Editor / Futu Information Bill
Futu News reported on November 6 that the first share of long-term rented apartment listed on Tuesday.$Q&K International Group (QK.US) $It opened 2.06% higher on the first day, then rose nearly 10%, and finally closed at $17.64, up 3.76% from its share price, with a turnover of $6.588 million.
Source: Futu Securities
It is reported that Q&K International Group's business model is not significantly different from other long-term rental apartments, that is, renting houses from landlords and by transforming relatively humble rooms into standard rooms with furniture to customers who need to rent. As of December 31, 2018, Q&K International Group operated a total of 91234 rooms in six cities, with a compound annual growth rate of 114.4%.
According to the report of Xuanshi Consulting, in terms of the value and number of total leased rooms, Q&K International Group ranks third among domestic long-term rental apartment operators, but there is a significant gap compared with the first and second places. If the monthly rent is less than 2000 yuan, it will be the first in the industry. In addition, Q&K International Group's average month-end occupancy rates in 2017 and 2018 were 91.6% and 92.4% respectively, also the highest in the industry.
In terms of financial data, Q&K International Group's operating income in 2017 and 2018 was 523 million yuan and 890 million yuan, an increase of 70.3 percent over the same period last year, with net losses of 245 million yuan and 499 million yuan, respectively. Q&K International Group's revenue for the nine months ended June 30, 2019 was 898 million yuan, an increase of 51.4 percent over the same period last year, and a net loss of 373 million yuan. It is slightly higher than 324 million yuan in the same period in 2018.
It is worth mentioning that another long-term rental apartment service provider--$eggshell apartment (DNK.US) $A prospectus has also been submitted and is expected to raise about $500 million in the United States. As of September 30, 2019, eggshell apartments operated a total of 406700 rooms, much larger than Q&K International Group.