“At present, there are high-quality acquisition targets in the industry, and the price is lower than that in the first half of last year. The management is actively paying attention to them and striving to get high-quality targets.” On the evening of March 3, at the performance presentation meeting of Yuexiu service in 2021, Lin Feng, non-executive director and chairman of the board of directors of Yuexiu service, told the Securities Daily and other media that in addition to considering the scale, M & A also pays attention to the quality of the target, seizes the opportunity but does not expand blindly, selects the target and makes good use of every penny invested by shareholders in the company.
According to the announcement, as of December 31, 2021, the profit attributable to Yuexiu service owners was 360 million yuan, a year-on-year increase of 80.6%; The basic earnings per share was RMB 0.27, a year-on-year increase of 35.0%. The board of Directors proposes to declare a final dividend of HK $0.102 per share (equivalent to RMB 0.083 per share).
“At present, the property management industry is relatively scattered and there is relatively large room for integration. We are actively paying attention to the acquisition opportunities and hope to have better results in 2022. At present, the policy level is good for the industry, which is a good phenomenon for the development of the industry.” Mao Liangmin, executive director and executive vice president of Yuexiu service, told the Securities Daily that in terms of layout, the company will maintain strategic concentration and focus on the five regions of Guangdong, Hong Kong and Macao, East China, central China, North and southwest China; In terms of business, it focuses on four major businesses: housing, commerce, transportation and urban services.
revenue close to 2 billion yuan
Overall, as the first year of Yuexiu service listing, the management is quite satisfied with this report card in 2021.
According to the announcement, as of December 31, 2021, the total revenue of Yuexiu service was 1.918 billion yuan, a year-on-year increase of 64.2%, of which the revenue from non-commercial property management and value-added services was 1.425 billion yuan, a year-on-year increase of 75.7%; The income from commercial property management and operation services was 493 million yuan, a year-on-year increase of 38.2%; The gross profit margin was 35.0%, an increase of 0.5 percentage points over the previous year.
As we all know, Yuexiu service is a property management enterprise with subway property management services as its characteristic business.
Turning to the TOD project and its future goals, Mao Liangmin said that the TOD market has a high degree of specialization. More than 40 cities across the country have subway operations, and other cities have opened intercity tracks such as high-speed railways. The overall market capacity of TOD is still large. At present, Tod business accounts for 15%. In the future, it is hoped that the revenue of TOD business will account for no less than 10%, because the revenue of other sectors will grow faster.
“TOD business is the characteristic business of Yuexiu service. At present, it has gone out of Guangzhou to the whole country. In the future, it hopes to provide subway services to more cities.” Mao Liangmin said that in the process of going global communication, other cities have recognized the property service mode of Guangzhou Metro, and I believe the team will work harder in this regard in 2022.
actively pay attention to the acquisition target
It is noteworthy that the property management industry is in the acceleration period of integration, and the expansion of scale is still the strategic priority of property management enterprises. According to the statistics of China Index Research Institute, there were 77 M & A transactions in the property management industry in 2021, with a transaction amount of 36.3 billion yuan.
In terms of M & A expansion, Yuexiu service continues to develop new business areas and expand the market by establishing a professional investment development team, establishing a market-oriented incentive system, improving its ability and management system for external expansion.
In 2021, Yuexiu service signed 71 new projects, with an additional contracted construction area of 10.2 million square meters. For the first time, it entered Shenzhen New Land Tool Planning &Architectural Design Co.Ltd(300778) as well as schools, expressway service areas and other new business forms in Beijing, Ningbo, Nantong, Chongqing and Wuxi, promoted the establishment of several joint ventures, and promoted the undertaking and development of local projects.
According to the financial report, as of December 31, 2021, Yuexiu service had 251 projects under management, with a total area of 38.9 million square meters, a year-on-year increase of 19.1%; 315 contract management projects, with a contract area of 58.4 million square meters, a year-on-year increase of 17.0%.
Yuexiu group said that based on residential property management, it will actively expand business forms such as commerce, large transportation and urban services, make every effort to build an urban comprehensive service operator dominated by four business forms: Housing + commerce + large transportation + urban services, and rapidly expand its scale and increase its market share through endogenous + external expansion + acquisition and merger.
In this regard, Wu Kuiyong, senior analyst of the property business department of China Index Research Institute, told the reporter of Securities Daily that behind the sharp increase in M & A in the property management industry, first, the transmission of real estate liquidity crisis has become a direct inducement for large M & A transactions; Second, enterprises expand their scale and seek development, which is the endogenous driving force of M & a frenzy; Third, sufficient M & a funds are the supporting factor for the scale of M & A.
