CITIC SEC: It is expected that the real estate market will have a foundation for stabilizing and rebounding by 2026.

CITIC SEC released a research report stating that the supply and demand situation in the real estate market has improved, and adjustments are relatively sufficient. It is expected that the market will have a foundation to stabilize and stop falling in 2026. CITIC SEC believes that 2026 may be a crucial year for real estate companies to repair their balance sheets, and some companies may see the bottom of a long cycle of profitability. Companies that are the first to break through are often those that have a good layout in cities, have investment properties that are operating well, or have some financial assets with appreciation potential. Key points from CITIC SEC: - In 2025, there was some improvement in the supply and demand for residential properties, but the market remained on a downward trend. - In 2026, the residential market has an internal foundation for stopping the decline. - Choosing the right region is an important reason for some companies to repair their balance sheets, surpassing the importance of land acquisition intensity. - Investment properties are the backbone of the balance sheet, and the choice of business format and operation are crucial. - Risk points include the risk of declining profitability due to continued decline in housing prices, the risk of poor regional selection for some companies, and the risk of a high proportion of office buildings in investment properties. Looking forward to the bottoming of the cycle, and optimistic about three good companies.