Company The May13, 2015. on placing shares of announcement an released (fitheCompanyfl) CR Land See the last page for Page disclaimer 2 Ithasto acce thisperiod. during sales house strong experienced in terms sales contract YoY.Accumulated 55.8% sales, up Jan. May During figureson 11. operating unaudited April 2015 Supplement development costs and working capital to accelerate house new set up plan. Source: TheCompany, Guotai Junan International. Total IslandProject Hefei ShushanScience Manor Nanjing ParkLane StatiumProject Olympic Guangzhou Wuhan Village Changfeng Project Wuhan TaoyuanliProject Ningbo WantouProject Nanjing Twenty-Four City Community Nanjing CRInternational Fuzhou GulouDistrictB&QProject Crossing Fuzhou City Crossing Shantou City Suzhou Wujiang The Arch Shijiazhuang City Crossing Community CRInternational Guiyang Park Kunming Central Xuzhou The Arch Liuzhou City Crossing Beijing MentougouProject Park Central Shenyang Harbin The Arch CRPlaza Huanggu Shengyang New Project result in lower home purchasing price and mortgage costs, wh mortgagecosts, and price homepurchasing result inlower 9.7% YoYGFA. termsofattributable in decrease forward, Looking Replenish land bank to maintain future revenue growth in an improved property market. 2015. afterthe 2.395HK$ to reach 0.3% increase would become sheet thebalance shareholders’increase equities, Mayprice on 11. ef thediluted toincrease, likely Assalesare price The aftertheenlargement. beforeand sharecapital issued al-:Ln custo n21 in2014 Acquisition Land Table-1: growth. future revenue re needs Company The tobepositive. turns gradually market housing .1 billionby placing400million sharesnew at

placing and net gearing ratio to statically statically to ratio gearing net and placing Date May Aug Dec Dec Nov Sep Sep Ma Jun Jun Jun Jan Jan Jan Jan Jan Jan Jan Jan Jan Oct r Interest 100% 100% 100% 100% 100% 100% 100% 100% 100% 51% 33% 51% 60% 70% 55% 51% 50% 50% 55% 55% 36% The placing shares respectively respectively shares placing The of GFA amounted to 1.8 million sq.m., up 42.2% YoY. CR Land has has Land YoY.CR sq.m.,up42.2% 1.8 million to amounted of GFA nd acquisition, development costs and general working capital working capital costsandgeneral development nd acquisition, 8,423,796 1,259,500 Total GFA Total -April., CR Land recorded RMB21.3 billion accumulated contract contract accumulated RMB21.3 billion CRLand recorded -April., 195,600 165,400 219,500 686,070 283,700 579,060 732,800 225,200 463,000 468,491 548,000 433,500 155,800 327,554 687,200 276,700 417,000 118,821 fects are limited. Since capital capital limited. Since fects are lerate new house set up plan to meet its strong house sales. to meetitsstronghouse plan house setup new lerate 83,000 97,900 ich improve home sales in2015. sales home ich improve per placing share represents a discount of7% adiscount to the closing sharerepresents per placing we expect more loosening measures will be on their way to way to will ontheir be measures we moreloosening expect stronger. We to EPS estimatethatCRLand’s underlying plenish more land bank to maintain its market share and itsmarketshareand tomaintain bank moreland plenish a price of HKD 25.25 per placingshare. of HKD25.25 aprice Total mn) Cost (RMB Land decrease by 13.0 ppts to reach 28.8% in in 28.8% toreach ppts 13.0 by decrease represent 6.12% represent 6.12% In 2014, the Company recorded In 2014,theCompany recorded raised from share placing will fromshareplacing raised 30,156 The Company announced its its announced Company The 1,200 3,020 2,694 1,459 3,480 2,914 1,570 1,430 1,480 1,105 1,930 1,234 1,112 Therefore the prospect of of theprospect Therefore 997 418 706 920 797 567 492 632 Average LandCost and 5.77% of the and 5.77% 13,758 19,704 of7 3,580 5,098 7,255 3,927 5,056 5,141 1,218 4,749 6,633 6,292 3,351 1,454 3,299 1,172 3,640 3,395 1,608 4,140 2,406 2,960 The

Company Report CR Land 华润置地 (01109 HK) 25 May 2015 salerecords CR Land’s Figure-1: See the last page for Page disclaimer 3 Source: TheCompany, Guotai Junan International. Ratio Net Gearing ROA ROCE ROE Margin Net Profit Underlying Net Profit Margin Margin Profit Operating Gross Profit Margin Underlying EPS Underlying Profit Net Profit profit Operating Gross Profit PPT Revenues ofDev HKD mn Loosening measuresstarted Total revenue Total revenue Table-2: Profit estimation revision sales improvement. home and shareplacing from capitalraised tothe ratio due up we revised Therefore, sales rebound. totranslateinto areable setupplanacceleration and possible China announced thedataof r announced China national April 2015 would help the Company’s land replenishment and new house set up plan acceleration. setupplan andnew house replenishment land theCompany’s help would respectively. 7.2%, and 7.0% by 4.2%, profit underlying 2015-2017 We up revised salesrebound. houses thefuture, intensifying in release would suchasratecuts measures, loosening thatmore believe tostabilize Lookforward, stillexisted. pressure destocking YoY. mnsq.m.,up24.7% 656.81 Theref with growth inJan. the 2.5ppts, compared recently. policies funding es real thecumulative Nevertheless, downpay includingthedecreased measures We demand. sales re houses see anobvious improving-housing 3.1% YoY, tothat bywhich 6.2pptscompared narrowed ppts thanthatofJan.toMa GFAthe cumulative amountedto263.85 soldofcommodity houses Source: the Company, Guotai Junan International. 10.00 10.00

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00

Contracted

Sales(bn

RMB) r. ofcomm salesamount cumulative 2015. The 108,291 114,156 126,905 103,915 107,946 120,693 4.2% 5.8% 5.1% 5.8% 4.2% 120,693 107,946 114,156 103,915 126,905 108,291 16,242 17,848 20,315 15,590 16,686 18,949 4.2% 7.0% 7.2% 7.0% 4.2% 8.5% 7.4% 4.2% 18,949 6.9% 6.6% 4.2% 23,246 16,686 20,603 15,590 5.3% 6.1% 4.5% 37,916 17,848 19,068 20,315 22,129 33,448 25,221 16,242 108,137 32,024 19,873 97,165 35,661 40,526 94,528 103,115 33,358 113,879 98,779 33,811 36,683 41,851 32,469 34,238 38,601 4.1% 7.1% 8.4% 7.1% 4.1% 38,601 34,238 32,469 36,683 41,851 33,811 11 03 2.%2.%1.%1.%10ps 12ps 1.0ppts 1.2ppts 0.4ppts 1.0ppts 0.0ppts 0.3ppts 0.0ppts 0.2ppts 0.6ppts 19.7% 0.0ppts 0.3ppts 1.0ppts 16.3% 19.1% 0.1ppts 0.4ppts 15.7% 16.8% 0.0ppts 20.0% 19.3% 15.5% 18.1% 20.8% 32.0% 19.1% 15.0% 16.7% 0.0ppts 0.3ppts 31.7% 20.3% 18.3% 16.0% 16.8% 31.4% 31.2% 19.9% 21.1% 0.5ppts 15.6% 31.0% 33.0% 18.1% 19.4% 30.8% 15.0% 32.1% 18.4% 31.9% 31.2% 31.2% 30.8% 2015F 28.8% working and China's comm working

2.395 2.575 2.931 2.387 2.555 2.901 0.3% 0.8% 1.0% 0.8% 0.3% 2.901 2.555 2.387 2.575 2.931 2.395 （ .%96 1.%91 .%97 .pt .pt 0.6ppts 0.5ppts 0.1ppts 9.7% 9.1% 9.1% 10.4% 9.6% 9.2% LHS ） New estimation

the underlying profit in 2015-2017. We also revised down 2015-2017 net gearing gearing net 2015-2017 down We in2015-2017. alsorevised profit underlying the 27.6% 27.6% 2016F -Mar.space ofco floor 2015.Inaddition, ore, the prosperity degree of degree ore, theprosperity ASP ment onmortgageofseco

（ eal estate development and sales in 13May andsalesin 2015. development eal estate RHS ） 2017F 23.2% , RRR cuts, favorable housing funding policies and MBS carring out, out, andMBScarring policies funding housing , RRRcuts,favorable 10,000 10,000 12,000 14,000 16,000 18,000 20,000 2,000 4,000 6,000 8,000 0 odityrebounded. housessales the china economy and alleviate the destocking pressure, we pressure, thedestocking and alleviate the chinaeconomy earnings growth under the loosening environment with housing with housing environment theloosening under growth earnings Source: National Bureau of Statistics of China. 1,000 1,200 1,400 Sold China Property Sector Commodity Building Figure-2: 41.9% 2015F of Jan.to Mar. by aresupported 2015.Property sales tate investment growth in Jan.-Apr. growth in tate investment by stilldeclined 2015 200 400 600 800 0 mnsq.m,down YoY. 4.8% by contracted 4.4 decline The

bound in Jan.-Apr. 2015, thanks to several loosening inJan.-Apr. loosening bound toseveral thanks 2015, Old estimation Commodity nd housing, rate cuts, RRR cuts, favorable hosing cuts,RRRfavorable rate nd housing, property industry continues to decline and the and todecline continues industry property 31 46 1.pt 55ps -1.4ppts -5.5ppts -13.0ppts 24.6% 33.1% 2016F odity houses amounted to RMB1,773.9bn, down toRMB1,773.9bn, amounted houses odity

Building 2017F mmercial housing for sale amounted to to forsaleamounted housing mmercial

Sold

We believe that land replenishment landreplenishment that believe We Raised capital from shares placing from sharesplacing capital Raised

（ RMB National Bureau ofStatistics Bureau National

bn 2015F 2015F ）（

During Jan.to During Apr. 2015, LHS ） Change Change 2016F 2016F YoY

(RHS ） 2017F of7 ‐ ‐ ‐ 10% 15% 0% 5% ‐ 20% 15% 10% 5%

Company Report CR Land 华润置地 (01109 HK) 25 May 2015 potential. Wepotential. reviseuptheta 20 April in rebound sales housing with inflow capital southbound Table-3: Breakdown of CR Land’sof Breakdown 2015NAVTable-3: ‘Buy’ andmaintain PBR 1.6x 2015 rating. PERand investment underlying 12.3x 2015 Development Properties Maintain ‘Buy’. See the last page for Page disclaimer 4 Source: Guotai Junan International. NAV Net Debt ValueGross Asset Investment Properties Source: Bloomberg, Guotai Junan International. iue3 2mnhhsoia B F Figure-3: 12 month historical PBR

0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80

P/B Raised capital from share pricing would help sales in sales would help pricing fromshare Raised capital AVG rget price to HK$29.40, which represents an15% which represents rget pricetoHK$29.40,

STD ‐ 1 STD+1 (HKD m) (44,445) 234,539 278,984 207,695 71,289 Source: Bloomberg, Guotai Junan International. gr-:12 month historical PER igure-4: 15 are likely to drive property companies’ valuation upside companies’ upside property to drive valuation arelikely 15 10 11 12 2 3 4 5 6 7 8 9 crease. Expectations of loosening policies release and and release policies ofloosening Expectations crease. P/E discount to NAV revised2015E discount pershare, NAV/share (HKD) (6.55) 34.59 41.14 10.51 30.63 AVG STD % ofNAV ‐ 1 100.0% 118.9% -18.9% 30.4% 88.6% STD+1 % of GAV% of 100.0% 25.6% 74.4% of7

Company Report CR Land 华润置地 (01109 HK) 25 May 2015 Holdings Co Bbmg Corporation-H Ltd Evergrande Real Estate Group China Overseas Land & Invest HK listed large developers with Company Comparison Peers See the last page for Page disclaimer 5 Source: Bloomberg, Guotai Junan international. Note: Above earnings estimates are based on the market consensus as at 22 May 20 Weighted Average Average Simple Median Glorious Property Holdings Kaisa Group Holdings Ltd Zhong An Real Estate Ltd Redco Properties Group Ltd Top Spring International Hld China Sce Property Holdings Central China Real Estate Yuzhou Properties Co Group Co Holdings Ltd China Aoyuan Property Group Powerlong Real Estate Holdin Modern Land China Co Ltd HK listed mid-small developers with major revenue from mainland Weighted Average Average Simple Median Beijing Capital Land Ltd-H Dalian Wanda Commercial Pr-H China Co Ltd-H Holdings China Overseas Grand Oceans Yuexiu Real Estate Investmen Beijing North Star Co Ltd-H Holdings Ltd Investment Shenzhen Co Ltd Kwg Property Holding Ltd Ltd Ltd Franshion Properties Group Co Ltd Sino-OceanHoldings Land Guangzhou R&F Properties - H Holdings Ltd Soho China Ltd Holdings Ltd Longfor Properties

major revenue from mainland

Stock Code 01628 H 01777 H 01224 H 03883 H 01238 H 02868 H 03699 H 02202 H 03900 H 00081 H 00405 H 00588 H 00754 H 00604 H 00123 H 01813 H 00917 H 00272 H 00817 H 03377 H 02777 H 00813 H 00410 H 03383 H 00960 H 02007 H 02009 H 03333 H 00688 H 00845 H 01638 H 00672 H 01622 H 03688 H 01966 H 00832 H 01107 H 00119 H 01109 H K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K Mkt Cap (HKD m) (HKD Cap Mkt

205,620.0 165,232.8 290,394.1 304,011.4 13,302.2 23,730.2 10,498.3 12,246.5 26,147.0 19,656.7 27,171.8 22,818.4 21,899.9 45,088.1 19,745.4 27,573.4 16,623.4 42,951.3 30,773.6 60,422.7 28,649.4 25,265.0 86,738.0 67,566.5 96,124.5 76,113.1 8,433.4 7,024.2 5,254.1 5,985.3 7,874.7 2,576.0 9,351.2 2,560.0 8,368.0 3,952.9 5,923.2 5,929.1 8,011.3

Last Price HKD 67.150 19.860 10.980 17.400 13.080 25.300 29.450 2.210 1.220 2.030 2.150 1.970 1.610 6.460 4.600 4.350 3.710 8.760 4.050 1.840 7.430 5.190 2.460 3.040 4.540 5.710 9.550 5.510 6.450 3.840 8.860 6.500 1.200 1.560 1.090 5.230 3.400 1.730 2.430

2015F 14.7 24.6 10.4 13.1 10.6 17.4 10.9 10.5 15.3 10.1 30.0 15.6 11.5 11.0 n.a. n.a. n.a. n.a. n.a. 8.8 6.0 8.9 8.6 9.5 4.7 5.6 4.6 8.5 6.0 8.1 4.9 6.4 5.5 6.7 2.2 4.2 3.9 5.4 5.5 5.8 9.2 6.8 5.7 5.6 9.9

PE 2016F 12.4 51.8 13.7 25.8 13.6 12.6 15.2 10.9 12.2 12.6 26.8 20.9 11.6 11.6 n.a. n.a. n.a. n.a. n.a. 8.8 9.9 5.4 7.6 8.7 4.5 5.4 5.3 8.0 6.3 9.1 5.0 6.7 5.0 9.6 2.0 4.1 4.8 4.6 7.8 5.2 9.2 5.5 9.3 5.7 5.3

15. 15. 2017F 12.1 15.4 24.1 10.0 24.0 24.8 15.6 11.2 11.6 11.1 11.5 n.a. n.a. n.a. n.a. n.a. 7.7 8.6 4.6 6.7 7.7 4.0 4.9 5.1 7.1 5.6 7.9 5.9 7.6 4.0 1.7 3.3 3.8 3.8 8.5 4.3 9.0 9.5 8.0 4.1 9.9 8.1 5.6 4.4 9.9

2015F n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.7 0.6 0.9 0.8 0.4 0.8 0.5 0.8 0.6 1.0 0.6 0.5 1.3 1.1 1.1 1.6 1.2 1.9 0.3 0.5 0.6 0.4 0.3 0.7 0.8 0.6 0.4 0.6 1.3 1.0 0.8 1.5 2.0 0.7 0.8 0.8

PB 2016F n.a. n.a. n.a. n.a. n.a. 0.7 0.6 0.8 0.7 0.4 0.7 0.5 0.8 0.5 0.9 0.6 0.5 1.1 1.0 1.0 1.4 0.9 1.5 0.6 0.8 0.5 0.5 0.3 3.3 0.7 0.6 0.4 0.3 0.5 1.2 0.8 0.8 0.9 1.4 1.7 0.7 0.7 0.8 0.9 0.3

2017F n.a. n.a. n.a. n.a. n.a. 0.7 0.6 0.7 0.7 0.4 0.7 0.5 0.7 0.5 0.8 0.6 0.5 1.0 0.9 0.9 1.2 0.9 1.3 0.5 0.7 0.5 0.5 0.2 2.6 0.6 0.6 0.4 0.3 0.5 1.1 0.8 0.7 0.8 1.3 1.5 0.6 0.6 0.8 0.8 0.3

2015F D/Y% 10.0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3.7 4.4 5.0 1.3 2.1 3.4 3.9 4.1 6.8 5.3 5.8 5.4 2.3 5.8 1.0 2.0 3.9 1.8 3.6 4.5 3.8 1.7 7.1 6.5 3.8 4.9 3.5 3.3 2.7 3.5 3.7 4.5 1.3 3.0 3.5 1.7 6.6

2015F ROE 15.1 14.3 18.7 12.5 16.6 19.6 10.8 12.6 15.9 19.2 10.4 14.2 14.3 18.4 23.0 16.9 20.4 14.7 12.6 15.7 13.9 20.4 12.7 14.7 11.7 11.0 11.7 n.a. n.a. n.a. n.a. n.a. n.a. 7.4 7.1 7.7 1.7 9.3 6.5 8.7 6.4 5.1 7.1 2.8 2.5

EV/EBITDA 2015F 19.3 10.4 13.2 10.6 10.0 10.2 14.9 10.2 21.3 11.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 9.6 9.1 7.8 8.8 7.1 6.8 8.8 6.1 8.1 6.9 3.7 7.3 5.2 5.2 3.2 4.9 8.1 8.7 9.8 9.0 8.1 6.8 6.3 of7

Company Report CR Land 华润置地 (01109 HK) 25 May 2015 of Cost Sales Other Income Rental income Sales of properties Total revenue Year End Dec (HKD m) Financial Statements and Ratios See the last page for Page disclaimer 6 Source: the Company, Guotai Junan International. Dividendratio payout DPS (HKD) Underlying(HKD) EPS Basic EPS (HKD) interest -Minority -Shareholders (Underlying Profit) - Shareholders (Net income) Profit attributableto Profit fortheperiod - Income tax expense Profit beforeincome tax - Others - Finance income/(costs), net Operating profit - Others - Administrative expenses - Selling and marketing costs - FVgains on investment prop. Gross Profit Total equity&liabilities interest Minority Total common equity Total liabilities Total non-currentliabilities liabilities long-term Other Bank loans - due after one year Total currentliabilities liabilities current Other Bank borrowings – due within one year Trade and other payables Total assets assets Total current Other non-current assets Bank balances Trade receivables Inventory of properties Total non-currentassets Other current assets Prepaid lease payments Investment properties Property, plant and equipment Year End Dec (HKD m)

yoy (%) yoy (%) yoy (%) yoy (%) Income Statement Balance Sheet Sheet Balance

5,8)(138 7,3)(844 (86,379) (78,494) (74,933) (61,338) (51,282) 8,5 3,1 6,0 8,0 404,160 381,006 366,508 330,315 281,757 229,875 228,127 232,427 223,194 188,170 155,152 152,173 157,127 146,820 131,760 404,160 381,006 268,245 366,508 261,713 330,315 261,172 281,757 239,609 208,478 5,1 6,8 7,0 8,9 188,011 183,891 179,005 167,484 150,011 901 1,4)(241 1,7)(14,926) (12,974) (12,461) (10,745) (9,091) (4,248) (3,821) (3,625) (2,959) (2,106) 180 213 265 280 (3,135) (2,820) (2,675) (2,183) (1,820) 4829,6 2,9 4,6 160,923 140,569 122,693 74,723 96,561 75,954 32,836 84,802 75,299 33,836 41,887 76,374 33,054 42,118 56,410 34,168 42,245 91,175 15,520 42,206 89,122 17,341 40,890 93,293 17,436 46,636 85,861 19,432 45,614 82,947 19,414 44,403 16,256 41,545 32,557 44,986 43,835 24,265 49,397 23,733 40,289 23,103 28,239 21,616 135,915 22,695 119,293 105,335 90,706 73,278 0371,2 6221,4 20,315 17,848 16,242 25,221 12,226 22,129 10,357 19,873 26,272 14,708 23,051 14,696 20,701 41,198 16,041 36,025 15,187 33,162 26,786 24,278 40,526 35,661 33,358 27,044 20,107 4888,8 8791315113,879 103,115 126,905 98,779 114,156 80,482 108,291 64,818 88,381 71,389 4142,2 3813,8 41,851 36,683 33,811 27,527 24,114 9617,7 6519,4 114,477 99,545 86,561 75,271 59,611 2013A 2013A 73 16 99 92 19.3% 19.2% 13.8% 19.9% 7.5% 21.6% 17.3% 14.3% 18.1% 27.5% 14.0% 11.4% 35.1% 0.1% 39.1% 13.6% 6.9% 23.3% 34.5% 20.4% 83 42 27 .%10.4% 4.4% 22.7% 24.2% 68.3% ,4 ,6 ,8 ,4 3,806 3,345 2,880 2,463 1,942 ,8 0501,8 23013,361 12,310 11,388 10,560 8,785 10,982 10,254 9,668 10,220 7,534 9,205 4,247 8,716 3,396 8,709 7,985 2,775 6,522 7,636 1,974 5,951 7,290 1,834 6,939 5,882 .3 .4 .0 .1 0.702 0.614 2.931 0.605 3.639 2.575 0.544 3.193 2.395 0.437 3.043 2.095 2.522 1.775 2.521 8,013 6,968 6,059 4,520 7,168 ,3 ,3 ,3 ,9 9,219 7,696 6,632 5,436 4,630 (146) 9 ,3 2 2 1,051 922 828 1,332 491 310 766

2014A 2014A

1,106 (799) 58

2015F 2015F (708) 695 59

2016F 2016F (718) 695 60 2017F 2017F (714) 695 61

Debt to Equity Ratio ROCE Dividends paid Other investing cash flow Purchase of PPE Net cashfrom operating activities Income taxes paid After above adjustments: Others Finance costs Increase in fair value of IP D&A - Adjustments for: Profit beforeincome tax Year End Dec (HKD m) EBITDA Margin Operating Profit Margin Gross Margin Dividend Yield(%) P/B(X) P/E (Diluted(X)) P/E (Basic(X)) Underlying(Diluted(x)) P/E Net Gearing Ratio ROA ROE Balance Bank Restricted Cash Beginning Cash Balance Ending Cash Balance Total cash flow changes Cash flowfromfinancing Other financing cash flow Interest paid Debt raised/(repaid) Cash flow from investments Net cashfrom operations Changes in working capital: Underlying Net Profit Margin

Cash FlowStatement Valuation Margins Margins

Ratio Ratio

1,2)(595 818 1,2)(11,830) (10,023) (8,138) (15,955) (10,429) 206 312 391 423 (4,867) (4,253) (3,951) (3,172) (2,016) (11,481) (9,677) (7,787) (14,898) (9,256) (8,013) (6,968) (6,059) (4,520) (7,168) 689 3131,9 ,2 1,736 5,229 (2,784) 16,497 (2,799) 23,103 (2,899) (6,819) (2,896) (1,978) 113 108 31 36 (349) (346) (351) (1,058) (1,173) (10,406) (9,126) (9,008) (7,116) (6,064) 6772,5 7923,6 34,719 30,467 27,992 23,158 16,797 41,198 36,025 33,162 26,786 24,278 1142,3 3864,4 41,604 28,239 45,940 33,826 27,531 21,164 7513,2 5904,0 43,741 41,604 45,940 33,826 27,531 30,312 18,383 19,070 (1,071) 24,264 820(,8)1,6 ,5 19,906 9,257 10,062 (8,187) 18,200 1401,1 6(,2)(327) (2,123) 56 13,019 11,480 2013 2013 2013 2013 65 78 91 88 51.2% 58.8% 69.1% 87.8% 20.8% 20.3% 76.5% 21.1% 19.5% 20.3% 45 38 50 56 16.0% 33.3% 15.6% 33.0% 32.5% 15.0% 13.8% 31.9% 32.1% 31.6% 31.6% 31.2% 14.5% 31.2% 31.1% 34.3% 30.8% 30.6% 33.8% 28.2% 23.2% 27.6% 28.8% 46.0% 16.7% 16.8% 43.2% 18.1% 16.2% 19.1% ,0 ,1 168(,1)1,835 (4,712) 11,628 5,911 6,201 (4,407) (12,085) (8,923) (24,229) 7,467 87 39 39 757 57 (349) (349) (827) .%83 .%96 10.4% 9.6% 9.2% 8.3% 8.6% 001. . . 7.0 7.0 7.9 7.9 8.6 8.3 10.0 10.0 10.0 10.0 431. 06988.6 9.8 10.6 12.1 14.3 4 9 0 1 714 718 764 708 637 799 531 146 442 368 0 ,6 ,5 ,3 1,245 2,232 3,457 6,464 708 6 003974(,4)(6,241) (3,946) 9,704 30,053 666 . . . . 2.8 1.1 2.4 1.2 2.4 1.4 2.1 1.5 1.7 1.7 A A A A

40,289 2014 2014 2014 2014 A A A A

49,397 2015F 05 06 2017F 2016F 2015F 2015F 2015F

43,835 2016F 2016F 2016F

of7 44,986 2017F 2017F 2017F

Company Report CR Land 华润置地 (01109 HK) 25 May 2015 18months Time Horizon:6to SengIndex Hong KongHang The Benchmark: Definition Rating Company See the last page for Page disclaimer 7 The in theirassociates financial and do nothaveany Analysts (2) The theirassociates and Analysts (1) OF DISCLOSURE INTERESTS 18months Time Horizon:6to SengIndex Hong KongHang The Benchmark: Definition Sector Rating (4) Guotai Junan and its group companies have not had investment havenothad itsgroupcompanies and GuotaiJunan (4) AllAccess (Holdings ExceptforChina (3) estimates and forecasts derived from the assumptions ofthefutu estimates andforecastsderivedfromtheassumptions accuracy completenessoftheinformationand the and not guarantee ofthein the accuracy toensure made hasbeen best effort Though orinvestment decisionsmade bybe contrary toopinions the executiv persons, dealersandotherprofessional be contrary inthisreportmayAny to differor opinionsexpressed investproprietarily). or underwriter an This ResearchReportdoesnotconstitute DISCLAIMER Website: www.gtja.com.hk Tel.: (852) 2509-9118 Fax: (852) 2509-7793 27/F., HongKong. Millennium Plaza,181Queen’s RoadCentral, Block,Grand Low Guotai JunanSecurities(HongK © 2015 subject Guotai Junan and its group compani subject GuotaiJunananditsgroup jurisdiction publication,avail in any where suchdistribution, fordistribut intended at,or isnot directed This ResearchReport where necessaryand ownfinancial consulttheir mutable situation,souncertaintymay contain.Investors research reports, including investmentbanking,serv research reports, co itsgroup Junanand Guotai Junan"). Limited ("Guotai (Hong Kong) Sell Relative Performance <-15%; <-15%; RelativePerformance is-5%to-15%; RelativePerformance is-5%to5%; RelativePerformance Sell >15%; RelativePerformance is5%to15%; RelativePerformance Reduce Neutral Accumulate Buy Rating Neutral Relative Performance is -5% to 5%; is-5%to5%; RelativePerformance <-5%; RelativePerformance >5%; RelativePerformance Underperform Neutral Outperform Rating hold equal to or more than 1% of the marketcapitalizat of more than1% hold equaltoor International HoldingsLimited(01788) within the preceding 12 months. 12months. within thepreceding or the fundamental outlook of the company or sector is unfavorable. outlookofthecompany sectorisunfavorable. or or thefundamental outlookofthecompany sectorisunfavorable. or or thefundamental outlookofthecompany sectorisneutral. or or thefundamental outlookofthecompany sectorisfavorable. or or thefundamental outlookofthecompany sectorisfavorable. or or thefundamental Definition Definition or the fundamental outlookofthesectorisunfavorable. or thefundamental outlookofthesectorisneutral. or thefundamental outlookofthesectorisfavorable. or thefundamental Definition Definition

do not serve as an officerdo notserveasan of theiss ong) Limited. ong) All RightsReserved.

and BinhaiInvestmentCompany Limited(028 es to any registration or licensingr es toany or registration ) Limited (00633), Guangshen RailwayCompany) LimitedGuangshen (00633), invitation or offer to acquire, purchase or invitationacquire, purchase orofferto advisers prior to any investmentdecision.advisers priortoany es of Guotai Junan group of companies. groupofcompanies. es ofGuotaiJunan should understand objectivesandits andcomprehendtheinvestment rel ion of the issuer mentioned in this Research Report. thisResearchReport. ion oftheissuermentionedin ability or use would be contrary to applicable law regulation or toapplicable contrary would be use ability or se aaeetadivsmn akn ruso utiJnn investmentbankinggroupsofGuotaiJunan. asset managementand ion to or use by, any person or entity who isacitizenorre entityperson or any oruseby, ion to opinions orinvestment strategiesexpressedorally or inwriopinions ices and etc. (for example, t example, ices andetc.(for formation and data containedinthis data and formation terests in relation to the issuer mentionedinthisResearch terests inrelationtothe re political andeconomicre conditions with unpredicta inherently banking relationships with the relationshipswith banking

data herein. This Research Report may contain someforward-l ResearchReport maydata herein.This contain mpanies may do business that relates to companiescoveredin businessthatrelatesto may do mpanies uer mentioned in this Research Report. thisResearchReport. uer mentionedin equirement within suchjurisdiction.equirement subscribe forsecuriti Any expressedinthisreportma opinions 86), Guotai Junananditsgroupcompaniesdon 86), Guotai he placing agent, lead manager, spo placing agent,leadmanager, he Limited-H shares (00525), Guotai Junan Junan Guotai shares(00525), Limited-H issuer mentioned in this Resear mentionedinthis issuer Research Report, GuotaiJ ResearchReport, es byGuotai Juna sident of or located or located sident of tten form by sales tten formby or which would which or Report. Report. n Securities unan does does unan ated risks, ch Report ch Report y differ or y or differ ble and ble and ooking of7 nsor, ot ot

Company Report CR Land 华润置地 (01109 HK) 25 May 2015