Maintain a rating on the house, while maintaining a 18 dollar target share price unchanged

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

China's real estate market is facing development resistance. In the first quarter of this year, real estate transactions fell more than 30% year-on-year, which may lead to a relatively weak first-quarter results of the house. We do not know how long the current downturn in China's real estate market will last, but the overall mood of the market is more pessimistic. Therefore, we do not think that the house search will increase its performance forecast for the 2014 fiscal year. Nevertheless, we think that the market still needs to search the house service, especially the network marketing and the listing Service. To this end, we continue to maintain its stock "buy" rating, while maintaining a 18 dollar target share price unchanged.

Trading volume depressed or affect the first quarter results: The first quarter, the Chinese real estate market relatively depressed. Our data show that China's real estate volume fell 33% per cent year-on-year in the first quarter. Among the first-tier cities, trading volume fell 43%, second-tier cities fell 22% and three-tier cities slipped 55%. The average sales price per square metre grew by about 10% Year-on-year. We believe that this downturn will affect the first quarter of the property search results. In the past few quarters, business based on real estate transactions has been the main driver of house search, but it may have slipped in the first quarter of this year. However, we believe that other businesses, such as listings and online revenue services, have little to do with trading volumes, so this part of the business may not be affected. Based on this, we think that the first quarter of the house search will not exceed Wall Street expected 124.5 million U.S. dollars, an increase of 37%, but it is possible to reach our expected 122.2 million U.S. dollars, a year-on-year growth of 34%.

will not increase the 2014 fiscal year forecast: We do not know how long the downturn in China's real estate market will last, but the overall mood of the market is more pessimistic. There may be more trading in some cities, but other cities may fall, but one consensus is that the industry is generally worried that current house prices are high for most people. In any case, we don't think the search will increase the Full-year performance forecast for fiscal year 2014, although the second quarter may rebound. According to our data, the number of new-found E-commerce projects increased by 438 in the early part of the second quarter, up 17.4% per cent compared with the 373 in the first quarter.

Valuation: We continue to maintain the "hold" rating of the house, while maintaining a 18 dollar target share price unchanged.