Hangzhou Binjiang Real Estate Group Co:Earnings estimates update post FY2011 results

Changes and Implications。

Binjiang reported FY11 full year results on March 31, 2012, flat with ourand WIND estimates. We correspondingly update our 2012E-2014E EPS by2%/-2%/-3% to Rmb0.88/Rmb0.91/Rmb0.94, respectively, by factoringlower revenue booked in 2011 and lower-than-expected contract sales. Wedo not view these changes as material, and there is no change to ourinvestment thesis or rating on the stock.

Valuation。

We trim our 12-month target price by 2% to Rmb9.42 from Rmb9.63, stillbased on 40% discount to end-2012E NAV, and we retain our Neutral.

Upside risks: Better-than-expected contract sales driven by stronger-thanexpectedpolicy easing. Downside risks: worse-than-expected pre-salesdriven by further tightening.