Citigroup issued a report that Hengsheng has a high-quality asset portfolio in first-and second-tier cities, benefiting from the recent warming of the primary market in these cities, and expects the recovery in the company's executive capacity to become the main profit driver, so it raised its 2012-14 earnings forecast. The target price of the stock rose 7% from 2.08 yuan to 2.23 yuan, with a rating of "buy".

According to the report, its sales last year are expected to be a disappointed 10.9 billion yuan (the same below). If the base is low and improved, there may be a moderate increase in sales this year. Its "Shangwan", Shanghai Baoshan "Villa Glorious", Hefei Wansheng Street and Nanjing "Royal Base" projects can contribute a total of 60-8 billion yuan in sales. Among them, the Baoshan project sells more than 200 units a day, with an average price of 22000 yuan per square meter exceeding expectations.

Citigroup said that Hengsheng's total debt in the first half of last year was 15 billion yuan, with short-term debt accounting for 9 billion. With the shift to longer-term loans, short-term debt is expected to fall to 7 billion yuan by the end of the year. The company said it would improve financial control before speeding up the pace of construction again. Management expects to replenish land reserves this year, but prefers projects with fast turnover.