Domestic housing stocks continued to fall. As of press release, Shimao Group (00813) fell 4.41% to HK$0.325; Vanke Enterprise (02202) fell 4.11% to HK$3.97; and R&F Real Estate (02777) fell 3.41% to HK$0.85.
The Zhitong Finance App learned that domestic housing stocks continued to decline. As of press release, Shimao Group (00813) fell 4.41% to HK$0.325; Vanke Enterprise (02202) fell 4.11% to HK$3.97; R&F Real Estate (02777) fell 3.41% to HK$0.85; and Ocean Group (03377) fell 1.85% to HK$0.265.
According to the news, the contract sales amount of many housing companies declined in the first quarter. Among them, Yuexiu Real Estate's cumulative contract sales amount in the first three months was 21.702 billion yuan, a year-on-year decrease of 50.5%; Sunac China obtained a cumulative contract sales amount of 10 billion yuan in the first 3 months, a decrease of 65.84% over the previous year. J.P. Morgan said that in 2023, the core net profit of Chinese real estate developers fell 22% year on year. It is expected that this downward trend will continue from 2024 to 2025, mainly due to continued contraction in profit margins, which also means that the industry has not yet reached its bottom.
Anxin International pointed out that overall, we have yet to observe any signs of housing companies' performance bottoming out, and gross margins are still bottoming out. Sales of the top 100 real estate companies fell 17% year on year in 2023, and there was no significant improvement in sales in the first quarter of 2024. We maintain expectations that the real estate sector's performance in 2024 will be weaker than the MSCI China Index.