According to a report published by Macquarie, Ruian Real Estate (00272.HK) continued to outperform the market rating. The target price was raised from 2.91 yuan to 3.28 yuan, and the net asset value forecast was raised from 4.27 yuan to 5.36 yuan.

Ruian Real Estate increased the group's shareholding ratio in the Taipingqiao 116 project from 60% to 100% with no more than 4.4 billion yuan, reflecting that the Group's management is still looking for investment opportunities to support the Group's growth rather than just implementing its business. The bank estimates that the deal could increase the Group's net asset value by 3%; raise the profit margin of 28% this year to 33% in 2017; and increase core profit in 2017 by 15.6%.

According to the report, the Group has completed total property sales of 13 billion yuan (same below) so far, a sharp increase from last year's 3.6 billion yuan. The Group's property sales this year and next are expected to reach 21 billion yuan and 24 billion yuan. The bank expects residential sales in Shanghai to make a greater contribution to the group next year. It is estimated that contract sales from Shanghai's Ruihong New Town and Taipingqiao No. 116 project will rise from 3 billion yuan this year to 11 billion yuan next year. The rest will come from residential project sales in Wuhan, Chongqing, Dalian, Foshan, etc.