China's largest real estate Internet platform: as the country's largest real estate vertical network platform, SouFun's business covers both online and offline, showing a diversified layout. On May 3, 2016, Wanli shares plan to purchase all the assets and liabilities except monetary funds owned by SouFun Holdings at not less than 700 million yuan at the end of 2015, and at the same time no more than 16.18 billion yuan into SouFun Holdings' Internet real estate and home advertising and marketing business. At the same time set up financing of 3.01 billion yuan, backdoor return to A shares. The underlying assets serve the advertising and marketing areas of new houses, second-hand houses and homes, and are mainly engaged in Internet real estate and home advertising marketing. The injected assets are the core assets of SouFun, which have both traditional advantages and growth potential.

Real estate e-commerce leader: occupy the highest point, traffic is king: real estate e-commerce platform model for online diversion, offline transactions, and SouFun traffic advantage, with a significant port value advantage, in the gradually pressured pillar business network marketing penetration is expected to further improve, the future opportunity of advertising business lies in market integration, SouFun Xinfang advertising market share of 50% However, the penetration rate of online advertising of real estate in the country is less than 20%, and that of first-tier cities is 40%. Under the condition that the share of real estate advertising remains unchanged, SouFun is expected to improve the space of the advertising market by increasing the penetration rate in third-tier cities. And SouFun card business to achieve accurate marketing, lock customers, with the substantial increase in e-commerce penetration, SouFun card business still has a large market space.

The second-hand housing business breaks through the barriers and the model is upgraded: the layout of SouFun in second-hand housing includes two aspects: 1) second-hand housing brokerage business; 2) second-hand housing supply business. China has gradually entered a stage in which the stock housing market occupies an important angle. at present, second-hand housing transactions in Shenzhen, Beijing and Shanghai all account for more than 70% of the total transaction volume, but the overall proportion of second-hand housing transactions in China is only 30%. We believe that as the stock market transaction share will continue to expand, the second-hand brokerage business will have a broad market space, and the advertising business of second-hand housing will have great prospects for development. The second-hand housing brokerage business is an important development direction of SouFun at present. 500 million of the funds raised by SouFun's A shares will be invested in real estate big data, and the establishment and improvement of the database will provide better support for the trading business. in addition to its own trading business, it can also provide support for third-party transactions.

Give the company an "overweight" rating: we expect the company's EPS to be 0.93 yuan in 2016 and 1.16 yuan in 2017, covering the "overweight" rating for the first time.