Credit Suisse published a report that lowered Hefu Huihuang's earnings forecast per share for 2011-13 by 27%-34%, and the target price was reduced from 4.4 yuan to 3.9 yuan; the current price corresponds to 5.7 times the predicted price-earnings ratio. The valuation is attractive, maintaining the “outperform the market” rating.

The bank expects Hefu Huihuang's profit last year to fall short of market expectations. Due to disappointment in the second-hand agency business, poor property market trading may even cause the business to flourish in the second half of last year.

However, Credit Suisse pointed out that the company's first-hand agency business performance is still ideal. It is expected to facilitate transactions of 90 billion yuan last year, while small and medium-sized developers are willing to pay higher commissions, so that Hefu Huihuang's commission rate can be kept above 1%.