Maintain SouFun stock "buy" rating while maintaining a 16.20 dollar target share price unchanged

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

Search Room 2014 in the first quarter of the fiscal year, revenue was 121 million U.S. dollars, an increase of 33% per cent, compared with our forecast of 4%, with the average estimate of analysts surveyed by Bloomberg consensus. Based on non-US general accounting standards, diluted earnings per share of 0.11 U.S. dollars, an increase of 38% year-on-year, consistent with our expectations, than Bloomberg forecast 1 cents Higher. House search estimates that the 2014 fiscal year revenue will reach 780 million U.S. dollars to 796 million U.S. dollars, the median year-on-year growth of 24%, the same as previously expected.

Analysis：

1 Network Marketing services revenue grew 31% Year-on-year, while the first two quarters were 8% and 21% respectively. Advertising revenue rose for the 7th consecutive quarter, thanks to the expansion of lower-ranking cities. The strong performance of internet marketing services has offset the slump in the housing market and the decline in E-commerce.

2 The listing Service revenue growth of 57% year-on-year, mainly thanks to the increase in the number of paid users. In April, the number of paid agents exceeded 200,000.

3) e-commerce. In the first quarter, the house was involved in 1060 residential projects in 49 cities.

Valuation: We continue to maintain the SouFun stock "buy" rating, while maintaining a 16.20 dollar target share price unchanged.