Core Viewpoint - Xiamen International Trade Real Estate Group (国贸地产) has successfully acquired a prime land parcel in Chengdu for 2.326 billion yuan, marking a significant investment despite the high price and competitive bidding environment [1][2]. Group 1: Land Acquisition and Market Position - 国贸地产 won a highly competitive bidding for a land parcel in Chengdu, achieving a floor price of 35,500 yuan per square meter, with a premium rate of 75.74%, making it the second highest in Chengdu's history [2]. - The land's strategic location and surrounding amenities are expected to support future project pricing, potentially reaching over 60,000 yuan per square meter [2]. - Since entering Chengdu in 2021, 国贸地产 has developed over 10 projects, indicating a strong commitment to the region [2]. Group 2: Financial Performance and Comparison - In 2024, 国贸地产 reported total revenue of 40.458 billion yuan, a significant increase of 52.79% from 2023, and a profit of 1.424 billion yuan, up 41.23% [9]. - However, the net profit attributable to the parent company dropped to 39 million yuan, a decline of 90.7%, indicating challenges in profitability despite revenue growth [10]. - Compared to its peers, 国贸地产 ranks lower in profitability, with its net profit significantly lagging behind that of its competitors, such as 建发房产 and 象屿地产, which reported much higher profits and growth rates [10].

Investment Rating - Industry Rating: Outperform the market (maintained rating) [5] Core Insights - The market heat has objectively increased, primarily driven by improved supply quality. In the first two months of 2025, the total land transaction price reached 257 billion, a year-on-year increase of 29.6%, while the average land transaction price was 9,751 million, up 32.2% year-on-year [10][11] - The trend of "high premium" is expected to continue in the short term, with a consensus forming around "high-speed products." The average premium rates for first-tier and second-tier cities have increased, reflecting a recovery in land market heat [11][12] - Companies with operational leverage and turnover advantages are highlighted as key players. Leading companies in equity investment include China Resources Land, China Jinmao, and Greentown China, with investment intensity exceeding 100% for several firms [12][14] Summary by Sections 1. Market Overview - In the first two months of 2025, land transaction volume in 300 cities decreased by 1.9% year-on-year, while the total land transaction price increased significantly, indicating a shift towards higher quality land supply [10][11] 2. New and Second-hand Housing Market - The new housing market saw a transaction area of 236 million square meters, with a month-on-month decline of 11.98% [4][29] - The second-hand housing market experienced a transaction area of 235 million square meters, with a year-on-year increase of 47.40%, although it also saw a month-on-month decline [4][29] 3. Investment Recommendations - The report suggests focusing on non-state-owned enterprises benefiting from debt relief and policy support, as well as leading companies with product advantages and regional firms with improving market shares [14]