Radar Finance Produced by Text | Su Hong Edited by | Deep Sea
Longhu Group has completed a key leap to enter a century-old store.
On October 28, Longfor Group announced on the Hong Kong Stock Exchange that the company's CEO Chen Xuping was promoted to chairman, and the general manager of human resources Shen Ying served as executive director. The former chairman Wu Yajun stepped down as chairman due to age and physical reasons. He was also appointed as the company's strategic development consultant. Vice Chairman Shao Mingxiao was transferred from executive director to non-executive director.
Chen Xuping is a "80" post, graduated from the civil engineering major of Tsinghua University. He is a "official student" of Longfor Group in 2008. He has served as engineering manager, project chief, engineering chief, COO and CEO in Longfor .
Under the current real estate situation, Wu Yajun's handover has triggered some market speculation. However, in the view of Yan Yuejin, research director of the think tank center of the E-House Research Institute, creating a first-generation transfer course is an extremely important step for enterprises to face the future. Wu Yajun still serves as a consultant after retirement and can help Chen Xuping on the horse and send him off. Once the smooth transition is completed, Longfor Group will usher in stable development for a considerable period of time.
radar finance found that the overall situation in Longhu at this time was relatively optimistic. In terms of sales, since July, Longfor Group has achieved a continuous recovery in monthly sales performance for three consecutive months; in terms of debt repayment ability, the company's cash-to-short-term debt ratio is 4.07, and it is expected that the cash flow of will reach about 80 billion yuan, and the company's financing cost is less than 4%, so there is no debt repayment pressure this year; in terms of land reserves, from the end of September to the present, Longfor has won 11 plots of land in the third round of concentrated land auctions, with a cumulative investment of more than 10 billion yuan, and the total equity land price this year has reached 22.2 billion yuan. The stability of Longfor Group has been recognized by Haitong Securities , Citibank and other institutions, and has been given a "buy" rating.
In the secondary market, Longfor Group performed extremely well on the two trading days on November 1 and November 2, with a total stock price rising by 28.6%.
A three-year plan to "hand over the baton"
"In the past three years, I have been arranging candidates to take over my shift and take over as chairman." On the evening of October 30, Wu Yajun said at the Longfor Group investor meeting.
As the founder of Longfor Group, Wu Yajun brought this former Chongqing local real estate company into the Fortune 500 in " Fortune ".
However, years of high-intensity work has also overwhelmed Wu Yajun's body.
"My heart has been a rhythmic rhythm in the past few years. Recently, I have palpitations ." Wu Yajun revealed that he is also troubled by diabetes and his eyes are about to have a second surgery.
The physical discomfort, coupled with other factors, made Wu Yajun think of "passing the baton", but Wu Yajun was not sure at first.
In 2019, Wu Yajun visited Midea, and He Xiangjian handed over the Fang Hongbo case, which made Wu Yajun's eyes shine.
As the founder of Midea Group, He Xiangjian did not choose his adult son, but instead professional manager Fang Hongbo took over as chairman of Midea Group.
and Fang Hongbo did not disappoint He Xiangjian's high expectations. Since taking over as chairman of Midea Group in 2012, Fang Hongbo has led Midea Group with a revenue of 100 billion yuan to the level of 150 billion, 200 billion yuan and 300 billion yuan... Among them, Midea Group's revenue in 2021 was 343.4 billion yuan, 1.81 times that of Gree Electric Appliances and 1.5 times that of Haier Smart Home . After
confirmed that the shift was handed over to a professional manager, Wu Yajun began to actively look for a successor within Longhu, and Chen Xuping won Wu Yajun's favor.
Picture Note: Chen Xuping, the new chairman of Longhu,
, shows that Chen Xuping, both undergraduate and master's degree students were studying at Tsinghua , and after graduation, he entered Longhu to work, starting from the front line, and has held multiple positions. According to Tianyan Check information, Chen Xuping has worked as an executive in as many as 103 companies.
"The sense of direction is good, and the recognition of corporate culture also makes me feel at ease.In addition, there is no problem with entrepreneurship , business logic, organizational ability, and the ability to control large systems. "According to Wu Yajun, as early as more than ten years ago, he paid attention to Chen Xuping and watched him grow up all the way. With the support of Wu Yajun, Chen Xuping served as CEO and chairman of Longfor Group. Wu Yajun, who stepped down as chairman of
, did not ignore it at all. Next, Wu Yajun will work with many veterans from Longfor to "escort" Longfor development in the form of an advisor.
has a very rich family background
At the moment of the downturn in the real estate industry, the news of Wu Yajun resigning as chairman attracted widespread attention, and some even believed that Longfor was not good. Wu Yajun stepped down as chairman of Longfor in order to "get out of the shell".
Wu Yajun used his actions to refute the rumors. According to the announcement of Longfor Group, on October 31, Charm controlled by Wu Yajun's family was controlled by the Wu Yajun family. Talent International Limited (hereinafter referred to as "Charm Talent") increased its holdings of Longfor Group shares by 3 million shares, investing a total of HK$28.59 million. On the same day, Charm Talent also bought US$250 million 3.375% priority notes that expired in 2027 in the open market.
November 1, Charm Talent increased its holdings of 3 million shares of the company's shares in the open market, with an average price of approximately HK$10.48 per share, and bought priority notes issued by the company with a principal of US$2.8 million.
November 2, Charm Talent The company's shares increased by 1 million shares in the open market, with an average price of approximately HK$11.27 per share, and bought priority notes issued by the company with a principal of US$5 million.
November 3, Charm Talent Buy a premium notes issued by a company with a total principal of US$5.2 million in the open market.
. As one of the most stable private real estate companies in China, Longfor not only did not fail, but sales showed positive growth.
On October 11, Longfor Group announced that the company's sales in September were 19.22 billion yuan. On this basis, Longfor Group's cumulative sales in the third quarter reached 59.75 billion yuan, achieving positive growth year-on-year.
In terms of debt repayment ability, as of the end of the first half of this year, Longfor Group maintained the "three red lines" green level for six consecutive years, of which the cash-to-short-term debt ratio reached 4.07, and the average financing cost was 3.99%.
1 On October 31, Longfor Group also repayed another part of the syndicated loan due in 2023, with a total repayment of HK$8.55 billion; on November 1, Longfor Group issued an announcement stating that it had issued an irrevocable notice to the syndicated loan agency bank to repay part of the syndicated loans of HK$3.45 billion in advance, and after most participating lenders agreed, the company will repay immediately.
Longfor Group CFO Zhao Yi also revealed at a recent investor meeting that it is preparing funds to redeem US dollar bonds due next year. If nothing unexpected happens, there will be no debts overseas to expire next year. Zhao Yi expects that Longfor's cash flow will reach about 80 billion yuan by the end of the year, and the net debt ratio will be steadily reduced.
In terms of land reserves, the "lifeline" of real estate companies, From the beginning of 2022 to the present, Longhu has acquired a total of 25 pieces of land, and has achieved profits in high-level cities such as Beijing, Shanghai, Hefei, and Xi'an, with a total equity land price of 22.2 billion yuan.
Tonghuashun iFind data shows that Wu Yajun left Chen Xuping with extremely rich assets. As of the end of the first half of the year, Longhu Group's total assets reached 889.028 billion yuan, and equity attributable to shareholders reached 123.756 billion yuan.
Institutions are optimistic about Longhu Group's future
Chen Xuping, who stood on Wu Yajun's shoulder, revealed the new goals of Longfor Group at the meeting on October 30.
Chen Xuping proposed that the two major focus of Longfor in the future are urban focus and channel focus.
In terms of urban focus, Longfor Group has sorted out 20 key cities, 14 opportunity cities and 34 cities that will not be invested in at the stage.
"In ten years, our operating income target outside of real estate is to achieve 100 billion. Chen Xuping revealed that in the future, Longfor's goal is to generate more than half of the profits of , , which can generate business channels, and revenue accounts for 30% of the entire group.
Yan Yuejin expressed optimism about the Longfor Group of Chen Xuping's era. "Chen Xuping is young and strong, with veterans such as Wu Yajun, and with a good foundation in Longfor, under the leadership of Chen Xuping, Longfor is expected to reach a higher level." He said.
Analysts in China Merchants Bank believe that Chen Xuping's takeover as chairman is a milestone in the development history of Longfor Group. Under the leadership of a stable and dynamic management team led by Chen Xuping, adding sales to return to positive growth and financing channels may be further opened. Longfor Group is likely to become one of the few private real estate companies that can survive this downward cycle.
Haitong Securities believes that the succession of Longfor Group's new management means gradually moving out of the family-oriented and moving towards the path of institutionalization. Based on the year-on-year sales in the third quarter, the rental income of investment properties has made outstanding contributions; the land acquisition is actively and steadily operated, and the debt repayment pressure is not paid within the year, maintaining the buy rating .
Citibank believes that the change of chairman is a transformation to professional management (similar to Midea). Despite the challenges in the environment, Longfor has been committed to institutional efforts since its listing (internal leadership development plan, professional CEO appointment, partner incentive plan, etc.) and the support of the bank, with strategic continuity... In addition, Longfor Group's operating income grew by about 30-40%, contributing 25% of profit, its valuation is attractive, and its buy rating is maintained. In terms of secondary market performance, Longfor Group's stock price rose sharply on November 1 and November 2. Among them, the stock price rose by 8.2% on November 1 and rose by 18.85% on November 2.
Note: This article is original by radar Finance (ID: leizhuba). Reproduction is prohibited without authorization.
