Event: Commodity City (600,415, stock bar) released in 2009 Yejiyuzeng announcement yesterday said it expects its 2009 net profit year on year (over the previous year) increased by over 50%.

Comments: Commodity City in 2008 net profit of 608.55 million yuan, according to advance estimates by 50%, Commodity City in 2009 with 912.83 million yuan net profit more than, EPS (earnings per share) is about 1.342 yuan.

It is reported that the growth performance of the main reasons Commodity City is the first phase of the three markets in October 2008 put into use. Terms from 2010, the company leasing the second phase of the second half of three can also become a catalyst for enhancing the performance and valuation.

We are currently maintaining the performance of Commodity City forecasts for 2010-2011 were 1.793 yuan, 2.494 yuan (Commodity City real estate business, we are more conservative forecasts, but also did not consider the possibility of price increase).

We believe that the relative valuation of Commodity City, now in low-lying land, continue to maintain a "buy" rating, to maintain the company's 6-month target price of 53.79 yuan.

We would also like to reiterate that, if the simple calculation, the rental price (which we refer to is the current rent level of government pricing, rather than open up the market rental prices across the board level) corresponding to the Commodity City commercial property revaluation (not take into account market business other than the business value), commodity price theory, the city should also be 56.0-70.5 yuan per share. It is a reflection of the Commodity City, after three two-stage fully leasing business, its market value is relatively conservative, but also we give a 12-month target price (the company's continuing operations should enjoy a certain real estate business valuation, but in This valuation, we have yet to be taken into account).