What Underlies Desun Services’ Growth as Its Revenue CAGR Exceeds 40% in the Past Two Years
CHENGDU, China, Dec. 24, 2021 /PRNewswire/ — Desun Real Estate Investment Services Group Co., Ltd. (Desun Services) (02270.HK), formally debuted on the Hong Kong stock market on December 17.
In China, the history of the property service industry can be traced back to the early 1980s, and since then, the industry has grown rapidly. In 2007, the State Council officially promulgated the Regulations on Property Management, which provides the legal framework for regulating the entire industry. Correspondingly, a more sophisticated legal framework for the industry further fuels the rapid growth of China’s property service industry.
Nowadays, the property service industry is stepping into the second stage of development, which means the industry landscape is rapidly evolving from a highly fragmented structure to a concentrated one. This also presents unprecedented development opportunities for property management service companies, one of which is Desun Real Estate Investment Services Group Co., Ltd. (Desun Services) (02270.HK), formally debuting at the Hong Kong stock market on December 17.
As a property management service company with a significant presence in the Sichuan-Chongqing Region, Desun Services ranks fifth in terms of commercial operational services market share in Chengdu. According to the prospectus, the company was awarded with several industry honors such as Top 10 Property Service Companies in Chengdu, and Top 100 Property Service Companies in China.
With the trend of accelerating concentration in the industry, the growing of Desun Services has just begun.
The twin driving factors behind the high growth
From the perspective of the business performance, Desun Services has experienced remarkable growth in the past few years. According to the prospectus, from 2018 to 2020, the company achieved revenue of RMB63.964 million, RMB69.116 million and RMB127.922 million, respectively, representing a CAGR (compound annual growth rate) of 41.4%. During the same period, the company’s net profit grew from RMB31.394 million to RMB42.913 million, representing a CAGR of 16.9%.
The high growth in business performance is propelled by the twin driving factors, namely, the company’s property management services and value-added services.
In terms of property management services, the relevant business revenue of the Company doubled from RMB30.153 million to RMB61.435 million between 2018 and 2020. Specifically, both the residential property management services and non-residential property management services maintained notable growth. The former grew from RMB11.303 million in 2018 to RMB27.794 million, while the latter increased from RMB18.850 million to RMB33.641 million.
Credit for it is owed to the increase in GFA (gross floor area) under management….
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