Huatai Securities: The real estate market is still in the process of stabilizing and bottoming out. We recommend real estate companies with abundant resources and stable operations.

Huatai Securities research report indicates that the National Bureau of Statistics released the basic situation of the national real estate market in April 2025. The data for April shows that there is still some pressure on the investment side of the industry, the financing side is exerting efforts to alleviate the funding pressure on real estate enterprises through the white list mechanism, and the year-on-year decline in house prices on the market side has narrowed. Transaction volume has seasonally decreased, with better performance in core cities. Huatai Securities continues to be optimistic about the recovery pace of core cities represented by first-tier cities, as well as the valuation restoration of real estate companies that have reserves or newly acquired resources in corresponding regions. They continue to recommend real estate stocks that possess the logic of "good credit, good city, good products" or "three goods," and believe that property management companies with stable dividends and performance are also expected to benefit from the stabilization of the market.