Repeat the "buy" rating of the house

Strong budget: Although the health performance of China's real estate market is becoming more and more influential in the Search House business, we do not think that this will have a positive impact on the house search. With the housing market downturn in 2011 as an example, the search house instead played a more important marketing channel, especially in the face of large inventory and price pressure developers. In addition, we believe that most of the real estate projects involving the top developers, they have strong economic strength and stable revenue, so the promotion of the budget is relatively high.

Growth outlook: Affected by weak trading conditions in the property market since the start of the year, many investors are now worried about the growth prospects of house-search, especially e-commerce (about 30% of total revenue). But recent real-estate data show that these fears are superfluous. Our data show that in the week from February 24 to March 2, real estate sales in 40 major cities rose by 44% on a month-on-month period, compared to 35% in the previous week. After the Spring Festival, the volume of real estate transactions in China's first-tier cities and lower-level cities has increased. We believe that this growth trend will continue in March, as developers have launched new projects. In addition, some large real estate developers have announced strong February sales performance, such as Vanke.

Active Real Estate policy: at the current NPC and CPPCC meeting, the Government has given an active real estate policy, replacing the 2010-year "one-way" austerity policy with more flexible "two-way" policies.

Valuation: We reaffirm the "buy" rating of the house, while maintaining a 103 dollar target share price unchanged.