On November 15, Sony Holding Group Co., Ltd. (02103.HK, referred to as "Sony Holdings") was officially listed on the Hong Kong Stock Exchange, and closed at 3.95 yuan (HK$, the same below) that day, which was a slight drop from the 3.98 yuan offer price . Sinic Holdings issued 529 million shares this time. Based on the IPO price of RMB 3.98, the amount of funds raised is approximately RMB 1.964 billion. The current total market capitalization of Sony Holdings is HK$13.94 billion, and the price-earnings ratio is about 29 times. According to industry analysts, capital prefers unicorns, and Sony’s performance on the first day of listing was mainly impacted by Alibaba , which was listed on the Hong Kong Stock Exchange on the same day. Other reasons are the company’s own reasons, including the domestic market downturn and corporate soil. Reserve, debt ratio, etc.
(Zhang Yuanyuan, Chairman of Xinli Holdings)
This year, more than 10 real estate companies have applied for listing in Hong Kong, and Xinli Holdings is the fifth real estate company to successfully go public during the year. The other four are Zhongliang Holdings, DXN China , Yincheng Holdings, China Tianbao, and Xinli Holdings. Many industry insiders believe that Sony's listing node and stock price performance precisely reflect the changes in the capital market's attitude towards mainland property stocks and industry trends. The overall decline in the market environment has led to insufficient capital confidence in mainland property stocks. Judging from the results of the placement on November 14, the domestic part of the Sony shares is under-subscribed, but overseas is over-subscribed. According to disclosures, due to under-subscription of the Hong Kong offer shares, Sony Corporation reallocated 15.373 million Hong Kong offer shares to the international offering. The final international offering shares were approximately 491.8 million. Analysts from insiders pointed out that Sony’s overseas subscriptions were partially oversubscribed, mainly because of low pricing; domestic undersubscriptions may cause investors to be affected by the fact that more than half of the company’s land bank is concentrated in Jiangxi.
According to the prospectus, as of the first quarter of this year, Sony's land bank reached 14.8 million square meters, 43.8% of which was concentrated in Jiangxi Province, of which Nanchang accounted for 35.6%. If the attributable land reserves of joint ventures and associated companies are added, the total land reserves of Jiangxi Province account for 52.6%. Under the current market conditions, such a land bank structure appears to be slightly risky to investors; however, Sony Holdings currently accounts for 25.6% of land bank in the Guangdong-Hong Kong-Macao Greater Bay Area, which is the second largest land bank outside Jiangxi. This lays the foundation for its subsequent development. One detail is that multiple securities platforms show that Sony Holdings has a P/E ratio of 29.61 times on the first day of listing, far exceeding the P/E ratio of the other four real estate companies listed this year at 3-6 times. Given that the price-earnings ratio is one of the indicators that reflect whether there is a bubble in the stock price, the ultra-high price-earnings ratio of Sony Holdings may indicate from the side that the capital market is optimistic about its stock price trend.
Anhui Sanxun, Wuhan Aoshan, Changzhou Ganglong, Helenberg Real Estate, Wanchuang International, Huijing Holdings, Jingye Mingbang and other real estate companies also submitted prospectus during the year. But these real estate companies are much smaller than the listed Zhongliang Real Estate and Sony Holdings. According to data from the prospectus, the land reserves of the aforementioned housing companies are less than 5 million square meters. The current land bank scale determines the sales scale for the next two years. Coupled with the increase in financing thresholds, the gap between the sales collection rate of small and medium-sized real estate companies and large real estate companies is widening, and the risk-return ratio is lower than that of large real estate companies. A manager of a listed real estate company told reporters that the main reason for the listing of real estate companies is to open up overseas financing channels. It is also obvious that real estate companies use the listing to break the problem of financing, reduce the debt ratio, and optimize the financial structure. For example, after the completion of listing and financing of Hongyang Real Estate , it quickly launched a move to swap positions in cities, moving from the original second-, third- and fourth-tier cities to strong second-tier cities; Zhongliang Holdings quickly launched a round of financing after listing and successfully issued in September this year 2021 The 300 million USD overseas bonds that are due and the 100 million USD notes due 2021 will continue to be issued. However, the aforementioned executives also pointed out that the capital market is not so interested in the stock trading of a newly listed company, and it often takes several years for the company to prove its strength to the capital market.
is worth noting that the more severe market test faced by real estate companies may become the driving force behind the tide of listing of real estate companies. In the third quarter of 2019, the Political Bureau of the Central Committee made it clear that real estate should not be used as a means of stimulating the economy in the short term. The real estate policy is expected to become clearer, and the regulation of some hot cities will be upgraded. At the same time, the growth rate of real estate investment and new construction area has declined to varying degrees; the land premium rate has dropped; the real estate market has continued to differentiate between regions, with the fastest growth in investment and sales in the Southwest, and investment in the Northeast, East and South China. Growth, but the sales area showed negative growth.
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