On June 28, Yuexiu services was listed on the main board of the Hong Kong stock exchange. It opened at HK $4.77 per share, down 2.25% from the previous issue price of HK $4.88 per share. By the end of the afternoon, Yuexiu real estate reported HK $4.88 per share, with a total market value of RMB 7.216 billion.
The listing of property enterprises is nothing new. In the past 10 days, four property companies, including Dexin service, Landsea green life, Cambridge Yuet life and Lingyue life, have passed the hearing of the Hong Kong stock exchange. At present, more than 10 property companies are in the listing queue. However, compared with last year, the scale of current listed enterprises has shrunk significantly, and small and medium-sized enterprises have become the main force of current listing.
Northeast Securities Analysis believes that in May, the Hong Kong Stock Exchange adjusted the listing profit requirements, which will be implemented in 2022. Under pressure, small and medium-sized enterprises strive to complete the listing within this year, resulting in high listing heat.
On May 20, the Hong Kong Stock Exchange announced that it would increase the profit requirements of applicants for listing on the main board during the three-year business period, which must meet the requirements, including the profit of not less than HK $35 million in the latest fiscal year and the cumulative profit of not less than HK $45 million in the previous two fiscal years, that is, the cumulative profit of not less than HK $80 million in the three years. The policy will be implemented from January 1, 2022, At present, the threshold for listing only requires that the accumulated profit in the first three years should not be less than HK $50 million, or the profit in the first year should not be less than HK $20 million, and the market value should reach HK $500 million.
The new rules increase the difficulty and risk for the subsequent listing of small property management enterprises. According to the statistics of Ping An Securities, among the 42 listed property companies, the net profit of Yixing group in 2020 is less than HK $30 million, and that of Pujiang China Holding Co., Ltd. and Songdu service, which was just listed at the beginning of the year, is just over HK $30 million.
In addition, for some real estate enterprises separated from the property enterprises, in addition to the small scale and low profit, the high dependence of the business of the property enterprises on the parent company is also one of the problems that have been questioned.
Take Junfa Qicai service group, which submitted its prospectus on June 27, for example. The parent company of Junfa services is Junfa group. According to the prospectus, most of the revenue of Junfa services comes from the property management services provided for the projects developed by Junfa group and its affiliated companies. From 2018 to 2020, Junfa services provided property management services to the properties developed by Junfa group and its affiliated companies, and obtained income of about 308 million yuan, 434 million yuan and 539 million yuan respectively, accounting for 94%, 91.4% and 92.4% of the total income of property management services in the same year.
Yan Yuejin, a real estate analyst, told NetEase Finance that from the current development of property enterprises, many projects are indeed based on the parent company, and the dependence on the property of the parent company is relatively high. And Junfa just has more projects in Yunnan market, so it is easy to make the income of property projects too concentrated.
Reprint indicated source：Shine Trader Limited Live information