Yamato released a report that believes that domestic property stocks should face less fluctuations this year than last year
It is believed that some companies can seize market share, and sustainable rental income and other channels other than land auctions of domestic property stocks have become increasingly important. The bank maintains a “neutral” view on the interior property industry. Medium to large-scale interior properties tend to choose Shimao Real Estate (00813), Xuhui Holdings Group (00884) and Yuexiu Real Estate (00123), and large interior houses recommend Longhu Group (00960). , China Resources Land (01109) and China Overseas Land (00688).
Shifang can meet more opportunities after the rights issue
The bank adjusted the target price of domestic property stocks, raised its target price for China Overseas from 34.1 yuan to 36.6 yuan, and maintained a “buy” rating; raised the target price of Longhu Group from 35.5 yuan to 44.3 yuan, and maintained a “buy” rating ; China Resources Land’s target price increased from 38.1 yuan to 44.2 yuan, maintaining the “Buy” rating. The bank also raised the target price of Shifang from 29.1 to 36.4 yuan, maintaining the “Buy” rating; raised the target price of Xuhui Holdings from 7.8 yuan to 8.4, maintaining the “buy” rating; raised the target price of Yuexiu from 2.1 The yuan rose to 2.3 yuan, maintaining the “buy” rating.
The bank believes that the operating environment of housing in China will face fluctuations in 2019, including changes in policies and credit environment. It is estimated that there will be less fluctuations this year, and it is expected that the tightening of real estate policies and credit will remain, but it is expected that More cities will slightly adjust their policies, so the credit environment will be looser than in the second half of last year. Nonetheless, the bank expects that new home sales in the mainland will be stable this year without major upside surprises. Sales are expected to fall by 1% year-on-year, while sales are expected to increase by 2% year-on-year. Outperform third- and fourth-tier cities.
Yamato believes that the mainland property market will continue to change, which is also dangerous for developers
If developers who can cope with the change or can grab market share from weaker competitors, the bank has tracked 22 interior developers Last year’s market share reached 41%. The bank estimates that this year’s related domestic houses will continue to outperform this year.
In addition, the bank also believes that rental income will be more important to the competitiveness of domestic real estate. Investors will also consider the size of their rental income to calculate their valuation premium. In addition, the bank also believes that it can afford to outsource traditional land auctions. Enterprises that acquire land through channels will become more important in the industry.