The real estate industry has seen its bottom and will gradually rebound.
Indicators like housing & personal income ratio show that housing price’s further decline is of limit.
Land price decreased in 2008, and flexible policies have been issued by local governments to deal with the high price of land in 2007.
Bellwether advantages emerge; sales volume is above the market average, and market share expands.
Its share price is still somewhat discounted compared with that of NAV. Given that the industry has already seen the bottom and begins to rebound, we think discount should be eliminated, and large-sized enterprises should enjoy NAV premium.
Portfolio: Real estate bellwethers and second-tier real estate enterprises with steady performance in the first-tier cities.