Jefferies report points outuptownacesnodepositShell'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 the overall total transaction volume in the second quarter to remain flat at 780 billion yuan year-on-year, with existing housing transactions being the main growth driver, while the decline in new housing transactions narrowing. 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, the overall gross margin is expected to remain stable at around 25%, with a non-GAAP net profit margin of 7%(originally expected 9%)uptownacesnodeposit.5%), the target price was raised from US$17 to US$19.8, maintaining the "Buy" rating.