Jinghuashanyi published a research report and gave Jianye Real Estate (00832-HK) a “buy” rating, with a target price of 3.90 yuan. The report points out that as the government increases its support for rigid homebuyers, Jianye Real Estate is entering a favorable situation. The rigid demand market in Henan Province is huge, and is relatively less affected by regulatory policies. Currently, out of 126 cities in the province, only one has implemented a purchase restriction order. Construction Industry performed well in 2011, achieving sales of 8.1 billion yuan, 11% higher than the original target. The net asset value of the stock at the end of 2012 should be HK$6.49 per share, according to the method of summation of valuations of all parts. The report predicts a compound annual increase of 41% and 37% in core earnings per share from 2011 to 13, meaning that the price-earnings ratio and market-to-profit ratio in 2012 were 3.3 and 0.6 times, respectively. As a result, the report gave the stock a buying rating for the first time. The target price was set at HK$3.90 (40% discount on net asset value per share), with room for appreciation of 107% from the current price.