Epidemic Prevention And Control Is Active As The Stock Price Rises Leading Property To Compete For 3 Trillion Blue Ocean.

During the Spring Festival of 2020, the new coronavirus pneumonia continued to spread. Since February, the national "epidemic prevention war" has entered a critical stage, and the community is also a crucial link. In this epidemic prevention, developers' property is in the front, playing an important role.

As an important city in the central region, Wuhan has become a heavily loaded place for Vanke, Biguiyuan, Hengda, poly, Longhu and many other housing companies. Housing companies have many communities here, and their property companies serve millions of owners.

Outside Wuhan, the number of owners of mainstream Housing enterprises in the country is expected to be over 10 million orders of magnitude (including brand export communities). In this "home segregation" campaign, the property department and the grass-roots government departments shoulder heavy responsibilities together.

In many practical prevention and control of population control and community supplies, leading property companies have accumulated long-term service capabilities. Recently, the listed property companies in Hongkong have also gone out of a good market. The share prices of Biguiyuan, Greentown services and Zhonghai properties rose, reflecting the optimistic expectations of the market for the property services industry.

In fact, since last year, a number of property stocks have doubled their share prices, and the valuation of property companies is several times higher than that of property stocks. Even 11 property companies are listed in 2019. This year, there will be more property companies seeking listing.

Analysts believe that with the quality of property services gradually recognized, after this outbreak, leading property companies will further enhance the competitiveness of the industry, mergers and acquisitions will intensify the wave of integration.

Participating in community epidemic prevention

Many years of urbanization and real estate development have created numerous closed residential areas. To a certain extent, this has provided some convenience for the epidemic prevention work.

At present, the mainstream Housing enterprises basically have their own property platform, and also have many years of experience in community management. Since the outbreak of the epidemic, housing enterprises have generally started the contingency plan from the group level, requiring the property department and the grass-roots government to cooperate in the implementation of disinfection, temperature detection, material distribution, epidemic reporting and so on.

Take Vanke as an example. During the Spring Festival, there were over 370 thousand staff members of Vanke property, with an average of over 50 thousand people on duty every day, guarding 5 million 200 thousand families.

A lot of properties have completed the epidemic prevention work conveniently and efficiently with the help of science and technology. For example, the sea China property has equipped the induction spray disinfection facility, and the Jindi property has started the robot.

With the development of epidemic situation, the requirements for epidemic prevention work have been further strengthened. In February 7th, Guangzhou, Hefei and other cities announced that the residential areas within the jurisdiction would be closed managed, which would further test the work of residential property.

Relatively speaking, during the epidemic period, leading property can mobilize more resources, such as a large number of procurement materials, allowing owners to stay away from home to buy grocery shopping.

In some residential areas of Biguiyuan, the housekeepers provide unified procurement services to the owners, and directly send them to the owners' doorways. In Longhu, the district property management set up a vegetable service station, so that the owners can directly place the order and send them to the door.

Everbright Securities Research Report shows that the active basic property services in the epidemic will help to increase the trust and sense of service of the owners, thereby contributing to raising the collection rate of property fees.

The active property companies in the epidemic situation will further strengthen the trust of owners, and establish strong connections for home service, pension, home service and other service scenes. In addition to the property services in this district, the construction of the fire god Hill Hospital and Raytheon Hill Hospital in Wuhan has been supported by many enterprises, and many housing enterprises have joined the aid team.

It is understood that the first batch of 64 people's property management service teams are from the three Bureau of China Construction, medical housekeeper, Pearl River, GUI Ge, Hui Chi Mei, Vanke and Jindi 7 property enterprises, and from February 1st to afternoon, the hospitals began to open up wasteland and clean their areas.

Among them, in February 1st, Vanke property to support the Wuhan Fire God Mountain hospital, sent the first batch of 10 volunteers to work night to ensure that the fire god hill hospital delivery in February 2nd night.

Out of the independent market

In the shadow of the shadow of the epidemic, in February 3rd, the first day of the opening of the real estate stocks fell sharply, A shares a total of 67 real estate stocks down. A few days later, property stocks are still in turmoil.

In contrast, the property concept stocks are another scene. In the capital market of Hongkong which opened earlier, Biguiyuan services, Zhonghai property, Jia Zhao Yi fine, color life, Xinyue and other property shares rose to varying degrees.

From February 3rd to 7, Biguiyuan services, Greentown services, Zhonghai properties, poly property and other leading companies have achieved a continuous rise, and the country garden service has increased by about 10%.

As of February 7th, the market value of country garden service has reached 79 billion Hong Kong dollars, exceeding the market value of new town development, Fuli real estate and other real estate stocks. The market value of the poly property soon reached 33 billion 800 million Hong Kong dollars.

Why are investors optimistic about property stocks? Color life CEO Huang Wei believes that the epidemic is the second value discovery of the property management industry, and it is also the owner's value finding for property services.

For example, he painted 77 projects in Wuhan, of which 19 owners were diagnosed with new crown pneumonia, with an incidence of only 0.9. This benefits from the company's overall prevention and control measures. In the early days of the outbreak, the sum of 10 million yuan was spent on epidemic prevention (up to 6 million now).

These are short-term factors. In the long run, the market prospect of property services is broad. "From foundation to value added, the scale of big property management will go straight to 3 trillion yuan," Ding Zuyu, CEO of Yi Ju enterprise group, predicted at the beginning of the year.

Over the past year, the share price of 6 property stocks has doubled. They are Yung Sheng life, Jia Zhao industry, country garden service, elegant life, Zhonghai property and Xinyue (up to 213%). Ding Zuyu said that this year will continue to be optimistic about the property sector.

Market outlook and stock price performance prompted more housing companies to spin off property listings. In January 31st, Beijing hung Kun property updated its prospectus at HKEx to be launched in the near future.

Competition for head property

From the scale of transactions, 2016 -2019 is an unprecedented "bull market" in real estate. But for a long time, many people pay more attention to the value of investment and ignore property management.

The sudden outbreak has made people find that community service is equally important. Many different brands of housing owners told the twenty-first Century economic report that "good property is too important in this epidemic."

It is reported that in some residential areas, the property department will share with owners the epidemic situation in this district everyday. The move was reassuring to the owners.

At present, the competition in the property industry is still not enough, and the future market space is worth looking forward to. Some analysts pointed out that the leading property companies' property platform is obviously more competitive, but the head property pattern is uncertain. For example, the four giants of Vanke, Hengda, and Chong Chong's property are not listed, and good reputation of Longhu property is not listed.

In terms of market value, although the average value of the property sector in 2019 was billions of dollars, there were only 5 head property companies exceeding the average value. The largest market value of country garden services accounted for 32.1% of the total market value of the industry. Prior to this, Vanke Group Chairman Yu Liang of Vanke property expectations, is not 100 billion market value will not be listed.

Operating income, the highest income company is still unlisted Vanke property, 2019 revenue is expected to exceed 12 billion. Other properties have not reached 10 billion levels. Practitioners generally believe that the concentration of the industry still has much room for improvement.

Similar to the competition logic of the real estate industry, the head property is also the scale of rush, that is, the area of management. At present, colorful life, Vanke, poly, merchants and so on are in front.

In this process, only relying on its own real estate business is not enough to support the expansion of large property, mergers and acquisitions and light assets output become inevitable.

Poly property believes that the future will be a "big property" era. Not only residential communities, businesses, office buildings, government properties, urban services will also be included in the scope of property services.

In 2019, the acquisition and merger of the property management industry has been fully launched. 11 property companies have acquired acquisitions, such as the acquisition of Jiabao property, the acquisition of jCG, the garden service, and the acquisition of Jikai city property.

Billion think tank pointed out that last year, listed companies in the strategic expansion of the proportion of the use of raised funds generally more than 50%. For example, the health of Austrian garden raised 72% of the money raised; the good ratio of Jia Zhao industry was 70%; the color life and the neighborhood of the times reached 65%.

In non-listed company, the pace of mergers and acquisitions is also accelerating. If Vanke became the fourth largest shareholder after becoming a shareholder, it set up a joint venture in December last year to launch commercial property and facilities management services.

Ding Zuyu believes that the property management industry in 2020 will be differentiated, and the industry concentration will be further enhanced, making it similar to the current competitive situation in the real estate industry. In this process of upgrading, a large number of large head property companies will gradually emerge.

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