Deutsche Bank to maintain search room buy rating target price reduced to 17.80 U.S. dollars

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Beijing Time April 11 Evening News, Deutsche Bank today issued an investment report to maintain the Nyse:sfun "buy" rating, the target share price from 20.60 U.S. dollars to 17.80 dollars.

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

In the short term macroeconomic downturns will affect market sentiment: we believe that a short-term macroeconomic downturn will affect market sentiment. To that end, we were 7% and 11% per cent less than Wall Street forecasts for the first quarter of the 2014 fiscal year. However, the long-term growth prospects of the house are still optimistic, so we continue to maintain their stock "buy" rating.

E-commerce is affected: we have found that the revenue growth of house search is becoming more and more closely related to the performance of real estate market, mainly because the revenue combination of house search has been transferred to electronic commerce since 2012. We believe that the March year-on-year decline in residential commercial housing transactions 30% will affect the search House E-commerce business, the second quarter is not expected to improve significantly. But we are optimistic about the entire 2014 fiscal year's revenue growth prospects, mainly because: 1 Low-level city E-commerce contribution in the promotion; 2 Network marketing and the release of listings began to rebound.

Mobile services: Mobile business has become a search house attractive business, developers of mobile advertising to accept the degree of encouraging. Recently, the search house has launched a mobile marketing campaign, is expected to further promote mobile business penetration.

Adjustment of performance expectations: We will search the House 2014 fiscal year, Revenue forecasts for fiscal year 2015 and 2016 were cut by 0.4%, 1% and 3% respectively, lowering the profit margin (based on non-US GAAP) by 3%, 3% and 3% respectively, to reduce EBIT earnings per share by 4% and 4 respectively. % and 8%.

Valuation: We continue to maintain the "buy" rating of the house-search stock, bringing the target share price from 20.60 US dollars down to $17.80.