Core Insights - The year 2026 marks the beginning of China's "14th Five-Year Plan," which outlines the development blueprint until 2030, focusing on the transformation of economic drivers, upgrading development paradigms, and reshaping the global landscape [1] - The real estate sector is at a critical juncture of stabilization and structural transformation, with new characteristics and opportunities emerging in both residential and commercial real estate markets [1][3] Real Estate Market Outlook - The overall real estate market is expected to maintain a stabilization trend in 2026, with significant structural differentiation; first-tier cities and prime locations are likely to see a rebound, while third and fourth-tier cities will continue to face inventory pressures [3][4] - Key indicators for market recovery include the reduction of first-hand housing inventory, the volume of second-hand housing transactions, and the participation of private enterprises in land auctions [6][7] - The core driving force for the real estate market's recovery is the overall macroeconomic improvement, which will stimulate demand and investment [7] Commercial Real Estate Opportunities - The global direct investment in real estate is projected to exceed $1 trillion in 2026, with China’s commercial real estate market poised to attract foreign capital, particularly in stable niche sectors like long-term rentals and quality community commercial projects [8][9] - The investment activity in China's commercial real estate is expected to improve, with core assets in first-tier cities returning to long-term investment value ranges, presenting structural opportunities for investors [11] - Domestic investors are encouraged to focus on high-quality, stable-return assets in prime locations, as these present a favorable window for investment amid the ongoing market adjustments [10][11]

Core Insights - The report by Savills China highlights that modern data centers are evolving from mere "server warehouses" to integrated operating systems that combine energy, cooling, network resilience, and physical security, increasingly incorporating AI-driven operational capabilities [1] Group 1: Data Center Value Proposition - The core value of data centers is no longer determined by floor area but by their ability to continuously, densely, and stably provide computing power [1] - Unlike traditional commercial real estate, the competitiveness of data centers is influenced by factors such as power supply and redundancy, cooling efficiency, network connectivity, operational reliability, and access to low-carbon electricity [1] Group 2: Regional Specialization in Data Centers - The report indicates a clear regional specialization in China's data center operations based on workload characteristics and application scenarios [1] - The eastern region is most suitable for deploying latency-sensitive, high-density workloads, while the central and western regions leverage lower land and electricity costs to handle high-energy tasks like AI training and cold data [1] - Actual utilization rates in these regions depend on the matching of network latency, connectivity, and downstream demand [1]

Core Insights - The Shenzhen real estate market is showing signs of structural optimization and steady recovery in 2025, with a focus on long-term value as it transitions into a new phase [1] - The First Pacific Davis released a report analyzing the Shenzhen real estate market, highlighting significant trends and developments [1] Commercial Real Estate - In 2025, Shenzhen will see a supply of 1.182 million square meters of Grade A office space, marking the first time in three years that the market reaches this level [2] - The total stock of Grade A office space in Shenzhen is expected to increase by 9.4% year-on-year to 12.843 million square meters by the end of 2025 [1] Net Absorption and Vacancy Rates - The net absorption for Shenzhen in 2025 is projected to reach 664,000 square meters, a new high since 2021, and 16.9% higher than the five-year average [2] - The average vacancy rate for Grade A office space in Shenzhen is expected to be 31.4% by the end of 2025, showing a slight decrease of 0.2 percentage points quarter-on-quarter but an increase of 0.8 percentage points year-on-year [2] Retail Properties - Six new retail projects will enter the Shenzhen market in 2025, contributing a total supply of 825,000 square meters, the highest since 2018 [2] - The total stock of retail properties in Shenzhen is projected to rise by 11.2% year-on-year to 8.188 million square meters by the end of 2025 [2] Residential Market - The residential market in Shenzhen will see several high-end projects launched in 2025, with strong demand for luxury homes, although overall transaction volume is expected to decline by 24.2% year-on-year to 3.785 million square meters [3] Qianhai Development - Qianhai has transitioned from a "policy testing ground" to a "functional agglomeration area," showcasing characteristics of institutional innovation and industrial ecosystem collaboration [3] - By 2025, over 60% of new demand for Grade A office space in Qianhai will come from financial technology and cross-border service enterprises, indicating strong industrial centripetal force [3] - Future developments in Qianhai are expected to focus on breakthroughs in cross-border data flow, green finance innovation, and high-end professional services, solidifying its strategic position in the Guangdong-Hong Kong-Macao Greater Bay Area [3]

Core Insights - Despite significant supply pressure, the Shenzhen office market showed notable highlights in 2025 with a return of over one million square meters of supply for the first time in three years [1] - The demand from technology companies for upgrades and expansions significantly contributed to large transactions and supported net absorption growth [1] - The annual net absorption reached 664,000 square meters, marking a new high since 2021 and exceeding the five-year average by 16.9% [1] Supply and Demand - In 2025, 21 new projects were launched, contributing a total supply area of 1.182 million square meters [1] - The average vacancy rate for Grade A office buildings in Shenzhen was recorded at 31.4%, with a slight decrease of 0.2 percentage points [1] - Rental index decreased by 1.9%, with average rent falling to 132.6 yuan per square meter per month [1] Future Outlook - The overall supply scale of Grade A office buildings in Shenzhen is expected to remain substantial in 2026, potentially surpassing one million square meters [2] - The development of technology, high-end, and high-tech manufacturing industries is anticipated to positively impact office demand, with expectations for continued growth [2] - The Qianhai area is transitioning from "functional aggregation" to "capability leap," with new breakthroughs expected in cross-border data flow, green finance innovation, and high-end professional services [2]

Core Insights - Despite a 20% decline in exports to the US, China's exports still grew by 5.5% in 2025, driven by rapid growth in high-tech products such as electronic intermediate goods, automobiles, and industrial robots [3] - The import growth rate fell to 0%, resulting in a trade surplus that exceeded $1 trillion for the first time, providing positive support for economic growth [3] - For 2026, China's exports are expected to maintain resilience with a projected growth rate of around 5%, supported by increased openness, stable exports to the US, and advantages in AI and "new three items" products [3] Industry Performance - The top-performing industries in January included Media (29.0%), Defense and Military (24.0%), and Computer (22.8%), while the bottom performers were Banking (-1.8%) and Food & Beverage (-1.3%) [2] - The overall performance of the media sector showed a remarkable annual increase of 63.7%, indicating strong market dynamics [2] Company-Specific Insights First Pacific (00142.HK) - First Pacific has a strong focus on the Asia-Pacific market, with four main business segments: consumer food, telecommunications, infrastructure, and natural resources [7] - In 2024, the company reported revenues of $10.057 billion, a year-on-year decrease of 4.31%, while net profit increased by 19.77% to $600 million, showcasing robust profitability [7][8] - The company is expected to see net profits of $649 million, $708 million, and $767 million from 2025 to 2027, reflecting growth rates of 8.2%, 8.9%, and 8.4% respectively [8] Dongpeng Beverage (605499.SH) - Dongpeng Beverage anticipates a revenue increase of 31.07% to 33.34% in 2025, with projected revenues between 20.76 billion and 21.12 billion yuan [10] - The company expects net profits to rise by 30.46% to 37.97%, with estimates ranging from 4.34 billion to 4.59 billion yuan [10] - The company is actively expanding its product lines and overseas markets, which is expected to contribute to significant profit growth in the coming years [11][12] Dingjie Intelligence (300378.SZ) - Dingjie Intelligence was recognized as one of the top 20 data intelligence service providers in China, indicating its leadership in AI manufacturing [9] - Revenue projections for Dingjie from 2025 to 2027 are set at 2.438 billion, 2.608 billion, and 2.841 billion yuan, with net profits expected to be 180 million, 204 million, and 263 million yuan respectively [9]

Core Viewpoint - Guosheng Securities initiates coverage on First Pacific (00142) with a "Buy" rating, highlighting the company's resilient growth through diversified business collaboration [1] Group 1: Market Leadership and Business Focus - First Pacific is a leading investment management company in the Asia-Pacific region, focusing on the livelihood sector with strong competitive advantages in consumer food, telecommunications, infrastructure, and natural resources [1] - The company has evolved through four stages: diversified exploration, livelihood focus, industry integration, and strategic deepening, maintaining a strong presence in the Asia-Pacific livelihood market [1] - The management team, led by Lin Fengsheng and Peng Zeren, has extensive cross-industry experience and operates efficiently [1] Group 2: Financial Performance - In 2024, First Pacific is projected to achieve revenue of $10.057 billion, a year-on-year decrease of 4.31%, while net profit attributable to shareholders is expected to be $600 million, reflecting a year-on-year increase of 19.77%, indicating strong profitability and stable performance [1] Group 3: Business Segments - **Consumer Food**: First Pacific's consumer food segment, primarily through Indofood (50.1% economic interest), is a leader in the instant noodle market, with 2024 revenue of $7.29 billion, a slight decrease of 0.65%, contributing $333 million to First Pacific's profits, up 16.91% [2] - **Infrastructure**: The infrastructure segment, led by MPIC (49.9% economic interest), reported a revenue of $1.3 billion in 2024, a year-on-year increase of 19%, contributing $199 million to First Pacific's profits, up 24.78% [2] - **Telecommunications**: The telecommunications segment, primarily through PLDT (25.6% economic interest), contributed $149 million to First Pacific's profits in 2024, a year-on-year increase of 3.70%, with a focus on digital services and 5G coverage for future growth [3] - **Natural Resources**: The natural resources segment, managed by Philex Mining (31.2% economic interest), contributed $5 million to First Pacific's profits in 2024, a significant decrease of 36.84%, with expectations for future capacity improvements [3]

Core Viewpoint - Guosheng Securities initiates coverage on First Pacific (00142) with a "Buy" rating, highlighting the company's resilient growth through diversified business collaboration and strong competitive advantages in the Asia-Pacific investment management sector [1] Group 1: Company Overview - First Pacific has over 40 years of development, categorized into four phases: diversified exploration, focus on livelihood, industry integration, and strategic deepening, establishing itself as a leader in cross-sector investment management [1] - The company is primarily focused on the livelihood sector, with four main business areas: consumer food, telecommunications, infrastructure, and natural resources [1] - The management team, led by Lin Fengsheng and Peng Zeren, has extensive cross-industry experience and operates efficiently [1] Group 2: Financial Performance - In 2024, First Pacific is projected to achieve revenue of $10.057 billion, a year-on-year decrease of 4.31%, while net profit attributable to shareholders is expected to be $600 million, reflecting a year-on-year increase of 19.77%, indicating strong profitability and stable performance [1] Group 3: Business Segments - **Consumer Food**: The consumer food segment, centered around Indofood (50.1% economic interest), is a leading player in the instant noodle market, with 2024 revenue of $7.29 billion, a slight decrease of 0.65%, contributing $333 million in profit to First Pacific, up 16.91% [2] - **Infrastructure**: The infrastructure segment, led by MPIC (49.9% economic interest), reported a 2024 revenue of $1.3 billion, a year-on-year increase of 19%, contributing $199 million in profit to First Pacific, up 24.78% [2] - **Telecommunications**: The telecommunications segment, primarily through PLDT (25.6% economic interest), contributed $149 million in profit to First Pacific in 2024, a 3.70% increase, with a focus on digital services and 5G technology for future growth [3] - **Natural Resources**: The natural resources segment, managed by Philex Mining (31.2% economic interest), contributed $5 million in profit to First Pacific in 2024, a decrease of 36.84%, with expectations for significant capacity increases in the future [3]

Group 1 - Brandes Investment Partners, L.P. increased its stake in First Pacific Company Limited (00142.HK) by purchasing 788,300 shares at an average price of HKD 5.89 per share, totaling approximately HKD 4.6431 million [1] - Following this transaction, Brandes Investment Partners, L.P.'s total shareholding rose to 341,616,527 shares, increasing its ownership percentage from 7.99% to 8.02% [1]

Group 1 - Brandes Investment Partners, L.P. increased its stake in First Pacific Company Limited (00142.HK) by purchasing 788,300 shares at an average price of HKD 5.89 per share, totaling approximately HKD 4.64 million [1] - Following the acquisition, Brandes Investment Partners, L.P.'s total shareholding reached 341,616,527 shares, raising its ownership percentage from 7.99% to 8.02% [1][2]

Core Viewpoint - Brandes Investment Partners, L.P. has increased its stake in First Pacific Company Limited (00142) by acquiring 788,301 shares at an average price of HKD 5.89 per share, totaling approximately HKD 4.6431 million, resulting in a new holding of about 342 million shares, representing 8.02% of the company [1] Summary by Category Shareholding Activity - Brandes Investment Partners, L.P. has raised its shareholding in First Pacific Company Limited by 788,301 shares [1] - The average purchase price for the shares was HKD 5.89, leading to a total investment of approximately HKD 4.6431 million [1] - Following this transaction, Brandes Investment Partners now holds approximately 342 million shares, which constitutes 8.02% of the total shares outstanding [1]