2023 is about to turn the page, standing at the current point in time to look back at the past nearly a year, the real estate and related property service industry can be described as ups and downs.
Back to the end of 2022, stimulated by the "three arrows" to support real estate financing, the pressure of real estate policy risks on the valuation of the property management sector has been loosened significantly, and related concept stocks have ushered in a round of valuation repair.
However, just as the trend of the sector has just stabilized and rebounded, after entering 2023, due to the continued impact of real estate credit risk, the general pressure on the performance of property management companies, and the Fed's unexpected interest rate hike has reduced the overall risk appetite of the capital market, the property management sector has re-entered the channel of deep adjustment under the influence of multiple factors. The data shows that the Hang Seng Industry Services and Management Index has fallen by nearly 50% year-to-date.
During the period of deep adjustment of the industry, the "leftovers" may become the "winners" who finally cross the cycle. Looking at the property management companies in the Hong Kong market, Zhitong Financial APP noticed that some relatively small companies, relying on their own profound historical heritage and regional deep cultivation strategy, have become more and more eye-catching in the "headwind period".
Taking Sundy Service (09608) as the object of observation, in the face of a challenging market environment, this property management company that is deeply involved in the Yangtze River Delta and focuses on Hangzhou has maintained its fundamentals with solid service quality and good market reputation, and at the same time, Sundy Service has also continued to explore new formats such as urban services, so as to accumulate strength for the company's long-term development.
In addition, it is worth mentioning that recently, Songdu Service has also received good news again on the financing side: the company's placement financing is 3563The HK$520,000 issue ushered in key developments, and Sundy Services disclosed the completion of the placement financing on December 27, 2023, and the arrival of the placement proceeds is expected to effectively enhance the financial soundness and flexibility of Sundy Services.
Refinancing is poised for medium- and long-term development
Sundy Services, which landed in the capital market at the beginning of 2021, can be said to have witnessed a round of capital cycle in the Hong Kong stock property industry.
Prior to this, in 2020, property stocks were one of the most sought after industries by cornerstone investors and institutions in Hong Kong, and many flexible targets doubled their stock prices in just a few months. However, the following year, the situation changed abruptly, and soon after the listing of Sundy Services, it encountered the "valuation killing" of the property management industry****, not only the number of IPOs decreased sharply and the listing time was extended, but also the property management companies that had been successfully listed also generally suffered a large drawdown in stock price and valuation.
Since then, a number of leading real estate companies have been in trouble one after another, which has caused continuous pressure on the entire property management industry, and market sentiment has fallen into the "freezing point". As a result, the "hematopoietic" and refinancing capabilities of related enterprises have also continued to decline under the capital winter, and contraction and defense have become tacit understandings among property management enterprises.
Although the logic of the sector has not been completely repaired to this day, as mentioned at the beginning, some high-quality property management companies have been releasing more and more value signals. Taking Songdu Service as an example, the company entered into a subscription agreement with Fuyang Mingjin New Energy Development *** and Southeast Mingqing **Chain (Fuyang)** in May this year, and Sundy Service will distribute 6400,000,000,000 new shares at a price of 0HK$05568. After the completion of the placement, Sundy Services will raise 3563HK$520,000.
Zhitong Financial APP believes that after the above-mentioned refinancing matters of Songdu Service are implemented, the company will achieve a positive impact in at least two aspects:
On the one hand, in terms of fundamentals, the successful completion of the placement financing will greatly enhance the company's financial soundness and flexibility, which will be another major milestone in the financing of Sundy Services in the capital market after its listingAt the same time, it also confirms the consistent and steady business ideas of Songdu Service, and on the basis of adhering to the development of the main business, it is surprisingly upright to seek diversified breakthroughs and cultivate new profit growth points.
On the other hand, as far as the capital market is concerned, considering that property management enterprises are generally facing refinancing difficulties, the successful cases of Sundy Services are bound to convey more confidence to investors in the secondary marketIn addition, the introduction of external high-quality investors will also help diversify the company's shareholder base and enhance the liquidity of shares.
The operation is upright and surprisingly waits for the potential to be realized
The reason why Sundy Service has been able to make breakthroughs in the financing side is that the underlying logic behind the company's steady and upright operation is that the company's development prospects are both stable and imaginative.
At present, Sundy's business mainly covers property management services, value-added services for non-owners, community value-added services and other businesses. In terms of development strategy, while consolidating the basic market of property management services, Sundy Service is also actively exploring new business formats such as urban services to cultivate new business growth poles.
In terms of property management services, Sundy Services adheres to the idea of regional deep cultivation and has a high concentration of urban projects. As of June 30 this year, the total number of projects under management served by Sundy was 58, of which 57 were located in the Yangtze River Delta region, and the proportion of projects in Hangzhou accounted for more than 40%.
Perhaps it is this strategy of taking root in the Yangtze River Delta and focusing on Hangzhou that enables Songdu Service to win the favor of the local market with its own heritage, excellent quality and good reputation during the industry adjustment period. According to the data, during the 23H1 period, the revenue of Songdu Service** in the property management service business was 967760,000 yuan, an increase of 4 year-on-year8%, business resilience has been fully demonstrated.
In addition to the traditional main business, Sundy Service is also constantly exploring the new format of urban service. Taking Caihe Street, the first batch of pilot units of Hangzhou's "Future Community", as an example, after undertaking the project, Songdu Service innovatively launched the "Gold Medal Butler" large property model, changing the status quo of scattered property management lines and mixed property companies in the community, and unified management of security, cleaning, engineering maintenance, greening and maintenance in the old community, realizing "low fees, high standards, and small community governance".
It is foreseeable that with the continuous maturity of Songdu Service in the property management services of old communities, the company will also form a replicable brand product from the successful experience of the "Lotus Harvesting Model" in the next step, and then participate more in urban operations. Behind this win-win situation, the performance of Songdu Service, as a listed company, will continue to realize its growth potential.
Looking ahead, considering that the risk factors of the real estate and property management industries are gradually cleared, the industry is also expected to usher in a new stage of high-quality development after in-depth adjustment. In this critical period of the transformation of old and new kinetic energy, Sundy Services, a high-quality property management company with surprising integrity and still the ability to refinance, is expected to pass through the capital cycle, and the investment value at this stage is self-evident.