Daiwa maintained the purchase rating of Hengsheng Real Estate (0845.HK), but reduced the target price from HK$3.20 to HK$2.90. Previously, it also lowered its net asset value estimate at the end of 2012 from HK$6.40 to HK$5.80 due to a more conservative forecasting approach. According to information disclosed by the exchange, Zhang Zhirong bought 10.75 million shares of Hengsheng on September 9 at an average price of HK$1,399 per share. The shareholding ratio increased from 66.69% to 66.83%. Daiwa believes that Hengsheng Real Estate is oversold. The stock price is currently 77% discounted from the bank's net asset value forecast for the end of 2012, which is equivalent to the predicted price-earnings ratio of 3.4 times that of 2012. The bank added that for long-term investors, Hengsheng Real Estate's current stock price/book value of 0.5 times in FY11 is very attractive. Hengsheng Real Estate fell 6.87% to close at HK$1.22 on Wednesday; the stock had already declined 18.7% during the month.