On July 12th, Guolonghui reported that Jefferies published a report on the Hong Kong real estate industry, pointing out that in the first half of this year, the sales of residential properties have rebounded compared to the second half of last year, which is a bullish factor for developers. Jefferies predicts that although the price reduction of new projects in the third quarter may be greater, strong leasing activities can support asset yields and attract investment demand, thereby helping to boost property sales. The bank maintains its bullish view on real estate developers' stocks more than rental stocks, with New World and Sino Land as top choices. The report pointed out that in June, the sales volume of first-hand market residential properties decreased by 50% per month to 986 units, and sales fell by 55% to HKD 12.6 billion. However, the sales in the first half of the year increased by 1.41 times compared to the second half of last year, reaching HKD 112 billion. They also registered a 33% increase year-on-year, the highest half-year sales since 2021. The bank believes that although interest rate cuts still exist uncertainty, the weakening of affordability is only periodic and the demand for the property market is still healthy, which will support future residential property sales. Improved cash flow may bring positive surprises to real estate stocks. The bank expects that in the medium term, New World's dividends have room for upward movement, and its current valuation largely reflects profit pressure. The bank also bullish on Sino Land, with high visibility of dividends and a dividend yield of 7% under a strong asset-liability ratio.