BEKE(US:BEKE) Hui Feng Yin Hang·2025-05-29 05:50Investment Rating - The report assigns a "Buy" rating to key stocks including C&D International, CR Land, and China Jinmao, while other stocks are rated as "Hold" [8][17]. Core Insights - There is a growing interest in the China property sector, particularly from large onshore and offshore insurance funds, indicating a potential structural market recovery [2][8]. - Investors are currently underweight in China real estate, presenting opportunities for capitalizing on the expected recovery [2]. - Market expectations have reset, with lower sales anticipated, but this could lead to upside surprises as policy support is expected to stabilize the housing market [3][4]. Summary by Sections Market Sentiment - Interest in the China property sector is increasing, with investors seeking validation for their positive views [2]. - The sentiment has shifted from resistance to a more favorable outlook, particularly from institutional investors [8]. Sales and Policy Expectations - Housing sales showed a slowdown in April but are expected to stabilize in May, with investors adjusting their expectations accordingly [3]. - Anticipation of supportive housing policies ahead of the July politburo meeting could reinforce market stabilization [3]. Investment Opportunities - July is viewed as a potential window for investment as positive data from the pre-sale season in June may emerge [4]. - C&D International is highlighted as a hidden gem with a strong growth outlook due to proactive landbanking and favorable market conditions in Xiamen [5][8]. Key Stock Picks - Top picks include C&D International, CR Land, China Jinmao, and Beike, with C&D International receiving particular attention for its growth potential [5][8]. - C&D International has a target price of HKD 21.20, implying a 56.6% upside from its current price of HKD 13.54 [17].