DBS Weigoda issued a report saying that the sales prospect of Ruian Real Estate next year is still unknown, there are no new residential projects on hand, the supply of goods available for sale in Shanghai is reduced, while the sales of commercial projects worth 800 million yuan are being discussed, and it is uncertain whether the overall sales will be successful. Despite the recent positive sentiment towards small and medium-sized developers, the bank believes that the fundamentals of Swiss housing are weak, so it maintains its "hold" rating, with a 12-month target price of 3.56 yuan.

According to the report, Ruifang announced its first three-year plan in 2010 to speed up the development process, control expenditure and achieve sustainable profit growth. Among them, the ratio of sales and general administrative expenses to income fell from 10 per cent in 2009 to 9 per cent last year, but the policy environment last year and this year prevented it from meeting its target of selling 1 million square meters this year, and its profits fluctuated significantly. Swiss Housing will update its three-year plan in the first quarter of next year. The bank believes that it needs to set out a detailed implementation plan for its long-term goals.

The bank said that Ruifang's recent issuance of senior permanent bonds will have a significant impact on profit margins, cutting its earnings forecast for this year and next year by 14% and 26%, to reflect the slowdown in related fees, interest expenses and completion progress. The current price of the stock corresponds to 13.8 times next year's forecast price-to-earnings ratio, 0.6 times price-to-book ratio, and 48% discount to net asset value, while the average value of medium-sized peers is 7.9 times, 1.2 times and 42% respectively.