This report is read as follows:
On the one hand, the ability of traditional agency companies in the sales channels of new houses has been gradually weakened, and the decline of the commission rate of the company's first-hand agency business has led to a decline in the income of this block; on the other hand, the effect of Fanyou's first-and second-hand linkage outfield distribution is prominent.
Summary:
The performance growth is in line with expectations and the overweight rating is maintained. Although the company's revenue grew by 52.9% in 2019, its net profit decreased by 10.3% compared with the same period last year. The sharp increase in revenue is mainly due to a more than seven-fold increase in off-site distribution by tenants, which has made a turnaround for the first time since its launch in 2016. On the whole, although the commission rate of the infield is in the decline channel, the company relies on the shareholders of the real estate company under the guarantee of the traditional first-hand agent, and the roommates have also begun to enter the harvest period from the early investment. the new track will contribute to performance and reduce the company's operational risk.
Although the underwriting area of the first-hand agent increased by 4.9%, the income decreased by 3.9% due to the decline in commission rate. At present, the ability of traditional agency companies in new housing sales channels is gradually weakened. multi-channel marketing methods such as e-commerce and the emergence of "first-and second-hand linkage" of second-hand housing brokerage companies have weakened the sales ability of agents. the most direct performance is the decline of commission rates in the agency industry and the decline in market share. Backed by the strategic cooperation endorsement of shareholders and leading real estate enterprises, the company has signed an unsold reserve project area of 288 million square meters, ensuring the stable development of the first-hand agency business in the future.
The effectiveness of the first-and second-line linkage among housing friends is prominent, and their income has increased by more than 7 times. Although the profits of the infield have been compressed, the effect of integrating channels to earn money from outfield distribution is prominent. In 2019, landlords achieved more than seven times the growth in sales revenue. The company has launched a series of products, such as Youfang Public Market Resource sharing platform, YouFantong 2.0, Yiju Fangyou Management system 2.0, Fangyou data Research Institute, Fangyou College and other products, vigorously develop primary and secondary linkage business, and empower small and medium-sized intermediaries and brokers. After the single sector turned losses into profits in mid-2019, the annual profit was 57.9 million yuan.
Determined to become a striver, integrator and leader of "science and technology empowerment and intelligent service" in the real estate industry. In terms of first-hand housing agency service business, the company will shift from high-speed development to high-quality development, improving quality and efficiency through intelligent services; in terms of real estate brokerage network service platform business, the company will build a new house multi-point distribution platform (PLMS) and build a small and medium-sized economic ecosystem (Fangyou Xiaowei). In terms of real estate data and consulting services, the company will continue to focus on real estate big data, not only to provide services to developers, but also to enable services to the entire real estate industry.
Risk hint: the first-hand agency business has shrunk significantly.