Zheng Quan Shi Bao Wang·2025-10-17 00:04Core Viewpoint - The current real estate cycle is entering a "deep water zone," with a recovery rhythm expected in core cities represented by first-tier cities [1] Industry Summary - The risk in the real estate chain sector may have been sufficiently digested, and high-quality companies are likely to benefit from improved performance expectations and the dual logic of leading enterprises advancing [1] - The implied cost of equity for real estate chain companies has returned to a reasonable range compared to the first quarter of 2025, indicating that investors' excessive consideration of real estate cycle risks has improved [1] - The resistance to valuation recovery in the real estate and real estate chain sectors has weakened [1] Company Summary - The prolonged duration of the current real estate cycle decline has been accompanied by disruptions from the pandemic and trade frictions [1] - High-quality companies with advantageous positions in the industry chain and ample cash flow are expected to benefit from performance recovery expectations and the dual logic of leading enterprises advancing after the stabilization of the real estate cycle [1] - Compared to the technology and advanced manufacturing sectors, the valuations of the real estate and real estate chain sectors have remained relatively low since July [1]