Huajin International Capital: after the name change, HUAFA property started a new era of high quality development

Release time:2020-12-14 Source:Zhitong finance app

On December 14, the Hong Kong listed company Huajin International Capital (00982) announced that it plans to change its name to "HUAFA Property Service Group Co., Ltd." this indicates that after a series of internal restructuring and asset injection of the parent company HUAFA group, HUAFA property, a high-quality asset, has successfully landed in the capital market and entered the vision of Hong Kong investors.

It was originally the listing platform of Huajin International Capital. In the process of restructuring, it sold the original financial and financial printing business, and the old assets have been stripped off. Since then, HUAFA group incorporated the high-quality asset property business into the listing system, adding impetus to the future development and growth of HUAFA property. This action has also attracted the continuous attention of the capital market.

It is worth noting that HUAFA group, the parent enterprise of HUAFA property, is the largest comprehensive state-owned enterprise group in Zhuhai and a well-known leading enterprise in China. It has been ranked among the "top 500 Chinese enterprises" for four consecutive years since 2016, 330 in 2019, and 43rd in the list of top 500 Guangdong enterprises. The group has been deeply cultivated in Dawan district for many years, and its business is all over the country. The injection of high-quality assets into HUAFA property also reflects the parent company's support and trust in HUAFA property.

Zhitong financial app learned that Zhuhai HUAFA Property Management Service Co., Ltd. was founded in 1985 and obtained the first-class qualification of national property management enterprise in 2003. Relying on 30 years of unremitting efforts and excellent performance, HUAFA property has won wide praise from customers, industry and society. In 2015, HUAFA property ranked among the top 100 comprehensive strength property service enterprises in China; in 2016, it was rated as "integrity benchmark enterprise" in Guangdong property management industry from 2014 to 2016.

The business scope of HUAFA property includes office buildings, stadiums, government agencies, commerce, industrial parks, exhibitions, etc. Business scope covers more than 20 large and medium-sized cities such as Beijing, Shanghai, Guangzhou, Zhongshan and Wuhan.

Over the past few years, HUAFA property has adhered to the development strategy of basing itself on Zhuhai, radiating the Pearl River Delta region and going to the whole country. It has a professional elevator engineering company with national A-level qualification, a wholly-owned subsidiary of professional municipal management and maintenance, and many branches. It has more than 100 projects under management, and many projects have been rated as "national property management demonstration project" and "Guangdong property management demonstration project" "Zhuhai property management demonstration project".

As the core property business of HUAFA property, the company mainly carries out property management business through its subsidiary and Huihui Group Co., Ltd. From the 2020 semi annual report released by Huajin International Investment, we can see that HUAFA property has achieved quite good growth results after its listing. On June 30, 2020, the total construction area of HUAFA property management's property project contract is about 26.7 million square meters, providing property management services and value-added services to 153 properties, and the total charged construction area is about 14.1 million square meters. Meanwhile, in the first six months of 2020, the revenue of HUAFA property was about HK $471 million, and the profit during the period was about HK $84.919 million.

From the perspective of the industry as a whole, the property industry is one of the most popular sectors in Hong Kong stock market in the past year due to its asset light model, steady cash flow, anti inflation and high certainty growth.

In addition to the core property business, the high-quality assets injected simultaneously also include the company's unique hotel management business and exhibition business, which constitute its core development strategy of "one core, two wings". It is understood that HUAFA property, through its wholly-owned subsidiaries, Zhuhai Hengqin New Area Huajin International Hotel Management Co., Ltd. and Zhuhai Hengqin New Area Huajin International Exhibition Service Co., Ltd., has gradually carried out hotel management, exhibition and event planning related businesses in mainland China.

Looking forward to the future, property management services, hotel consulting services and exhibition services will be an integral part of HUAFA property's "one core, two wings" strategy. The company is committed to improving its core business competitiveness, transforming to asset light business model, and achieving stable growth of its main business while giving full play to the synergy effect.

Generally speaking, HUAFA property, as a good company on a good track, especially with more obvious growth space, is obviously worthy of higher valuation premium. The company will open a new chapter of high quality and efficient value growth with huge development space in the future.