地产政策持续加码，助力家居稳健发展

Investment Rating - Investment recommendation: Outperform the market (maintained) [6] Core Viewpoints - The recent government policies aimed at stabilizing the real estate market are expected to benefit the home furnishing sector, which is a post-cycle industry of real estate. The report suggests focusing on leading companies with low valuations and stable operations [10][12][13]. Summary by Sections Policy Impact - The government announced a series of measures summarized as "four cancellations, four reductions, and two increases." The two increases include the implementation of 1 million urban village renovations and dilapidated housing renovations, with an estimated policy scale of approximately 1 trillion yuan [10][11]. - The "保交房" (guarantee delivery of houses) initiative has successfully delivered 2.46 million units, with expectations to increase the credit scale for "white list" projects to 4 trillion yuan by the end of 2024, which is anticipated to improve construction data and boost orders for home furnishing companies [11][12]. Market Recovery - A series of real estate policies have been introduced since September 24 to promote market stabilization, including lowering existing mortgage rates and adjusting purchase restrictions. The "以旧换新" (trade-in) program is expected to significantly stimulate home furnishing demand, with subsidies ranging from 15% to 20% [12][13]. - Leading companies in the home furnishing sector are currently trading at a price-to-earnings (PE) ratio of around 12X, with five-year percentiles below 10%. The combination of supportive real estate policies and trade-in incentives is likely to lead to a recovery in fundamentals and valuation for home furnishing companies [12][13]. Investment Focus - The report recommends focusing on home furnishing leaders that will benefit from the stockpiling of existing homes and urban village renovation policies, including traditional leaders like Sofitel, and companies in the soft furnishings and smart home sectors such as Gujia Home, Mousse Holdings, and Arrow Home [13].