Edited by Shen Wanhongyuan (Hong Kong)-- property management industry: bargain-hunting layout, maintain super rating
Property management industry characteristics: natural defense
Different from the real estate plate, the property management plate has a defensive attribute.
Its listed property management companies are basically in a state of net cash and are limited by the continued tightening of financing. The strong recovery of the last round of market effectively ensured the steady growth of the management area of property management companies in the next few years. As well as the structural optimization of the increased contribution of remuneration management business and value-added services based on high gross margin, the comprehensive gross profit margin will continue to improve. In contrast, real estate developers are under pressure because of various strict control policies (such as purchase restrictions, sales restrictions, price restrictions, etc.).
Industry leader: Country Garden Services Holdings
The property management services unit of Country Garden Holdings, China's largest property developer, listed independently on the main board of the Hong Kong Stock Exchange on June 19 and became the new leader in the industry with a market capitalization of HK $25 billion based on the day's closing price of HK $10.0.
By the end of 2015, Country Garden Services Holdings's total contract management area was 330 million square meters (43% compound growth rate in 2017-2017, 86% of which came from property projects developed by Country Garden Holdings), ranking second in the property management sector. second only to the 440 million square meters of color life services in the same period (16% compound growth rate in 2015-2017, of which 99% came from property projects developed by third-party developers).
According to the China Index Research Institute, Country Garden Holdings still ranked first in the sales scale of Chinese real estate developers in the first half of this year, realizing a 43% year-on-year increase in contract sales to 414 billion yuan and a 35% year-on-year increase in contract sales area to 43 million square meters. We expect Country Garden Holdings's annual sales to exceed 700 billion yuan this year, an increase of 30% over 2017.
Based on the support of its strong developers, the market expects Country Garden Services Holdings to have a high visibility of management area and profit growth. at the same time, it focuses on the geographical layout of low-end cities and the economies of scale brought about by the market property management. to ensure that its property management fees are resilient and operating costs are relatively low.
New shares in the industry: Metro Yue & Kaisa Group
In view of the increasing market recognition of the property management sector, a number of developers have accelerated the pace of spin-off and listing of their property management services sectors.
New city YueAccording to the prospectus disclosed in April this year, the total contract management area reached 68 million square meters at the end of 2015 (with a compound growth rate of 45 per cent in 2017-2017), of which 76 per cent came from property projects developed by Metro Development Holdings, 98 per cent of which were managed on a contract basis. The average residential property management fee is 1.60 yuan per square meter per month.
In addition, Kaisa Group announced its proposed spin-off on June 22Kaisa propertyListed independently on the main board of the Hong Kong Stock Exchange, Kaisa's total contract management area reached 30 million square meters at the end of 2015 (a compound growth rate of 16% in 2017-2017), of which 86% came from property projects developed by Kaisa Group. 66% of them are managed on a gratuity basis and the remaining 34% on a contract basis.
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