Tiger Securities: shell looking for real estate

category:Internet
 Tiger Securities: shell looking for real estate


-Subscription time: August 8, 2020 to August 12, 2020

-Price range: 17.0-19.0 USD

-Number of issues: 106 million ads

-Ads ratio: 1ads = 3 ordinary shares

-Sponsors: Goldman Sachs, Morgan Stanley, JP Morgan, Huaxing capital

Company profile

Shell house is Chinas leading online and offline real estate transaction and service platform, providing new house sales, housing leasing, housing decoration, real estate financial solutions and other services.

Company business

Shell has become the largest residential service platform in China, covering the whole industry chain of real estate transactions. It is committed to reshaping the transaction chain of real estate transactions and services, so as to help customers and brokers to complete housing transactions better. Its main business includes stock housing transactions, new housing transactions and other emerging businesses. By June 2020, its business covers 103 cities, with 265 real estate brokerage brands, 42000 stores and 456000 brokers. In 2019, the total transaction volume of the platform will exceed 2.12 trillion and the turnover will exceed 2.2 million.

Shell launched the agent cooperation network, or ACN, to change Chinas housing trading and service industry in the following ways.

Promote the sharing of information and resources among real estate agents;

Promote the cooperation between real estate agent brands and dismantle the fence between information islands;

Create a professional network for Realtors, stores, brands and other service providers to connect and collaborate on the platform.

corporate performance

Both chain house and free trade are related companies of shell, so the transaction volume and service income are fully included. From 2017 to 2019, the volume of residential services related transactions (GTV) on shells was 1014.4 billion yuan, 1153.1 billion yuan and 2127.7 billion yuan, respectively. During the same period, the service revenue was 25.506 billion, 28.646 billion and 46.015 billion, respectively, with an annualized compound growth rate of 34.3%.

In terms of cost composition, from 2017 to 2019, the commission expenses of shells were 16.593 billion yuan, 17.161 billion yuan and 30.599 billion yuan respectively, and the gross profit rates were 18.69%, 23.98% and 24.49% respectively.

Company advantages

-Integrate the largest online and offline housing transaction service platform

-Digitalization and standardization of transaction process and service quality

-Important network effect ecosystem services

-Visionary management team

-About 30% is used for platform R & D and technology update

-About 30 for expansion of first-hand room services

-About 25% is used to diversify service products

-The remaining 15% is used for the companys general purpose and potential acquisition risk Tips 1. Fluctuations in the real estate market 2. Changes in policies and regulations 3. Changes in customer satisfaction 4. Relationship with brokers 5. Brand recognition and reputation 6. The negative impact of the epidemic 7. Monetization capacity. This article does not constitute and should not be considered as any agreement, offer, invitation to offer, opinion or Suggestions. Nothing in this article constitutes an investment, legal, accounting or tax opinion of tiger securities, a statement of whether an investment or strategy is appropriate for your personal situation, or any other recommendation for you. Source: editor in charge of mass news: Chen Tiqiang_ NB6485

-The remaining 15% is for general use and potential acquisitions

2. Changes in policies and regulations

3. Changes in customer satisfaction

6. The negative impact of the epidemic

This document does not constitute and shall not be deemed to constitute any agreement, offer, invitation to offer, opinion or proposal to purchase securities or other financial products. Nothing in this article constitutes an investment, legal, accounting or tax opinion of tiger securities, a statement of whether an investment or strategy is appropriate for your personal situation, or any other recommendation for you.