BEKE(US:BEKE) Hui Feng Yin Hang·2025-05-16 05:50Investment Rating - The report assigns a "Buy" rating to CRL, C&D, China Jinmao, and KE Holdings, indicating a positive outlook for these companies in the real estate sector [4][7][20]. Core Insights - The report emphasizes that more supportive property policies are expected to reinforce market recovery, particularly in tier-1 and tier-2 cities, driven by lower mortgage rates and successful policy implementations like property vouchers and home purchase subsidies [2][7]. - Site visits to various projects indicate a clear sign of market bottoming, with engaged sales teams and solid sell-through rates despite macro uncertainties [3][7]. - The report highlights a positive sentiment among prospective home buyers, who are financially capable but cautious about leveraging due to economic uncertainties [3]. Summary by Sections Market Dynamics - Centaline's Vice President believes additional policies will be introduced to support the recovery cycle, with a focus on urban renewal and inventory acquisition [2]. - Successful case studies, such as Xiamen, demonstrate the effectiveness of combined policy measures in stimulating demand [2]. Sales and Pricing Strategies - Developers are adopting unaggressive pricing strategies, which are facilitating solid project sell-through rates [3]. - The average downpayment ratio is reported at 40%, with first home mortgage rates at 3.15% and downpayment requirements at 15% [3]. Stock Recommendations - Preferred stocks include CRL (1109 HK, TP HKD36.30), C&D (1908 HK, TP HKD21.20), and China Jinmao (817 HK, TP HKD1.60), all rated "Buy" due to their resilience and strong pricing power [4][20]. - KE Holdings (BEKE US, TP USD26.30) is also highlighted for its market share gains in both primary and secondary markets [4][20].