Wen Leju Finance Xu Jiumian
If you do well in the exam, you will have to hand in the paper first.
On the 7th day after the release of the good news of a profit increase of not less than 20%, on February 28, Huafa Property Services (00982HK) officially submitted its 2023 performance report, firing the first shot of "A+H" property stocks in this round of annual reports.
According to the data, as of December 31, 2023, Huafa Property has achieved revenue of about 177.6 billion yuan, a year-on-year increase of 110%。During the same period, a gross profit of about 47.8 billion yuan, a year-on-year increase of 207%；Profit for the year was approximately 25 billion yuan, a year-on-year increase of 287%, and the profit attributable to owners of the company was about 24.9 billion yuan, a year-on-year increase of 288%。
In terms of scale, as of December 31, 2023, its total chargeable floor area was about 31.44 million square meters, a year-on-year increase of 290%；The total contracted construction area was about 60.64 million square meters, a year-on-year increase of 170%；The contract-in-management ratio is 193, compared to 2 in the same period of the previous year13 minus 02。
Several core indicators are red, and the year-on-year growth rate is also in double digits, in the current market environment, this report card of Huafa Property seems to be really good.
The capital market, which has always been sensitive, has also given positive feedback.
The day after the results were released, Huafa Property opened for 5 minutes after opening71%, up 714%, ranking second on the list of property stocks on the day, second only to Yincheng Life Services (9.), which has just declared a special dividend82%）。On the same day, Huafa Property reported 0HK$15 shares, price-to-earnings ratio (TTM) 721, with a total market capitalization of about 15HK$0.9 billion.
It is worth mentioning that the asset-liability ratio of Huafa Property, which has been high for many years, has also decreased, from 99 in the same period of the previous year39% to 7632%。
The performance is good and the debt is reduced, but HUAFA Property still has not chosen to loosen the money bag and dividends, from the 7-year backdoor listing to the official name change to enter the property stock on March 15, 2021, HUAFA Property has not declared dividends so far.
As of the end of 2023, HUAFA Property's cash and cash equivalents were approximately 38.2 billion yuan, another 606$80,000 restricted bank balance. Cash and cash equivalents decreased by approximately 1585%, and the balance of restricted banks increased slightly by about 440,000 yuan.
Regression under growth
The increase was mainly due to the increase in the total feed gross floor area of the Group's property management business segment, which led to an increase in property management service revenue", in the performance forecast, HUAFA Property revealed the reasons for the increase in profit for the period.
After the previous business purification, the main business of Huafa Property now mainly includes property management services, hotel consulting and exhibition services.
Among them, property management services are subdivided into three major sectors: basic property services, value-added services for owners, and other value-added services. In 2023, their revenues will be around 12., respectively7.3 billion yuan, 16 billion yuan, 34.2 billion yuan, compared with the same period of the previous year, the basic property increased by 213%, the latter two value-added services were reduced respectively. 1%。
In this regard, Huafa Property gave an explanation that due to the separation and refinement of the new retail business, and at the same time, more attention was paid to the improvement of service capabilities, and the business scope was appropriately reduced, so the owner's value-added service income declined; The shrinkage of other value-added service revenue is due to the business transformation and adjustment of the Group's building elevator engineering company in the past year, focusing on intelligent engineering and photovoltaic industry, and actively shrinking other engineering businesses.
From the perspective of income structure, the value-added services of HUAFA property, especially the value-added services of the owners, account for a relatively small proportion. And an industry consensus that has been formed for a long time, value-added services are the second value-added curve of property enterprises. Zhang Guiqing, Chairman and Executive Director of China Overseas Property, once said bluntly to investors, "Future growth depends on value-added services, and the key depends on whether the company has the ability to grasp this opportunity." ”
In the downward cycle of the real estate industry, listed property companies are sparing no effort to develop community services and expand profit channels. In the future, HUAFA Property may also need to work hard here.
Value-added services have reversed, and hotel consulting and exhibition services have also been tested, with only about 1120,000 yuan, while the income in the same period of the previous year was about 1302900,000 yuan. Huafa Property said that on the one hand, this is due to the impact of focusing on property management, and on the other hand, during the epidemic, due to the impact of the environment, the profit of the hotel business has declined sharply, so it has tightened its investment in the hotel business.
In the future, we will re-evaluate the feasibility of investing in the business model of hotel consulting and exhibition services in combination with the latest market environment and industry development trends", and Huafa Property may cut off hotel consulting and exhibition services.
The test of scale expansion
Among the listed property companies, the scale of Huafa Property is still in the small and medium-sized array. Judging from the ranking in the middle of 2023, it ranks 38th among the 49 Hong Kong-listed property companies that have disclosed their financial reports as scheduled and announced their scale under management.
In January last year, under the condition that the ultimate controlling shareholder remained unchanged, Huafa Property reloaded its equity back to Real Estate Huafa Shares (600325sh）。To a certain extent, this move can indeed give full play to the synergistic effect between the upstream and downstream of the "Huafa system" industrial chain. However, in the context of the increasingly strong call for the independence of property enterprises, such a ** may also be buried as a hidden danger.
Previously, Huafa property services were criticized by the outside world because of their high dependence.
In the latest performance report, HUAFA Property's revenue from Zhuhai HUAFA and its subsidiaries accounted for 38% of its total revenue, an increase of 3 percentage points from 35% in 2022.
However, HUAFA Property is indeed actively expanding the third-party market. In 2023, HUAFA Property successfully won the bid for Zhuhai Fifth Hospital, Jingdong South China Park Property Services, Bayi District People's Hospital of Nyingchi City, and a number of tourism, hospital and public property management projects.
In 2023, the chargeable floor area of properties developed by independent property developers increased by 59 year-on-year2%, which is a 16% year-on-year increase in property revenue from independent property developers6%。
But along with the increase in the size and revenue of third parties, there are also receivables. As of December 31, 2023, the accounts receivable of HUAFA Property was about 600 million yuan, a year-on-year increase of 2862%, which is more than double the revenue growth in the same period. Among them, 19.4 billion came from related parties, accounting for 3232%；The remaining 40.6 billion yuan came from third parties, accounting for 6768%。
The scale is expanded, and the collection of third-party receivables may become a test for the management of Huafa property. Last year, the receivables of Huafa Property were impaired by 895260,000 yuan, an increase of 31 over the same period of the previous year92%。