Deutsche Bank issued a report that people and commercial net worth per share is large, so it gives a "buy" rating, with a target price of 2.3 yuan, to reflect a 35% discount to the net asset value per share.

The Deutsche Bank report points out that the continuous decline in the share prices of Renhe and Commerce in the past few months is mainly due to the weak half-year performance and the recent issuance of high-interest notes, but Deutsche Bank pointed out that Renhe has recently launched several projects in Wuhan and Hangzhou. as a result, the number of operating projects has increased from six at the end of 2009 to 10, and the launch of new projects in October will serve as a catalyst for the company's stock price.

In addition, Deutsche Bank refers to the successful issuance of a US $300 million high-interest note in August, which carries an interest rate of 13% and 125 pips more than the company's initial issue, but Deutsche Bank believes that it is not necessary to value the note, mainly because the rate of return of the project is much higher than the interest rate of the note, and the expected person and net worth per share is 3.54 yuan, so look at the future of the company.

In view of this, Deutsche Bank expects net profit of RMB 51.23 and RMB 6.327 billion in 2010 and 2011, earnings per share of RMB 0.23 and RMB 0.29, and expected return on equity of 38 per cent, respectively.

Renhe Business closed at HK $1.44 on Wednesday.