Events
On January 10, in order to thoroughly implement the important instructions of the general secretary of Xi Jinping on better providing accurate and refined services to community residents, the Ministry of housing and urban rural development issued the guidelines for the construction of complete residential communities, defined the concept of complete residential communities and established the trial operation standards for the construction of complete communities.
Key investment points
The guide aims to promote the high-quality development of community services and clarify the six elements of a complete residential community
The guide defines a complete residential community for the first time and points out that a complete residential community needs to include six elements: perfect basic public service facilities, sound convenient commercial service facilities, complete municipal supporting infrastructure, sufficient public activity space, full coverage property management and sound community management mechanism. At the same time, it further puts forward the construction standards of each element, such as the construction requirements of community service places such as nurseries, elderly care and supermarkets; Establish a digital and intelligent professional property management platform; Construction requirements of barrier free facilities, environmental sanitation facilities and other municipal supporting facilities. The guide aims to promote the high-quality development of community services and property services, which is in line with the previous notice on strengthening and improving property management issued by ten ministries and commissions and the planning of the property management industry in the 14th five year plan.
Clarifying the boundary of property services is conducive to property enterprises to actively carry out community value-added services
The guide once again clearly encourages communities to introduce professional property services and improve the coverage of property management. It is required to establish a property service platform, promote the property service Wuxi Online Offline Communication Information Technology Co.Ltd(300959) development of community service industry, and realize fine management and service. We believe that this guide once again shows the support and guidance of policies for property management enterprises. Property enterprises are important participants in improving people’s living standards based on improving community service quality and conforming to consumption upgrading. In December 2020, the six ministries and commissions issued the opinions on promoting property service enterprises to develop home-based community elderly care services, encouraging property service enterprises to carry out extended services such as elderly care. The guide once again defined the boundary of property services and included elderly care, nursery education, community retail and convenient commercial networks (housekeeping, maintenance, laundry, catering, etc.) into the construction standards of complete residential communities, It is conducive to property enterprises to actively carry out and layout community value-added services.
Community value-added services are the key layout direction of the head property enterprises, which is expected to continuously improve the income and profit structure.
There are many subdivided tracks of community value-added services, and the property enterprises at the head have layout. The mainstream tracks include home decoration Meiju, community media, community retail, cleaning and maintenance, etc. The property company has the inherent advantage of being close to the owner and is easier to gain the trust of the owner. The community value-added service is growing rapidly and its proportion in the total income is gradually increasing. The income of 21h1 Shimao service, Xuhui Yongsheng, Jinke service, poly property and Jianye new life community value-added service has accounted for more than 20%. The gross profit margin of community value-added services is generally higher than that of infrastructure management services, so community value-added services can also effectively improve the level of comprehensive gross profit margin. We believe that with the continuous increase of policies, the community value-added services of high-quality property enterprises are expected to maintain a high growth trend.
Investment suggestion: optimistic
At present, the leading real estate enterprises are actively reducing their dependence on related real estate enterprises, developing third-party outreach + community value-added services, and improving the independence of development; The policy has a clear encouraging attitude towards property enterprises, and all previous policies are promoting the high-quality development of the property industry. We believe that the fundamentals of the property industry are good. As the capital of real estate enterprises stabilizes, it is expected to usher in valuation repair. Suggestions: 1) central enterprise property companies with high safety margin: Poly property, CNOOC property, China Resources Vientiane life, China Merchants Property Operation & Service Co.Ltd(001914) etc; 2) Private property management enterprises with high corporate governance independence and strong third-party expansion ability are manifested in the introduction of war investment to optimize the governance structure and the high proportion of the third party in the management area. It is suggested to pay attention to: Jinke service, Xuhui Yongsheng service, country garden service, etc; 3) The industry risk is further alleviated, and the over falling property enterprises have valuation repair opportunities. It is suggested to pay attention to: rongchuang service, Shimao service, xinchengyue service, etc.
Risk tip: tightening of industrial control policies and macroeconomic downturn
