Wang's electric business dream hides in Wanda commercial real estate

Wen/Wang Ruichen

Remember Wang and MA, Robin Li together to build 5 billion tatsu electricity business news?

For months, the joint venture seemed to have lost its voice, and the outside world questioned that Wanda was wool.

Don't belittle Wang ambition. Not only, half a month later, with the Wanda commercial real estate IPO, Wanda Electric Trader's foot will even move into Hong Kong's capital market.

"Wanda Electric 35% shares injected into listed companies Wang strengthen holding"

Wanda Commercial Real Estate prospectus read: To buy shares of the proposed Wanda Electric, Wanda commercial real estate and Wanda Investment LC Co. 2¥q established a company named Wanda Information, To hold Wanda Group and affiliated companies in the Wanda Electric business accounted for 70% of the equity.

Wanda Investment LC is a wholly-owned company under Wang and shares Wanda information50% with Wanda commercial real estate.

Equal to say, Wang and Wanda commercial real estate each hold Wanda Electric dealer 35% shares. Wang holds a 51.07% per cent stake in Wanda Commercial property, according to the prospectus. That means he has nearly 53% per cent stake in the Wanda Electric business.

It seems that Wang's electric business dream has not broken, but his personal will reflects more strongly. So why did he hide the electric business dream in Wanda commercial real estate?

In my opinion, this is his key piece for Wanda commercial real estate and even Wanda Group, which not only helps to enhance the valuation and investment value of Wanda commercial real estate, but also is expected to act as a platform for the future O2O transformation of Wanda Group.

You know, Wanda Commercial real estate launched its IPO roadshow yesterday and is expected to be listed at HKEx late this month. It will issue 600 million new shares, with a pricing range of 41.8-49.6 Hong Kong dollars per share and a maximum of $4.411 billion trillion (about 27 billion yuan). Some pure real estate analysts say the Wanda commercial real estate selling point is still the concept of commercial real estate and retailing, not sexy, valued or restrained.

This view may be too pessimistic and too insular. Commercial real estate is not as weak as it might think. Statistics from the National Bureau of Statistics show that since 2009, the cumulative growth of commercial-use housing investment has been more than 20%; 2012 years later, business investment growth rate has been higher than the growth rate of residential investment. Up to now, in the total investment of real estate industry, the proportion of business investment is still low, there is considerable room for growth. Recent central bank interest rate cuts and other factors, is expected to promote the whole market gradually warming.

Wanda Commercial Real estate fundamentals are not lack of support. The prospectus shows that from 2011 to 2013, the revenues of Wanda commercial real estate were 50.77 billion, 59.1 billion and 86.8 billion respectively, with net profit of about 19.8 billion, 27.3 billion and 24.6 billion respectively.

"Wanda Commercial real estate market value or more than 300 billion"

If a new blueprint cannot be sketched out, Wanda commercial property may continue to be challenged. In my opinion, it is the dream of Wang for listed companies to put a 35% per cent stake in Wanda commercial real estate.

Previously, Wang had outlined an outline. Is the integration of Tencent, Baidu's technology and the Wanda Group and associated companies offline resources, including department stores, cinemas, karaoke and hotel business, the establishment of a large data operation based on a huge O2O platform.

Wanda Square in my eyes is the core foundation of this platform. You look at this one data: In 2013, Wanda Plaza passenger traffic exceeded 1.2 billion passengers.

I believe that no second company can come up with similar figures on a global scale. Moreover, these 1.2 billion people, the membership has been as high as more than 30 million, this is the Wanda electric operators have no formal operation before the accumulation of data. Industry insiders believe that Wanda Electric business platform operation, the number of members is expected to exceed 100 million.

If you throw away the visible part of Wanda Plaza, it is very much like the Taobao and the sky Cat of Ali department. It may not be the core of the profit platform, but it is an indispensable huge flow platform. This is Wanda's brand spillover effect, and many intangible services are born in the process of this flow adsorption.

Wanda's flow, not just Wanda Plaza traffic, it also includes Wanda Group at home and abroad all kinds of culture, entertainment, business and other resources. It can be said that in China's industry, Wanda is not only the largest, the form is also the most abundant. Only take Wanda Square as an example, it is rich in consumption form, the problem of conversion rate is not worried at all. Almost every person who emerges will produce consumer behavior.

This is the basis for the birth of Wanda Electric business platform, but also at that time Wang, MA, Li continued to emphasize the advantages of the part. At Wang, it is the gateway to resource integration across the line of the Wanda Group.

In my eyes, in the long run, Wanda Electric business platform value, the future will be far greater than its physical part. In a recent article, I said that the concept of Wanda O2O can encompass both entity and virtual, and it is larger than the extension of Wanda entities.

Of course, up to now, guarding the huge flow of Rooster's Wanda Electric quotient, and not really exerting force. Ma and Li have not really helped. The prospectus shows that Wanda Electric has not been formally established.

However, Wanda Group did not neglect the covert advancement of technology and commerce. It has been building a background base, and in Wanda Square layout a large number of WiFi hotspots, through the mobile Internet network to enhance consumer stickiness, for large data operations to pave the ground.

Many people think that Wanda Electric business for two years, ineffective, is that it lacks the electric quotient gene. I think this view is very unreliable. They understand that the electricity quotient is not the same as what Wang said. Wanda Electric Business is not like Ali platform to sell standardized physical goods, but to get through the online and offline non-standard service platform.

From the mode of view, Wanda Electric business more like the public comment network. But, it is more focused on the integration of resources within the Wanda Group system, with a strong regional business district characteristics. Wanda Electric Business, the general public reviews such models, cannot be quickly replicated, they must go deep offline, build the ecology.

In fact, the development of the public comment itself confirms the complexity of the O2O ecological construction. It was once seen as a slow company, focusing mainly on one or two-line cities, with a lack of scale. The slow logic is in a strong regional character, with the group buying mainly in the United States formed a difference, the latter mainly in the three or four-line market.

As of now, the bat has all penetrated the O2O field. Tencent injection of public comments, Baidu acquired glutinous Rice Net, and Ali Taobao, a few days ago formally released a new strategy, that is, to create a product including a one-stop service life circle, and deep line. In fact, before the IPO, the cat and the Hangzhou commercial real estate established a cooperation, pushed the service similar to Wanda O2O mode.

However, in the eyes of the internet, up to now, in addition to the public comments, China has not yet a firm to express itself as a O2O mode of enterprise.

It's a marathon. You can also see a hint of caution from the Wanda commercial real estate prospectus, which has been prepared for a long time. The prospectus shows that until 2017, Wanda commercial real estate will not exceed the capital investment of the Wanda Electric power provider, no more than 1.75 billion yuan.

On the eve of the Wang commercial real estate IPO, he hid his O2O dream, reinforcing a direct holding position and pouring new power into Wanda commercial real estate. He must have seen the great business opportunities and current situation of Wanda O2O.

I think his behavior is more sober and more pragmatic than before. If Wanda is expanding in the way of Jingdong, it is likely to fall into the bitter bureau of blindly burning money. In my opinion, the two-year cycle from now to 2017 years ago, Wanda Electric business has the ability to develop a new ecology.

In China and even in the global industry, we do not see a richer business model than Wanda Group. Wanda Electric Business is expected to activate the source of future profits-1.2 billion passenger traffic, more than 30 million active users (members), as a driving force in the valuation of Wanda commercial property.

Hong Kong's housing stock multiples are generally 5 to 7 times times higher. But they are many residential property developers, lack of value-added and synergy effect. Wanda Commercial Real Estate has a richer mode of profit and development, its PE value should be taken into account by Wanda, I think, from the Wang and Wanda Group in Wanda Electric business ambitions, should be commercial companies and part of the company and the entity grafted close to the Internet company as a reference, its PE value should be 20 times times up and down. With Wanda commercial real estate 3721.html ">2014 net profit forecast, Wanda commercial real estate is valued at $300 billion. This data is about twice times the market value of Vanke a (000002.SZ).