RBS published a research report that it believes that the current domestic housing stock valuation is attractive, and that the outlook for domestic housing stocks has been raised from “neutral” to “increase holdings”, and is optimistic about R&F Real Estate (02777-HK), Hejing Taifu (01813-HK), Shenggao Land (00337-HK), and Zhongyu Land (01224-HK), and believes that these four shares will rise 30%.
According to the RBS report, the volume of first-tier real estate transactions in mainland China remained flat in November, while second-tier cities fell 10%, but average sales prices in the second-hand market continued to rise. Among them, Beijing, Guangzhou and Shanghai rose 0.5%, 2.5% and 0.9% respectively.
RBS predicts that before the Lunar New Year, mainland policymakers will shift their focus from the mainland real estate market to issues such as inflation, global liquidity, interest rates, and even regional political uncertainty. Meanwhile, Premier **** of the State Council clearly stated that increasing the supply of public housing is more effective for the property market, and is expected to be the focus of the 12 five-year plans.
The bank believes that although policy risk is still putting pressure on domestic housing stock valuations, it is also the main reason why RBS has a slight positive factor for domestic housing stocks. Due to strong housing stock sales in 2010, if domestic housing stock sales were sustainable in 2011, it indicates that domestic housing stocks have more room to rise compared to other stocks. Due to re-evaluation and rising net asset value per share, it is optimistic about R&F, Hejing Taifu, Shengao Land and Zhongyu Land.
Stock Name/Investment Rating/Target Price
R&F Real Estate (02777-HK) /purchase/20.89 yuan.
Hejing Taifu (01813-HK) /purchase/8.46 yuan.
Shenggao Land (00337-HK) /purchase/6.08 yuan.
Zhongyu Land (01224-HK) /purchase/5.79 yuan.
Overseas of China (00688-HK) /purchase/20.28 yuan.
China Resources Land (01109-HK) /purchase/17.99 yuan.
Fangxing Real Estate (00817-HK) /purchase/2.68 yuan.
Fude Group (02337-HK) /purchase/2.68 yuan.
SOHO China (00410-HK) /purchase/8.07 yuan.
Agile (03383-HK) /holding/12.27 yuan.
Country Garden (02007-HK) /holding/3.55 yuan.
Greentown China (03900-HK) /holding/8.69 yuan.
Cooperative Innovation (00754-HK) /holding/8.5 yuan.
Shimao Real Estate (00813-HK) /holding/19.36 yuan.
Ruian Real Estate (00272-HK) /holding/4.19 yuan.
Ocean Real Estate (03377-HK) /holding/5.33 yuan.
Hengsheng Real Estate (00845-HK) /holding/3.2 yuan.