According to the GF Securities Research Report, real estate sector valuations are “bottom-up”, and core high-quality housing enterprises have long-term allocation value. In the first half of 2026, the SW real estate sector had a cumulative decline of 16.4%, outperforming the market (Shanghai and Shenzhen 300) by 24 percentage points, and 16 mainstream housing enterprises fell 14.9%. The current stock price includes the expected fall in housing prices of 16%, but housing prices have stopped falling in the past six months, and the degree of deviation has reached the maximum value since 2021. In the short term, I am optimistic about the sector's chances of a rebound away from restoration. If core city transaction centers rise further after September and October, and housing prices rise at an accelerated pace, then the sector has an opportunity for value reversal. In terms of individual stock selection, the impact of short-term sales growth on stock prices is still effective. At the same time, it is necessary to take into account the company's investment development performance and valuation situation.

According to the GF Securities Research Report, real estate sector valuations are “bottom-up”, and core high-quality housing enterprises have long-term allocation value. In the first half of 2026, the SW real estate sector had a cumulative decline of 16.4%, outperforming the market (Shanghai and Shenzhen 300) by 24 percentage points, and 16 mainstream housing enterprises fell 14.9%. The current stock price includes the expected fall in housing prices of 16%, but housing prices have stopped falling in the past six months, and the degree of deviation has reached the maximum value since 2021. In the short term, I am optimistic about the sector's chances of a rebound away from restoration. If core city transaction centers rise further after September and October, and housing prices rise at an accelerated pace, then the sector has an opportunity for value reversal. In terms of individual stock selection, the impact of short-term sales growth on stock prices is still effective. At the same time, it is necessary to take into account the company's investment development performance and valuation situation.