JPMorgan Chase Fang rating target for $49

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Beijing time August 30 Evening News, JPMorgan released its investment report today, gave SouFun stock (Nyse:sfun) "Overweight" rating, the target price set to 49 U.S. dollars.

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

House search is China's leading real estate information and service platform, in the past few years, the performance of the house has been very strong, mainly thanks to: 1 covers the country-wide provider (developers and real estate) and demand side (potential buyers), 2 according to the market environment to introduce innovative products.

With the national developers and agents directly: in all the cities in operation, the search house to adopt a direct marketing model, rather than in the first-tier cities to adopt a direct marketing model, in the lower level of the city to adopt a proxy model. Search house in the country has more than 8,000 employees, can directly with local developers and agents to interact.

Switch to Trading platform: House search in 2011, the introduction of a home card has now become a trading platform, as well as the core revenue drivers (the second quarter contributed 31% of the revenue). We believe that the proportion will continue to rise in the next few years.

Urbanization is driving further development: we expect lower-level cities to contribute more revenue growth over the next few years, as urbanisation will boost demand for property-related advertising.

Valuation: We give soufun stock a "overweight" rating and set the target price at $49.