460 million square meters?
Public data shows that the bird’s nest has a construction area of 258,000 square meters, and the capital airport has a total construction area of 986,000 square meters. Based on this calculation, 460 million square meters is equivalent to the size of about 1783 bird’s nests and 466 capital airports. This is the total contracted construction area of Sunac Services.
On August 30, 2021, Sunac Services released an interim financial report. As of June 30, Sunac Services had a construction area under management of approximately 170 million square meters and a contracted construction area of approximately 320 million square meters.
Among them, 32.2% of the contracted construction area is from a third party; and 69.8% of the newly contracted construction area is from a third party. Considering the unsigned parent company reserve area, the contracted construction area of Sunac Services will reach 460 million square meters.
Not only that, in the first half of 2021, Sunac's service business performance continued to grow with high quality and profitability continued to improve. Realized operating income of 3.32 billion yuan, a year-on-year increase of 85.4%; net profit attributable to the parent reached 610 million yuan, a year-on-year increase of 154.4%.
Excellent performance has also been affirmed by the capital market. Since its listing in November last year to the close on September 1 this year, Sunac's share price has risen by 64.56%, and many investment banks have given a "buy" rating.
's revenue structure continued to improve, and community life service revenue increased by 206.5% year-on-year.
The announcement showed that in the first half of 2021, Sunac's service business performance continued to grow with high quality and profitability continued to increase.
Specifically, operating income in the first half of the year was 3.32 billion yuan, a year-on-year increase of 85.4%; gross profit was 1.03 billion yuan, a year-on-year increase of 121.5%, and gross profit margin was 31%, an increase of 5.1 percentage points from the same period last year.
In the first half of this year, the net profit attributable to the parent reached 610 million yuan, a year-on-year increase of 154.4%; the net profit rate was 19%, an increase of 5 percentage points from the same period last year.
In terms of specific revenue segments, Sunac’s property management services achieved revenue of 2.05 billion yuan in the first half of the year.A year-on-year increase of 94.3%; revenue from non-owner value-added services was 1.08 billion yuan, a year-on-year increase of 60.4%.
It is worth mentioning that in the first half of this year, the income from community life services reached about 190 million yuan, an increase of about 206.5% year-on-year, which has surpassed the full-year performance of 2020.
Facing new trends in the development of property management, Sunac Services continues to increase its empowerment in terms of refined management system and digital technology. Among them, the community life service business segment continued to expand, service categories and scenarios were more comprehensive, and various sub-business revenues made rapid breakthroughs.
Among them, the income of convenience services increased by more than 20 times in the first half of the year, reaching 66.846 million yuan. The income of space operation services, real estate brokerage services and Mercure services increased by approximately 121.6%, 41.1% and 278.7% year-on-year, reaching 58.916 million. Yuan, 34.241 million yuan and 28.711 million yuan.
While the gross profit margin increased from 27.6% to 31% at the end of 2020, the gross profit structure of Sunac Services was further optimized. With the expansion of management scale and the layout of high-profit non-residential businesses, the gross profit contributed by basic properties exceeded 50% for the first time, reaching 52%. The contribution of community life services also increased from 6.4% to 7.9%.
In terms of profitability, Sunac's services have also been improved, and the gross profit structure has been continuously optimized. The gross profit of property management services increased from about 48.7% in the same period last year by about 3.3 percentage points to about 52.0%. The gross profit of community life services accounted for From about 4.7% in the same period last year, an increase of about 3.2 percentage points to about 7.9%.
has strengthened its external expansion capabilities, and nearly 70% of the newly contracted construction area comes from a third party.
In the context of increasingly fierce competition in the property industry, how can Sunac Services achieve scale expansion?
According to the reporter's understanding, Sunac Services insists on market expansion as the main method of third-party expansion, and attaches importance to the construction and accumulation of the system's long-term capabilities. Actively try the expansion of multiple channels to achieve strategic cooperation in multiple formats.
With excellent professional capabilities and service quality, Sunac's services have won high recognition from partners, and cooperation platforms and projects continue to increase.Nine joint venture platforms have been newly established since the beginning of the year, with an area of 1.11 million square meters under management, and an estimated reserve of over 20 million square meters.
In the first half of the year, Sunac Services increased the contracted area of 12.93 million square meters through market expansion and joint venture platforms, a year-on-year increase of 4.6 times, which has surpassed the full-year data of 2020.
As of June 30, 2021, the third-party construction area of Sunac's service contract accounts for approximately 32.2%. It is particularly worth noting that in the newly contracted construction area in the first half of the year, the area from third parties accounted for 69.8%.
In the first half of the year, Sunac’s non-residential services accounted for 43% of the newly added single-year contract value of third parties that did not include mergers and acquisitions. Public services, cultural tourism, hospitals, office buildings, transportation hubs and other sub-formats quickly supplemented powerful. At the same time, Sunac's services anchor core first- and second-tier cities to expand the main battlefield for third parties, strengthen superior sectors, and activate economies of scale.
In addition, Changtai Property’s acquisitions and acquisitions landed and added 12.22 million square meters of contract area and 25.95 million square meters under management for Sunac's services, realizing the expansion of high-quality projects; efficient integration with Kaiyuan Property and Huanrong, and helping them after the completion of the management system Operating efficiency has also improved significantly.
How high-quality growth is achieved
has only been on the market for less than 10 months. Why does Sunac's service achieve such impressive results?
According to the reporter’s understanding, Sunac’s services anchor the development strategy of “deeply plowing the layout, enriching business formats, and vigorously expanding third parties” to comprehensively improve customer operation capabilities, digital technology capabilities, talent organization capabilities, and comprehensive service capabilities. Quality growth, realizing the company's long-term value.
Some insiders pointed out that Sunac's service business performance continues to grow with high quality, and its core competitiveness lies in its leading comprehensive service capabilities, especially in terms of talent training.
In terms of comprehensive service capabilities, Sunac Services focuses on specialization, standardization, systematization, and refined operations, and is committed to providing the ultimate property basic services, segmented business services, community life services, and differentiated services.
After being listed, Sunac’s service management scale has expanded rapidly, and business boundaries have continued to widen.The demand for high-quality service management talents is unprecedentedly high.
Sunac Services regards talent echelon building as one of the company's long-term core strategies, and always focuses on cultivating and improving team capabilities. Under the guidance of the idea of "Technology + Talents", with the special recruitment plan of "Convergence Action", we will vigorously introduce professional talents, cross-sector talents and pre-reserved talents across the country and the entire industry.
In addition, through Sunac Academy, we will strive to create a full-cycle online and offline learning model, systematically organize and promote the cultivation and improvement of key personnel, middle-level backbones, front-line employees, and Rongyu students at all levels to improve the company Build a learning organization internally to promote organizational empowerment, value sharing and common progress.
In addition, Sunac's ability to service customers' operations and digital technology capabilities has also been comprehensively improved.
It is worth mentioning that Sunac Services also pursues in-depth collaboration between technology and business, placing digitalization in an important strategic position. According to reports, the goal of digital technology construction is to improve service experience and value externally, reduce costs and increase efficiency internally in operation management, and drive new orange and yellow business models. Intelligent property service sharing platform.
is recognized by the capital market, Shenwan Hongyuan and others have given a "buy" rating
Sunac's sustained and healthy high-quality growth has also been affirmed by the capital market. Shen Wan Hongyuan pointed out that Sunac's services rely on and Sunac China and will rely on three major advantages to achieve high-quality growth in the future.
"Follow-up Sunac China’s high-growth is expected to promote the company’s strong endogenous growth; Outsourcing will gradually develop its strengths and deepen its advantageous areas; M&A of potential high-quality targets will enrich the regional and business layout; Sunac’s services will be deployed in first- and second-tier core cities and projects Positioning at the mid-to-high end, the follow-up is expected to give birth to more diversified value-added services and open up a broader space for growth." Shen Wanhongyuan said.
Considering the scale expansion of Sunac services and the continuous improvement of profitability, Shenwan Hongyuan maintains a “buy” rating for Sunac services.
In addition, Ping An Securities believes thatAfter Sunac's acquisitions and acquisitions made up for the shortcomings, the integration effect was remarkable, the market expansion potential continued to be released, the non-residential service capacity was significantly enhanced, and the community value-added services gradually entered the performance realization period, supporting the rapid growth of performance and maintaining the "recommendation" Rating.
On August 31, Goldman Sachs released a research report saying that Sunac Services’ earnings per share forecast for 2022 to 2023 will be raised by 2% to 7%, based on the estimated price-earnings ratio for 2022 of approximately 36 times, and the target price will be increased from 28 Hong Kong dollars. Upgrade to 30 Hong Kong dollars and reiterate the "Buy" rating.
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