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The following is a summary of the report:

Search Room 2013 fiscal year third quarter results better than expected. The company, when Ti Ying to $185 million, grew 45% per cent year-on-year, with higher expectations and Bloomberg analysts averaging 16% and 7% respectively. Benefiting from strong net revenue, effective control of sales and management costs, and one-off rebates, NON-GAAP (non-US GAAP) has a revenue of $1.15 per share of ads (US depository shares), up 64% from a year earlier, and higher expectations and analysts ' average forecasts are 54% and 30% respectively. Management raised its revenue guidance forecast for fiscal year 2013 to 605 million to 615 million dollars (median growth of 42% per cent), with higher expectations and analysts ' average estimates of 6% and 3% respectively.

Search houses have launched a series of Web services to address policy uncertainties. We believe that competitors are emulating the house search and have made decent growth. The search is now dominated by 60% to 70% of the market, limiting its ability to further its share of network rivals, but innovation in this area is clearly speeding up the shift of developers ' budgets online.

E-commerce revenue growth of 94% year-on-year, the main impetus is to the less developed cities to promote. Management said marketing services would return to "low double-digit growth" in 2014, as the maturity of E-commerce brought the focus of sales back to the advertising arena. List services grew 128% year-on-year. Management believes that competition in the leasing market is intensifying and potential competitors include geographically based classification sites.

The company's mobile traffic has grown 10 times times this year, with active users reaching 1 million, and 700,000 in the second quarter. Commercialization has started with new residential display ads (similar to web banner ads) and listings (10% of the 100,000 certification bodies are paid subscribers).

The company's operating profit rate grew 7% per cent year-on-year, but management reiterated that the long-term net profit margin target was 35% (the third quarter was 52%). We will increase the earnings forecast for 2013-2015 by 12% to 23% per cent to reflect stronger revenue and effective cost control. So the 12-month target price was raised from $31.5 to $50, while the corresponding peg (P/E ratio) remained 0.75 times times higher. But we still maintain the "neutral" rating of the stock because of the limited space for the stock price to rise.