When Vanke Is Willing To Be Ordinary

Is Vanke mediocre? There has been a lot of discussion on this topic for several years.

Many years ago, Vanke was the "model" of the industry. Today Vanke is, of course, a "thinker" in the real estate industry. The "Silver Age" and "management dividend era" judgments are the "strongest voice" it sends out to the industry. Finally, it has been proved that Vanke, driven by the sense of crisis, is indeed sensitive to the market.

Vanke is therefore "held on the altar". Even after many years of farewell to the throne of scale, Vanke is still the "absolute leader" and "the first real estate enterprise" in the minds of many people. Until now, its market value is still the king on the real estate track; however, many of its former pursuers, Longhu and China Resources Land, are getting closer and closer to it because of their stable business operation and definite future.

Yu Liang, chairman of the board of directors of Vanke, said at the performance promotion meeting of Vanke in 2020 that the real estate industry should shift from focusing on development to paying equal attention to development and operation. Housing is more and more like durable consumer goods, and development business is more and more like manufacturing industry. Whether it is long-term apartment, business, office, hotel and logistics, its essence is content management, and it is more and more like service industry.

Vanke is doing "difficult and correct" things, the key to break through the bottleneck in the industry as a whole is no more than this. However, as the small and medium-sized shareholders of Vanke joked on social media, "Longhu can surpass Vanke by only one limit, and you can't imagine that Vanke is the leader of business and Vanke is the leader of logistics."

Vanke's age is not confused, is the original intention still there? Is the power still there?

"Second curve"

Looking back at the past today, Vanke should have realized the importance of looking for a "second growth curve" beyond the development of its business.

Vanke has this sense of crisis and urgency. In 2014, Vanke's prediction industry entered the "Silver Age", and the exploration of diversified business was in full swing. However, due to the gene, Vanke's diversified business once went astray, which made it lose its full power and courage on the exploration of new business.

"We think we need to find an industry with the same prospect as the real estate industry, but experience tells us that we are unlikely to find such an industry," Yu Liang said at the Vanke goals and action communication conference in 2019

At that time, Vanke's development strategy was to "focus on convergence, consolidate and improve the basic market", and the volume of excessive diversification business gradually decreased.

At that time, Vanke did not look for more potential business, although in the letter to shareholders, Vanke affirmed that "we must open our vision to a broader space, extend our services to more aspects of customers' life needs, and constantly expand and enhance their ability to create good products and services that customers are willing to pay for Only in this way can we really find the second curve of Vanke in the future. "

Up to now, Vanke's "second growth curve" has its name, even though it is still a little far away from market recognition.

In 2020, Vanke's "all things cloud" with space science and technology services as its main business realized an operating revenue of 18.204 billion yuan, up 27.36% year-on-year, surpassing country garden service and Evergrande property, which is worthy of being the leader; the business income of wanwei logistics management project (including non consolidated projects) was 1.87 billion yuan, with a year-on-year increase of 37%.

However, Vanke, the most concerned commercial operation sector, showed a slight lack of performance. In 2020, the business income of Vanke Commerce (including non consolidated items) will reach 6.322 billion yuan, with a year-on-year increase of 4.33%. Among them, the business income of Yinli management's commercial projects was 4.222 billion yuan, a year-on-year decrease of 1.62%.

If we do a benchmarking in the industry, Vanke's rental income level is indeed not excellent. China Resources Land, the earliest layout, plans to double the rent in five years, which means that the rental income of China Resources land will reach about 30 billion yuan in 2025; Longhu's rent target this year will also exceed 8.5 billion yuan, and Vanke has never given the market such a definite expectation.

At the performance promotion meeting of Vanke in 2020, Zhu Jiusheng, President of Vanke, told the 21st century economic reporter that many people are very concerned about how Vanke's business is doing. People usually focus on such indicators as income and profit, but the business model, cash flow characteristics and development business of operating business are quite different. If we still use the standards of the development era to evaluate it It may not be appropriate.

However, the capital market never believed in poetry and distance.

One fact is that Longhu, which has become the benchmarking target of leading real estate enterprises this year, has a PE of 13.15 times, while that of Vanke is 8.4 times. An analyst who didn't want to be named told the 21st century economic report that Longhu's PE is high because it is in business outside the development business. It is a high visibility "Rent Collecting stock", while Vanke is still a "traditional developer" and can not give a higher valuation.

Return to mediocrity

Many old fans of Vanke always refer to its excellent product power and innovation ability many years ago, as well as its leadership in the industry.

Does the real estate industry still need Vanke, a "thinker"?

Over the past few years, Vanke has become less incisive and less incisive, with more and more accusations against it. It is labeled as "conservative" and "moderate", and its contribution to the industry is indeed not as good as before, but it may not be a bad thing. When Vanke steps out of the discourse system of "elite culture", more practical and realistic solutions may be found in the industry.

As Zhu Jiusheng said, under the logic of making money by ability, we should not only avoid fatal short board, but also create winning strengths. The era of management dividend is characterized by full competition. The intensity of competition is much stronger than before. It is impossible for enterprises to win and win by relying on one or two key resources. It is an inevitable requirement of this era that both are good and have no short board.

Vanke is encountering problems in the industry as a whole. On the way to break through the bottleneck and achieve the goal of being good without short board, Vanke has no better way. It is also exploring and learning from other industries.

At today's performance meeting, Yu Liang said that this year is the first year of the era of industry management dividend. Everyone is lamenting that it is not easy to make money. We can no longer rely on land dividends and financial dividends to make money. Does this mean that we have no development opportunities? The development of home appliance industry provides us with a good example.

"More than a decade ago, the home appliance industry encountered a" management dividend era "similar to today's real estate industry. At that time, the" three big pieces "of each household were basically popular, and the shortage era had passed. In 2007, the market of household appliances industry has been gradually saturated, close to the "ceiling". However, after cruel industry reshuffle, the surviving leading enterprises such as Midea and Gree finally won the market with good products, good services and good management ability, creating good returns for shareholders. " Yu Liang said.

This kind of revealing words represents that Vanke has completely broken the illusion. In the process of marching forward to the deep water area, Vanke meets all challenges with a "down-to-earth" attitude.

One thing we can see from Vanke's "grounding" is that Vanke has begun to "stretch out olive branches" to outstanding talents in the industry. Although Vanke had "piracy operations" in the past, the majority of Vanke's middle and high-level personnel and talents from Vanke's internal training still accounted for the vast majority. Even in the past, some positions of Vanke completely rejected people from other developers.

Yu Liang is committed to breaking the relatively closed Vanke. He wants to "attract living water" for Vanke. Only the invincible "champion organization" is the driving force for Vanke to make unremitting progress.

"At present, the intensity of comprehensive competition is not limited to the industry, but in the whole society. Therefore, we need outstanding talents from the society. Today, Vanke is competing with Tencent and other Internet companies for talents. Because technology has been integrated into all aspects of Vanke's business, the requirements for talents have changed. As for the general manager of a first-line company, we also give priority to hiring people from outside. " Yu Liang said.

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