Longhu Property | property shares to meet the leading, with more than 250 million square meters in the area of the sprint Hong Kong Stock Exchange
Two months later, on January 7, another “leftover pearl” of property enterprises, Longhu Smart Innovation Life, also launched an impact on the capital market. Different from the simple listing of some real estate enterprises, Longhu Smart Innovation Life is more like the integration of internal high-quality resources.In 2021, the property industry will change, the market mood is depressed, refraction to the capital end, the original tuyere is not in, the industry valuation is back to rational, the prospectuses of property companies frequently fail, the tide of mass listing begins to slow, some property companies are even put on the shelf to ease the liquidity crisis of the parent company.In order to get the favor of the capital market, even the leading enterprises have to “rack their brains” to tell a better story, showing the advantages of business model and development potential in addition to the advantages of scale.So, all things cloud trying to mark shells, redefine their own industry;Longhu Smart Life organically integrates its C2 business operation and C4 smart service, creating a service platform of “material management + business management”, namely, Longhu Smart Life.The reorganization of commercial asset management completed on the eve of the listing of Longfor Smart Life, in addition to further expand the scale and increase the diversity of business, but also to boost the capital performance after listing.Compared with the traditional residential property, commercial management property is favored by the capital market due to its higher gross margin and strong rental income growth, and its corresponding valuation and price-earnings ratio performance is also better.Among the listed real estate enterprises, China Resources Vientiane Life, which includes business management, has the highest price-to-earnings ratio, and baolong Commercial and Hejingyou Live, which also take business management as an important part, have significantly higher valuations than the industry average.From the prospectus, Longhu Smart life business mainly includes property management services and commercial operations services.In terms of property management services, as of December 28, 2021, the company has 1,512 projects under management, with an area of 254 million square meters under management, and an area of 440 million square meters under contract and strategic cooperation.According to the data of 2021, it ranks the eighth in the industry after Country Garden Service, Evergrande Property Management, Poly Property Management, Elegant Life, Color Life, Greentown Service and Everything Cloud.In terms of commercial operation services, longhu Zhichuang Life Management has opened 60 projects, covering an area of about 5.8 million square meters and an annual sales volume of about 44.6 billion yuan. In 2019, 2020 and as of September 30, 2021, the overall average occupancy rate of shopping centers managed by the company is 98.5%, 96.9% and 97.8% respectively.In addition to the 60 projects already opened, Longhu has 68 commercial projects in reserve.In terms of revenue, in 2019, 2020 and the first nine months of 2021, Longhu Zhichuang’s living income is 4.369 billion yuan, 6.468 billion yuan and 7.771 billion yuan respectively. Gross profit is 1.278 billion yuan, 1.666 billion yuan and 2.145 billion yuan respectively, corresponding to gross profit rate of 29.2%, 25.74% and 27.6%.Gross margin fluctuates slightly over 3 years.In terms of revenue details, Longhu Zhichuang Life’s revenue mainly comes from residential and other non-commercial property management services. In 2019, 2020 and the first three quarters of 2021, the revenue of this business is RMB 3.886 billion, RMB 54.45 billion and RMB 6.012 billion respectively, accounting for 89.0%, 84.2% and 77.4% of the total revenue respectively.The income from Longfor Group is 666 million yuan, 1.53 billion yuan and 2.333 billion yuan respectively, accounting for 15.24%, 23.65% and 30.02% of the living income of Longfor Zhichuang.In order to get rid of its dependence on the parent company, Longfor Smart Life has been continuously strengthening its external expansion since 2019.By the end of 2019, 2020 and the first nine months of 2021, the number of independently developed third-party projects in the area under management of Longhu Zhichuang Life is 230, 398 and 696 respectively, accounting for 43.9%, 47.4% and 58.5% of the total projects under management respectively. This year, the number of third-party projects accounted for more than half for the first time.During the same period, the corresponding construction area of pipelines was 37 million square meters, 79 million square meters and 127 million square meters, accounting for 38.2%, 51.5% and 59.8% of the total construction area of pipelines, respectively.The annual increase of third-party projects also makes it less dependent on the performance of the parent company.In 2019, 2020 and the first nine months of 2021, longfor Smart Life’s revenue provided by the parent company was 1.681 billion YUAN, 2.01 billion yuan and 1.841 billion yuan, accounting for 78.67%, 63.99% and 53.71% of the company’s residential and other non-commercial property revenue in the same period, respectively.In fact, for the listing, Longhu also made many preparations.Since last year, Longfor has been aggressively expanding its scale advantage by acquiring Beautiful Properties, Yida Services and the property management assets of Wharf Group.Now, with more than 250 million commercial management businesses in the management area and including the industry’s leading business, how will the capital market view such a new life of Longhu Smart Innovation?