Property management stocks are one of the hot speculation sectors this year
There are also a number of new property management stocks listed this year. Recently, two property management stocks also went public before the end of the year, respectively: Poly Real Estate (6049) and Times Neighbourhood (9928), which were separated from China Real Estate Poly (0119) and Time China (1233). Some experts believe that the speculation in property management stocks will be longer than that of domestic real estate, and will always be less affected by policies. . Ming Pao reporter Wang Junchen
Property management stocks have the characteristics of light assets, stable cash flow and stable earnings. The valuation may be relatively high, and the valuation of the two new stocks is higher than the industry average. Based on Poly Real Estate’s offer price cap of 35.1 yuan, the company’s net profit last year was 336 million yuan, and its historical price-earnings ratio was more than 50 times. For historical neighborhoods such as ceiling pricing, the historical price-earnings ratio was as high as nearly 74 times, even more than the leading Country Garden Service (6098) Ya Life Service (3319) is even higher. For the time being, the market’s response to Poly Property has been more enthusiastic. The market has recorded over-subscriptions over 100 times. In contrast, the first day of the era was not full, and only slightly over-subscribed.
Poly’s property has large third-party management in the era of large scale
Mainland property management stocks are generally based on their mothers and daughters. The area under the management of the subsidiary depends on the size of the property of the parent company. The area of poly properties is obviously larger than that of the neighborhood in the era. Poly last year reached nearly 260 million square meters in area under management, focusing on first- and second-tier cities. Until the end of June, it managed a total of 846 properties, including 565 residential projects. Times focuses on properties in the Greater Bay Area, with 204 properties under management with a total area under management of 34.7 million square meters.
The neighbourhood of the Times started behind, and it will also expand the area under management through acquisitions and other methods. Therefore, third-party managed properties account for a relatively large proportion of nearly 55%, but the average management fee level is relatively high. The management fee per square meter of the new property managed by Poly for the parent company is RMB 2.27, and the third-party property is only RMB 1.48. In contrast, the management fees of both parent company projects and third-party disks continued to rise, and were recorded at RMB 3.13 and 3.72, respectively, which was higher than the average level of residential management fees in the Mainland of 2.25 yuan last year.
Industry income is stable, salary rises become hidden concerns
Property management is obviously a labor-intensive industry, and labor is naturally the main cost of the industry, but with rising per capita wages in the Mainland, it will pose some pressure. For example, in the first half of the year, labor costs accounted for 67.7% of the overall increase, and the increase was more obvious. Poly still maintained the level of 55%. With the expansion of the company’s size, the number of employees will only increase accordingly, and cost savings will never be easy. However, the high management fee of the era also led to a gross profit margin of 26.9%, which was higher than the industry average of 25% in the first half of last year and 23.6% of Poly.
Mainland property management industry generally has three major businesses, including non-owner value-added services such as security arrangements during construction, which are mainly provided for real estate developers, while the main management business income is stable, and the growth potential is mainly in community value-added services, with higher gross margin . For example, the gross margins of value-added services of Times and Poly reached 53% and 44%, far higher than the management business. Mainland property management companies are different from Hong Kong and involve a wider range of areas. There are other groups such as online group purchase of daily necessities, elderly care, education and financial services, which provide an additional growth engine for this stable income industry.
Less affected by regulation The speculation is longer lasting than that of domestic housing. In recent years, many domestic real estate companies have listed property management companies on the market. They are generally listed at a higher valuation, and become another way for parent companies to “transfusion”. At the same time, competition within the industry is fierce. According to data from the China Index Institute, the top 10 property management companies in the Mainland last year only accounted for 2% of their market share in terms of revenue, while Poly’s 0.9% ranked sixth.
The industry is extremely fragmented, and it can be seen that the wave of mergers and acquisitions will be more intense in the future.
In fact, M & A is also an important channel for property management companies to expand the area under management. For example, at the beginning of the era, Guangdong Dongkang was acquired for 45.27 million yuan, which increased the area under management by 13.4 million square meters. Ya Life has also acquired Liu Zhongcheng’s equity in the past, but the total amount is only 500 million yuan, making the area under management exceed 500 million square meters. The news has also stimulated Ya Life’s stock price to rise since September.
Wait and see the performance of the disc
Everbright Sun Hung Kai Wealth Management Strategist Wen Jie said that the new stocks are all speculating in the market atmosphere and depending on the industry, and they believe that the speculation in property management stocks will be longer than that of domestic property stocks, and they will be more prolonged and relatively less affected by policies. This is because once China ’s economy stabilizes, the government ’s policy of “no housing and speculation” will affect domestic housing, and it is difficult to guarantee that sales will be as good as September to October. He also pointed out that although the property management market is currently fragmented and highly competitive, it is also a time to eliminate the weak and remain strong, such as the scale of Ya Life, which has increased significantly after the acquisition.
However, he pointed out that buying new stocks does not necessarily lead to larger stocks. Unlike the second-hand market, small stocks are more prone to speculation. He also pointed out that generally new stocks only look at the performance of the first day or days. It is also unclear whether the market conditions will decline again this week. Therefore, it is suggested that if investors win, it may be determined by the performance of the dark disk, but it should not be pursued again. I believe the above two New shares will increase by about one to one and a half percent.