Home News World Original Yuexiu Service’s IPO price cap is HK$6.52 per share, Shangtang Technology...

Original Yuexiu Service’s IPO price cap is HK$6.52 per share, Shangtang Technology Tang Xiaoou participates in the investment

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Image source: Internet

Produced|Sohu Finance

Author|Wu Ya

After the market on June 15, Yuexiu Service Group Co., Ltd. (hereinafter referred to as Yuexiu Service) held an online press conference for the global offering. Yuexiu Service Non-executive Director and Chairman of the Board of Directors Lin Feng, Executive Director and Chief Executive Officer Wu Wei, Executive Director and Executive Deputy President Mao Liangmin and CFO Chen Dongpeng attended the press conference.

According to Yuexiu Services, it intends to issue 369.7 million shares in a Hong Kong IPO, with an offer price of between HK$4.88 and HK$6.52 per share; it plans to raise HK$1.804 billion to HK$24.1 billion before the exercise of the over-allotment right, and the exercise of the over-allotment right Later, it plans to raise 2/7.5 billion Hong Kong dollars to 2.772 billion Hong Kong dollars.

Yuexiu Service introduced 10 cornerstone investors, including Xinhua Asset Management (Hong Kong), sensepower held by SenseTime’s founder Tang Xiaoou, Shenghui Holdings, and Sofia Home Furnishing two directors Jiang Ganjun and Ke Jiansheng, Huake Capital and Shanghui Enterprise, etc. It subscribes for approximately 777.2 million yuan worth of shares; it is expected to be priced next Monday (June 21) and will be listed on the 28th with the stock code 6626.

Yuexiu Services stated that about 60% of the proceeds from the IPO will be used for strategic acquisitions and investments, and further strategic alliances will be established to expand the scale of property management; about 15% will be used for further development of value-added services and diversified development of service portfolios to increase profitability Capacity; about 15% is used for the development of information technology systems and smart communities; about 10% is used for working capital and general corporate purposes.

At the press conference, Wu Wei said that in the next three to five years, Yuexiu Service hopes that it will be among the first echelon of the industry. The specific implementation path includes: support from Yuexiu Real Estate, which can stably contribute 20 million square meters in the next three years. Management area; through strong external expansion, the company currently has a professional external expansion team and has professional external expansion capabilities; accelerate mergers and acquisitions, give full play to its own advantages, and take a market-oriented approach to actively participate in outstanding targets in the market Mergers and acquisitions of enterprises.

In response to the development and planning of the TOD model of Yuexiu Service, Lin Feng said, “Yuexiu Service is not limited to the Guangzhou Metro service category. There are certain professional barriers in this field. Yuexiu Service already has rich experience in this field. In the future, the company will conduct negotiations in more provincial capital cities and other regions. The growth in this field is expected.”

“In the depot service, Yuexiu Service undertakes the internal and external cleaning of subway trains, establishes technical barriers for cleaning of special equipment, and becomes the core competitiveness of the same type of business. Yuexiu Service will continue to explore the formation of TOD and cover residential management and construction. The unique management mode of the next site management, this special mode will become the growth point of future scale expansion and new profit points.” Lin Feng said.

In response to this problem, Wu Wei added that relying on Yuexiu Real Estate and Guangzhou Metro, Yuexiu Services has obvious advantages in this field; at the same time, Yuexiu Services has been deeply involved in diversified portfolio services and has core advantages for many years. And competitiveness.

On February 10 this year, Yuexiu Property (00123.HK) issued an announcement regarding Yuexiu Services’ submission of a listing application to the Hong Kong Stock Exchange; on the evening of the same day, the Hong Kong Stock Exchange disclosed the Yuexiu Services prospectus; on May 24, the Hong Kong Stock Exchange disclosed that Yuexiu The service passed the hearing.

The data collection after the hearing shows that from 2018 to 2020, Yuexiu’s service revenue increased from 763 million yuan to 1.168 billion yuan, and its net profit increased from 45.458 million yuan to 199 million yuan; gross profit margins were 25.9%, 27.2%, and 34.5%, respectively. ,Continued growth.

In terms of business structure, Yuexiu’s service revenue mainly comes from two major directions: non-commercial property management and value-added services, commercial property management and operational services. The former accounted for a relatively large income, and the revenue contribution ratio in the past three years exceeded 64%.

As of the end of 2020, the total area under management of Yuexiu Services was 32.6 million square meters, a year-on-year increase of 48%; the number of properties under management was 215, and 96.1% of the properties under management were located in first-tier, new first-tier and second-tier cities. According to the statistics of the Zhongzhi Research Institute, in terms of the market share of the area under management in 2020, Yuexiu Service ranks seventh among the top 100 property service companies.

Different from ordinary property companies, Yuexiu Service relies on the TOD property management model of “Metro + Property”, and is the only one of the top 100 property companies in the country that provides metro property services in the Greater Bay Area.

Prior to this, in November 2020, Yuexiu Services acquired the Guangzhou Metro Environmental Engineering and Guangzhou Metro Property Management from strategic investors, Guangzhou Metro, and became a composite property management company with “metro environmental engineering maintenance + metro property management and operation”. The acquisition has added over 5 million square meters of management area, which will provide Yuexiu Services with new businesses such as subway station lines under management and subway superstructures in depots.

In addition, the direct controlling shareholder of Yuexiu Services is Yuexiu Property, and Guangzhou Metro is the second largest shareholder of Yuexiu Property. In recent years, Yuexiu Services has continuously expanded its TOD scale relying on Yuexiu Property and Guangzhou Metro. As of the end of 2020, Yuexiu Real Estate has 5 TOD residential projects with a total construction area of ​​nearly 4 million square meters. In 2020, the contracted sales of 5 TOD residential projects will be approximately 17 billion yuan.