Jefferies report points outgowinslotShell's first-quarter revenue was in line with market expectations, but it was better than the bank's expectations, especially the total transaction volume (GTV) that exceeded expectations. The bank expects overall total transaction volume in the second quarter to remain flat year-on-year at 7.5%gowinslot80 billion yuan, existing housing transaction volume is the main growth driver, while the decline in new housing transaction volume has narrowed. The bank estimates that this year the group will reinvest in different areas to increase market share, and its leading competitive position in the real estate transaction market will remain unchanged. The bank expects Shell's second-quarter revenue to rise 8% year-on-year (previously forecast a 5% increase) to 21 billion yuan.
Taking into account the reinvestment of transactions and new business, it is expected that the overall gross margin will remain stable at around 25%, the non-GAAP net profit margin will be 7%(originally expected of 9.5%), and the target price will be raised from US$17 to US$19.8, maintaining the "Buy" rating.
