According to the HKEx, Jinmao property Services Development Co., Ltd. (hereinafter referred to as "Jinmao property") was listed through the HKEx, with China International Capital Corporation and HSBC Holdings PLC as its co-sponsors.
According to the prospectus, as of September 30, 2021, Jinmao property had a total floor area of 23.2 million square meters, including 96 residential projects and 41 non-residential projects, and a contract floor area of 45.7 million square meters. It covers 47 cities in 22 provinces, autonomous regions and municipalities directly under the Central Government, of which 67.8% are located in first-and second-tier cities.
Some analysts said that at present, the integration of the property industry is accelerating, mergers and acquisitions in the industry continue, and property enterprises will have more funds to expand their scale after listing, which is also the main reason for the recent listing of Vanke, Longhu and Jinmaoduo real estate companies.
In recent years, the scale of Jinmao property has grown rapidly. From 2018 to 2020 and the first nine months of 2021, Jinmao property's income was 575 million yuan, 788 million yuan, 944 million yuan and 1.049 billion yuan respectively, and its annual profits were 17 million yuan, 23 million yuan, 77 million yuan and 109 million yuan, respectively.
AsChina Jinmao (00817.HK) $Most of the property management service contracts of Jinmao property, its property company, are related to the management of properties developed by Jinmao Group (and its joint ventures and associates).
According to Jinmao property prospectus, from 2018 to 2020 and the first nine months of 2021, the construction area of projects developed by Jinmao Group, Sinochem Group and their joint ventures and associated companies is about 9.2 million square meters, 11.9 million square meters, 15.5 million square meters and 20.1 million square meters, accounting for 89.8%, 94.2%, 87.8% and 86.6% of Jinmao property's total construction area, respectively.
In response, Jinmao property said that the company began to allocate more resources in 2020 to speed up business development with independent third-party property developers.
In 2020, the total construction area of Jinmao property developed by an independent third party is about 2.2 million square meters, more than three times that of about 700000 square meters in 2019. As of September 30, 2021, Jinmao property managed a total of 32 projects developed by independent third-party property developers, with a total floor area of about 3.1 million square meters under management.
In terms of gross profit margin, the gross profit margin of Jinmao property was 19.2%, 24.9% and 29.6% respectively in 2019, 2020 and September 30, 2021, showing an upward trend year by year.
Backed by Jinmao, China, Jinmao property also has business in the field of urban operation.
As of July 31, 2021, Jinmao Group has successfully contracted 30 urban operation projects across the country. Jinmao property said in its prospectus: "the strong relationship with Jinmao of China enables Jinmao property to continuously take advantage of Jinmao's strong project reserve in urban operations in China. Currently, Jinmao property has entered into preliminary property management contracts for 22 urban operating projects in Jinmao, China, including a diversified portfolio of office complexes, new towns, cultural towns and smart cities in Shanghai, Changsha, Lijiang, Qingdao, Nanjing, Sanya, Wenzhou and Tianjin, of which 12 projects have been taken over. "
What is noteworthy is that since last year, in order to alleviate the liquidity pressure, a number of real estate enterprises have sold their property enterprises to central state-owned enterprises or large high-quality private enterprises, and the trend of mergers and acquisitions in the property management industry has become increasingly fierce.
Guohai Securities researcher pointed out that relying on sound high-credit developers, cash-rich, strong financing capacity of property enterprises will win in the industry clearance.
Industry experts believe that although the short-term valuation of the property sector fluctuates greatly, the long-term trend and growth logic of the industry remain unchanged. According to the data of the Central finger Institute, the scale of the property industry exceeded 27 billion square meters in 2021, and the total income of the industry exceeded 675 billion yuan.