BEKE(US:BEKE)2025-05-21 06:36Investment 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 [5][8][19]. Core Insights - The pre-sale overhaul in lower-tier cities, such as Xinyang, is viewed as a positive development for the property market, as it aims to rebalance supply and demand by limiting new supply and reducing excess inventory [2][8]. - The Shanghai property market shows signs of recovery, with stronger sales and firmer pricing, particularly in the high-end segment driven by city migration and demand from affluent buyers [3][8]. - Debt restructuring among distressed developers is progressing, and the government's funding schemes have largely fulfilled housing completion duties, which supports market stability [4][8]. Summary by Sections Market Overview - The report highlights a structural market driver in the form of a supply squeeze, which is expected to support early-stage housing market recovery [2]. Company Analysis - CRL (1109 HK) is rated "Buy" with a target price of HKD 36.30, reflecting a 36.7% upside potential [19]. - C&D International (1908 HK) is also rated "Buy" with a target price of HKD 21.20, indicating a 37.3% upside [19]. - China Jinmao (817 HK) is rated "Buy" with a target price of HKD 1.60, suggesting a 42.9% upside [19]. - KE Holdings (BEKE US) is rated "Buy" with a target price of USD 26.30, implying a 31.5% upside [19]. Valuation Metrics - The report provides valuation metrics for various companies, including NAV discounts and expected PE ratios, which are essential for assessing investment opportunities [17][19].