Housing diversification is not a good thing?

Now the real estate enterprises, more and more not " specific " : Evergrande playing football, but also sold mineral water; Vanke put out " five dishes and one soup " , also said to be city operators; Sunshine City And Yihua are planning to enter the medical industry; Fosun International went further, real estate development, steel, mining, retail, service industry all swept ......

After a 'golden years' development, the traditional real estate industry profits increasingly diluted, high cost, increased competition, the industry is on the eve of a major reshuffle. At the same time, the new era of real estate poses great business opportunities. Cross-border and integration are important ways for real estate enterprises to expand the Blue Ocean and realize diversification and profit expansion. Its essence is " real estate + X" , and non-real estate Business operations, the ultimate strategic transition for the benefit of return. Housing enterprises cross-border restructuring, whether icing on the cake for the real estate business, and ultimately investors and consumers recognized?

Recently, Sunshine City and Yihua Real Estate were announced that the company intends to enter the medical industry. Prior to this, a number of real estate companies including Vanke, Greenland, Evergrande and Shimao have either thrown out or have implemented diversified development plans. Some of the enterprises represented by Fosun International and Greenland Group have also initially completed strategic transformation.

A number of industry insiders told the Daily Economic News reporter that with the real estate development scale peaked down, achieving diversified layouts for sustainable development is the only way for real estate companies.

The financial advantages of successful cross-border operations do exist. South Africa Construction, Qixia Construction and other enterprises across the border to help companies maintain a relatively high level of gross profit. Evergrande, Suning Global and other enterprises in cross-border operation, more for the company's next development, well prepared for the strategic business.

However, judging from the cases collected by the organizing committee of the Fourth Annual Conference of Value Real Estate, at present, except for Hengda Mineral Water, the fifth canteen of Vanke and the commercial section of Shimao Cloud Services, which can utilize the resources of the owners, other types Cross-industry management can take full advantage of the resources of residential owners or a mystery.

Background: Forced industry prices peaked in the industry

" Real estate will peak in the industry in the next few years, and then gradually decline, which is the trend that most real estate developers can see, so whether it is out of sustained development or profit pressure, housing prices urgent need to expand new profit margins . " Credit Suisse general manager Xue Juewen told" Daily Economic News "reporter.

Rand consulting statistics found that by 2017 ~ 2018 , the real estate market will enter the stock market from the incremental market, sales will show a rapid decline. In addition, since 2010 , the net profit margin of A- share listed real estate companies will decline at a rate of about 1 % a year . It is estimated that by 2015 , the industry gross profit margin will be below 30% and the average net profit margin may hit 10% of the red line .

Ouyang Jie, senior vice president of Metro Holding, told reporters that with the end of the incremental real estate era, housing enterprises will face enormous bottlenecks relying on the original development model. To achieve sustained growth, diversification is almost the only option.

"After the 'golden years' development, the traditional real estate industry profits increasingly diluted, high cost, increased competition, the eve of the industry in a major reshuffle." Lemmon International Chief Operating Officer Chen Feng Yang told reporters, at the same time, real estate new era provide enormous business opportunities, and cross-border integration is housing prices do incremental expansion of the Blue Ocean, to achieve diversification is an important way to expand profits, its essence is the "real estate + X", to achieve non-real estate business operations through the integration of resources , And ultimately achieve strategic transformation to obtain high returns.

Status : Most of the housing prices have not ushered in the harvest period

In this wave of menacing " cross-border trend " , the reporter found that a small number of non-real estate business income has become the company's main source of income.

Take Fosun International for example. This private-owned enterprise, initially focusing on real estate, has now developed into a comprehensive enterprise that includes pharmaceuticals, real estate development, steel, mining, retail, services and strategic investments. Total operating income in 2013 achieved international star of about 51.016 billion yuan, of which the real estate business platform revenue contribution of about 11.361 billion yuan, accounting for only 22% of the company's overall revenue; net profit of 5.51 billion yuan in the same period, the real estate business contributed a net profit of 2.03 billion yuan , Accounting for 38% .

The latest data released by Greenland Group also showed that in the first half of this year, the company achieved a business operation income of 177.2 billion yuan, of which the real estate main business realized a pre-sale amount of 83.5 billion yuan and the company gradually transformed into a comprehensive type covering real estate, energy and finance enterprise.

Undeniably, most of the newly started diversified business transformation, non-real estate business revenue contribution is still insignificant, most are still at the edge of loss. To Evergrande for example, the 2013 report, the company on October 31 last year to 109 million yuan acquisition of mineral water plant, first launched in the AFC finals Hengda ice fountain, November, December, mineral water business Everbright brought 22,050,000 yuan income and 10,390,000 yuan loss.

" So far, I do not think there is a real real estate diversification completed. " Ouyang Jie told reporters that Vanke proposed to the city service provider transformation, the introduction of " five dishes and one soup, " or even stake in Huishang Bank mining community financial potential, However, these businesses do not provide significant revenue contribution in the financial statements, let alone provide profit. The same situation occurs in companies such as Evergrande, most of the diversified housing prices did not find the ideal profit model.

" Even a successful initial transformation such as Fosun has many industries but few of them are in the leading position in the industry.Really successful integrated enterprises such as Hutchison Whampoa have diversified businesses in their respective Areas are in the forefront. " Ouyang Jie think.

Advantages : financial strength and customer resources

Despite the successful transformation of real estate companies, there are still a few real estate developers in the market. According to many insiders, the real strength of Chinese real estate developers and their large number of owners are the most favorable conditions for their diversified development.

Xue Zhaowen believes that " in the field of real economy in China, the real estate business is undoubtedly one of the most abundant players in financial strength. "

" Unlike other industries, real estate enterprises in the process of development accumulated a large number of customers, these people are likely to become the future of new business consumers. " Ouyang Jie told reporters, including Metro Holdings, including large-scale real estate Business has seen the opportunity, have collected owners' data, with big data thinking analysis, mining the needs of owners to develop diversified plans.

At the same time, diversification is also conducive to real estate enterprises in the era of excess supply of real estate to enhance their competitiveness. In the case of Evergrande, the company can not only increase the added value of its products by providing Hengda ice spring drinking water function, music and movie services and medical services at Harvard Hospital for its properties, but also " cross-border " management as a future home of Evergrande Sales bring more channels.

Daily Economic News reporter learned that Fosun Group is constantly trying to integrate its real estate business and its various business segments. It is reported that Fosun International acquired a number of insurance assets in 2012-2013 , making the company's insurance funds available for investment reaching 114.4 billion yuan. Insurance funds with extremely low capital costs are conducive to providing low-cost financing channels for their real estate businesses. In addition, Fosun also launched the " Beehive City " to provide Fosun's core industries, derivative industries and related living services to owners in the community by building a new community of producing cities.

Huang Li Chong, director of Hong Kong's Guangdong Securities Investment Bank, told reporters that the layout of some non-related real estate sectors will help provide a strong cash flow support for enterprises in the down cycle of the real estate market to help businesses withstand the winter recession and achieve Contrarian layout.

Worries: lack of operational capacity

Despite the bright future, in the history of the development of Chinese enterprises, there are numerous enterprises experiencing a diversified expansion. Whether the real estate enterprises can break the curse remains unknown.

In fact, the failure of housing prices diversified examples are not uncommon. As early as the end of 2012 , Milky Way Bay, known as a mansion expert, marched into the high-end white liquor market with a high profile. However, the impact of the restrictions imposed by the state on the three companies has remained so temperate. Earlier, a number of small and medium sized housing enterprises including Xinhu Zhongbao and Guangdong Hongyuan flocked to the mineral resources industry and finally ended up losing all over the place.

Peng Dexin, Managing Director, Central China, DTZ, to the Daily Economic Journal reporter, many real estate companies take Li Ka Shing's Cheung Kong as an example to learn from, but in fact, even looking global, they can really achieve the goal of diversifying real estate from real estate to real estate Transformation of the business rarely, the success of the Department and its unique, its inability to enter the mainland real estate industry may be unfamiliar to the industry end up unsuccessfully.

Ouyang Jie suggested that the mainland housing prices to seek diversified development, the most secure approach or relying on the real estate business to achieve relevant diversification, such as pension real estate, industrial real estate, real estate services, real estate finance, in improving the management and operation of enterprises Then seek the development in non-related fields.