Stock Alert for Crystal Rock Holdings Inc. (CRVP)
  • Stock Alert for Wowjoint Holdings Ltd. (BWOW)
  • Stock Alert for JA Solar Holdings Co. Ltd. (JASO)
  • " />

    Stock Alert for E-House (China) Holdings Ltd. (ADR) (EJ)

    E-House  (China) Holdings Ltd. (EJ) is a real estate services company in China with a nationwide network covering more than 160 cities. It offers a wide range of services to the real estate industry, including primary sales agency, secondary brokerage, information and consulting, online, advertising, promotional events and investment management  services.  The  real  estate  information  and  consulting,  online,  advertising  and promotional events services are offered through the Company’s majority owned subsidiary, China Real Estate Information Corp. (CRIC).

    Share Statistics (22-Aug-11) FY2009 FY2010 % Chg Q12010 Q12011 % Chg
    Symbol EJ Revenue, $Mn 299.54 356.53 19.0% 71.44 83.28 16.6%
    Current price $6.82 Gross marg. 76.2% 64.8% -15.0% 72.5% 67.0% -7.6%
    52wk Range: $5.52-$20.14 Oper. margin 14.9% -2.8%
    Avg Vol (3m): 492,522 Net margin 33.5% 10.1% -69.9% 14.9% -0.6% -104.0%
    Market Cap. 548.44M
    Shares Outstanding 80.42M EPS, $ 1.24 0.43 -65.3% 0.13 -0.01 -107.7%

    Source:, SEC Filings.

    Investment Highlights

    Shares of EJ traded as much as 17.2% higher Monday on volume of over 703K shares.  Over the past 52 weeks, the stock has traded between $5.52 and $20.14.

    Shares of the real estate services company has dropped 4.08% in the last week; 18.35% in the last month; and 56.76% year-to-date.

    EJ slipped $0.32 to $6.34 on Wednesday last week despite posting earnings that meet expectations and giving investors an upbeat third-quarter outlook.

    The Company posted total revenues of $91.6 million for the second quarter of 2011, an increase of 29% from $71.2 million for the same quarter of 2010.

    Second quarter revenues from primary real estate agency services were $33.2 million, an increase of 4% from $31.9 million for the same quarter of 2010. This increase was mainly due to a 25% increase in total GFA of new properties sold and a 38% increase in total transaction value of new properties sold, partially offset by a decrease in the average commission rate from 1.2% for the second quarter of 2010 to 0.9% for the same quarter of 2011. Revenues from secondary real estate brokerage services were $5.3 million, an increase of 10% from $4.8 million for the same quarter of 2010. This increase was mainly due to increases in the average unit selling price and total transaction value of secondary real estate sold.

    Second quarter revenues from EJ’s CRIC subsidiary were $52.8 million, an increase of 56% from $33.8 million for the same quarter of 2010. This was mainly attributable to a 116% year-on-year increase from $14.3 million to $30.9 million in revenues from CRIC’s online segment as a result of both growth in real estate online advertising and gains in CRIC’s market share.

    Second quarter net loss attributable to EJ shareholders was $6.7 million, or $0.08 loss per diluted ADS, compared to net income of $6.7 million, or $0.08 per diluted ADS, for the same quarter of 2010. Second quarter non-GAAP net income came in at $2.3 million, or $0.03 per diluted ADS, a decrease of 83% from $13.9 million, or $0.17 per diluted ADS, for the same quarter of 2010.

    Analysts, on average, expected the Company to report adjusted earnings of $0.03 ADS for the quarter.

    “During the second quarter, our strong project execution led to strong buyer interest and sales volume for many of our projects,”  commented Xin Zhou, E-House’s executive chairman.  He noted, however, that as the Chinese central bank continued its credit tightening, commercial banks in China have further slowed down approvals of new mortgage loans. “This has resulted in ongoing delays in our ability to recognize successful sales and commission revenue for a number of projects for which a ‘successful sale’ is defined as when the bank releases mortgage loan proceeds. This has negatively impacted our primary agency revenue for the second quarter and may continue to negatively affect our revenue for the second half of 2011,” Zhou said.

    As of June 30, 2011, EJ had a total of 112 secondary real estate brokerage stores in eight cities in China, compared to 131 stores as of June 30, 2010 and 133 as of December 31, 2010. The Company closed a number of stores in Shanghai during the first half of 2011 in order to reduce cost and optimize its store network by strengthening its presence in certain districts while closing unprofitable stores in others.

    Revenue for the third quarter is expected to be in the range of $108 to $110 million, versus analysts’ expectations of $100.4 million.


    Financial Strength (22-Aug-2011)




    S&P 500

    Quick Ratio (MRQ) 1.19 0.34 0.75
    Current Ratio (MRQ) 6.90 1.64 0.62 1.10
    LT Debt to Equity (MRQ) 24.37 70.84 111.90
    Total Debt to Equity (MRQ) 52.18 158.70 151.41
    Interest Coverage (TTM) 0.01 0.28 23.17

    Source:, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among eight polled investment analysts. Against the E-House (China) Holdings Ltd company.

    Analyst Detail






    No Opinion

    Latest 3 1 4 0 0 0
    4 weeks ago 3 1 3 0 1 0
    2 months ago 3 1 3 0 1 0
    3 months ago 3 1 4 0 0 0
    Last year 4 1 1 0 0 0

    The seven analysts offering 12-month price targets for EJ have a median target of 13.00, with a high estimate of 17.00 and a low estimate of 8.50. The median estimate represents a 110.36% increase from the last price of 6.18.


    Consensus Estimates Analysis

    # of Estimates




    1 Year Ago

    SALES (in millions)
    Quarter Ending Sep-11 4 101.82 110.20 78.30 101.43
    Quarter Ending Dec-11 4 137.25 148.10 124.81 121.85
    Year Ending Dec-11 8 412.70 429.80 391.51 437.22
    Year Ending Dec-12 8 523.94 573.50 466.60 574.62
    EARNINGS (per share)
    Quarter Ending Sep-11 3 0.11 0.14 0.10 0.28
    Quarter Ending Dec-11 3 0.29 0.32 0.27 0.38
    Year Ending Dec-11 7 0.56 0.72 0.48 1.24
    Year Ending Dec-12 7 0.89 1.13 0.70 1.62
    LT Growth Rate (%) 3 32.13 53.90 12.50 30.98

    Technical Analysis


    EJ is below its 20-day moving average. This bearish sign is even more significant because the moving average is also trending lower.

    EJ is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent levels.

    EJ’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Aug22-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    CB Richard Ellis Group Inc. CBG 13.78 4.38B 12.76 9.19 0.72 0.63
    Jones Lang Lasalle Inc. JLL 61.79 2.68B 13.09 10.16 0.76 0.67 Inc. SOHU 69.57 2.66B 14.87 12.08 3.18 2.56
    Property Management Median       20.27 n/a 4.01 n/a
    E-House (China) Holdings Ltd. (ADR) EJ 6.82 548.44M 10.49 6.75 1.33 1.06

    Source: Thomson Financial

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at and FINRA at

    Leave a Reply

    Your email address will not be published. Required fields are marked *