Main points
Market Review
Last week (2022.01.04-01.07), the Shanghai Composite Index fell 1.65%, the Shanghai and Shenzhen 300 index fell 2.39%, and the real estate sector rose 4.46%. The real estate sector outperformed the Shanghai Composite Index by 6.12 percentage points and the Shanghai and Shenzhen 300 index by 6.85 percentage points. The coefficient of A-share real estate companies focused on increased, of which Tahoe Group Co.Ltd(000732) (000732. SZ), Sichuan Languang Development Co.Ltd(600466) (600466. SH), Shenzhen Overseas Chinese Town Co.Ltd(000069) (000069. SZ) increased significantly, up 14.03%, 11.27% and 11.22% respectively. The H-share real estate companies focused on China Overseas Development (0688. HK), China Jinmao (0817. HK) and R & F real estate (2777. HK) led the increase, with increases of 20.26%, 12.45% and 11.72% respectively.
Industry dynamics
Commercial housing transactions in 30 large and medium-sized cities were 2.518 million square meters, with a cumulative year-on-year decrease of 39.29%. Among them, the turnover of commercial housing in first tier cities was 830900 square meters, a cumulative year-on-year decrease of 34.75%, that in second tier cities was 1173800 square meters, a cumulative year-on-year decrease of 23.86%, and that in third tier cities was 497200 square meters, a cumulative year-on-year decrease of 61.94%.
Company announcement
In China Vanke Co.Ltd(000002) 2021, the total contract sales area is 38.078 million square meters, and the contract sales amount is 627.78 billion yuan; In December, the contract sales area was 3.496 million square meters and the contract sales amount was 63.56 billion yuan.
Longhu Zhichuang life submitted the prospectus. As of September 30, 2021, the company had operated 59 shopping center projects nationwide, with a total construction area of 55.7 million square meters under commercial operation services. As of December 2021, the contracted and strategic cooperation area of Longhu Zhichuang living property management service is about 440 million square meters, and the area under management is more than 250 million square meters.
Related subject matter
The credit environment still needs to be improved, the Matthew effect of capital is prominent, and enterprises with low financing cost and land acquisition advantage may benefit. The relevant targets: (1) leading real estate enterprises with low financing cost and interest rate and can continuously obtain land in first and second tier cities, such as green city China (3900. HK), Longhu group (0960. HK), etc; (2) Real estate enterprises that are less affected by the “two concentration” land policy and can obtain land through diversified ways such as land listing, such as Seazen Holdings Co.Ltd(601155) (601155. SH), Baolong real estate (1238. HK), etc; (3) Leading enterprises in the property management industry and enterprises laying out high-quality segments of the property management industry, such as Country Garden Service (6098. HK), Xincheng Yue service (1755. HK), China Resources Vientiane life (1209. HK), Baolong Commerce (9909. HK) and Xingsheng Commerce (6668. HK).
Risk tips
Tightening of real estate regulation policies; Guard against financial systemic risks.
