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

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

Originally the listed platform of Huajin International Capital, during the process of restructuring, the original financial and financial printing business was sold. The assets had been stripped off. Since then, HUAFA group put the high-quality asset property business into the listing system, which added impetus to the future development and growth of HUAFA property, and the action has been continuously concerned by the capital market.

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

Zhitong finance app understands 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, industries and society. In 2015, HUAFA property ranked first among the top 100 comprehensive strength of national property service enterprises; in 2016, it was awarded the "integrity benchmarking enterprise" in Guangdong property management industry from 2014 to 2016.

HUAFA property business scope includes office building, stadium, government agencies, commerce, industrial park, exhibition and other 7 types of business. The business scope covers more than 20 large and medium-sized cities, such as Beijing, Shanghai, Guangzhou, Zhongshan and Wuhan.

For several years, HUAFA property has been adhering to the development strategy of Zhuhai, radiating the Pearl River Delta and moving towards the whole country. It has a national class a professional elevator engineering company, a wholly-owned subsidiary of professional municipal management and maintenance and several branches, with more than 100 projects under management, and has been awarded the "national property management demonstration project", "Guangdong property management demonstration project" Objective "Zhuhai property management demonstration project".

As the core property business of HUAFA property, the company mainly carries out property management business through subsidiaries and Hui Group Co., Ltd. From the 2020 semi annual report released by Huajin International Investment, it can be seen that HUAFA property has made quite good growth after listing. On June 30, 2020, the total contracted building area of HUAFA property management is about 26.7 million square meters, providing property management services and value-added services to 153 properties, with a total charge of about 14.1 million square meters. Meanwhile, in the first June of 2020, HUAFA property income was about HK $471million, and the profit was about HK $84.919 million.

From the industry perspective, due to the light asset model of the property industry, the stable cash flow, anti inflation and the high certainty of growth, it is one of the hottest sectors in the past year for Hong Kong stock market, and is favored in the capital market.

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

Looking forward to the future, property management service, hotel consultant service and exhibition service will be part of the strategy of "one core, two wings" of HUAFA property. The company is committed to improving the core business competitiveness and transforming to light asset management mode, and achieving stable growth of main business while giving full play to the synergy effect.

In general, HUAFA property, as a good company on the track, especially has more obvious growth space, obviously deserves higher valuation premium. After the rename, the company will open a new chapter of high quality and high efficiency value growth with huge development space in the future.