Valuation and recommendation We lower 2012/2013e EPS to Rmb0.53/Rmb0.60 to reflecthigher-than-expected financial expenses. With land leasing revenuefalling, a rapid turnaround in earnings is unlikely in the short term. Lujiazui-A is trading at 23.7x/21.3x 2012/2013e P/E and at a 28%discount to 2012 NAV, relatively fair value. Maintain HOLD rating. Lujiazui-B is trading at a 64% discount to 2012 NAV. Maintain BUYrating and US$1.29 target price.

Valuation and recommendation We slightly adjust our 2012 EPS forecast to Rmb1.05, and initiate2013e EPS at Rmb1.15, implying YoY growth of 9.8%. Thecompany is trading at 7.4x/6.8x 2012/13e P/E with a ~31% discountto net asset value of 2012. Reiterate BUY.

We cut 2012e EPS by 19% to Rmb0.56 to reflect falling revenuefrom high-margin land leasing business, and we expect 2013 EPS tobe Rmb0.63 (+13% YoY). Lujiazui-B is trading at 11.3x/10.0x2012/13e P/E and at a 66% discount to 2012 NAV. Maintain BUYrating and US$1.29 target price.