Compared with listed property companies, Poly property is not small in scale. According to the comprehensive strength ranking of CIPI in 2019, Poly Property ranks fourth among the top 100 property service enterprises in China and first among the top 100 property service enterprises in China with the background of central enterprises. The prospectus also shows that Poly Property earned 4.229 billion yuan in 2018, second only to Greentown and Biguiyuan services.
At present, Poly Property has three business lines, which provide property management business, non-owner value-added services and community value-added services. Among them, property management business is the most important source of income for the company. In the first four months of 2019, the income of property management business increased from 876 million yuan in the same period in 2018 to 1.211 billion yuan, accounting for the total revenue. The proportion was 70.5%.
Similar to other real estate companies, the largest customer of Poly Property is its parent company, Poly Development Holding Group, which is a Poly Property listed in A-share. At present, its income still depends on the completion source of Poly real estate, but the degree of dependence is decreasing. From 2016 to 2018, the proportion of income contributed by Poly Real Estate to Poly Real Estate decreased from 98.7% to 88.6%, and from 84.2% in the first four months of 2019.
Yan Yuejin, a financial commentator, believes that relying on large-scale real estate developers Poly Real Estate, Poly Real Estate has more manageable projects to achieve scale effect. At the same time, as a company with the background of a central enterprise, its advantages lie in the lower cost of financing, which is conducive to the follow-up strategic layout. However, if the operating efficiency of such property companies is not high, then the subsequent expansion will be constrained.
With the real estate industry entering the Silver Age, the property sector has become a new battlefield, a large number of property companies actively embrace the capital market, with the help of financial capital expansion.
In 2014, Caisheng separated from the pattern year and went to Hong Kong for listing. It became the first listed property stock and opened the prelude of property company listing. In the following years, China Haiti Real Estate and Greentown China have listed in Hong Kong, and the number of property stocks listed in Hong Kong has rapidly increased to 13. In the near future, in addition to Poly property, another state-owned property company will also borrow the shell of China Airlines Shanda in A-share listing.
Pingan Securities Research and Report shows that the current domestic property management industry presents a big industry, small companies pattern. In 2018, 11.4% of the top 10 cities in the industry and less than 40% of the top 100 cities in the industry were lower than the concentration of sales of real estate enterprises in the same period. At present, only 1.7% of the market share of lottery life with the largest management scale is far lower than that of leading enterprises in housing enterprises. In the future, with the rising concentration of the upstream real estate industry and capital-assisted M&A integration, the concentration of property management is expected to continue to improve.
In order to increase the market share, most property management companies rely on the completion resources of related housing enterprises to expand their scale, while a few expand by undertaking third-party open business and building platform output management technology. As property companies enter the capital market, mergers and acquisitions of small and medium-sized property companies will become a common means of expansion. Poly Property said in the prospectus that some of the funds raised will be used to seize strategic investment opportunities and select the best M&A.
Yan Yuejin also said that the current capital market, especially the Hong Kong Stock Exchange, provides a relatively relaxed listing environment for property companies, which is an important factor in promoting the active listing of such companies. At present, the monopoly property companies have not appeared, many enterprises hope to continue to expand the scale of listing to compete for the leading position.
Source: Liable Editor of Securities Daily: Yang Qian_NF4425