According to the recent disclosure of the Hong Kong Stock Exchange, Woodpecker Maintenance International Co., Ltd. once again submitted the main board of the Hong Kong Stock Exchange, with CICC and China Thailand as joint sponsors.
Synthesis | Prospectus Zhitong Finance Editor | Arti
This article is for informational purposes only and does not constitute any trading advice
According to the prospectus, Woodpecker is the largest home maintenance platform in China.
The Woodpecker platform provides convenient, transparent and trustworthy services to tens of millions of Chinese families in more than 300 cities, while providing engineers with sustainable income opportunities.
According to data from CIC, Woodpecker has a whopping 2.4% market share in China's online home repair industry in terms of total transaction value in 2023.
According to the prospectus, the total total transaction value of the woodpecker platform increased from 990 million yuan in 2021 to 1.46 billion yuan in 2022, and further increased to 2.48 billion yuan in 2023, with a compound annual growth rate of 58.5% from 2021 to 2023. For the six months ended June 30, 2024, the total trading volume of the platform was RMB1.57 billion.
The core competitiveness of Woodpecker lies in its strong technical capabilities and rich industry experience. Through years of accumulation, Woodpecker has not only achieved a comprehensive standardization of home repair services in terms of price, quality, process and after-sales guarantee, but also actively promoted the digital transformation of the industry.
The platform covers a wide range of services, including appliance repair, cleaning, installation, as well as water and electricity repairs, pipe dredging, unlocking and changing locks, etc., covering almost all the needs of home repairs. This one-stop solution greatly facilitates consumers and improves service efficiency.
In addition, Woodpecker also attaches importance to the construction and development of the engineering team. The company has established more than 500 engineer stations across the country, not only providing engineers with online and offline diversified skills training, but also cultivating front-line managers with excellent leadership through the engineer authorization system.
The average number of monthly active engineers on the Woodpecker platform increased by 62.8% from 7,092 in 2021 to 11,546 in 2022, and further increased by 65.5% to 19,105 in 2023 and 41.2% to 26,968 in the six months ended June 30, 2024.
In terms of finance, the Company's revenue increased by 48.1% from RMB401 million in 2021 to RMB595 million in 2022 and further increased by 70.0% to RMB1.01 billion in 2023, mainly due to the increase in platform service revenue and product sales revenue. The Company's revenue increased by 45.1% from $429 million for the six months ended June 30, 2023 to $623 million for the six months ended June 30, 2024.
In 2021, 2022, and 2023, Woodpecker's net profit will be 33.4 million yuan, 6.2 million yuan, and 4.89 million yuan respectively, and the overall performance will be relatively volatile. As of the first half of 2024, the company achieved a net profit of 3.89 million yuan, a decrease of 6.3% from the same period in 2023, mainly due to a significant increase in sales and marketing expenses.
It is important to note that the operating performance of Woodpecker is affected by seasonal factors. Typically, the third quarter has the highest transaction value, as rising summer temperatures lead to an increase in the demand for appliance cleaning and maintenance, especially air conditioning services. In the first quarter, due to the impact of the Lunar New Year holiday, many engineers returned to their hometowns for the holidays, reducing business activities.
The data shows that the transaction value from 2021 to the third quarter of 2023 was 91.0%, 92.9% and 83.9% higher than the first quarter of the same year, respectively. In order to reduce seasonal fluctuations, the company invests heavily in advertising and marketing resources in the fourth quarter of each year to enhance brand awareness and stimulate transaction growth in the following year. For example, in the fourth quarter of 2023, the company carried out large-scale brand promotion through multiple channels such as elevators and high-speed rail advertising.
In recent years, as China's housing market tends to become saturated, consumers' demand for quality services has gradually increased, and the existence of a large number of old houses has led to a rising demand for home maintenance.
According to CIC, China's home repair market was valued at RMB714.9 billion in 2023 and is expected to reach RMB931.8 billion in 2027, growing at a CAGR of 6.8% from 2023 to 2027.
Against this backdrop, the rapid development of Internet infrastructure has facilitated the rapid online penetration of the home repair industry – consumers are now more inclined to place service orders or book appointments through online channels or search engines.
According to CIC, the penetration rate of online home repair services (calculated by dividing the market size of service orders placed through online channels or search engines by the total size of the home repair market) increased from 3.2% in 2018 to 14.5% in 2023 and is expected to rise to 25.4% in 2027.
However, it should be noted that the rapid development of the industry has also attracted many enterprises to enter, which has also intensified the competitive pressure in the industry.
Specifically, the potential of the home repair market has attracted many businesses to enter, and the competition among peers is becoming increasingly fierce. In addition to traditional maintenance companies and individual craftsmen, some Internet platforms have also set foot in the field of home maintenance, such as Master Wan, Luban Daojia, etc., which compete with woodpeckers in terms of service models and price strategies. In addition, some new entrants with innovative models and strong financial strength may pose a challenge to Woodpecker's market position.
Since its inception, Woodpecker has received multiple rounds of pre-IPO investment, including Dream Landing Holdings Limited, Palm, Astrend, Tianjin 58 Qianmo, Caixin Jingjin, Suzhou Shunwei and Tianjin Jinmi.
The amount raised by Woodpecker's Hong Kong IPO is expected to be used to enrich the company's service categories; and expanding the geographic area of the Company's new services to expand the Company's service coverage; for engineer recruitment and empowerment; upgrading the company's digital platform; Enhance the company's brand exposure and popularity; entering into strategic partnerships, investments or acquisitions; and for working capital and general corporate purposes.