SMM Network News: the wind of property listing is still blowing.
Hong Kong media reported on October 12 that Sunshine City plans to split its property management company to list in Hong Kong. It has been reported that Sunshine City property initially plans to raise at least US $200 million (about HK $1.56 billion).
Sources pointed out that Sunshine City has hired Huatai and China Merchants Bank as listing banks, and will list in Hong Kong as soon as next year, but the amount of capital raised and the listing timetable are still uncertain.
"it is still a window period. Due to stable income and high growth, the valuation of property management is much higher than that of real estate development enterprises."
An industry insider said in an interview that the release of value is an important reason for many real estate companies to spin off the property sector and list separately, and the logic behind it still depends on the large number of consumers in China and many businesses and opportunities in the community.
Split preparation
There have been rumors about the listing of Sunshine City property in the market.
On July 30, it has been reported that Sunshine City property plans to be listed next year, and the relevant audit has been carried out. What attracts public attention is that on July 29, Sunshine City integrated its property management and business management business and newly registered Sunshine City Huizhi Youjia Life Service Co., Ltd.
The enterprise investigation shows that Huizhi Youjia has a registered capital of 150 million yuan, and its main business mainly includes basic property management services and related professional services and business operation management services.
The company is held 99% and 1% respectively by listed companies Sunshine City and Fujian Sunshine Real Estate. The legal representative and chairman of the company are Lin Tengjiao, chairman of the board of directors of Sunshine City. At the same time, he is the actual controller of Huizhi Youjia, benefiting 14.6849% of the shares. Zhu Rongbin, Wu Jianbin and others served as directors of the company.
The company's ownership structure has changed after the capital increase and share expansion in September. On September 25, Sunshine City disclosed that it planned to increase its capital and shares for Huizhi Youjia.
Among them, Longjing Industrial Investment Group Co., Ltd., Sunshine Health Industry Co., Ltd., Fuzhou Economic and technological Development Zone Sunshine Zhibo Enterprise Management Consulting Partnership (limited partnership), Fuzhou Economic and technological Development Zone Sunshine Huiyou Enterprise Management Consulting Partnership (limited partnership) and Fuzhou Economic and technological Development Zone Sunshine Huijia Enterprise Management Consulting Partnership (limited partnership) 5 companies signed a capital increase agreement with Huizhi Youjia. It is proposed to increase the capital of Huizhi Youjia, the total amount of which is 367 million yuan, of which 62.5 million yuan is included in the registered capital and 304 million yuan in the capital reserve.
Upon completion of the capital increase, the registered capital of Huizhi Youjia will be increased from 150 million yuan to 212.5 million yuan. The shareholding structure of Sunshine City, Fujian Sunshine Real Estate Development Co., Ltd., Longjing Industry, Sunshine Health, Sunshine Zhibo, Yangguang Huiyou and Yangguang Huijia accounted for 69.88%, 0.71%, 2.47%, 2.35%, 5.06%, 10.18% and 9.35% of Huizhi Youjia's registered capital, respectively.
Sunshine City's total shareholding of Huizhi Youjia has been adjusted from 100% to 70.59%, and will continue to maintain the actual control of Huizhi Youjia.
In fact, the establishment of Huizhi Youjia, Sunshine City is the integration of property management and business management business. Specifically, basic property management services provide a series of property management services for owners and tenants of residential and non-residential properties (including offices, complexes, shopping malls, etc.). Including cleaning, greening maintenance, facilities and equipment maintenance, security and order maintenance and other services.
In addition, Huizhi Youjia also provides value-added services for owners, public area management services, rental and sale services, sunshine preferred services, professional home decoration customization services and other professional services; business operation management services mainly provide business consulting services and operation management services for commercial properties.
In the announcement of capital increase and share expansion, we can learn about the latest operation of Huizhi Youjia. As of July 31, 2020, the total assets of Huizhi Youjia simulation merger are 1.06 billion yuan, the total liabilities are 896 million yuan, and the total net assets are 164 million yuan.
From January to July 2020, Huizhi Youjia realized operating income of 727 million yuan, net profit of 85 million yuan and net profit of 64 million yuan after deducting non-recurrent profit and loss.
Property track
With regard to the development of Sunshine City property, the real estate new media learned by reading the annual reports in recent years that in 2018, the property management income of Sunshine City was about 175 million yuan, accounting for 1.31% of the total revenue; this figure rose to 771 million yuan in 2019. The proportion of total revenue has also increased to 1.26%, an increase of about 4.5 times a year.
In the latest disclosure of the 2020 report, Sunshine City property management business revenue has reached about 514 million yuan, it can be seen that the growth is relatively rapid.
If you want to find a reference in the listed property companies, the revenue of Sunshine City property and Zhengrong Service in 2019 is similar to that of Binjiang Service.
According to the disclosed data, in 2019, the operating income of Zhengrong Service is 716 million yuan, and that of Binjiang Service is about 702 million yuan.
The two companies were also sought after when they went public. Of these, Zhengrong Services is listed at HK $4.55 per share. The total number of Hong Kong offer shares available for subscription in the Hong Kong Public offering is about 25 million times, and the international offering is also substantially oversubscribed.
The offer price of Binjiang Services is set at HK $6.96 per share. The Hong Kong Public offering is initially available for subscription of about 7.14 times the total number of 6.67 million Hong Kong offer shares. The international offering is slightly oversubscribed.
On 12 October, Zhengrong Services closed at HK $5.32 per share with a market capitalization of HK $5.52 billion, while Binjiang Services closed at HK $16.28 per share with a market capitalization of HK $4.5 billion.
For the property enterprises supported by the parent company, the business of the parent company can provide them with a stable management area. According to the opinion Real Estate New Media, Sunshine City ranked among the top 18 housing enterprises with 95.1 billion of sales in 2017, reached the target of 100 billion yuan in 2018, recorded sales of 162.856 billion yuan, and passed the 200 billion mark in 2019.
As of the first half of the year, Sunshine City has recorded contract sales of 90 billion yuan, which is basically the same as last year; the corresponding sales area is 7.2688 million square meters.
The steady growth of the new sales area of Sunshine City and the continuous increase of the contracted delivery area every year can obviously provide a guarantee for the growth of the property management business. After listing, Sunshine City property will also be able to obtain a sum of capital for scale expansion.
From the current point of view, more business data still need to wait for Sunshine City property to submit the prospectus before it can be known. However, the listing of a second-tier housing enterprise has obviously become the focus of the capital market.
From 2018 to now, property management enterprises have been sought after by investors. The above-mentioned industry insiders pointed out that a number of factors are some of the core reasons why capital markets or investors are optimistic about the industry.
"it is also determined by the characteristics of the business: first, anti-cyclical, there is a stable cash flow contribution, which will not be greatly affected by the economic downturn or national policy adjustment, which is a very important premise; second, the property itself is a light asset management model; third, most investors are full of imagination about community services, including technological and technological progress, which can reduce costs and increase efficiency in industries that would otherwise be difficult to make profits. Fourth, the re-understanding and positioning of the industry at the national level after the epidemic. "
According to statistics, at present, 29 property management companies have landed in the capital market, excellent commercial enterprises, first service and other property enterprises have carried out stock offerings one after another, Evergrande property, Fuchuang property and other giants have also submitted prospectuses.
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