2020 “Yinhua Fund Cup” Sina bank financial planner competition, hot registration. From now on to September 7, you will receive free gift packages worth more than 700 yuan from Guan Qingyou, Luo Yuanshang, Chen Kaifeng and Jian Qi. < p > < p > on August 14, Aoyuan health, a property stock of Hong Kong stock, released its mid-term performance report for 2020. In the first half of the year, the operating revenue of Aoyuan health was 550 million yuan, with a year-on-year increase of 39.5%; the net profit was 110 million yuan, with a year-on-year increase of 24%. Under the background of generally high growth of property stocks, this performance growth rate is not outstanding. As of the closing of the 17th, the company’s share price rose only 0.77% on the same day. Since the beginning of this year, the average increase of property stocks is 83%, and the cumulative increase of Aoyuan health is only 35.6%. To some extent, this reflects the market choice. < p > < p > in the first half of the year, the company’s asset liability ratio rose to 45%, a significant increase of 6 percentage points compared with the same period last year. After spending 247 million on the acquisition of new third board property company lelife, only 20% of the M & A fund was left when Aoyuan was listed on the stock market. Aoyuan health is a consolidated subsidiary of Aoyuan group. As of August 2020, Aoyuan group held 54.7% equity of Aoyuan health. Relying on the support of Aoyuan health, the area under management of Aoyuan health increased from about 5.2 million square meters at the end of 2015 to about 15 million square meters by the end of 2019, with a net increase of 10 million square meters during the period. The growth mainly depends on the project delivery of the parent company Aoyuan group. < / P > < p > in the first half of 2020, due to the merger and acquisition of lelife, the proportion of the company’s managed building area from China Olympic Park is still as high as 90%, and the dependence of the parent company has not decreased after listing. However, even with the full support of the parent company, the overall scale of Aoyuan health is still small. By June 2020, the area under management of Aoyuan health has increased to 16.1 million square meters, an increase of 4.1 million square meters compared with last year, including an increase of 1 million square meters in property management services. < p > < p > with 70% property management services + 30% commercial operation services, the revenue scale of Aoyuan health at the end of 2019 is 900 million yuan, ranking 19th among 29 ah property stocks. In the first half of the year, the company’s scale of management has increased to 16.1 million square meters, which is far from the strength of the head of the property management company, which is often over 100 million square meters. With the submission of several property management companies such as Jinke intelligent service and Shimao service in the first half of the year, Aoyuan health’s scale ranking will still be lower, more like small and medium-sized property management companies. < p > < p > judging from the performance growth in the first half of the year, the health of Olympic Park is not outstanding. In the first half of the year, the net profit of Aoyuan health increased by 24%. At present, the net profit of times neighborhood, which has been published in China Daily, increased by 101.3% year-on-year, and the net profit of xinchengyue service in the first half of the year increased by 61.4%. Before that, there were also a number of property companies issued positive earnings forecasts, most of which increased by more than 50%. In the background of high performance, the competition of property stocks has risen to the situation of whose performance growth is faster. < / P > < p > affected by the epidemic situation in the first half of the year, the property management industry ushered in high light, but it was also inevitably negatively affected. This is reflected in the fact that real estate developers can not carry out value-added services such as case service and co marketing, and for the property management companies with commercial operation services, whether the shopping malls are opened or not has a greater impact. < p > < p > Aoyuan health belongs to a property + commercial property management company. In the first half of the year, the opening time of shopping malls was delayed. The market position of Aoyuan health and the income of merchants’ soliciting services decreased by 3.5 million yuan, about 12.1%, resulting in a decrease of 2.1% in the proportion of business operation service revenue compared with the same period of last year. At the same time, the gross profit rate of commercial operation services decreased by 4.6% to 41.5% year-on-year. As a result, the gross profit rate of basic property management services increased by 2.5% due to social security relief and other policy factors, and the comprehensive gross profit rate was kept at the same level as last year. < / P > < p > it is worth noting that Aoyuan health is above the high profit level, and the expense rate is always high during the period. In June 2020, the gross profit rate of the company is 40.1%, the net interest rate is 20.3%, and the period expense rate is about 20%. Since 2018, the period cost rate of Aoyuan health has always been above 20%, far higher than 13.4% of xinchengyue service and 16.5% of times neighborhood, which is in a high position in the whole property stocks, eroding the gross profit. In addition, the gross profit rate of lelife acquired by Aoyuan health in the first half of the year is about 15%, and the net profit rate is lower than 5%. It is expected that the achievement of performance consolidation in September will lower the profit level of Aoyuan health. < p > < p > in the first half of the year, there were two mergers and acquisitions of Aoyuan health. One was to spend 248 million yuan to acquire 80% equity of lelife. Lelife is a listed property company on the new third board, with a total construction area of 23.3 million square meters, which will greatly reduce the dependence of Aoyuan health’s parent company; the second is to acquire 65% equity of Ningbo Hongjian by 35.3 million yuan. < p > < p > among them, the annexation of large-scale happy life has brought a certain burden to the health of the Olympic Park. In the first half of the year, the company increased bank loans by about 130 million yuan, and the asset liability ratio rose to 45%, an increase of 6 percentage points over the same period of last year. Although the borrowing rate of some enterprises is not high after listing, it is not worth paying attention to even if the borrowing rate is high in some industries. The total cost of the two mergers and acquisitions is about 283 million yuan. The total amount of capital raised by Aoyuan health in 2019 is 573 million yuan, of which 355 million yuan is used to acquire or invest in other commercial operation services and property management service providers, and the above mergers and acquisitions account for 80% of the M & a funds. At present, Aoyuan health only pays 122 million yuan, and the unused proceeds from M & A is 233 million yuan, which will be fully used in 2021 or before. As of the first half of 2020, the health cash and cash equivalent of Olympic Park is 988 million yuan. According to the analysis of Anxin Securities Research Report, the growth of real estate developers in the next 3-5 years will be far lower than the previous level as the growth of real estate sales gradually slows down to near zero. The average growth rate of large-scale developers is less than 10%. The medium-sized developers are slightly higher than the large-scale developers, but the development space is limited. After all, the markets that can go to have been arranged. Some small and medium-sized developers will have a higher growth rate under the incentive of scale, but the overall growth level will be within 15-20%, and the equity growth rate will be smaller. On the one hand, the sales growth slowed down significantly; on the other hand, with the increase of property management scale, the incremental demand is increasing day by day. Under this background of long consumption, the contribution of the parent company alone can not support several years. Outward expansion capability (including M & A) becomes the key. The most direct and effective means of outward expansion, merger and acquisition, is a test of capital strength. We can see that in the first half of the year, even if the property companies hold a large amount of cash, with the rise of stock prices, many property companies have carried out equity placements to prepare for the next M & a market. Among them, Greentown services raised a maximum of HK $4 billion in two rights issues. < / P > < p > in the first half of the year, there are only two property enterprises with M & a transaction amount of more than 200 million yuan, which are times neighborhood and Aoyuan health. By the end of 2019, the capital of time neighborhood is equivalent to Aoyuan health, but the cash on hand may exceed 1.5 billion yuan after equity placement in the first half of the year. Embarrassingly, the share price of Aoyuan health has only risen by 35.6% since this year. As of the 17th, the price earnings ratio (TTM) of Aoyuan health was only 28 times. Obviously, the low-level rights issue is not cost-effective, which directly leads to the fact that the current capital strength of Aoyuan health is “less than that of the top and more than that of the next”, and it is unable to open up its hands to do a big job.