Author 丨 Wang Di
Produced 丨 Focus Finance
The different development situations of state-owned enterprises and private enterprises have also come out of the "forked road" in the field of property.
Following zhongnan service and Zhongliang Baiyue being "sold" to abandon the listing, on February 6, jinmao service officially passed the hearing of the Hong Kong Stock Exchange, and the floodgates of "gold absorption" for IPO fundraising were opened. As the first property company to successfully pass the meeting against the trend in the "cold winter", Jinmao service has attracted much attention.
On February 25, Jinmao Service announced that it intends to offer 101 million shares globally, of which 10.14 million shares will be offered in Hong Kong and 91.26 million shares will be offered internationally. The offer price per share is HK$7.52 to HK$8.14 and is expected to raise no more than HK$823 million, and trading will commence from 9:00 a.m. on 10 March 2022.
It is worth mentioning that Sinochem and Ping An Life have become its shareholders. Cornerstone investors Keltic, Kangli Elevator, Guangdong Keshun, Fuhui Capital and Qianhe Fund subscribed for a total of approximately $646 million in offer shares.
In fact, in 2021, the capital market of property enterprises will gradually return to rationality, the listing threshold has been raised, and the path of trying to simply realize the property circle money by listing has become impossible. For private enterprises, strength has become an absolute way to test capital, and the endorsement dividends of central state-owned enterprises with "big trees" to cool off are becoming more and more obvious.
The same is the second submission of the form through the hearing, Zhongnan Service, Zhongliang Baiyue, because of the sale of China Resources Vientiane Life and Country Garden services and give up the listing is helpless, but the Xiang Life Service is also suspended through the hearing, the IPO road is also full of twists and turns.
When the difficulty of the IPO of the property enterprise "breaks through" is escalating, what kind of opportunities will the "national character head" property enterprise Jinmao service usher in?
"Previously, the reason for the suspension of the listing of several private property companies was insufficient subscription, no one bought, and the problem of property grade and efficiency led to the suspension or abandonment of listing. Jinmao Property is positioned as a high-end property with high property fees and relatively high value. Coupled with the endorsement of central enterprises, the listing valuation is still worth looking forward to. Some industry experts said to Focus Finance.
IPOs tend to diverge
"The withdrawal of the listing through the hearing may be due to poor market conditions, and the suspension of the listing when the fundraising plan and the predetermined issue price cannot be reached." However, whether to suspend the listing is related to the market conditions on the one hand, and on the other hand, it is also related to the pressure and urgency of the company itself. ”
For the previous abandonment of the listing of Chinese property companies, IPG China Chief Economist Bai Wenxi believes that in the current situation of strong expectations of continuous interest rate hikes by the Federal Reserve, the liquidity of the Hong Kong stock market will inevitably be affected, so it may not be a good time to list and raise shares. As for whether Jinmao Service will temporarily terminate and withdraw the listing application, it may also depend on the future Roadshow and Inquiry of Jinmao Service.
In addition to the potential risk of undersubscription, Huang Lichong, co-founder of Co-Vertical Strategy Management Group, pointed out another potential possibility: because SFC suspected that the listed placements were all the same group of people, violating the rules of listing, that is, Weifei. The so-called 'flying around' activity refers to the fact that when the new shares are listed, the shares are centrally subscribed by a small number of "own people" or "head accounts". The Hong Kong Securities and Futures Commission has been cracking down on the "fly around" activities of new stocks.
Focus Finance and Economics combed through the property companies that submitted prospectuses from 2021 to February 25, 2022, and found that private enterprise property companies seeking listing occupied a dominant position, zhongAn smart life services, Lushang life services, Lego healthy life, Dongyuan Renzhi services, Mingyu commercial services, Disai Foundation, Rongxin services were all submitted for the second time after the failure, the Greater Bay Area Cultural Tourism has now submitted the prospectus for the fourth time, and Yacheng has decided not to submit it after the second submission has failed.
German commercial production and investment services are rare to achieve listing, and ushered in a stock price of 4.5% higher private property enterprises, last year to achieve listing of the credit service is the secondary delivery of the table, and the first day of listing stock prices also suffered a break.
In fact, compared with the "Waterloo" suffered by the revenue of many housing enterprises in the real estate industry, there is still a large room for development in the development of property enterprises. Even in the current Hong Kong stock market, the valuation of property stocks has shown an overall correction, but it is still far higher than the overall valuation of real estate enterprises.
In addition, the valuation of the property sector has also shown a large internal differentiation, and the valuation of some leading enterprises in the industry and enterprises with a high proportion of commercial properties has shown a higher trend. Therefore, Jinmao Services, All Things Cloud and Longhu Zhichuang Life, which are seeking to be listed this year, have received widespread attention in the industry, and Longhu Zhichuang Life has submitted a prospectus, while Wanwu Cloud has not yet submitted.
"In terms of valuation, the company that has a certain degree of comparison with Jinmao Services is Vientiane Life under China Resources Land. Mainly because both have a relatively large proportion of commercial offices in the composition of the pipe area, this more market-oriented market segment can support enterprises to obtain higher valuations. Jinmao Service Prospectus shows that in addition to traditional residential properties, commercial properties such as office buildings and urban operation services are also the focus of the Group's development. At the same time, the business of the two companies is basically distributed in first- and second-tier cities. ”
According to Bai Wenxi's analysis, since its listing, the valuation of China Resources Vientiane Life has been at the forefront of listed property companies, and even in the recent general decline in the industry, its valuation is still above 55 times PE. The equivalent Jinmao service, in the context of the central enterprises' support, its valuation after listing may not be too bad.
How to differentiate high-end properties to "absorb gold"?
Jinmao Services is positioned as a high-end property management and urban operation service provider, mainly focusing on high-end residential, commercial properties and office buildings in first- and second-tier cities. This may open up a differentiated attractive path for many of the current property enterprise markets.
In terms of scale, as of September 30, 2021, the total GFA under management of Jinmao Services was approximately 23.2 million square meters. At the same time, as of the first half of 2021, Country Garden's service contract management area is 1.205 billion square meters. By the end of 2020, the area under management of All Things Cloud was 566 million square meters. According to the latest data by the end of 2021, the living area of CR Vientiane exceeded 140 million square meters. As of the first half of 2021, Wanda Commercial Management has a GFA under management of 54 million square meters.
It can be seen here that in terms of scale, Jinmao service providers are medium-sized property enterprises, and more than 90% come from Jinmao Group, and the ability to expand beyond the need to strengthen the common diseases of material enterprises have also become the focus of Jinmao services.
According to the data, as of September 30, 2021, the contract and area under management of Jinmao services from third-party properties were only 4.4 million square meters and 3.1 million square meters, accounting for 9.62% and 13.36% respectively.
From the perspective of revenue, from 2018 to 2020, the company's revenue was RMB574 million, RMB788 million and RMB944 million, and gross profit was RMB115 million, RMB151 million and RMB235 million, respectively. Relative to this scale area, the revenue is still good, showing the value of high-end properties.
In addition, in terms of business structure, the business scope of Jinmao Services covers a variety of fields such as community life services, commercial enterprise services, and urban operation services. Jinmao Services continues to provide property management services, non-owner value-added services and community value-added services for different types of customers. Jinmao Service actively creates three core IPs of "quality", "wisdom" and "symbiosis".
In fact, the development of the property enterprise lies in the growth of revenue scale and profitability, and also reflects the innovation ability of management and business. For the future development of Jinmao services, relevant experts believe that the future of Jinmao Property is currently relatively optimistic and optimistic.
However, the overall scale of Jinmao services is not large, and the gross profit margin is low, and the property management fee is high, so despite the high performance growth, it is still necessary to improve its own capabilities after listing to avoid bringing certain worries to investors.