The property sector recovered: the H-share property index of northeast real estate closed at 562048 last week, up 5.16% in total; Over the same period, the Hang Seng Index rose 2.18% and the Hang Seng Composite Index rose 2.31%; Last week, the Northeast real estate A-share index closed at 148289, up 5.40%, the Shanghai and Shenzhen 300 rose 0.07% in the same period, and the Shanghai Composite Index fell 1.29%. The top three property management companies that rose last week were Baolong Commerce (+ 12.6%), Shidai neighborhood (+ 10.26%) and Binjiang service (+ 9.09%).
Last week, Zhonghai property, Xuhui Yongsheng service, Baolong business, Shimao service, rongchuang service, xinchengyue service, hejingyouhuo, Jianye new life, Evergrande property and excellent business enterprise services were increased by Hong Kong stock connect, and rongchuang service increased the most (+ 0.60). As of last week, the shareholding ratios of Zhonghai property, Xuhui Yongsheng service, Baolong business, Shimao service, rongchuang service, xinchengyue service, hejingyouhuo, Jianye new life, Evergrande property, excellent business enterprise service and Hong Kong stock connect were 15.41% / 11.36% / 9.18% / 10.25% / 11.09% / 7.81% / 0.97% / 3.20% / 7.46% / 3.81% respectively.
Company dynamics: last week, China Merchants Property Operation & Service Co.Ltd(001914) released the results of the first quarter of 2022; Jianye new life and Xuhui Yongsheng service repurchase shares.
Industry news: last week, Jiangxi issued property management regulations; Zibo issued a reminder to standardize the charging behavior of property services.
Investment suggestion: last week, China Merchants Property Operation & Service Co.Ltd(001914) released the first quarter results. During the period, the operating revenue was 2.537 billion yuan, with a year-on-year increase of 14.8%, and the net profit attributable to the parent company was 145 million yuan, with a year-on-year increase of 24.4%. The performance continued to increase steadily; By the end of the period, the area under management had reached 291 million m3, of which residential and non residential accounted for 39.9% and 60.1% respectively; In the first quarter, the newly signed contract amount was 730 million yuan, an increase of 26% year-on-year. During the period, new high-quality projects such as Alibaba IDC data center, Zte Corporation(000063) Nanyan base and Shenzhen Hospital of Guangzhou University of traditional Chinese medicine were expanded, and the non residential expansion continued. During the period, the company’s professional value-added service revenue was 355 million yuan, with a year-on-year increase of 14.9%. It won the bid for the intelligent project of Foshan Nanhai Fengrui residence in the field of construction technology, and the professional value-added service continued to break through. In February this year, the company completed the transfer of the equity of Shenzhen AVIC City, Kunming AVIC and Ganzhou Jiufang to the related party China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) , and the separation of light and heavy assets was smoothly promoted. We suggest that in the medium and long term, we should pay attention to the market-oriented external expansion ability and single site optimization potential, and be optimistic about China Resources Vientiane life, country garden service, Xuhui Yongsheng service, Jinke service and Baolong business; In the short term, it is necessary to assess the credit risk impact of related parties, supplemented by the consideration of valuation cost performance, and be optimistic about poly property, Jinke service, xinchengyue service, China Merchants Property Operation & Service Co.Ltd(001914) , New Dazheng Property Group Co.Ltd(002968) .
Risk warning: the price increase of property management fee is blocked; External expansion is less than expected; The expansion of value-added services was less than expected
