Fang holdings' mid/long term investment value emerges

As China's real estate market is not only sluggish, but also impacted all the related industries. In case of trading volume shrinking, the sales of both the construction companies and real estate agents are all affected. However, institutional investors told that the investment value of some stocks in mid/long term has gradually emerged.

Fang Holdings (US-SFUN) told in January that the company planned to list its China Index Academy as a general stock in the United States. Moreover, member of the National Committee of CPPCC and Vincent Mo, the president of Fang Holdings, were asking Chinese government to carefully consider on the launch of property tax. The catalysts have drawn attentions from some institutional investors to pay attention on the stock of Fang Holdings.

Institutional investors in the industry said that the current value of Fang Holdings derived from two categories: a) cash, stock investment and real estate projects, b) advertising business.

According to the analysis, Fang Holdings’ advertising business is estimated at about USD1.4bn. The value of its China Index Academy is about USD60mn. Therefore, the total value of Fang Holdings should be USD2bn. Based on the current market value of approximately USD700mn, The mid/long term investment value has gradually emerged.