Daiwa first gave Ruian Jianye (0983.HK) a purchase rating. The target price for 6 months was HK$15.21. This is based on the classification plus total valuation method.

The bank said that as of the 2009 fiscal year, Ruian Jianye, as a booming developer, proved its ability to reverse discontinued real estate projects and continued to expand its real estate business. The bank said that as of fiscal year 2009, Ruian Jianye's occupied land reserves reached 2.07 million square meters through the acquisition of discontinued real estate projects. These projects are expected to be redeveloped, and most will be sold separately or as a whole between fiscal years 2010 and 2012.

The bank added that Ruian Jianye has 22% interest in Dalian Tiandi, and the project is mainly developed by Ruian Real Estate (0272.HK); Yamato believes that in the short to medium term, Ruian Jianye will not only continue to acquire discontinued real estate projects, but will also fully engage in real estate development, particularly in Shanghai. Ruian Jianye can rely on Ruian Real Estate's brand in the region.

Ruian Jianye closed down 1.0% to HK$11.86 last Friday.