CITIC Securities: New land reserves are the key to profitability, optimistic about companies with "good houses" and high-quality operations.

Zhongxin Securities released a research report stating that after 2024, the new land acquired by enterprises will be the main source of profit for the current real estate development business. The current situation of oversupply of new housing and high prices has been significantly alleviated, providing a foundation for the market to stabilize. In terms of development business, the bank is optimistic about companies that have sufficient new inventory, strong ability to build good houses, and focus their new inventory in regions such as Hangzhou, Shanghai, and Chengdu. In the field of operational real estate, the bank is bullish on companies with outstanding operational capabilities and superior asset portfolios.