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.

Thematic (Sector/Industry)

<ul><li>Data from National Bureau of Statistics (NBS) in Nov was in line with market expectation, with property investment decline narrowed to -10.6% YoY in Nov from -11.3% in Oct given new start area surprisingly booked positive increase and NBS adjusted -8% on calculation base in Nov vs. -6% in Oct. </li><li>Property sales was flat with volume/value inched up 2/1% MoM and barely no year-end seasonality like that in the past five years (avg. of 11% MoM in Nov) given low buying sentiment.</li><li>Beijing (BJ) &amp; Shanghai (SH) eased purchasing policies on 14 Dec and the stock market reacted positively with property names on HK market went up an average of 5% on the following day.</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.

Data from National Bureau of Statistics (NBS) in Nov was in line with market expectation, with property investment decline narrowed to -10.6% YoY in Nov from -11.3% in Oct given new start area surprisingly booked positive increase and NBS adjusted -8% on calculation base in Nov vs. -6% in Oct. Property sales was flat with volume/value inched up 2/1% MoM and barely no year-end seasonality like that in the past five years (avg. of 11% MoM in Nov) given low buying sentiment.Beijing (BJ) &amp; Shanghai (SH) eased purchasing policies on 14 Dec and the stock market reacted positively with property names on HK market went up an average of 5% on the following day.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 – Expect New Policy in BJ/SH to Boost Secondary Market in Dec

<ul><li>NBS data in Oct was in line with market expectation, with property investment decline remaining at -11.3% YoY in Oct (vs. -11.3% in Sep) despite a lower base.</li><li>Property sales also weakened with volume/value declining 28/26% MoM and showing larger divergence between high- and low-tier cities.</li><li>We think Nov-Dec 2023 may continue to be weak as the buying sentiment remains low and is hard to be lifted with the marginally weakening effect from easing policies. </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 data in Oct was in line with market expectation, with property investment decline remaining at -11.3% YoY in Oct (vs. -11.3% in Sep) despite a lower base.Property sales also weakened with volume/value declining 28/26% MoM and showing larger divergence between high- and low-tier cities.We think Nov-Dec 2023 may continue to be weak as the buying sentiment remains low and is hard to be lifted with the marginally weakening effect from easing policies. 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 Oct Data in Line

Equity Bottom-Up

<ul><li>Beike reported (8 Nov) 3Q23 financial results: total revenue was up 1.2% YoY to RMB17.8bn in 3Q23, 12% higher than both our forecast and Bloomberg consensus estimates, mainly due to better-than-feared GTV generation from both existing home transactions (EHT) and new home transactions (NHT) aided by the relaxation of policy restrictions, and stronger-than-expected revenue growth in home renovation business.</li><li>Non-GAAP net income was RMB2.1bn, better than our forecast/consensus estimate of RMB875mn/988mn, thanks to better-thanexpected revenue generation and stringent-than-expected cost saving.</li><li>Based on a prudent estimation, management guided 4Q23 revenue to be between RMB18.0bn and RMB18.5bn, implying growth of 7.5-10.5% YoY and 1-4% QoQ.</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.

Beike reported (8 Nov) 3Q23 financial results: total revenue was up 1.2% YoY to RMB17.8bn in 3Q23, 12% higher than both our forecast and Bloomberg consensus estimates, mainly due to better-than-feared GTV generation from both existing home transactions (EHT) and new home transactions (NHT) aided by the relaxation of policy restrictions, and stronger-than-expected revenue growth in home renovation business.Non-GAAP net income was RMB2.1bn, better than our forecast/consensus estimate of RMB875mn/988mn, thanks to better-thanexpected revenue generation and stringent-than-expected cost saving.Based on a prudent estimation, management guided 4Q23 revenue to be between RMB18.0bn and RMB18.5bn, implying growth of 7.5-10.5% YoY and 1-4% QoQ.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.

Ke Holdings (BEKE US) – Expecting a Sequential Recovery in 4Q

<ul><li>According to Beijing Daily, Beijing Lianjia has lowered commission rate for existing home transactions (EHT) in Beijing, from previous nominal rate of 2.7% to 2.0%, and will start to charge 1.0% each on both home sellers and buyers, instead of only from the buyer side.</li><li>In the prudent scenario, we estimate a 1.5/6.3% negative impact on Ke Holdings (Beike)’s group-level contribution profit (CP) in 2023/2024E.</li><li>However, we expect limited long-term impact on Beike’s earnings from the adjustment of commission rate, as: 1) current commission rate for EHT in Beijing could be lower than 2.7%; 2) Lianjia in cities other than Beijing may have limited room to cut rates given actual rates could be lower than 2%. Maintain BUY with SOTP-based TP unchanged at US$24.5.</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.

According to Beijing Daily, Beijing Lianjia has lowered commission rate for existing home transactions (EHT) in Beijing, from previous nominal rate of 2.7% to 2.0%, and will start to charge 1.0% each on both home sellers and buyers, instead of only from the buyer side.In the prudent scenario, we estimate a 1.5/6.3% negative impact on Ke Holdings (Beike)’s group-level contribution profit (CP) in 2023/2024E.However, we expect limited long-term impact on Beike’s earnings from the adjustment of commission rate, as: 1) current commission rate for EHT in Beijing could be lower than 2.7%; 2) Lianjia in cities other than Beijing may have limited room to cut rates given actual rates could be lower than 2%. Maintain BUY with SOTP-based TP unchanged at US$24.5.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.

<ul><li>NBS reported an in-line property investment at -11% YoY in Aug (vs. -12% in Jul) and slight beat on property sales at +5%/-16% MoM/YoY (vs. -45%/-19% in Jul).</li><li>We expect sales growth to perform better in Sep-Oct given 1) relaxation in 12 tier-2 cities (more to come) combined with new policy in tier-1 cities (report) would release certain demand to support sales in ST, 2) developers are speeding up project launch to benefit from sentiment tailwind and 3) our Leading Indicator suggests good sales performance in Oct.</li><li>While the sustainability of recovery is uncertain as 1) our channel check in tier-1 cities shows both the project visitor flow/house transaction have signs of retreat during the 2nd week compared to the 1 st week after new policy, 2) continuous fall on home price arouses more watchand-see sentiment of home buyers, 3) concern on future income expectation still exists which suppresses a chunk of demands. </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 reported an in-line property investment at -11% YoY in Aug (vs. -12% in Jul) and slight beat on property sales at +5%/-16% MoM/YoY (vs. -45%/-19% in Jul).We expect sales growth to perform better in Sep-Oct given 1) relaxation in 12 tier-2 cities (more to come) combined with new policy in tier-1 cities (report) would release certain demand to support sales in ST, 2) developers are speeding up project launch to benefit from sentiment tailwind and 3) our Leading Indicator suggests good sales performance in Oct.While the sustainability of recovery is uncertain as 1) our channel check in tier-1 cities shows both the project visitor flow/house transaction have signs of retreat during the 2nd week compared to the 1 st week after new policy, 2) continuous fall on home price arouses more watchand-see sentiment of home buyers, 3) concern on future income expectation still exists which suppresses a chunk of demands. 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 Aug Data In-Line

China

KE Holdings Inc. operates as an integrated online and offline platform for housing transactions and services. The Company offers existing and new home sales, home rentals, home renovation, real estate financial solutions, and other services. KE Holdings conducts businesses in China.

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KE Holdings (BEKE US)

China Property Sector – Expect New Policy in BJ/SH to Boost Secondary Market in Dec

Data from National Bureau of Statistics (NBS) in Nov was in line with market expectation, with property investment decline narrowed to -10.6% YoY...

CMB International

China Property Sector – NBS Oct Data in Line

NBS data in Oct was in line with market expectation, with property investment decline remaining at -11.3% YoY in Oct (vs. -11.3% in Sep) despite a...

CMB International