2021 sales target indicates an 11.3% YoY increase in contracted sales. In 2020, total contracted sales increased by 16.6% YoY to RMB42.2 bn. ASP in 2020 slightly declined by 3.1% YoY to RMB 10,224 per sq.m. The Company set a new contracted sales target of RMB47 bn in 2021. Saleable resources value to be launched in 2021 is expected to reach RMB67 bn, representing a target sell-through rate of 70.1%. Modern Land has so far accomplished 12.0% of the new 2021 sales target, during Jan.-Feb. 2021.

　　Steady expansion in land bank w ill su p p ort fu ture grow th. During 2020, tneCompany acquired 24 new land plots with an estimated GFA of 4.626 mn sq.m.As a result, total land bank GFA increased from 11.933 mn sq.m as at the end of 2019 to 14.758 mn sq.m as at the end of 2020. Total saleable resources value reached RMB280 bn as at the end of 2020, comprising （i） confirmed ownership portion of RMB170 bn, and （ii） locked potential portion of RMB110 bn.

　　Industrial collaboration is expected to rem ain as a key g ro w th d river. In2020, approximately 52.5% and 5.9% of the Company's newly acquired land reserve value was sourced from industrial collaboration and integration of primary & secondary land development, respectively. We expect diversified land acquisition channel to help the Company with more effective land cost control and reduction in reliance on bidding, auction and listing.

　　"Green" development strategies will bear fruit in multiple aspects, such as green finance, green project development, brand reputation and ESG responsibilities.

　　We have slightly revised down our target price to HK$1.34, representing 617% discount to its 2021E NAV of HK$3.50 per share, 4.6x 2021 underlying PER and 0.3x 2021 PBR. Investm ent rating is m aintained as "A ccum ulate". Risk factors: lower-than -expected contracted sales, uncertainties in industrial collaboration and integration of primary and secondary development.