On May 20, the "2022 research results conference of China's listed real estate companies and the 20th industry city integration investment and Financing Conference" of China Index Research Institute was held, at which the latest research results of China's listed property service companies were released.
The reporter of China business daily learned that from the beginning of 2021 to May this year, the property service sector first developed and then declined, and the P / E ratio was the same as that in 2018, but it was still higher than the overall level of the market. On May 13 this year, the average p / E ratio of Hong Kong stock property service sector was 13.0 times, which was higher than the average level of Hang Seng Index (9.1 times). In 2021, the average area under management of property service listed companies reached 110 million square meters and the average operating income reached 3.37 billion yuan. The scale of the company expanded rapidly and the profitability continued to improve.
net profit increased by 50%
Relevant data show that as of May 13 this year, 59 property service enterprises have landed in the capital market, including 55 Hong Kong stocks and 4 A shares. Another 6 companies have submitted their forms and are in the process of listing, which is in the sprint stage. The rapidly expanding management scale helps property service enterprises to land in the capital market, and the financing of property service enterprises is mostly used for market acquisition and M & a related businesses, so as to speed up the scale expansion and form a virtuous circle.
According to the report of China Index Research Institute, by the end of 2021, the average area under management of listed property service companies was 110 million square meters, a year-on-year increase of 44.3%, and the average contract area was 160 million square meters, a year-on-year increase of 37.6%. In 2021, the third-party expansion area of property service listed companies accounted for an average of 57.1% of the area under management, an increase of 10.3 percentage points over 2020.
The increase in pipe area has driven a significant increase in revenue. In 2021, the average operating revenue of listed property service companies reached 3.37 billion yuan, an increase of 1.11 billion yuan over the previous year. There are four listed property service companies with an operating revenue of more than 10 billion yuan, namely country garden service, ya life service, green city service and poly property. Among them, country garden service has the highest operating revenue of 28.84 billion yuan.
Over the same period, the average gross profit of listed property service companies was 910 million yuan, a year-on-year increase of 44.1%, and the average net profit was 450 million yuan, a year-on-year increase of 50.1%. In 2021, the average gross profit margin and net profit margin of listed property service companies were 29.1% and 13.2% respectively, realizing sustained and steady development. In 2021, the average operating revenue, average gross profit and average net profit of property service listed companies increased by 49.0%, 44.1% and 50.1% respectively year-on-year. The average growth rate of operating income is further higher than that in 2020.
The reserve area of listed property service companies has also increased significantly. In 2021, the average reserve area of the company was 58 million square meters, a year-on-year increase of 24%, an increase of 13.6 percentage points over 2020, and the reserve area accounted for 53% of the average area under management.
Under the development requirements of scale expansion, community value-added services of property service listed companies have achieved leapfrog growth, mainly focusing on community life services, real estate brokerage, community retail, home decoration services and other fields.
or will enter the valuation repair period
The total market value of the property service sector of Hong Kong stocks soared all the way in the fourth quarter of 2020, remained high after 2021, and exceeded HK $trillion at the end of June. But then there was a significant adjustment, which fell to HK $446.49 billion by May 13, 2022. Comparing the market performance of Hong Kong stock property service sector with history, it can be found that the total market value is equivalent to the level in August 2020, and the average p / E ratio returns to the level in November 2018.
Looking back at the end of 2018, there were only 13 listed companies in property services, with an average operating revenue of 2.21 billion yuan, an average net profit of 280 million yuan, an average net profit margin of 11.4% and an earnings per share of 0.2 yuan, all lower than the current level.
At the same time, affected by external events such as the global epidemic, the conflict between Russia and Ukraine and the fierce game between China and the United States, the world economic development is facing hidden worries, the sustained and stable growth trend of China's economy is constantly challenged, the Hong Kong capital market is not immune, and the property service sector has entered a downward channel driven by the overall market.
Therefore, affected by the internal adjustment demand, market environment and related real estate enterprises, the performance of Hong Kong stock property service sector has deviated from the company's fundamentals, and there is an oversold phenomenon. The current overreaction of the capital market breeds the motivation for the upward return of future value. With the easing of the situation in the real estate industry, the introduction of industry support and economic stimulus policies, and the gradual improvement of the external environment, the Hong Kong stock property service sector is also expected to enter the valuation repair cycle.
However, although the property service sector as a whole has entered the downward channel, it should also be noted that there are still excellent property service listed companies that have withstood the test of the capital market and performed commendably in this process. High level of enterprise operation and high-quality performance growth are the cornerstone for excellent listed companies to win the attention of the capital market; The stable operation of affiliated real estate enterprises is a powerful guarantee for the development of listed companies; Excellent listed companies enhance their development potential by developing diversified business.
