Company referrals
Evergrande Network Group Co., Ltd. (known as "Evergrande Network") is the flagship company of Evergrande Group Services in the military Internet Community, which is listed on the main board of the Hong Kong Stock Exchange. The permanent website has set up a service layout of "3x2x", including three basic boards of property services, social networking and life services, mutual exchange of home furnishings, large value-added boards of community finance, and boards that can be derived in the future. At present, the material management service board has implemented the functions such as property management and home installation warranty, while the social board has realized the functions of activity initiation, content sharing and so on.
In terms of profitability, as a start-up company, Evergrande has not yet made a profit. From April to December 2015, the company's total investment reached 866 million Hong Kong dollars, an increase of 590.43 percent over the same period last year; gross profit was 2711 million Hong Kong dollars, with a gross profit margin of 26.83 percent; realized expenditure of 101 million Hong Kong dollars, an increase of 7657 percent over the same period last year to 228 million yuan. HK $0.29 per share.
The consumption of quality goods is constantly rising.
The service for the permanent network is unfolding step by step. On December 30, 2015, APP 1.0, a community O2O platform independently developed by Hengli, was officially launched. At present, the APP has been iterated to version 1.6. as of March 20, 2016, the number of users of Hengli Mimi APP has reached nearly 30,000, and the number of monthly active users is about 18,000, accounting for nearly 60% of the total number of users. According to the regulations, by the end of 2016, the O2O products of the Evergrande network will be extended to most Evergrande communities, and in 2017 to all Evergrande communities and non-Evergrande communities, occupying the leading position of the O2O market in the rural areas. in the near future, we will continue to integrate and develop domestic communities and deeply deploy more than 100 million million sea markets.
Sustainable development of value-added service
The mutual purchase and household service in the value-added board is developing rapidly. As of December 31, 2015, Hengli has established an "Mutual Household Alliance" with 15 well-known furniture home enterprises. The home is officially online. In 2016, the business plan of Hengli Network focuses on improving the usage system, developing product functions, and upgrading service products, and further integrates the needs of the market when it comes to value-added boards.
In line with national policy, the market prospect is promising.
The state has issued a number of policies to support the development of community service lines, and with the promotion of the residential street system, businesses of various kinds of life services will gradually enter the community in the future, laying the foundation for social interaction, shared economy and social business. At present, China's property industry covers an area of more than 20 billion square meters, covering 260 million households and 740 million people, and 94 percent of the empty space is waiting to be integrated and developed. by 2020, the total area of residential property in China will reach 30 billion square meters, and the market regulation model will exceed 100 million yuan.
Valuation and investment recommendations
The O2O service of the community is still in layout and does not have a high level.
We believe that the Evergrande network relies on Evergrande and information technology companies, has online and offline simultaneous leadership, has a slightly accurate positioning, advances in the development model, and will have significant impact in the future. Without the promotion of mutual financial services in the home and community, the permanent network is expected to turn around in 2016, achieve explosive growth, and have a significant impact on the services of the internet. however, due to the fact that the business of the company is in the training period and will respond to the relationship in the short term, we are not committed to the company and will not maintain further contact and attention. (as of April 26) reminder
Macro economic downturn
The service promotion is not as expected.
