Days Hao Capital maintenance search room Buy rating

Summary: View the latest quotes Beijing time August 8 Evening news, Days Hao Capital released a study today, to maintain SouFun stock (Nyse:sfun) Buy rating, while maintaining the target of 14 U.S. dollars share price unchanged. The following is a summary of the report: SouFun 2014 to see the latest quotes

Beijing time August 8 Evening news, Days Hao Capital released a study today, to maintain SouFun stock (nyse:sfun) "buy" rating, while maintaining a 14 dollar target share price unchanged.

The following is a summary of the contents of the report:

SouFun's second-quarter results were mixed, with revenues below Wall Street's expectations, but earnings per share were much higher than Wall Street's expectations. At the same time, SouFun lowered the annual performance forecast for the 2014 fiscal year, mainly affected by the following factors: 1 market downturn, 2 price reduction of housing prices; 3 investment in e-commerce is insufficient. We believe that these factors have been reflected in SouFun's current share price, soufun the most difficult moment has passed. Moreover, China's real estate market will not continue to deteriorate. When the market rebounds, SouFun will benefit from it. To this end, we continue to maintain the SouFun stock "buy" rating, while maintaining a 14 dollar target share price unchanged.

The hard times have passed: The beginning of the year, SouFun share price has been down about 30%, mainly by the following three factors affected by the bad: 1 market downturn, 2 price reduction of housing prices; 3 investment in e-commerce is insufficient. But we believe that these negative factors are reflected in the SouFun current share price. Although the Revenue forecast for fiscal year 2014 was lowered, SouFun also noted that some new businesses would be invested, such as offline proxies and mortgage services. We believe that the most difficult moment for SouFun is over and the risk of continued deterioration is limited. Once the market rebounds, SouFun will benefit from it.

Adjustment of performance expectations: We now expect the SouFun 2015 and 2016 fiscal year revenue will reach 878.6 million U.S. dollars and 1.0557 billion U.S. dollars, respectively, year-on-year growth of 20.1% and 20.2%. The expectation was that revenues would reach $827.2 million trillion and 982.7 million dollars respectively, up 14.2% and 12.3% per cent respectively.

Second-quarter results: Revenue of 168.2 million U.S. dollars, less than the Wall Street expected 173.5 million U.S. dollars, higher than we expected 162.9 million U.S. dollars. Based on non-US GAAP, the earnings per share is $0.16 trillion, above Wall Street's projected $0.14 trillion and our expected $0.13 trillion.

Valuation: We continue to maintain the SouFun stock "buy" rating, while maintaining a 14 dollar target share price unchanged. (Li Ming)