Deutsche Bank launches investment report today to maintain buy-house stock buying rating

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

Launch of financial services: House Search December 2 announced that will be on December 16 for the search House card members launched a financial services platform search. As far as we know, the House will launch three kinds of financial services products: 1 loan products from financial institutions; 2 the product which is designed jointly with institutional investors; 3. Other financial products will be introduced if a licence is obtained. Currently, the search house and CCB cooperation to provide unsecured, the first flat benchmark interest rate, the highest 500,000 of consumer loans. The revenue from such services comes mainly from commission and advertising, and we expect that the service will not bring significant revenue until the second half of 2014.

From ad-based vertical business to E-commerce platform, this is a significant change: we expect that the 2013 fiscal year revenue will increase 45% year-on-year, E-commerce revenue will grow 77% year-on-year, marketing services revenue will grow 7% year-on-year. At present, the house-search card in real estate developers rapid popularization, the third quarter covered more than 1000 projects. With its online traffic, we expect the search house will be faster to launch more E-commerce products.

Diversification of E-commerce Products: we believe that a comprehensive E-commerce platform (including financial services) is the trend. With a strong brand and excellent execution, we believe that the financial services will lead the market. Home Search competition in early November, China launched similar financial services, but limited to Shanghai. We believe that the financial services for house search will be launched in a larger range.

Adjustment of performance expectations: We will search for 2013 fiscal year, 2014 fiscal year and 2015 fiscal year revenue expected to increase by 1%, 3% and 5% respectively. Based on non-US general accounting standards, the projected earnings per share were adjusted by 0%, 3% and 5% respectively.

Valuation: We continue to maintain the "buy" rating of our house-search stock, bringing our target share price from $64 to $73.