On 12^th morning, Evergrande (03333) went strong against the weak market and was 8.07% up to HKD3.08 within half a day, so far the highest point in the course. The transaction volume was 115,360,000 shares. An analysis report that CITICORP released rates Evergrande as Buy for the first time, and lists it one of the prioritized inland property shares. The target price is set at HKD5.13, a 67% surplus over the current price, to reflect the projected 2011 NAVPS of HKD7.33 discounted by 30%.

According to CITICORP, the main reasons that result in Evergrande, the largest inland real estate developer, being left behind the market recently are the public worries about more policy risks, corporate operation mode and startup projects. However, CITICORP believes the market has overreacted to these negative elements. Evergrande has the most land reserves across the country, and is estimated to have reserved about 72 million sqm land at RMB519 per square meter, equivalent to 8.3% of the average selling price. Meanwhile, Evergrande is one of the top5 inland real estate developers that sold the most properties in 2009 and 2010. 

From another perspective, CITICORP adds, Evergrande records the highest core income among fellow developers; In comparison with China Overseas (00688), China Res Land (01109) and Vanke, Evergrande is a financially prudent company; And the current share price equals only to the projected 2011 NAVPS of HKD7.33 discounted by 61%, much lower than the average level between 28% and 31%. Therefore, CITICORP rates high of Evergrande and includes the company in the priority list of inland real estate developers. 

Therefore, CITICORP forecasts the net income of Evergrande at RMB5,069,000,000 and RMB7,291,000,000，EPS RMB0.338 and RMB0.486, and the estimated ROE 34.3% and 37.6% respectively in 2010 and 2011. (Source: Financial World)