Economic Observer Chen Yueqin articleA number of property executives have used the term "long slope and thick snow" to describe the operating characteristics and prospects of the property industry: the development potential is sufficient, the space is large, and the long-term principle must be adhered to. In 2023, many changes have taken place in the internal and external environment of listed property companies.
Externally, the capital market is ebbing.
Although the service content of the property has not changed, it is still providing "four guarantees and one service" (security, cleaning, greening, warranty and customer service) for tens of millions of communities, and even repeatedly broadening its service boundaries, wanting to do the community's ** (community retail), shell (real estate rental and sales), home improvement, education, etc., but investors in the stock and bond market are scrambling to evacuate and cannot arouse more sparks. In the secondary market, many small property companies or unbranded property companies have almost no transaction volume.
According to wind statistics, as of February 3, the combined market value of 62 listed property companies was about HK$211.4 billion, and at its peak, Country Garden Services and Evergrande Property had set a record of more than HK$250 billion in market value. Today, the largest market value is China Resources Vientiane Life (HK$51.7 billion), and there are also property companies with more than 10 billion yuan, including Wanwuyun, China Overseas Property, Country Garden Services, Poly Property and China Merchants Accumulation. More than half of the property companies have a market capitalisation of less than HK$1 billion.
Within the property enterprise, in order to keep the real estate parent company, the property company has been repeatedly "drained", which is reflected in the ** property equity, the huge loan provided to the real estate company can not be recovered, the developer's value-added service arrears, the unsold vacant house property fee arrears, etc., the related accounts receivable have increased significantly, and the drama of selling property to the real estate parent company to collect debts is frequently staged.
The sales and delivery of new homes directly affect the performance of property companies. When the growth rate of the overall development scale slows down, property companies need to compete in the stock market, for example, the landmark event in 2023 is the "entry of capital into the market" by companies such as Wanwuyun, which caused controversy. Filling the gaps through the development of new customers of "two non-one reforms" (non-residential, non-developer, and old reform) is also the main idea of increasing revenue.
With a stable income from property fees, properties have always been regarded as "cash cows" by affiliated real estate companies or investors. Nowadays, the "cash cow" has lost weight, but it is still a "long slope and thin snow" type industry closely related to people's livelihood. Therefore, how to provide good services around C-end, B-end and G-end customers, and how to give full play to the connection role of property in different formats and spaces are propositions that property companies need to think about to get out of differentiation.
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