Deutsche Bank maintains SouFun share holding rating target price 11 USD unchanged

Beijing Time July 11 Evening News, Deutsche Bank issued an investment report today to maintain SouFun stock (Nyse:sfun) "Hold" rating, while maintaining the target of 11 U.S. dollars unchanged.

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

SouFun announced yesterday that it had reached a strategic cooperation agreement with China's first and fourth-largest new housing agency, Shenzhen World Bank Real Estate Consultants Co., Ltd. (hereinafter referred to as "Shenzhen World Union Line") and the Glorious Group Holdings Limited (hereinafter referred to as "brilliant").

According to the cooperation agreement between the House search and the Shenzhen World Bank, 1) Search room and Shenzhen World Union in the current business scope to form a mutually preferred strategic partnership; 2 The two sides will be in the Internet and real estate finance cooperation, and expand further cooperation; 3 the House will buy a stake in Shenzhen World Union line.

According to the cooperation agreement of House search and prosperity, 1 search room and prosperity in the current business scope to form mutual strategic partnership of choice; 2. The two sides will cooperate in the Internet and real estate finance, and set up joint ventures; 3 The House will be a stake in the rich brilliant.

In view of the intense market competition, SouFun's move is an important strategic plan for the long-term development of the company.

Strengthening the leading position in the new business market: We believe that these investments in SOUFUN are strategic investments designed to achieve offline inventory and resources through cooperation. This is more and more important for the new house market, because developers are increasingly demanding e-commerce companies to strengthen offline marketing. SouFun, for example, won a market share in E-commerce through the support of its parent company, easy to live in China online. Shenzhen World Union and Prosperity are the first China and the fourth largest new house agent company, the market share of 3.9% and 1.9% respectively. And China is ranked third in the market share of 2.4%. We believe that this cooperation will strengthen the search house in the market leading position. In addition, this cooperation also helps SouFun to expand the new O2O business. However, in view of the current competitive environment, we believe that the cooperation in the near future SouFun E-commerce revenue will not be greatly promoted.

Internet Financial Services: Internet Real Estate financial services is another important area of this cooperation. The Shenzhen World Bank is a pioneer in the field of real estate buyer financing, with 3% of revenue from financial services in FY 2013. We believe that this cooperation will expand the property search House Financial services, and further improve the penetration rate.

Valuation: We continue to maintain the SouFun stock "hold" rating while maintaining a 11 dollar target share price unchanged. (Li Ming)