China Securities Co., Ltd.: Top 100 real estate companies will stop falling in sales in a single month, actively acquire land and continue to increase the added value of new goods.

China Securities Co., Ltd. released a research report stating that in February, the real estate market continued its trend of stabilizing after a decline. The sales area of new homes in key cities increased by 5% year-on-year in January and February, while the sales area of second-hand homes increased by 34% year-on-year. The total sales amount of the top 100 real estate enterprises in January and February was 440.2 billion yuan, a decrease of 3% year-on-year, with a decrease of 2 percentage points compared to January. The growth rate of the newly added land value of the top 100 real estate enterprises expanded, with a total of 437.9 billion yuan added in January and February, an increase of 11% year-on-year, of which the newly added value in February was 197.3 billion yuan, a 17% increase year-on-year. In February, the national average land premium rate for residential land transactions reached 12.5%, the first time it has reached double digits for two consecutive months since July 2021. The Shanghai and Hangzhou land auction markets continue to heat up. Under the continued effort to push for stabilization, the bank is optimistic about the overall performance of the real estate sector. Key points from China Securities Co., Ltd. are as follows: - The cumulative growth rate of new home sales in February turned positive, while the heat of second-hand home sales is at a historical high. - The sales amount of the top 100 real estate enterprises in February was flat year-on-year, with leading growth rates among the top enterprises. - The growth rate of the newly added value of the top 100 real estate enterprises in February expanded, with the Shanghai and Hangzhou land markets continuing to heat up. Risk analysis: 1. Sales falling below expectations; 2. Deferral below expectations; 3. Slow credit repair of real estate enterprises.