Goldman Sachs publishes investment report today to maintain a neutral rating on house-search stock

Source: Internet
Author: User
Keywords SouFun Goldman Sachs
Tags .net accounting accounting standards analysts based compared compared to the higher

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

Quarterly results:

SouFun was strong in fiscal year 2013 and the first quarter of fiscal year 2014 was expected to be in line with industry expectations. In the quarter, the net revenue of SouFun was $217.2 million, up 47% from a year earlier, 12% higher than our forecast, and 7% higher than the average forecast for analysts surveyed by Bloomberg. Based on non-US general accounting standards, diluted earnings per share of 1.42 U.S. dollars, an increase of 80%, compared to our forecast of 0.56 U.S. dollars, compared to the Bloomberg survey analyst's average forecast higher than 0.34 U.S. dollars. As for fiscal year 2014, SouFun expects revenues to reach $780 million to $796 million, with median growth of 24% per cent year-on-year, compared with an average forecast of 2% for analysts surveyed by Bloomberg.

Analysis:

The quarter, soufun revenue growth is strong, cost control is effective. Gross margin of 87.2%, operating profit margin of 59.2%, are close to the company's all-time record. On the one hand, soufun revenue exceeded expectations reflects the operational leverage effect. But it also creates a higher threshold for future revenue growth. The house is expected to grow 24% Year-on-year in the 2014 fiscal year, compared with a year-on-year gain of 48% in 2013. We believe that the 2014 fiscal year revenue is expected to take into account the current market environment and real estate situation in China.

In the quarter, SouFun e-commerce revenue grew 67% year-on-year, compared with 84% and 94% in the first two quarters. But the management believes the potential of this segment of the business in lower-tier cities remains huge. NET Marketing service revenue grew 21% from a year earlier, which has been a number since the second quarter of 2012, largely thanks to developers ' brand advertising spending. House search houses released revenue growth of 91.5% year-on-year. We believe that a decline in the volume of real estate transactions may accelerate SouFun's gain in market share from offline sources, because the online platform has a higher ROI for proxy advertisers.

Valuation: We continue to maintain the "neutral" rating of the house, and the target share price and future performance forecasts are still being evaluated.

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.