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　　 Changjiang Securities

Turnover is the core of industry competitiveness at this stage. Since the central government tightened the real estate regulation policy, the housing inventory (especially the inventory in the purchase restricted areas) has risen significantly, and it is difficult for the industry to return to the stage of rapid rise in housing prices. The company is a typical example of fast turnover in the industry. Rongsheng's inventory turnover days remained at about 700 days, significantly higher than the industry average of 2500 days. It is one of the fastest turnover companies in the industry. High debt is a catalyst rather than a hindrance to corporate growth. The rapid growth of the company is also inseparable from the expansion of asset scale through borrowing, but the high debt level has caused concern in the market. First of all, the company's sales collection ability is outstanding. Under the normal operation of the industry, the company does not have the risk of debt repayment. Secondly, even in 2008, the company achieved stable operation by reducing the growth rate of debt. Based on this judgment, the company's high debt will not become a burden, but a catalyst for the company's growth.

The valuation level of the company is reasonable, and the rating of "recommended" is given. The company's advance receipts in the third quarter reached 11.8 billion yuan, of which the settlement income in the fourth quarter is expected to be about 6.5 billion yuan, and the annual settlement income will exceed 13 billion yuan. It is estimated that the company's EPS in 2012 and 2013 will be 1.11 yuan and 1.54 yuan respectively. At present, the company's stock price is still within a reasonable valuation range. Considering the company's high growth, it is given a "recommended" rating.

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