The article is from the public number: PropTech Workshop (ID: cv_seal) , author: Ellie, the original title:” housing prices are not in transition, such as death? 》, the title picture comes from: Visual China.
Real estate enterprise transformation: is it better to have a dry robot or a new energy vehicle?
Sun Hongbin, a new boss in real estate companies, said: Real estate is still good.
Yes, boss Sun is right. The real estate industry is still the real estate company’s life root . The financial reports of listed companies show that the revenue of the main business of nearly a hundred listed real estate companies still accounts for the absolute proportion, basically above 90%. But as real estate moves from the golden age to the silver age, head real estate companies are also looking for new growth points.
It’s almost a dead end to turn slowly and late. The number of bankrupt companies has soared to several hundred and nearly a thousand now. Will this number increase next year? Hard to say.
But the real estate company ’s fate is not set today. 5 years ago, the real estate company ’s fate was fixed.
So what key decisions did the surviving companies make 5 years ago? How are housing companies that have chosen new energy vehicles and robots transformed?
How does the elephant in the traditional housing company turn around?
After reviewing the TOP20 housing company financial report, the author found that in addition to Evergrande’s entry into new energy vehicles and Country Garden’s research and development of robots, more housing companies still choose to lay out industries around “real estate +”:
(1) Focusing on the real estate industry, real estate companies have laid out property management and commercial real estate business. Among them, the maturity of property management is the highest, and the level of development of commercial management business is uneven;
(2) In terms of innovative business, joint office and long-term rental apartments are standard for housing companies;
(3) Cultural tourism real estate and pension real estate are also popular cross-border directions for housing companies;
(4) Housing companies are also involved in the fields of new energy vehicles and robots. In essence, they still serve the real estate industry.
01 The 1.2 trillion property management sector is the most mature. Splitting and listing into a trend
Poly Property, a property management company of Poly Real Estate, is about to go public for hearing. Since 2018, it has become common practice for real estate companies to spin off and list the property sector.
As an additional service of the traditional real estate industry, TOP20 real estate companies have layouts in the field of property management.
From the time of establishment, most of the listed property companies were established around 2000 and have developed for more than 20 years. Compared with other transformational businesses, the property management business is more mature.
As of now, the number of property management companies listed in Hong Kong has reached 17 (including Poly Properties) , of which real estate companies are the real estate companies. Fifteen, 11 of them have been listed since 2018, including Country Garden Services, Xinchengyue Services, Elegant Living Services, and Yongsheng Living Services. The basic situation of some listed property companies is shown in the table below.
Revenue of some listed property companies (produced by PropTech Research Institute)
In terms of scale and revenue, listed property companies, Country Garden Services, Elegant Living Services and Greentown Services are all well-deserved leaders.
In addition to listed property companies, Vanke properties that have not yet been listed cannot be underestimated. As early as 2016, Vanke Property’s operating income exceeded 5 billion yuan. In 2017 and 2018, Vanke Property contributed revenue of 7.127 billion and 9.8 billion, respectively.
In terms of revenue, Vanke Property has ranked first in the industry for many years. In addition, Vanke Property bought a 4.9% stake in Dade Lianghang for US $ 160 million in the second half of 2018.
In addition, many unlisted housing companies have disclosed property management income in their financial reports. For example, in the first half of 2019, Evergrande realized property management income of 2.32 billion yuan, World Trade Real Estate realized property management and other income of 1.61 billion yuan, and Gemdale Group real estate management income of 1.112 billion yuan.
Although Vanke is the leader of the real estate industry, the market share of Vanke properties in the industry is only between 1% and 2%, which shows that the overall concentration of the property industry is relatively low.
According to the data of China Index Research Institute, it is estimated that by 2020, the national property management area will exceed 23.5 billion square meters. Based on the average property cost of the top 100 enterprise management projects at 4.22 yuan / square meter / month, the size of the national basic property management market is approximately For 1.2 trillion yuan.
Although the property service industry has a low concentration, it has a bright future, especially the transformation of housing enterprises has inherent advantages. As one of the most mature business segments of the real estate enterprise, the property management business has entered the harvest period. The recent listing of multiple real estate companies in the split property sector is the best proof.
02 Business management business that tests operation skills: Vanke, China Resources, Longhu
In addition to property sales, commercial real estate is definitely another important “wing” of real estate. Without exception, the head real estate companies have layouts in the commercial real estate sector, but their development levels are uneven. The layout of head real estate companies in the field of commercial real estate is shown in the following table:
Layout of head real estate companies in the area of co-working and long-term rental apartments (PropTech study agency mapping)
Compared with startup companies, real estate developers mostly use their own properties to test water for joint office and long-term rental apartments, which can be a lot less pressure on rent.
The earliest players of co-working and long-rent apartments have submitted prospectuses. The two “share + real estate” industries have already entered the second half. Will real estate players become the new “spoilers”?
Xu Yafeng, the president of Wensheng Investment, once said that if there is one or two co-working offices and long-term rental apartments in PK in the future, then Wensheng does not rule out that they may make some investments and cooperation with them.
As we all know, The joint office and long-term rental apartment will not make any money in the short term. At the beginning, the players who swarmed into the joint office track chose the rapids to retreat.
Since 2019, Landsea and Ocean Shipping have divested their long-term rental apartment business. According to Landsea Green Group’s annual report data, its long-term rental apartment business lost 44 million yuan and 190 million yuan in 2017 and 2018, respectively.
05 It’s difficult for the elephant to turn around, and the road for the transformation of housing enterprises is long.
In addition to the above-mentioned expected diversified layout, there are also some real estate companies entering new fields such as new energy vehicles and robots.
At present, only two companies, Huaxia Xingfu and Evergrande, are involved in the auto industry. Building a car is not easy for a housing company. Hundreds of billions of China Happiness ended in the end. Currently, only Evergrande has been moving forward. According to incomplete statistics, Evergrande spent 300 billion yuan on new energy vehicles before and after.
Hengda said in its financial report that it has completed the layout of the entire new energy vehicle industry chain, and strives to become the world’s largest and most powerful new energy vehicle group in 3 to 5 years.
In the field of robotics, currently only a Country Garden housing company has listed the robotics business as its flagship business. Country Garden has stated that it will invest at least 80 billion yuan in the robotics field in the future.
The above businesses seem to have nothing to do with the main business of real estate. In fact, they still serve the main business of real estate companies. New energy vehicles produced by Evergrande can be sold together with their houses, and a number of robots developed by Country Garden have been tested on construction sites.
Real estate companies have a long way to go. Real estate companies in the property management and commercial real estate sectors have a long time to enter and stable cash flows. Long-term industries such as pensions and cultural tourism have a long payback period. High investment in the short-term, slower results.
In front of these slow money, as Sun Hongbin said: still make money from real estate. But do n’t you wait to die?
The article is from the public number: PropTech Workshop (ID: cv_seal) , author: Ellie.