Summary of the report
Company overview
Rongxin service is an integrated property management operator. For property management companies rooted in East China, by the end of 2020, property management services located in the Hercynian region and the Yangtze River Delta region accounted for 63.5% and 22.8% of the total management area, respectively.
The company ranks 19th among China's top 100 property service enterprises in 2021 and 20th among China's top 100 property service enterprises in 2020.
The affiliated property developer, Rongxin China (3301.HK), was founded in 2003 and is headquartered in Shanghai and listed in Hong Kong in 2016. Rongxin China's sales in 2019 and 20 years were 141.3 billion yuan and 155.2 billion yuan respectively. According to Carey data, in 2020, full-caliber sales ranked 21st in the country, and rights and interests sales ranked 26th in the country, which is a medium-sized housing enterprise. As of December 2020, Rongxin China's soil storage is about 28.7 million square meters, mainly in the Yangtze River Delta and Hercynian region.
Runxin service has an area of about 1990 million square meters under management by the end of 2020, which belongs to small and medium-sized property management companies.
Among them, the projects developed by Rongxin China and related parties are about 1240 million square meters, accounting for about 62.2% of the total. The total contract area is 38.2 million square meters, and the joint pipe ratio is about 1.9 times. Among the management projects, residential properties account for 1220 square meters and non-residential properties account for 7.7 million square meters.
It mainly provides three major services:
(a) property management services. Mainly basic property management services, the company's main source of revenue, accounting for 48.9% of the total revenue in 2020.
2) non-owner value-added services. Case management services and design consulting services mainly provided to real estate developers, accounting for 49.1% of the total revenue in 2020.
(3) Community value-added services. It mainly includes community group purchase service, home improvement maintenance service, real estate agency service and so on, accounting for 2.0% of the total income in 2020, which is lower than that of the same industry.
The company's 2020 gross profit margin is 28.8%, of which the basic value-added services is 23.2%, which is the average level of the industry; the gross profit margin of community value-added services is 34.4%, slightly lower than the average level.
Industry status and prospects
With the rapid urbanization and the continuous growth of per capita disposable income, the construction area and the number of properties managed by the top 100 property service enterprises have increased rapidly. Coupled with the restrictions of the real estate sector under investment and financing, further accelerate the integration of the downstream property management industry, the comparative advantage of the head enterprise in resources will be highlighted.
Supported by the policy, in October 2020, the National Development and Reform Commission and 14 other ministries jointly issued the "work Plan for expanding domestic demand and promoting consumption in the near Future", which provides an external guarantee for the diversification of the property industry. it is conducive to promoting the construction of intelligent communities and community life services for property management enterprises. The core business of China property Management Company includes property management services and value-added services. Among them, value-added service is the key to profit growth, property management companies enjoy the advantage of being close to owners and households, and it is easier to obtain the demand information of households.
Advantages and opportunities
The brand effect of Rongxin China, a related housing company, in East China, coupled with its rapid growth, is one of the keys to support Rongxin service.
The company's business operation is deeply cultivated in the Hercynian region and the Yangtze River Delta region, with better economic depth.
