Anju Customers Plan To Land In The Residential Service Field Of The Hong Kong Stock Exchange And Stand At The Top Of The Capital Wave

In the morning of April 8, anjuke, a real estate information and trading service platform, submitted a prospectus on the Hong Kong stock exchange to officially land on the Hong Kong capital market.

Anjuke is the real estate business platform of 58, which is also considered as the biggest competitor of shell looking for houses. According to the prospectus, the income of Anju customers will be 8.05 billion yuan in 2020, with a net profit margin of 24.3%.

Anjuke's major shareholder 58 was listed on the New York Stock Exchange in October 2013 and completed privatization in June 2020. The landing of anjuke in Hong Kong stock market is regarded as the strategy of split listing. The separate listing of the real estate business is conducive to the centralized development of this part of the business.

On March 2 before listing, anjuke completed $250 million in financing. Country garden led the investment, new world development, Sun Hung Kai, Yajule, Henderson real estate, China Construction real estate, times real estate and Chinachem real estate all participated in this round of investment.

In recent years, capital has paid high attention to the field of residential services. Eight months ago, shell landed on the New York Stock Exchange with a market value of more than $90 billion. Some of the shell's investors have also invested in anjuke. For example, Tencent is the second shareholder of both companies.

Real estate business restructuring

Anjuke was founded in 2007, mainly providing real estate advertising services. In 2015, anjuke acquired anjuke in the same city, and the business of anjuke and 58 real estate in the same city were integrated, and the development was further accelerated. In 2019, anjuke established aifang, which focuses on the new house trading service platform. Aifang invested in qiaofang, a real estate agent, in the same year.

The assets to be listed on the HKEx this time include anjuke, 58 real estate, aifang and qiaofang, covering the service system of real estate online marketing, trading services, SaaS solutions and other auxiliary services.

According to the data of iResearch, as of December 31, 2020, the average number of active mobile monthly users of anjuke in the fourth quarter of 2020 is 67 million, the number of cities and counties covered online is more than 820, and the number of paying agents on online real estate platform is more than 726000, accounting for 67% of the online real estate marketing market share.

According to the prospectus, from 2018 to 2020, anjuke group achieved revenue of 6.216.3 billion yuan, 7.579.1 billion yuan and 8.052.4 billion yuan respectively, and the annual profits were 1.907 billion yuan, 2.306.3 billion yuan and 1.954.7 billion yuan respectively, with net profit margins of 30.7%, 30.4% and 24.3% in the same period.

Among them, love house, which is mainly engaged in new housing business, had a total transaction volume of 65.3 billion yuan last year, with a year-on-year increase of 282%.

In anjuke's business structure, online marketing services relying on real estate transactions have accounted for more than 96% of the total revenue, which is the main source of income of the company. But too single source of income may also affect the stability of performance.

In the column of risk factors, the prospectus says that the demand of the real estate industry has been growing steadily in recent years, but the growth is often combined with the fluctuation of real estate transaction volume and price. Since 2012, China's economic growth has slowed down compared with the past decade, and the trend is likely to continue. The change of monetary policy and the introduction of real estate regulation policy may affect the real estate market and further affect the company's performance.

But anjuke is still trying to enhance its stickiness by improving the customer experience. In the past three years, anjuke's R & D expenditure accounted for about 10% of the total operating expenditure.

Capital gains

58, a major shareholder of anjuke, was listed on the New York Stock Exchange in October 2013 and completed privatization in June 2020. At the beginning of the company's privatization, the market had a view that 58 cities would rearrange its business. Now it seems that the real estate business split listing, is indeed a strategic consideration.

As a well-known classified information service provider in China, 58 has a number of business areas, such as real estate, automobile, recruitment, second-hand trading, local life services, etc. In recent years, with the trend of real estate transaction differentiation intensified, and the real estate market entered the stock age, the residential service sector began to usher in the wind.

In August 2020, shellfish landed on the NYSE to raise US $2.12 billion, making it the largest IPO of China capital stock exchange since iqiyi IPO in March 2018.

Before that, shell and chain had many rounds of financing experience, attracting investment from dozens of institutions and enterprises. Among them, many investors are also the shareholders of anjuke.

On March 2, 2021, anjuke completed $250 million financing. According to the information disclosed in the prospectus, beam Merrit limited, a wholly-owned affiliated company of Biguiyuan, is the leading investor in this round of financing of anjuike. According to sources, new world development, Sun Hung Kai, Yajule, Henderson real estate, China Construction real estate, times real estate and Chinachem real estate all participated in this round of investment.

After this round of financing, 58 held 49.3% of the shares in the company, and Yao Jinbo, the CEO of 58, was the actual controller. In addition, Tencent holds 15.4%, Warburg Pincus 8.5%, general Atlantic 8.4%, and gulling investment 4.3%.

Among them, Tencent and country garden have both invested in the two companies, and Tencent is the second largest shareholder in both companies.

From the perspective of business type and company scale, anjuke is the biggest competitor of shell looking for houses. In recent years, the two sides have had many rounds of isolated debates on business ethics and other issues, but this does not prevent the capital from being optimistic about the two companies at the same time.

In March this year, juli.com, which is also committed to residential services, announced the completion of a 400 million yuan C + round of financing, with Tencent and Haisong capital leading the investment. This also shows that capital has a strong interest in this segment.

Yan Yuejin, a well-known real estate analyst, told reporters of the 21st century economic report that since 2013, China's real estate market has entered the stage of overall supply exceeding demand, and the prospects of the stock market and residential services have begun to highlight. Many investors have implemented the layout of these fields very early, and now it is the harvest time.

He said that although giants have emerged, there is still a certain market space in this field, and some small and medium-sized enterprises still have the opportunity to grow bigger.

According to the data of iResearch, the scale of China's residential real estate market has reached 24 trillion yuan last year and is expected to increase to 36.6 trillion yuan by 2025. Among them, the penetration rate of brokerage services in the new housing market is expected to increase significantly from 31.5% in 2020 to 54.2% in 2025.

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