Baoneng Real Estate plans to go public no later than 2022, with a scale of reaching the top eight in the industry. The company's valuation is 500 billion to 700 billion yuan - Yao Zhenhua with the Baoneng Group to "disrupt" Nanning Department Store , in order to realize this dream?
This article was originally published by Wumiancaijing
Author: Chen Xinmiao
Edited by Cheng Yu
Back to A rush to Nanning Department Store , Yao Zhenhua's drunkenness is not about drinking. The birth of the "monster stock" of
depends on an attack from the Baoneng system 15 days ago.
On December 4, Nanning Futian Investment Co., Ltd. (hereinafter referred to as "Nanning Futian"), a subsidiary of Yao Zhenhua's Baoneng Group, won 44.21% of the shares of Nanning Department Store html for 83.8591 million yuan, and became the company's largest shareholder with a total holding of 18.85% exceeding Nanning Peining Asset Management Co., Ltd. (hereinafter referred to as "Nanning Peining").
After that, the stock price of Nanning Department Store has risen sharply. Based on the closing price of 9.8 yuan per share on December 19, the investment of Baoneng Group was about 123 million yuan in 15 days.
It should be noted that Nanning Department Store has suffered losses in the past three years, and its operating cash flow has been negative for two consecutive years. Some industry insiders said that the Baoneng Group's move is more focused on the land assets of Nanning Department Store , which are located in the core area. After raising the quotation to become a major shareholder, it can carry out industrial transformation and cooperative development to obtain greater value.
As early as July 2018, according to "Financial" report, Baoneng Real Estate Co., Ltd. (hereinafter referred to as "Baoneng Real Estate") is preparing to go public. Its planned to go public is no later than 2022, and its scale will reach the top eight in the industry. The company's valuation is 500 billion to 700 billion yuan.
is only 17 years since its establishment. Baoneng Real Estate's sales ranking has not yet entered the top 100 in the industry. Its sales in 2018 were only 6.66 billion yuan, and its sales in the first 11 months of this year were less than 10 billion yuan. Can Yao Zhenhua’s dream of the 700 billion real estate kingdom come true?
"Barbaric" reappears?
Baoneng system is eyeing Nanning Department Store , and we have to start 4 years ago.
In September 2015, two months after Baoneng Group raised its stake in Vanke , Baoneng's Qianhai Life Insurance raised its stake in Nanning Department Store for the first time, with a total of holdings of holdings of of . After several increases, its stake in Nanning Department Store shares remained stable at 14.65%.
In April 2019, Qianhai Life Insurance transferred its 14.65% stake to Nanning Futian. With the 4.21% stake obtained by the judicial auction on December 4, Baoneng Group holds 418.85% of Nanning Department Store html, exceeding the 18.26% held by Nanning Peining, the largest shareholder at that time, and the difference between the two is 0.59%.
▲Baoneng Group increases its holdings in Nanning Department Store overview. The picture comes from "Alpha Factory".
Regarding this change in shareholding, although Baoneng Group stated that "as of the date of issuance of the reply letter, there was no intention to seek the company's controlling rights", Nanning Peining obviously felt a "sense of crisis".
In order to deal with the increase in Baoneng Group's holdings, on December 16, Nanning Peining and shareholder Nanning Agriculture and Industry (holding 2.94%) signed a joint actor agreement. The two held a total of 21.20%, exceeding the shares held by the "Baoneng Group" and becoming the controlling shareholder again. At the same time, the actual controller of Nanning Department Store is still the State-owned Assets Supervision and Administration Commission of the Nanning Municipal People's Government.
However, this number of shares held is only 2.35% different from the number of shares held by Nanning Futian after the successful bidding, and Nanning Peining and Nanning Agriculture and Industrial and Commercial Bureau said that they have no plans to increase their holdings of Nanning Department Store shares within 12 months. Based on the current market value of 5.338 billion, the Baoneng Group only needs to spend another 125 million to regain its controlling shareholder status. This also means that this battle is likely to turn into a tug-of-war.
Interestingly, Hong Wanling (holding 4.7% of the shares) of Nanning Department Store and Leihu Industrial (holding 0.93% of the shares) also have vague intersections with the Baoneng Group. According to Qichacha data, Leihu Industrial and Baoneng Real Estate holds 16% and 35% of the shares of Shenzhen Baoneng Zhida Industrial Co., Ltd. respectively; according to "Alfa Factory", Hong Wanling appears on the list of executives of several Baoneng-related companies.After
increased its holdings, the Baoneng Group pointed out in the announcement that Nanning Futian has no joint actor relationship or potential joint actor relationship with Hong Wanling, Shenzhen Leihu Industrial Co., Ltd. or other shareholders of the company.
How the Baoneng system will advance next is still unknown, but investors in the secondary market are already in full swing.
On December 19, the turnover rate of Nanning Department Store stocks reached 24.57%, with a trading volume of 1.321 billion yuan. The turnover rate and trading volume are both higher than the company and market average; the price-to-earnings ratio reached 666.47, which is about 11 times the industry average.
▲Nanning Department Store Top ten shareholders. The picture is from Tianyancha.
Regarding the Baoneng Group's motivation, the market generally believes that its move is intended to be potential land and real estate assets in Nanning Department Store . Some industry insiders pointed out that although the performance is poor, there is a huge wealth hidden in Nanning Department Store . The company's Chaoyang Store and Xinshijie Store are all owned properties and are located in the core area of the urban business district. In the eyes of the outside world, the land property in the prime location that the company owns is of great value.
annual report shows that as of 2018, the commercial property area of Nanning Department Store was 140,400 square meters and the warehouse area was about 9,600 square meters. In addition, as of the first half of 2019, Nanning Department Store had a total assets of 1.88 billion yuan and a net assets of 1.018 billion yuan. Among the 1.049 billion yuan fixed assets that accounted for the largest proportion, the book value of houses and buildings reached 1 billion yuan, which is the most valuable asset of Nanning Department Store .
"The department store industry has been impacted by e-commerce and has generally faced difficulties in recent years. However, the department store industry generally has a large number of properties in the center of the city, and there are opportunities for large-scale transformation." Peng Peng, a senior analyst at Huaxun Investment, said that in addition to Nanning Department Store , the Baoneng Group also holds shares in Hefei Department Store. The company's shareholding layout in the department store industry may be a preparation for future development.
700 billion is still a dream?
Yao Zhenhua's obsession with real estate has never seemed to have stopped.
In addition to Baoneng Real Estate, Yao Zhenhua successively established Baoneng Chengfa and Shenzhen Baoxin Industrial Group Co., Ltd. (hereinafter referred to as "Baoneng Industrial") in 2016 and 2017. The former focuses on industrial real estate, while the latter specializes in real estate development; Baoneng Real Estate focuses on existing projects.
Three "carriages" run side by side. At the end of 2017, Yao Zhenhua recruited Yu Ying to his command, setting a sales target of 40 billion yuan for Baoneng Real Estate in 2018.
▲Yao Zhenhua, Chairman of Shenzhen Baoneng Investment Group. The picture is from Baidu Encyclopedia.
According to incomplete statistics from Wumiancaijing (ID: wumiancaijing), from 2014 to the present, Baoneng Group has successively deployed cultural and tourism projects in Ningbo , Wuhan, Kunming, Dalian, Jinan, Guizhou, Tengchong and other places, with a total investment amount of about 240 billion yuan, and the land use scale has been calculated by 1,000 mu. However, these projects have not been specifically displayed on Baoneng's official website, and most of them have not yet been found to have specific implementation information such as construction.
However, judging from the Baoneng Group's capital transfer and layout, industrial real estate and residential properties are still their main development directions, and Yao Zhenhua still has expectations for Baoneng Cityfa, which is mainly responsible for industrial real estate. Some market views even believe that Baoneng Group's layout in the fields of automobiles, manufacturing, logistics, etc. will help it become bigger and stronger in industrial real estate.
However, the reality is that its new energy vehicle field, which has been invested heavily in recent years, has not yet achieved results. Qoros, which is highly regarded by it, has declined in overall sales in several years, and instead has used this to envelop tens of thousands of acres of land. The industrial real estate that Baoneng City mainly deals with is more "thunder and raindrops". The huge investment has not been implemented. If the cultural and tourism sector is taken into account, the operating pressure will undoubtedly double.
is currently regarded as the Baoxin Real Estate , which is currently listed on the Baoneng real estate business, is only a "container" for Baoneng real estate inventory projects. It has a limited scale. Under the increasingly stable real estate market and a basically determined real estate market pattern, it is not easy to break through.
data shows that in 2018, Baoxin Land achieved operating income of HK$1.892 billion, and profit attributable to shareholders of listed companies was HK$103 million, of which the revenue from property sales was HK$1.052 billion, accounting for 55.6% of the total annual revenue.
"Below Boss Yao, others don't have value and mission, they just need to execute." According to "Jiwen" citing insiders of Baoneng Group, Yao Zhenhua is a strategist, and Yu Ying is also a strategist, but if you have strategy and no layout at the execution level, the ending will be clear.
In the top 200 real estate sales list released by Cerry from January to September 2019, Baoneng Group ranked 165th with 6.16 billion. When Yao Zhenhua woke up from his dream, how should he continue to move forward?
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