Investment Rating - The industry investment rating is "Positive" and maintained [12]. Core Insights - Recent high-premium land parcels are a result of risk aversion among real estate companies, demand for quality housing, and the lifting of price caps, with irrational components being minimal. The risk-reward ratio for early entrants is significantly better than for latecomers, highlighting alpha characteristics. During periods of export pressure, industry policies often have room for relaxation, suggesting at least temporary excess returns and structural opportunities in the sector, although sustainability requires additional conditions [2][9]. Summary by Sections High-Premium Land Supply and Demand Logic - The land market is increasingly polarized, with high-premium transactions in core areas contrasting with a lack of activity in non-core areas. In Q1 2025, core city land markets continued to heat up, with record-breaking floor prices, such as a 71% premium in Hangzhou and a 115% premium in another area shortly thereafter. This trend is starkly different from the cold market in non-core areas and lower-tier cities, where only a few core cities have seen significant increases in transaction volume and premium rates [6][7]. Investment Risks and Potential Returns of High-Premium Land - The recent enthusiasm for land auctions in core areas shows minimal irrationality, with most competitive products still possessing logical foundations. The primary test moving forward will be high-end purchasing power. High premiums reflect changes in bidding logic, with current projects driven more by land quality than speculative price increases. Areas with concentrated land offerings are experiencing fierce competition, and early bidders face greater uncertainty but also better profit margins compared to later bidders. Overall, the quality of high-premium land parcels in Q1 2025 is generally good, with estimated break-even prices mostly below comparable product prices, provided market enthusiasm and high-end demand do not collapse quickly [8][9]. Investment Recommendations - The report suggests focusing on high-quality real estate companies with core assets, those with strong product capabilities, local leaders benefiting from debt reduction, and companies with stable cash flows. The current market environment presents structural opportunities, although the sustainability of these returns will depend on further developments [2][9].