Hong Kong listed property management companies

Editor's Note: As the property market enters the era of stock houses, the property sector of housing enterprises has changed its previous "chicken ribs" existence, not only began to provide financial endorsement for the parent company, but also staged the story of "shine on you is better than blue". Phoenix. Com real estate takes representative real estate companies as the breakthrough point to analyze the "rules" of real estate operation of real estate enterprises, the tenth issue: China Shipping Real Estate.

If the real estate enterprises are split and listed for dismantling and sorting, China Shipping Real Estate (02669.HK) will be in the forefront in both management area and operating income. As one of the few real estate companies with an area of over 6,543.8+billion square meters except colorful life, Country Garden, Greentown service and elegant life, this established real estate company is experiencing the status quo of slow scale expansion and weak endogenous growth.

The data shows that in 20 18 years, the area under the management of China Shipping Real Estate reached1400,000 square meters, and its three-year compound growth rate was only 19.48%, which tended to be conservative. In contrast, the service area of Country Garden has reached 65.438+0.8 billion square meters, with a three-year compound growth rate of 37.565438+0%. Elegant life is about to catch up, with a management area of 65.438+0.3 billion yuan, a three-year compound growth rate of 58.02%, and eternal life service as high as 60.26%.

Even if the scale does not correspond to the advantages and disadvantages, unlike the sales-oriented property, the development of property management enterprises is based on the management right of the community, and the scale should be put in the first place, which is the source of income. In the property map that has gradually become a trend, it has seized the "city" and seized the right to speak in the industry and the development space.

Looking around, the pioneers are speeding up their running, and the slow-moving Zhonghai property has begun to be pulled away;

Looking back, in the face of the strong catch-up of young enterprises such as Yongsheng Service and Greentown Service, how will China Shipping Property, which has a slow endogenous growth, respond?

90% of the management area depends on the parent company.

China Shipping Group, a central enterprise born out of its parent company, China State Construction Engineering Corporation, was established earlier, and 199 1 seems to have been in a state of "not bad money".

20 15 China overseas real estate landed in the Hong Kong stock capital market. Different from the IPO listing of Color Life, as the second enterprise in the domestic property management field to go public in Hong Kong, China Shipping Property adopts the introduction of listing. Compared with IPO, the advantage of listing by introduction is that the procedure is relatively simple, which can be completed in a short time and does not involve public fund-raising. This shows that financing is not the primary purpose of China Shipping Real Estate's listing. The fundamental reason is to build a platform for property assets and enhance the valuation of the parent company.

In fact, China Shipping Real Estate has always been favored by the parent company. Ye Xiang, vice president of China Shipping Real Estate, once said that he valued the property market: "The average level of property management fees in Hong Kong is seven times that of ours, but the level of labor cost in Hong Kong is only a little more than twice that of China. The cake of the main business of property management is the biggest. Compared with the level of developed countries, the main business of property management may have seven times the growth space after five years. " .

Three years after listing, the survival and operation of China Shipping Real Estate are more dependent on China Shipping Real Estate. Most of its business comes from China Shipping Real Estate or affiliated companies, which basically keeps pace with the layout of real estate business, and 90% of its management areas rely on the parent company.

Phoenix Real Estate found that when it was listed in June 20 15, the share price of China Shipping Real Estate was only HK$ 0.94, which was in a state of fluctuation until 20 17. The share price reached the highest value of about 3 yuan/share in the same period from 20 18, and then began to decline all the way, and opened on 20 19. The highest opening price is 4.25 yuan/share, the lowest is 4.05 yuan/share, the closing price is 4.07 yuan/share, the earnings per share is 0. 12, and the market value of Hong Kong stocks is133.78 million yuan. Up to now, the share price has quadrupled, with a P/E ratio of 33.28, and it is in a leading position in the same industry.

Schematic diagram of stock price fluctuation of China Shipping Real Estate

Phoenix. Com found that both properties were classified as split properties. As of July 1 day, the P/E ratios of Hong Kong-listed property companies such as Color Life, Greentown Service, Elegant Life and Country Garden Service are about 12.5 1, 3 1.78, 19.28 and 45.75 respectively.

Relying on the parent company does have the premise of relying on the big tree to enjoy the cool, but this dependence also has inevitable limitations. In decision-making, we need to wait for the unified coordination of the parent company and lack the flexibility of the development model. Business development is subject to the overall ups and downs of the real estate market. Once the real estate market goes down, its performance will also be affected.

Therefore, in recent years, while China Shipping is caught in the internal friction of personnel flow, negative effects such as "falling behind" are also projected on the development of China Shipping Real Estate to a certain extent. China Shipping Real Estate experienced a period of confusion from 20 15 to 20 17.

Since the listing of China Shipping in 20 15, the growth rate of pipe area has obviously slowed down, from 46% to 13%, and even dropped to 6% in the first half of 20 17, which is very consistent with the slowdown cycle of China Shipping's real estate sales.

In May 20 15, the total area under management of China Shipping Real Estate was 67.6 million square meters. By the end of 20 18, although the management area of China Shipping Real Estate was 2.3 times that of 20 15, the management area of Country Garden Service and Elegant Life Service was 2.6 times and 3 times that of 20 15 respectively.

The growth rate data also echoes the status quo. The property income growth rate of China Shipping Real Estate ranges from 20 15 to 20 17.6%, 0.7%, 12.5%, 18.2%. At the same time, the service income growth rate of Greentown after nearly one year of listing is 30.

In addition, China Shipping Group is also "transfusing blood" to China Shipping Real Estate through transfer to help it improve its revenue.

In 20 15, China Shipping Real Estate acquired Beijing Zhong Jian Property, Chongqing Haitou Property, Zibo Qin Yi Property, China Shipping Hongyang Property, Guangzhou Everbright Garden and Hohhot Zhonghai Property under the Group through internal transfer and acquisition.

The turning point occurred at 20 17. Through the acquisition of CITIC, China Shipping Real Estate acquired the management area of 120 property management project owned by CITIC Real Estate in mainland China for HK$ 229 million, which also improved the financial statements of China Shipping Real Estate.

Compared with the performance in 20 16, the related acquisition made the operating income of China Overseas Real Estate increase from 2.56 billion to 3.36 billion in 20 17, and the net profit increased from 226 million to 307 million.

The acquisition increased the construction area of China Shipping Property Management by 37.3% from 93.5 million square meters at the end of 20 16 to 654.38+283 million square meters. And 70% of the growth comes from the above acquisition of CITIC's real estate business.

New business development "muddling along"

There are two main paths for the future growth of property management enterprises: one is to achieve growth by expanding the scale of basic property management, and the other is to explore the value-added service market and tap the potential commercial space.

After all, the business area is an important standard to measure the overall strength of a property company. Most property companies are aware of the areas that only rely on endogenous growth, that is, expanding the proportion of third-party projects in the total projects and trying the path of mergers and acquisitions.

The background of central enterprises has brought certain convenience to the expansion of China Shipping Property Project, and China Shipping Property has been able to actively undertake various government and public construction projects, thus enhancing its market advantage in government property and continuously expanding its enterprise management boundaries.

As far as China Shipping Real Estate is concerned, China Shipping Real Estate tends to be conservative in the expansion of third-party projects. In Vanke, residential property and commercial property were split, and the sub-brand of "Everything Business Enterprise" was launched. Longhu actively arranges municipal projects such as railway stations and hospitals. In 20 18, China Shipping Real Estate increased by12.6 million square meters compared with 20 17, of which 2.3 million square meters were newly developed commercial or government projects, accounting for 18.25%.

However, unlike the blossoming everywhere, the newly developed commercial and government projects of China Shipping Real Estate are quite eye-catching, including Xiong 'an Citizen Service Center, Shenzhen Contemporary Art Museum and Urban Planning Museum, Hong Kong-Zhuhai-Macao Bridge Port, high-speed railway station in West Kowloon, etc., which are all core projects of the city.

In addition to the limited expansion of third-party business, the effect of value-added services with significant profit margins is not satisfactory.

Phoenix. The income of China Shipping Real Estate is divided into property management service income and value-added service income.

In terms of income structure, in 20 18, the income from property management services and value-added services accounted for 90. 1% and 9.9% respectively, and the income was HK$ 3.745 billion and HK$ 4 1 000 million respectively, an increase of 2 1.0% compared with last year, and the income from management services accounted for 2,065,438.

China Shipping Real Estate is also aware of the need to increase the proportion of value-added services, but this road has a long way to go and the effect is not very significant.

Phoenix. Com found that during the period of 20 15-20 17, the value-added services of China Shipping Property accounted for 7.03%, 8.93% and 7.83% of the total revenue, respectively, which remained at a low level, far from the level of 30% of the value-added services of Color Life and Greentown Services, with Country Garden's value-added services accounting for 26% and Yaya's.

According to the statistics of China Index Academy, from 20 15 to 20 17, the value-added services of listed property management companies accounted for 24%, 22.94%, 23.97% and 24.29% respectively. The proportion of value-added services of China Shipping Real Estate is also far below the industry average.

The profit model to be tested

20 18 12 3 1, among the separated property companies, Greentown Service, Country Garden Service, China Shipping Property and Color Life realized operating income of 67 10/00000 yuan, 4675 million yuan, 41550000 yuan and 360% respectively.

Although the revenue can be expected, the gross profit margin has always been the reason why China Shipping Real Estate has been criticized. The gross profit margin of China Shipping Property in 20 18 was 20.4%, down by 3.5 percentage points year-on-year, among which the gross profit margin of property management services dropped by 3.3 percentage points to 18.0%, which was 37.7% compared with that of Country Garden Services in 20 18. The gross profit margin of elegant life is 38.2%, and that of colorful life is 35.5%. The gross profit margin level of China Shipping Real Estate still needs to be improved.

The low interest rate of China Shipping Real Estate is far from the "profit king" image of China Shipping Real Estate.

The service modes of property management industry mainly include contract system and salary system, and the contract system adopted by China Shipping Property accounts for more than 80%.

Contract system is a kind of property service charging method in which the owner pays a fixed property service fee to the property company, and the property company enjoys or bears the surplus or loss. The contract gratuity system refers to that the owners' committee signs a contract with the property management company to act as the agent for the property management of the residential area, and the property fee of 10% is charged as the contract gratuity, and the remaining 90% is used as the working capital of the residential area, and the balance or deficiency is enjoyed or borne by the owners.

Some insiders explained the difference between the two to Phoenix Real Estate. The gross profit margin of contract system is lower than that of reward system, which will lower the gross profit margin to some extent. If you want to improve the gross profit margin of the contract system, you need to control the cost. For the reward system, the efficiency of performance contribution is relatively stable, but with the increase of management area, the space left for enterprises to improve their own performance will also decrease.

Different from China Shipping Property, Color Life adopts a reward system, and the two systems also create two sets of operational logic. In 20 14, the annual revenue of China Overseas Real Estate was HK$ 21600,000, which was four times that of Color Life, but its profit performance was far lower than that of Color Life: the gross profit margin and net profit margin of Color Life in 20 14 reached 79.2% and 37.5% respectively, while China Overseas Real Estate was only19.

Comparative data show that in 20 18, the annual revenue of China Overseas Real Estate was HK$ 4150 million, and the revenue of Color Life was HK$ 36140 million, which was almost the same, while the gross profit margin of Color Life was 35.5% higher than that of China Overseas 20.4% 15%.

Even though the current situation is that the gross profit of the property layout is not high and the new business expansion and area growth need to be expanded, at the beginning of this year, after Yan Jianguo returned to China Shipping Real Estate again, he put forward requirements for the future scale of China Shipping Real Estate and set the goal of "reaching 400 billion Hong Kong dollars in 2020". This also increases the imagination of China Shipping and China Shipping Real Estate in the future.

With the expansion of the parent company's scale and catching up with the growth momentum, the development of China Shipping Real Estate may gradually accelerate in scale and quality.