Core Insights - The article emphasizes the importance of a new evaluation system for industrial parks, particularly focusing on the characteristics of production manufacturing parks and technology innovation parks [1][2] - The article highlights the growth of park REITs in China, with 19 listed REITs and a total market value of 37.4 billion yuan, indicating a significant investment opportunity [1][2] Group 1: Industrial Park Classification - Industrial parks are fundamentally divided into two categories: production manufacturing parks, which emphasize brand and replicability, and technology innovation parks, which focus on innovation and uniqueness [2] - The core value of production manufacturing parks lies in the transmission of policy advantages into brand strength and quality management, while technology innovation parks require a combination of tangible and intangible investments to foster competitive innovation [2] Group 2: Evaluation System Design - A new evaluation system is proposed, consisting of seven basic indicators and two additional indicators, aimed at determining what constitutes a good industrial park and identifying currently investable parks [2] - The seven basic indicators include location, tenants, major shareholders, structural supply-demand, market positioning, local policies, and dividend yield, focusing on objective conditions and operational performance [2] - The two additional indicators focus on technological innovation and contribution effectiveness, emphasizing the park's innovative attributes and value spillover [2] Group 3: Evaluation Results - The evaluation results will be updated biannually, with the first half of 2025 showing that parks with prominent technology innovation attributes performed better overall [3] - The top three REITs based on comprehensive scoring for 2025H1 are Huaxia Jinyu Intelligent Manufacturing Park REIT, GF Chengdu High Investment Industrial Park REIT, and E Fund Guangzhou Development Zone High-tech Industrial Park REIT [3]

Investment Rating - The report assigns an "Overweight" rating to the industry [4]. Core Insights - The report emphasizes the importance of accurately assessing the underlying asset value of industrial park REITs, which are crucial for investment decisions. It aims to establish a more effective evaluation system for industrial parks, which are key to China's economic development and industrial upgrading [6][7]. - Since the launch of the first industrial park REIT in 2021, a total of 19 REITs have been listed, with a cumulative market value of 37.4 billion yuan, primarily located in core first- and second-tier cities [6][7]. - The report categorizes industrial parks into two main types: manufacturing parks, which focus on brand and replicability, and innovation parks, which emphasize uniqueness and innovation. The latter is expected to have greater long-term value growth potential [6][7][9]. Summary by Sections Research Purpose - The report aims to construct a comprehensive analysis framework for industrial park REITs, highlighting their role in China's economic development and alignment with national strategies [7]. Industrial Transformation and Upgrading - Industrial parks are classified into manufacturing and innovation parks, with the former focusing on brand strength and replicability, while the latter prioritizes innovation and uniqueness [9][20]. Value Assessment Framework - A new evaluation system is proposed, consisting of seven basic indicators and two additional indicators. The basic indicators focus on objective conditions and operational performance, while the additional indicators assess technological innovation and value spillover [38][39]. - The evaluation results will be updated biannually, with the top three performing REITs in H1 2025 being identified [6][38]. Basic Indicators - The seven basic indicators include location, tenant quality, major shareholder attributes, structural supply and demand, market positioning, local policies, and dividend yield [39][66]. - The report highlights the significance of location as a core factor in determining the value of industrial parks, with a notable concentration in first- and second-tier cities [42][66]. Additional Indicators - The two additional indicators focus on the technological innovation attributes of parks and their contributions to regional economic development [69][70]. - The report underscores the importance of innovation parks in fostering high-tech enterprises and enhancing regional competitiveness [69][70].

Core Viewpoint - The industrial park sector is currently experiencing an oversupply situation, with weak short-term demand making it difficult to absorb new supply [1] Group 1: Supply and Demand Dynamics - The overall industry is in a phase of excessive supply, leading to challenges in demand recovery [1] - Parks are generally adopting a price-for-volume strategy to maintain occupancy rates, but this approach has limited effectiveness [1] - The demand for office space leasing is recovering in a post-cycle manner, indicating that short-term demand is unlikely to improve significantly [1] Group 2: Emerging Industries and REITs - Emerging industries have a solid foundation for clustering, and the demand for specialized factory-type parks is more robust [1] - Overall, the risks associated with park REITs remain considerable [1]