Reporters noted that since novel coronavirus pneumonia outbreak, Hong Kong stock property board is on the rise. During the epidemic, the owners have a deeper contact with the property industry, and the value of the property industry is being rediscovered. In addition, relevant government departments have also increased their attention to the property industry, which is expected to have more value affirmation and policy inclination in the future. A broker told Securities Daily.
Back to the Financial Street resources advantage highlights
As a property business company of Financial Street Group, Financial Street property is best known in the industry to provide property management and related services for many national financial management institutions, bank headquarters, domestic and foreign financial institutions and investment groups as well as high-end luxury brands in Beijing Financial Street area.
We believe that our relationship with Financial Street holdings will help us to obtain new projects such as projects under construction and projects to be developed, and promote the sustainable development of business property and non business property project portfolios. The steady development of Financial Street holdings, including the continuous expansion of land reserves, will lay a solid foundation for our future sustainable development. Financial Street property said.
Backed by Financial Street, the controlling shareholder Financial Street Groups real estate, finance, education, medical and other industries and other business sectors provide resource support for Financial Street property. According to the prospectus, as of December 31, 2019, Financial Street property provided property management and related services for 9 schools and kindergartens operated by Financial Street Groups education companies, and signed a strategic cooperation agreement.
At present, Financial Street property mainly includes business property and non business property. In addition, the Financial Street property also launched its own brand series izee to provide catering services and other services, including coffee shops, restaurants and bakeries, as well as logistics, car cleaning and beauty services. At present, izee brand series has 43 stores in China.
In recent years, Financial Street property has realized the continuous growth of income, net profit and total construction area under management. The prospectus shows that the companys total revenue in 2017-2019 is RMB 757 million, RMB 875 million and RMB 997 million respectively, and its net profit is RMB 82.7 million, RMB 91.5 million and RMB 113 million respectively. The construction area under management is 13.2 million square meters, 16.4 million square meters and 19.9 million square meters respectively.
At present, in fact, there are not many high-quality enterprises in commercial property, and the listing of Financial Street property itself has a very good orientation, which helps to form a greater brand value. More importantly, for such commercial properties, there is a great demand for follow-up stock management, which has a great market investment value for Financial Street properties. Yan Yuejin told Securities Daily.
According to the report of China Index Research Institute, Financial Street property ranked 16th among the top 100 property service enterprises in China in 2020. According to the prospectus, as of December 31, 2019, Financial Street property has 144 property projects in China, with a construction area of about 9.9 million square meters under management, 40.8% of which is located in Beijing. Business property has a construction area of about 8 million square meters, ranking fourth among the top 100 property service enterprises in Beijing, Tianjin and Hebei in 2020.
In recent years, property service enterprises have accelerated the expansion of business scale, and the concentration of property management market has increased day by day. Financial Street property said it will expand its geographical coverage and increase its market share through M & A and the establishment of joint ventures. Specifically, it plans to expand new markets and expand its existing market share in Beijing Tianjin Hebei region, Yangtze River Delta, Dawan District, Chengdu Chongqing urban agglomeration and other first and second tier cities.
The Financial Street property plan is to sell 90 million H shares globally, with each share priced at HK $7.16 to HK $7.56, with an expected fundraising amount of HK $600 million. After deducting the issuance expenses, the net amount of raised funds will be mainly used to seek strategic acquisition and investment opportunities in mainland China, as well as to expand the business scale of new branches.
According to the prospectus, at present, Financial Street property has 11 subsidiaries and 40 branches in China, mainly focusing on business property and focusing on the first and second tier cities. Starting from Beijing Financial Street, Financial Street property gradually copied the property management mode of this landmark area to other financial management centers in key areas of the country, such as Chongqing jiangbeizui Financial City, Nanjing Financial City, etc.
At the same time, Financial Street property is also improving non-commercial property management and related services, expanding its market share in non-commercial property management industries such as residential. Financial Street property said that in addition to continuing to maintain the partnership with various parts of Financial Street Group, the company will also actively participate in the public bidding and competitive bidding procedures, and obtain new business from independent third parties.