External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>We think Longfor’s strategy shift into safety would continue to leave it lagging behind those SOE peers in 2023E.</li><li>On the DP side, the lack of effective land bank (only 22.5mn sqm excl. Yantai and sold but unbooked GFA) would put sales outlook under pressure especially in 2023E (guided -3% YoY).</li><li>Also management will not expand total debts for land acquisition which limits the sales upside in a recovery market. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We think Longfor’s strategy shift into safety would continue to leave it lagging behind those SOE peers in 2023E.On the DP side, the lack of effective land bank (only 22.5mn sqm excl. Yantai and sold but unbooked GFA) would put sales outlook under pressure especially in 2023E (guided -3% YoY).Also management will not expand total debts for land acquisition which limits the sales upside in a recovery market. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Longfor (960 HK) – Transition leaving growth muted

Thematic (Sector/Industry)

<ul><li>NBS 2M23 sales value came flattish YoY, in line with our forecast.</li><li>However, it beat China funds ’ expectation and strongly beat foreign funds’expectation, thus driving today’s sector rally.</li><li>Looking at March, we expect even stronger March data (positive sales YoY) as 1) MTD sales of 30 major cities already recorded 24% growth YoY. 2) Our sales leading indicator GAIN was one of the highest in Feb, indicating very promising March. 3) Recent channel check in major cities suggests sales momentum to continue on stabilized property price and historically low mortgage rate. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NBS 2M23 sales value came flattish YoY, in line with our forecast.However, it beat China funds ’ expectation and strongly beat foreign funds’expectation, thus driving today’s sector rally.Looking at March, we expect even stronger March data (positive sales YoY) as 1) MTD sales of 30 major cities already recorded 24% growth YoY. 2) Our sales leading indicator GAIN was one of the highest in Feb, indicating very promising March. 3) Recent channel check in major cities suggests sales momentum to continue on stabilized property price and historically low mortgage rate. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Property Sector – NBS 2M23 data: Strong as expected

<ul><li>We saw another week of strong property data where new home/secondary home sales went up 23%/12% WoW.</li><li>This is in line with our sales leading index GAIN and our upgrade report that sales is more sustainable than what market thinks.</li><li>The solid housing recovery has also accelerated housing construction activities that its construction resumption rate recovered to 84.1%, higher than 2022 already, and only slightly lagging behind the infrastructure (87.3%) and government projects (88.2%). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We saw another week of strong property data where new home/secondary home sales went up 23%/12% WoW.This is in line with our sales leading index GAIN and our upgrade report that sales is more sustainable than what market thinks.The solid housing recovery has also accelerated housing construction activities that its construction resumption rate recovered to 84.1%, higher than 2022 already, and only slightly lagging behind the infrastructure (87.3%) and government projects (88.2%). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Property Sector – Property+ Weekly: Sales momentum accelerated on lower tier cities

<ul><li>Despite lagging construction activity, property sales started to pick up post-CNY, again correctly predicted by our leading indicator GAIN.</li><li>In particular, new home sales in 30 cities narrowed YoY decline to -21% post-CNY vs. -25% pre-CNY (vs. the similar period in 2022).</li><li>Existing home market is seeing much stronger momentum with sales in 9 major cities +38% YoY post-CNY vs. +15% YoY preCNY.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Despite lagging construction activity, property sales started to pick up post-CNY, again correctly predicted by our leading indicator GAIN.In particular, new home sales in 30 cities narrowed YoY decline to -21% post-CNY vs. -25% pre-CNY (vs. the similar period in 2022).Existing home market is seeing much stronger momentum with sales in 9 major cities +38% YoY post-CNY vs. +15% YoY preCNY.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Property Sector – Property+ Weekly: Hopes Are Returning Post-CNY

<ul><li>Our CNY channel check indicates the following trends: 1) Shopping malls are the key beneficiaries after reopening.</li><li>Wuyue/Wanda/CR all saw quick traffic recovery after COVID and restaurants performed the best. 2) Decent one-off pent-up demand for home purchase may boost Feb sales, in line with our sales leading indicator GAIN.</li><li>3) Overbuilt and unsold inventory poses the biggest risk for the property and financial system. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Our CNY channel check indicates the following trends: 1) Shopping malls are the key beneficiaries after reopening.Wuyue/Wanda/CR all saw quick traffic recovery after COVID and restaurants performed the best. 2) Decent one-off pent-up demand for home purchase may boost Feb sales, in line with our sales leading indicator GAIN.3) Overbuilt and unsold inventory poses the biggest risk for the property and financial system. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Property Sector – CNY: Crowded Malls

China

Longfor Properties Co. Ltd. operates in the property development, property investment and property management businesses in China.

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Longfor Properties (960 HK)

Longfor (960 HK) – Transition leaving growth muted

On the DP side, the lack of effective land bank (only 22.5mn sqm excl. Yantai and sold but unbooked GFA) would put sales outlook under pressure...

CMB International

China Property Sector – NBS 2M23 data: Strong as expected

NBS 2M23 sales value came flattish YoY, in line with our forecast. However, it beat China funds ’ expectation and strongly beat foreign...

CMB International

China Property Sector – Property+ Weekly: Sales momentum accelerated on lower tier cities

This is in line with our sales leading index GAIN and our upgrade report that sales is more sustainable than what market thinks.

CMB International

China Property Sector – Property+ Weekly: Hopes Are Returning Post-CNY

Despite lagging construction activity, property sales started to pick up post-CNY, again correctly predicted by our leading indicator GAIN.

CMB International

China Property Sector – CNY: Crowded Malls

Wuyue/Wanda/CR all saw quick traffic recovery after COVID and restaurants performed the best. 2) Decent one-off pent-up demand for home purchase...

CMB International

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