Zhang Yanan / WenIn April 2021, Jinmao property completed the integrated acquisition of a series of important assets non-stop, taking over Jinmao property Management, Nanjing Ninggao, Jinmao Shanghai, Chuangmao Technology, Jinmao Commercial and other companies from the major shareholder Jinmao. At this point, the business framework before the listing of Jinmao property has been basically completed.
These companies have not only contracts for the management of residential properties under Jinmao, but also many office buildings and shopping malls under Jinmao and Sinochem, schools, government facilities and other public spaces, as well as urban operation projects such as Jiashan and Zhoushan.
For property companies listed in Hong Kong, the business combination of business management and property management is considered to have higher premium capacity and risk resistance. China Resources Mixc Lifestyle Services, excellent business enterprise service, Financial Street property, Zhongjun Business Management, Baolong Business, and so on, are strengthening this attribute.
Now, Jinmao property is going to be included. On August 31, 2021, China Jinmao proposed to spin off Jinmao property for listing. Compared with the above-mentioned companies, the listing story of Jinmao property also needs the blessing of non-residential property services.
First of all, strictly speaking, Jinmao property started from commercial management.
As early as 1993, Sinochem Hotel was established to provide property services for the office buildings of the Sinochem Tower, formerly developed by Jinmao Group in Beijing, and in 1999, through Jinmao Shanghai to provide property services for the city landmark Shanghai Jinmao Tower until 2011. before expanding its business to the residential projects developed by Jinmao.
In other words, Jin Mao's residential property service is only 10 years old, while the business management experience is nearly 30 years.
Secondly, strengthening the ability of business management in listed property companies is an important business increment for Jin Mao.
Although the sales of Jinmao in China has exceeded 200 billion yuan, compared with Xuhui, Xincheng and other real estate enterprises with similar sales, the total floor area of Jinmao property is very different.
According to the listing documents, as of March 31, 2021, Jinmao property had a total floor area of only 18.1 million square meters, while Xuhui Yongsheng Service and Xincheng Yue both had a total floor area of 100m square meters.
The management scale of a property company born out of real estate development is mainly determined by the development volume of its parent company. As a rising star in the real estate industry, Jin Mao began to come to the fore in 2009 by winning the "Land King" at No. 15 Guangqu Road, Beijing, and quickly gained a foothold and expanded through the construction of high-quality housing. however, compared with other colleagues in the deep ploughing industry for 20 or 30 years, Jin Mao accumulated less time and did not begin to manage houses developed by third parties until last year. Early completion of the listing, holding a lot of money of the property companies have already conquered the city and territory, the competition is obviously white-hot.
Third, Jin Mao's high-quality housing does not bring high profit margins.
Among the contract management projects of Jinmao property, more than 70% are located in first-and second-tier cities in China, and Jinmao Group's residential products have always taken the route of high quality. in 2020, the average selling price of its projects is about 20, 000 yuan per square meter. it is much higher than the industry average price of 16000 yuan per square meter. accordingly, the property fee of Jinmao property in charge of residential projects is indeed higher than the industry average. In the same period, the property management fee in charge of the residence is 3.6 yuan / square meter, which is higher than the industry average of 2.1 yuan / square meter announced by the Central Index Institute.
It should be noted that if there is no scale bonus, such a service premium, reflected in the capital markets, will not stir up too much spray.
In comparison, the premium of non-residential property is obviously high, and the property management fee in the same period is 19.7 yuan / square meter, which is significantly higher than the industry average level-5 yuan / square meter. Among them, the advantage of the price difference of office space is more obvious. The average property management fee is 27.3 yuan / square meter, while the average level of the top 100 property service enterprises is 6.93 yuan / square meter.
The reason why Jinmao property's non-residential business can get such a high premium has something to do with the fact that most of its projects are city-level landmarks, and the service list includes a series of skyscrapers, such as the 421-meter-high Jinmao Tower in Shanghai, the 313-meter-high Asia-Europe International Tower in Lanzhou, and the 250-meter-high Twin Towers in Meixi Lake in Changsha.
Jinmao property in the management project, there are 67 residential and 34 non-residential, covering an area of 15 million square meters and 3.1 million square meters respectively. If calculated according to the standard of property charges in 2020, the property fees charged by non-residential houses with an area of 17% exceed those charged by residential buildings with an area of 83%. In fact, this situation continued for the past three years until it changed in the first quarter of this year.
Generally speaking, the gross profit margin of commercial property services is generally higher than that of residential property services, and we have not seen the respective gross profit margins of residential and non-residential properties in Jinmao property's current listing documents. If we simply compare the data of excellent business services, in 2020, the gross profit margin of commercial projects developed by the excellent group of excellent business service management is 47.3%, while that of residential services is 11.2%, and the gross profit margin of the former is four times that of the latter.
In other words, the gross profit margin of business management can effectively raise the gross profit margin of basic property management. Even so, as of the end of March this year, Jinmao property "property management service" had a gross profit margin of only 9.3%, combining non-owner value-added services with a gross margin of 45.1% (mainly case services and consulting services). And community value-added services with a gross margin of 52.9% (including community space operation, community life services, second-hand housing sales agents and interior decoration platform services) Jinmao property's gross profit margin is 25.1%, the highest in three years.
According to wind statistics, from the half-year results issued this year, this level of gross profit margin ranks about 40 among property enterprises listed in Hong Kong. At present, there are a total of 51 property enterprises listed in Hong Kong.
Under the circumstances that there are no obvious advantages in scale indicators and profit indicators, it is still unknown how Jinmao property will get the response of the capital market after its belated listing. However, the use of Jinmao property after raising funds has been clearly defined. Acquire and invest in other potential property enterprises and expand cooperation with suppliers in coordination with related business; upgrade the intelligent service management system Used for enterprise operating funds and general purposes.
There are thousands of roads, but in fact, in many cases of property mergers and acquisitions in the first half of this year, in addition to Country Garden Holdings's acquisition of Blu-ray Garbo, the acquisition of property companies such as Country Garden Services Holdings, first Service, Evergrande Property Services, Shimao Service, elegant Life, excellent Business Services, and Color Life are mostly carried out in non-residential areas and value-added services. For listed property companies, the competition in this subdivision is also becoming fierce.