CLSA (Credit Lyonnais Securities Asia) has downgrades Leju from a Buy to an Underperform rating. This follows the less than stella financial results posted Tuesday. Shares in Leju Holdings (LEJU) were down nearly 10% in early US trading and while parent E-House (EJ) was down just over 5%.
Leju’s online ad and listing service revenue respectively fell 8% and 9% Y/Y in Q1 to $22.5M and $3.8M; e-commerce service sales were stronger, rising 35% to $67.1M. SG&A spending growth (+35% to $86.3M) exceeded total revenue growth of 19%.