CSCEC(SH:601668) Xin Jing Bao·2025-12-18 15:05Core Viewpoint - China State Construction Engineering Corporation's subsidiary, China State Construction Equation, is making significant moves in the Beijing real estate market, having acquired land in both the suburban and urban areas within six months, indicating a strategic shift towards more aggressive development [1][5]. Group 1: Recent Land Acquisitions - In December 2023, China State Construction Equation, in partnership with China State Construction Intelligence, acquired a land development project in Fengtai District for a base price of 1.354 billion yuan, marking its second land acquisition in six months [1][5]. - The recent acquisition follows a previous purchase in July 2023, where the company secured a plot in Yanqing District for 560 million yuan, which has seen strong sales performance with 272 out of 318 residential units sold [5][6]. Group 2: Company Background and Strategy - China State Construction Equation, established in 2014, focuses on urban comprehensive development and operates over 30 large-scale projects across major cities, with a total investment of nearly 300 billion yuan and land area of approximately 178 square kilometers [3][4]. - The company has recently hired a senior executive from China Overseas Property to enhance its marketing and operational capabilities, indicating a commitment to strengthening its position in the competitive Beijing market [6]. Group 3: Market Conditions and Challenges - The newly acquired Zhang Guozhuang plot has a planned construction area of approximately 47,800 square meters and is expected to be developed into a low-density residential community [8]. - Despite the potential advantages of the location, including proximity to subway lines, the project faces challenges due to high inventory levels in the Fengtai area and competitive pricing pressures from nearby developments [10].