Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 12.52 [7][8]. Core Views - The company has significantly increased its land acquisition efforts and is actively promoting asset securitization through multiple REIT platforms, leading to optimized financing costs [1][2]. - Sales area for the first four months of 2025 reached 2.059 million square meters with sales revenue of RMB 49.83 billion, showing a year-on-year decline of 20.06% and 15.29% respectively, but the decline in sales revenue has narrowed compared to 2024 [2]. - The company has a comprehensive portfolio of held properties, including commercial centers, rental apartments, office buildings, industrial parks, and hotels, and is enhancing operational efficiency while advancing the securitization of investment properties [3]. Summary by Sections Development Business - In the first four months of 2025, the company achieved a sales area of 2.059 million square meters and sales revenue of RMB 49.83 billion, reflecting a year-on-year decline of 20.06% and 15.29%, respectively, with the sales revenue decline narrowing by 10 percentage points compared to 2024 [2]. - The average sales price increased significantly to RMB 24,000 per square meter, a year-on-year growth of 6.0% [2]. - The land acquisition intensity has increased to over 50% in the first four months of 2025, compared to 22% in the previous year [2]. Asset Management Business - The company’s held properties include concentrated commercial, rental apartments, office buildings, industrial parks, and hotels, with ongoing efforts to enhance operational efficiency and promote asset securitization through REITs [3]. - The company has established several REITs, including the招商蛇口产业园 REIT and the蛇口租赁住房 REIT, with ongoing expansion efforts [3]. Performance - The company's gross margin for 2024 is approximately 14.6%, remaining at the bottom range, but there is potential for improvement as the land acquisition gross margin exceeds the settlement gross margin for 2024 [4]. - The company has recognized RMB 24.5 billion in impairments from 2019 to 2024, with future impairments needing to be monitored based on housing price trends [4]. - The average financing cost was reduced to 2.99% last year, with expectations for further reductions this year [4]. Earnings Forecast and Valuation - The company’s proactive land acquisition and comprehensive asset securitization platform are expected to drive asset revaluation [5]. - The earnings per share (EPS) forecasts for 2025-2027 are RMB 0.46, 0.53, and 0.62, respectively, with book value per share (BPS) forecasts of RMB 12.52, 12.85, and 13.28 [5]. - The company is expected to maintain a price-to-book (PB) ratio of 1.0 for 2025, with a target price of RMB 12.52 [5].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 12.52 RMB [7][8]. Core Views - The company has significantly increased its land acquisition efforts and is actively promoting asset securitization through multiple REIT platforms, which has led to optimized financing costs [1][2]. - Sales volume has shown a narrowing decline, with a total sales area of 2.059 million square meters and sales revenue of 49.83 billion RMB in the first four months of 2025, reflecting a year-on-year decrease of 20.06% and 15.29% respectively, but with a notable increase in average selling price [2]. - The company is enhancing the operational efficiency of its held properties, which include commercial centers, rental apartments, office buildings, industrial parks, and hotels, while pushing for the securitization of investment properties [3]. Summary by Sections Development Business - In the first four months of 2025, the company achieved a sales area of 2.059 million square meters and sales revenue of 49.83 billion RMB, with a year-on-year decline of 20.06% and 15.29%, respectively, indicating a 10 percentage point narrowing in sales revenue decline compared to 2024 [2]. - The average selling price increased to 24,000 RMB per square meter, a year-on-year growth of 6.0% [2]. - The land acquisition intensity has significantly increased, exceeding 50% in the first four months of 2025, compared to 22% in the previous year [2]. Asset Management Business - The company has a comprehensive layout of held properties and is leveraging REITs to advance asset securitization, with established REITs for industrial parks, rental housing, and commercial properties [3]. - The company is continuously improving the management capabilities of its held properties to meet the yield requirements for REIT issuance [3]. Performance - The company's gross margin was approximately 14.6% in 2024, still at a low point, but the land acquisition gross margin in 2023 has been higher than the settlement gross margin for 2024, indicating potential for long-term improvement [4]. - The average financing cost was reduced to 2.99% last year, with expectations for further reductions this year [4]. Profit Forecast and Valuation - The company is expected to see an increase in asset revaluation driven by enhanced land acquisition efforts and a complete asset securitization platform [5]. - The earnings per share (EPS) forecasts for 2025-2027 are 0.46, 0.53, and 0.62 RMB, respectively, with a book value per share (BPS) of 12.52, 12.85, and 13.28 RMB [5]. - The company maintains a target price of 12.52 RMB, corresponding to a price-to-book (PB) ratio of 1.0 for 2025 [5].

Group 1: Report Industry Investment Rating - Not provided in the report Group 2: Core Views of the Report - The current urban investment ABS market is dominated by enterprise ABS products, with a small amount of ABN products as a supplement. The weighted average coupon rate of urban investment ABS products is relatively low in the overall credit bond market, showing obvious interest rate stratification characteristics. The market presents a medium - and long - term trend, with AAA and AA+ rated products as the main ones. The underlying assets are mainly charge - based ABS and debt - based ABS. The participation of urban investment platforms in the eastern coastal areas is relatively high, and the issuance subjects are highly concentrated in industries [1][20][22]. - The ABS market's trading activity is in the process of recovery, with increased market demand, enhanced investor confidence, and improved market liquidity. There is a "duration inversion" phenomenon in the spread compression space of urban investment ABS, and the 2Y product may be the curve convex point. Different investment styles of investors can choose different types of urban investment ABS products according to their risk preferences, but attention should be paid to the potential liquidity risk caused by the small overall scale of urban investment ABS [3][48][50]. Group 3: Summary According to the Directory 1. Overview of China's Asset - Backed Securities Market - The asset - securitization market in China has formed a relatively mature system, which can be classified by underlying asset types and issuance markets and regulatory agencies. With market development, the types of ABS are diversifying, and new products such as consumer finance ABS, intellectual property ABS, and green ABS are emerging. The scale of ABS is expected to continue to grow [11]. - In 2024, the total issuance of asset - backed securities increased year - on - year, mainly due to increased policy support, rising demand for盘活 existing assets, and restored market confidence. The issuers are mainly industrial entities, and the issuance scale of urban investment entities is relatively small [12][13]. 2. Current Situation and Structural Characteristics of the Urban Investment ABS Market 2.1. Structure of Outstanding Urban Investment ABS Bond Types and Coupon Rate Distribution - The urban investment ABS market is dominated by enterprise ABS, with a small amount of ABN products. As of May 11, 2025, the outstanding balance of urban investment platform - issued ABS was 339.64 billion yuan, accounting for about 2% of the total. The weighted average coupon rate of urban investment ABS products is about 3.25%, about 42BP lower than that of outstanding urban investment bonds. Low - coupon products are dominant in scale, while high - coupon products are more in quantity, reflecting the game between supply and demand in the market [20][22][23]. 2.2. Distribution of Remaining Maturity and Rating Structure of Outstanding Urban Investment ABS - The urban investment ABS market shows obvious medium - and long - term characteristics, with the remaining maturity concentrated in the medium - and long - term. As of May 11, 2025, the outstanding balance of products with a remaining maturity of more than 10 years was the largest. The products are mainly rated AAA and AA+, indicating that the overall credit quality of the issuing subjects is excellent, and the default risk is controllable. However, the actual underlying asset quality may deviate from the bond rating, and some AA+ marginal subjects may face rating adjustment pressure [27][28]. 2.3. Distribution of Underlying Asset Types of Outstanding Urban Investment ABS - Charge - based ABS and debt - based ABS dominate the market. As of May 11, 2025, their outstanding balances were 191.39 billion yuan and 134.96 billion yuan respectively. The underlying assets of charge - based ABS are mainly infrastructure charge rights and shed renovation/affordable housing bonds, while the underlying assets of debt - based ABS are mainly commercial real estate mortgages, supplemented by corporate accounts receivable and financial leasing claims. Real estate - based ABS has relatively low market acceptance [32][35][37]. 2.4. Distribution of Regions and Industries of Issuing Subjects of Outstanding Urban Investment ABS - Urban investment platforms in the eastern coastal areas have a relatively high degree of participation in the ABS market, with rich product types, strong market liquidity, and low default risk. In contrast, the ABS market in the central and western regions is relatively small in scale, and the issuance and trading rely on external credit enhancement measures or policy support. In terms of industries, the issuing subjects of urban investment ABS are highly concentrated, with those in the building decoration industry leading in outstanding balance, followed by those in the public utilities and real estate industries [40][43]. 3. Investment Value Analysis of Urban Investment ABS 3.1. Transaction Performance - Since the beginning of 2023 to mid - May 2025, the trading volume and turnover rate of the ABS market first declined and then increased, indicating that the market's trading activity is in the process of recovery, with increased market demand, enhanced investor confidence, and improved market liquidity [46][48]. 3.2. Valuation and Credit Spread Performance - The credit spread of outstanding urban investment ABS shows a trend of first rising and then falling with the lengthening of duration, with a "duration inversion" phenomenon. The spread of 2Y products is about 10 - 20BP higher than that of other maturities. Compared with urban investment bonds, the spreads of urban investment ABS of different maturities are higher, and the short - end products have more significant return space. The 2Y product may be the curve convex point. For different investment styles, investors can choose different types of urban investment ABS products according to their risk preferences, but they should be vigilant against potential liquidity risks [49][50][57].

Focus on Credit ABS - The Banking Credit Asset Registration and Circulation Center has revised the rules for credit asset securitization, requiring reporting of significant events that may adversely affect asset-backed securities within three working days [1] Macro Dynamics - The Trading Association and Shanghai Bill Exchange held a meeting to discuss the expansion of supply chain bill ABS business, aiming to connect the bill market with the bond market and support small and micro enterprises [3] Central Bank Operations - The central bank conducted a 454.5 billion yuan reverse repurchase operation, resulting in a net withdrawal of 375.5 billion yuan due to the maturity of 830 billion yuan in reverse repos [4][5] Regional Highlights - Zhengzhou plans to add seven urban renewal projects with a total investment of 13.176 billion yuan [6] - Zhejiang issued the first special bonds for acquiring existing housing, totaling 1.653 billion yuan for eight projects [8] - Shaanxi is guiding enterprises to formulate debt repayment plans and explore various financing channels [9] - Shaoxing is providing subsidies to listed companies for refinancing and debt financing [10] Issuance Dynamics - Zhengzhou Transportation Development Investment Group issued 500 million yuan in green perpetual bonds at a rate of 2.20% [11] - Luohe Investment Holding Group issued 660 million yuan in company bonds at a rate of 2.30% [12] - Kaifeng Urban Development Group is seeking underwriters for a bond issuance of up to 1 billion yuan [13] - The Ministry of Finance plans to issue 80 billion yuan in book-entry discount treasury bonds [14] - China Great Wall Asset Management issued the first bad asset securitization product in the exchange market, totaling 1.77 billion yuan [15] - Xinjiang Small Loan Company issued 300 million yuan in bonds to support small and micro enterprises [16] Market Sentiment - The credit bond market is expected to experience a high probability of fluctuation and decline in June, influenced by ongoing interest rate adjustments and new policy financial tools [22] - Static analysis indicates that various credit bonds can withstand limited upward pressure in June [23]

Core Viewpoint - The scale of asset-backed securities (ABS) registered by insurance asset management institutions reached 133.6 billion yuan in the first five months of this year, marking a year-on-year growth of 58.88%, the highest in recent years [1] Group 1: Market Trends - Insurance capital is accelerating its layout in strategic industries such as green energy and technology leasing through ABS, driven by a low interest rate environment and "asset scarcity" [1][4] - In May alone, two companies, Everbright Yongming and Dajia Asset, registered a total of 16 billion yuan in ABS products, reflecting the overall high growth trend for the year [3] - A total of 14 insurance asset management companies registered 31 ABS products in the first five months, with most scales in the tens of billions, covering underlying assets such as leasing claims and infrastructure revenue rights [3] Group 2: Investment Strategies - The strategy for insurance capital's ABS layout is shifting from single varieties to a diversified combination of "ABS + REITs + bonds," aiming to balance cash flow stability and asset appreciation potential [3] - Leading institutions like PICC Asset are focusing on holding-type real estate ABS and projects from "new productivity" leading enterprises to support industrial upgrades and major national projects [3] Group 3: Challenges and Opportunities - Despite significant market expansion, the industry faces challenges such as the lack of a unified valuation standard and credit risk management [3] - The acceleration of overseas asset securitization by Chinese enterprises may present new opportunities for insurance capital's global allocation [3] - With the enhancement of green finance policies and the construction of the third pillar of the pension system, ABS is expected to unleash greater potential in areas like green transformation and inclusive consumption [4]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the context of tightened local government debt supervision and narrowed traditional financing channels, ABS, with its advantages of revitalizing stock assets and innovating financing models, is becoming an option for urban investment platforms to break through financing bottlenecks. However, the urban investment ABS market also faces various challenges such as underlying asset compliance, cash - flow stability, and investor recognition [2][8]. - The development of the urban investment ABS market is mainly policy - oriented, evolving through four stages: exploration and start - up (2005 - 2013), transformation and expansion (2014 - 2017), contraction and adjustment (2018 - 2020), and transformation and upgrading (2021 to present) [2]. 3. Summary by Related Catalogs 3.1 Exploration and Start - up Stage (2005 - 2013) - Policy: In 2005, the "Administrative Measures for the Pilot Project of Credit Asset Securitization" and "Regulations on Accounting Treatment for the Pilot Project of Credit Asset Securitization" were issued, marking the official start of asset securitization business. In 2012, the CSRC restarted the pilot project of enterprise asset securitization by securities companies. In 2013, the regulatory framework for enterprise ABS was first clarified [9][11]. - Market: The total issuance scale of urban investment ABS was less than one billion yuan, far lower than that of urban investment bonds. Product types and underlying assets were relatively single. The market acceptance was low, and the coupon rate was high. This stage laid a cognitive foundation and opened an initial market for the rapid development of enterprise ABS [2][12]. 3.2 Transformation and Expansion Stage (2014 - 2017) - Policy: In 2014, the "Guiding Opinions on Strengthening the Management of Local Government - related Debts" and the "Guidelines for the Negative List of Underlying Assets in Asset Securitization Business" were issued. The filing system was implemented, and supporting systems were released by the SSE and SZSE. Subsequently, policies were introduced to strengthen market supervision and standardize financing behaviors [14][15]. - Market: The market scale of urban investment ABS grew rapidly, and the degree of marketization increased significantly. The types of underlying assets became more diversified, and the issuance efficiency was greatly improved. ABS gradually became an important financing tool for urban investment platforms [15][16]. 3.3 Contraction and Adjustment Stage (2018 - 2020) - Policy: In 2018, the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions" was issued, strengthening the requirements for underlying asset compliance and information disclosure. In 2019, policies prohibited urban investment enterprises from raising debts through non - standard means. In 2020, policies were issued to promote the standardization of ABS business [17][18][19]. - Market: The issuance of urban investment ABS was strictly restricted. The regulatory requirements forced urban investment platforms to transform to market - oriented operations. The issuance scale shrank, and high - quality urban investment platforms gradually dominated the issuance [20]. 3.4 Transformation and Upgrading Stage (2021 to present) - Policy: Policies have unified the information disclosure standards for credit bonds, refined the negative list of underlying assets for urban investment ABS, and promoted the transformation of ABS business from "policy - based financing" to "market - based financing". They also support urban investment enterprises in financing infrastructure construction through ABS and encourage product innovation [21][23]. - Market: Urban investment ABS has gradually transformed from policy - based financing to market - based financing. The policy promotes the combination of ABS with REITs, corporate bonds, etc., forming a multi - level financing system and promoting the healthy development of the market [24].

Summary of Key Points from Conference Call Industry and Company Involved - The conference call discusses the developments in the **stablecoin** and **Real World Assets (RWA)** sectors in **Hong Kong**. - **China JinDian Group** is highlighted for its active involvement in stablecoin and RWA business. Core Insights and Arguments - The **Hong Kong government** has invested **HKD 50 million** to promote blockchain and digital finance, approved ETF issuance, and passed the stablecoin bill, expected to be released by the end of the year, aiming to address liquidity issues and facilitate capital flow across markets [1][2][3]. - RWA is focused on tokenizing traditional assets to enhance financing avenues, primarily in the primary market, contrasting with the more standardized and dynamic secondary market in the U.S. [1][3]. - The **charging pile revenue rights** face challenges such as variable income and the need for IoT systems for real-time data monitoring, which are essential for investors to assess expected returns [1][6]. - Suitable RWA assets should be highly digitalized, supported by real-time data, and possess intrinsic value, with infrastructure assets like solar power and charging piles being prime examples [1][7]. - The RWA market suffers from a lack of transparency and standardization, necessitating collaboration among major institutions to enhance legal, asset management, custody, and evaluation processes [1][8]. Additional Important Content - The **differences between RWA in China and the U.S.** are notable, with the U.S. having a more developed secondary market and higher standardization, while China focuses on infrastructure assets like solar and charging piles, which are not yet ready for secondary market trading [3][4]. - The **"everything can be RWA"** perspective is debated, with suitable assets needing high standardization and low risk, while agricultural products are deemed unsuitable due to their inherent risks [7]. - The **current RWA application scenarios** are primarily in real estate, financial products, and renewable energy, with potential for expansion into cross-border transactions [10]. - **Stablecoins** are viewed as critical assets in the crypto ecosystem, facilitating global payments and mitigating price volatility risks, with a projected market size of **USD 2 trillion** [11][33]. - The **Hong Kong market** has three main players in stablecoins: JD.com, Standard Chartered Bank, and Yuanbao, with a focus on both B2B and B2C applications [13]. - Future innovations in Hong Kong may include the use of stablecoins for large remittances and the establishment of a comprehensive regulatory framework for OTC trading [16][35]. - **China JinDian Group** plans to apply for a stablecoin license in Hong Kong and is exploring asset securitization of high-quality assets like futures contracts and local government bonds [31][32]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future potential of stablecoins and RWA in Hong Kong and beyond.

Core Insights - The insurance asset management sector has seen a significant increase in the registration of asset-backed securities (ABS), with a scale surpassing 130 billion yuan in the first five months of the year, marking a nearly 60% year-on-year growth [1][5][6] - The shift towards ABS is driven by the low interest rate environment, which has made traditional fixed-income assets less attractive, prompting insurers to seek higher yields through diversified asset classes [6][9] - The growth in ABS registration is indicative of a broader trend where insurance funds are transitioning from traditional investments to more structured asset allocations, including green energy and technology leasing [6][8] Registration Growth - Two insurance asset management companies recently registered new ABS plans, contributing to a total of 31 plans registered this year, with a combined scale of approximately 133.6 billion yuan, reflecting a 58.88% increase compared to the same period last year [3][4][5] - The ABS market is characterized by a variety of underlying assets, which enhances its appeal to insurers looking to optimize returns in a challenging interest rate environment [6][9] Investment Strategy Evolution - Insurance funds are diversifying their investment strategies, moving from single asset types to a combination of ABS, REITs, and bonds, which allows for better cash flow stability and asset appreciation potential [8][9] - The focus on green assets and small consumer debt in ABS plans indicates a strategic alignment with national priorities for economic transformation and sustainable development [9][10] Future Outlook - Industry experts predict continued growth in the ABS market, with insurance asset management companies expected to expand their investment scope significantly [9][10] - The development of standardized valuation models for emerging assets like green energy and technology leasing is essential for enhancing market transparency and attracting more investment [1][6]

Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 8.60 CNY based on a 20x PE ratio for 2025 [2][6]. Core Views - The company is expected to achieve steady growth in profitability due to the full production of the Guangxi base, falling coal prices, and recovery in industry conditions. Earnings per share are projected to be 0.43 CNY in 2025 and 0.60 CNY in 2026 and 2027 [2][12]. - The Guangxi integrated base is anticipated to significantly enhance the company's competitiveness and profitability stability upon full operation, marking a new development phase for the company [9][39]. - The company is initiating a second round of asset securitization, with plans to acquire a 60% stake in San Aifu, which is expected to lead to the injection of high-quality chemical assets into the listed company [13][49]. Summary by Sections Company Overview - The company has a long history and has evolved into a large chemical group with operations in coal chemical, carbon three, tires, and chemical services across multiple bases in China and Thailand [12][32]. Guangxi Base Development - The Guangxi integrated base, covering approximately 8,000 acres with a total planned investment of about 90 billion CNY, is divided into three phases, with the first two phases already operational and the third phase expected to be completed by the end of 2025 [39][40]. - The base will enable the company to achieve a high level of integration across its coal chemical, carbon three, and chlor-alkali businesses, enhancing overall competitiveness [39][41]. Financial Projections - Revenue is projected to grow from 40.86 billion CNY in 2023 to 47.97 billion CNY in 2027, with a slight decline in 2025 due to market conditions [4]. - The net profit attributable to the parent company is expected to increase from 861 million CNY in 2023 to 1.28 billion CNY in 2026, reflecting a recovery in profitability [4]. Market Position and Valuation - The company has been undervalued with a long-term price-to-book ratio below 1, but the upcoming asset injections and improved market conditions are expected to drive a valuation recovery [9][49]. - The company’s strategic location in Guangxi provides significant advantages in terms of logistics and market access, particularly to the rapidly growing markets in Southeast Asia and South China [45][46].

Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 8.60 CNY based on a 20x PE ratio for 2025 [2][6]. Core Views - The company's profitability is expected to maintain steady growth due to the full production of the Guangxi base, falling coal prices, and industry recovery [2][9]. - The Guangxi integrated base is anticipated to significantly enhance the company's competitive edge and profitability stability upon full operation [9][39]. - The company is entering a new phase of value re-evaluation driven by improved market focus and asset injection opportunities [9][49]. Financial Forecast and Investment Suggestions - Earnings per share (EPS) are projected to be 0.43 CNY in 2025 and 0.60 CNY in 2026 and 2027 [2]. - Revenue is expected to grow from 40,856 million CNY in 2023 to 47,969 million CNY in 2027, with a slight decline in 2025 [4]. - The net profit attributable to the parent company is forecasted to increase from 861 million CNY in 2023 to 1,283 million CNY in 2027 [4]. Company Overview - The company has developed a diversified chemical business with operations in coal chemical, carbon three, tires, and chemical services across multiple bases in China and Thailand [9][12]. - The Guangxi base, covering approximately 8,000 acres with a total planned investment of about 90 billion CNY, is a key asset for the company [39][40]. Market Position and Competitive Advantage - The Guangxi base is strategically located near key resource import areas, providing a competitive pricing advantage for its products in the southern market compared to the eastern market [45][46]. - The company is expected to benefit from the integration of its coal chemical, carbon three, and chlorine-alkali businesses, enhancing operational efficiency and product offerings [39][41].