Deutsche Bank said that Minmetals Construction (00230-HK)'s contract sales in November reached 899 million yuan, up 4.69 times year-on-year and 1-fold from month to month. The total floor area of contract sales in November was about 58,000 square meters, up 406 times year-on-year and 54% month-on-month. In the first 11 months of this year, the group completed a sales contract of RMB 4,067 billion, an increase of 22% year-on-year, and has set a sales target of RMB 4 billion about 102% for this year. The Bank's target price for Minmetals Construction is $20, which is equivalent to a 40% net asset value discount. The company's current stock price is 67% off from net asset value. In 2013, the price-earnings ratio and market account ratio were predicted to be 4 times and 0.5 times. Valuation is attractive, giving it a “buy” rating. As the group continues to record cumulative sales, it is expected that the trade-off between the company's net asset value and market account ratio will narrow further. Deutsche Bank expects that with the acceleration of the development cycle, better project management, and more resources available for sale, Minmetals Construction's sales performance in 2013 will be stronger. The group plans to increase construction floor space by 1.05 times year-on-year to 583,000 square meters in 2013, and plans to sell about 540,000 square meters of completed floor area, an increase of 22% over the previous year. According to management, the group has set a contract sales target of RMB 5.1 billion next year, involving a floor area of 468,000 square meters, up 28% and 32% year-on-year respectively.