Chengdu, China, January 9, 2022 /PRNewswire/ – Nowadays, real estate developers are facing unprecedented challenges. Under multiple regulatory measures such as the “three red lines” and centralized land supply, the development of real estate developers has once again been shelved, and the capital market is full of pessimism towards the real estate industry.
But unexpectedly, the capital market still shows strong interest in property management services and other property-related industries. According to Choice data, the price-earnings ratio (TTM) of Sunac (Sunac China Holdings Co., Ltd.), Poly (China Poly Group Co., Ltd.) and Country Garden (Country Garden Holdings Co., Ltd.) are all around 5 times, while P/Sunac Services ( The E-ratio (TTM) of Sunac Services Holdings Co., Ltd., Poly Services (Poly Property Services Co., Ltd.) and Country Garden Services (Country Garden Services Holdings Co., Ltd.) is maintained at a level of about 20 times. The value level far exceeds that of real estate companies.
The logic of the capital market’s optimism about the property management service industry is not difficult to understand. On the one hand, the property management service industry has a superior business model and possesses the attributes of asset-light operation; on the other hand, the market scale of the property management service industry is large enough.The Orient Securities research report pointed out that by 2030, the market size of basic property management services will reach 1.7 trillion yuan.
The excellent business model and the huge market size have also attracted many giants to enter the track of property management services, leading to industry differentiation and fierce competition. In this context, how should medium-sized property management service companies grasp the historical opportunities of the industry?
Recently listed Hongkong In the stock market, Desun Services (02270.HK) showed a good case for reference.
As a property management service company focusing on the Sichuan-Chongqing region, Desheng Services’ income scale is not large, but its income level has soared in recent years.According to the prospectus, in FY2018, FY2019, FY2020 and 5M2021, Desheng Services recorded revenue of RMB 63.964 million, RMB 6,9116,000, RMB 127.922 million, and 89.159 million yuanEach represents a CAGR (compound annual growth rate) of approximately 41.4% between 2018 and 2020.
There are two reasons for the rapid growth of Desheng Services: First, Desheng Services focuses on the mid-to-high-end property management service market, while focusing on the rapid economic growth of Sichuan and Chongqing, forming a unique differentiated competitive advantage; Second, Desheng services rely on Chengdu The strong support of Desheng Real Estate Co., Ltd. and its subsidiaries, joint ventures and associated companies (Desheng Real Estate Group), combined with the company’s strong mergers and acquisitions (M&A) and integration capabilities, has increased its performance.
In the long run, with the development of the property management service industry, Desheng Services is expected to achieve sustained high-speed growth by leveraging its existing competitive advantages.
In an era of vigorous development of the property management industry, differentiation is unfolding
From the current point of view, the property management service industry is still growing rapidly and on a large scale.According to a research report by Orient Securities, by 2030, the building area (building area) managed by the property management service industry will reach 36.9 billion square meters, and the scale of the basic property management service market will reach 1.7 trillion yuan, The total scale of the industry (basic services + value-added services) exceeds 2.5 trillion yuan.
The reason behind this is clear. On the one hand, in the past few years, due to the low level of urbanization, the penetration rate of residential properties has not been high. In recent years, with the advancement of urbanization, the penetration rate of residential properties has continued to increase.According to data from the China Index Research Institute, the penetration rate of existing properties in 2020 is 53.5%, an increase of 10.2 percentage points from 2015, but compared with the residential penetration rate, there is still a lot of room for improvement of 93.7% Beijing.