Deutsche Bank maintains house purchase rating target 105 USD

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Beijing time January 14 Evening News, Deutsche Bank released its investment report today to maintain the Nyse:sfun "buy" rating, while maintaining a 105 dollar target share price unchanged.

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

Search Room Online Store: SouFun today attended the Deutsche Bank 2014 China Investment Conference and announced the latest developments of the company's new listings service Search House online store (SouFun shop). Management believes the service will be a new revenue driver. The service allows offline agents to open virtual online proxy stores, providing almost the same service as offline stores. The cost of the service is 10,000 yuan a year, which is very attractive compared to the offline store rents. Also, online storefronts can attract more traffic than offline stores. So far, the number of online stores has been opened for about 10,000, and has contributed 3% of the total revenue.

The financial platform becomes an important part of the house-searching ecosystem: The search House hopes to build a complete ecosystem around every stage of the buyer's life cycle and provide relevant services to all the needs of the ecosystem, and the financial platform will become an important part of the ecosystem. Currently, house search mainly provides mortgage loans, as well as the purchase of furniture and decoration supplies loans. House search management believes that there is strong market demand for financial services related to the purchase of new homes in China, and that the financial services platform is expected to boost corporate revenue growth.

Compete with the easy to live China: the management thinks that, compared with the Yi-ju China, search room has the following three advantages: 1 Search Room is a pure online real estate platform; 2 based on the project coverage area, the search room in the E-commerce market has a leading market share; 3 search room and China's main real estate developers have more stable relations of cooperation.

Performance expectations: We expect net revenue to reach $203 million trillion in the 2013 fiscal year, and $624 million for the entire fiscal year 2013. Based on non-US GAAP, net profit for the fourth quarter is expected to reach $88 million trillion, while the entire 2013 fiscal year will reach $280 million trillion.

Valuation: We continue to maintain the "buy" rating of the house, while maintaining a 105 dollar target share price unchanged.