SCS(SH:601555) Soochow Securities·2025-03-18 02:59Investment Rating - The report provides a positive outlook on the real estate sector, recommending specific companies for investment [6]. Core Insights - The report highlights that the real estate market is showing signs of recovery with increased transaction volumes in both new and second-hand homes [6]. - It emphasizes the importance of local government special bonds in supporting land reserves and stabilizing the real estate market [6]. - The report suggests that the construction and real estate sectors are expected to benefit from improved financing mechanisms and government policies aimed at stabilizing the market [10]. Summary by Sections Macro Strategy - Economic supply is stronger than demand, with industrial growth at +5.9% and service sector growth at +5.6% for January-February [1]. - The report anticipates economic pressure may increase in the second quarter, necessitating new growth points beyond infrastructure and manufacturing investments [1]. Fixed Income - High-yield Chinese dollar city investment bonds are highlighted as attractive due to their strong yield and acceptable safety [3]. - The report notes that the current spread levels for high-yield and investment-grade bonds are at historically low levels, indicating potential for future gains [3]. Real Estate - New home sales have increased both month-on-month and year-on-year, indicating a recovery trend in the market [6]. - The report recommends specific companies in real estate development, property management, and real estate brokerage for investment [6]. Public Utilities - The report tracks key data in the energy sector, noting stable electricity prices and a decrease in coal prices, which may benefit the overall energy market [7]. Construction Materials - The report suggests that low-valuation consumer segment leaders in construction materials have a high probability of success, especially in the context of improving economic conditions [8]. Machinery and Equipment - The report indicates a positive outlook for the forklift industry, with sales growth driven by domestic policy support and recovery in overseas markets [25]. Non-Banking Financials - The insurance sector is expected to benefit from economic recovery and rising interest rates, with a focus on health and pension insurance [20]. Consumer Goods - The report emphasizes the importance of new consumption habits and brand influence in driving growth in the consumer sector, recommending specific companies [21]. Automotive - The automotive sector is projected to see growth driven by advancements in smart technology and electric vehicles, with several companies recommended for investment [22]. Pharmaceuticals - The report identifies undervalued opportunities in the pharmaceutical sector, particularly in H-shares and innovative drug companies [23][24].