The aging trend of the population and the acceleration of the cremation rate of human remains have continuously spawned huge demand for funeral services in the market. Due to the high demand for cemeteries, funeral companies that operate “graveyard real estate” greatly outperform most real estate companies in their ability to make money. China Wantongyuan, a Hong Kong stock listed company in the funeral industry, is mainly engaged in funeral business, providing funeral services and cemetery maintenance services. Since its launch in 2018, China's Wantongyuan's gross margin has remained above 70%, the highest of 84.58% in 2020. For comparison, the median gross margin of Hong Kong-listed housing enterprises in 2023 was 13.59%, with an average of 20.47%. The gross margin of China Resources Land, the “profit king” in the real estate industry, was 25.15%, and Zhonghai Real Estate was 20.32%. (Times Weekly)
殡葬企业利润率高过房企
Funeral companies have higher profit margins than real estate companies
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