Core viewpoints

Business outlook: 1. The market position of new house advertising is leading, and the industry will rise steadily after a cyclical decline; 2. The impact of transformation on port business tends to be flat, there will be increments in the future, price increases in the short term, and the rise of the stock trading market in the long run. Double-click the transaction entrance and conversion rate, the main focus of high financial growth: the first stock of the real estate new economy. 1. The advantage of traffic is extremely outstanding (both breadth and depth), 2. Horizontal integration of advertising market, 3. Housing big data is of great commercial value, 4. Us stock business (trading / short-term rent, etc.) further returns to expectations

Performance forecast: the commitment is relatively conservative, and it is expected that the future performance will significantly exceed expectations (16-18 net profit of 10.5% 14.5 / 1.9 billion, respectively, an increase of 40%, 38%, 31%).

Target valuation: there is no completely comparable target for A shares (Shenwan Internet weighted 16PE=50+X). Although recent market sentiment is disadvantageous to valuation, industry status corresponds to valuation premium, SouFun has obvious / outstanding advantages (and small circulation), reasonable valuation center (16PE 60+X/17PE 50X), the first stage target market value is about 70 billion; medium-and long-term target market value of hundreds of billions

Risk tips: 1. The conversion rate from trading to finance was lower than expected, 2. 5%. Port price increase is lower than expected,-2-3. The trading mood in the secondary market fluctuated sharply, 4. 5%. Uncertainty of reorganization approval