投资小幅改善，重点城市销售回升

Investment Rating - The report maintains an "Overweight" rating for the real estate development and real estate services sectors [7]. Core Insights - The real estate market is stabilizing, with slight improvements in investment and sales in key cities, despite a year-on-year decline in overall sales [1][3]. - The cash flow pressure on real estate companies has eased to some extent, indicating a potential recovery in the sector [4]. Summary by Sections Investment - In January-February 2025, national real estate development investment decreased by 10% year-on-year, but the decline narrowed by 4 percentage points compared to December [2]. - The land market saw a 21% year-on-year decrease in residential land supply, while transaction area and amount increased by 30% [2]. - New construction dropped by 30% year-on-year, reflecting a continued focus on inventory reduction [2]. - Completion area fell by 16% year-on-year, but the decline was less severe than in December [2]. Sales - National commodity housing sales area and amount decreased by 5.1% and 2.6% year-on-year, respectively, with a month-on-month decline of 4.6% and 11.8% [3][45]. - In 40 key cities, new housing sales area and amount increased by 1.3% and 7.1% year-on-year [3]. - The price index for new homes in 70 cities fell by 5.2% year-on-year, but the decline was less than in January [54]. Financing - In January-February 2025, funds received by real estate companies decreased by 4% year-on-year, but the decline narrowed by 4 percentage points compared to December [4]. - The domestic loan amount decreased by 6% year-on-year, but increased by 70% month-on-month, indicating improved financing support [4]. Investment Recommendations - The report recommends focusing on key city markets showing signs of recovery and companies with strong cash flow and performance [5]. - Specific stock recommendations include: - City Investment Holdings (600649 CH) - Buy - Urban Construction Development (600266 CH) - Buy - Binjiang Group (002244 CH) - Buy - China Merchants Shekou (001979 CH) - Buy - Jianfa Co. (600153 CH) - Buy - New Town Holdings (601155 CH) - Overweight - China Merchants Jinling (001914 CH) - Buy [10].