Country Garden Service acquires Blu-ray Jiabao: Property management scale jumps to the top three in the industry
Recently, the property management industry has ushered in a major news: Country Garden Services (06098.HK) officially completed the acquisition of Blu-ray Jiabao Services (02606.HK). This transaction not only set a new record for M&A in the property management industry, but also made Country Garden Service's managed area break through.600 million square meters, becoming the top three giants in the industry. The following is a detailed analysis and comparison of industry data of this acquisition.
1. Transaction background and core data
The total transaction amount of Country Garden Services acquired Blu-ray Jiabao this time is approximately5.432 billion yuan, setting a new high in the scale of mergers and acquisitions in the property management industry. After the transaction is completed, the area under management of Country Garden Services will be from the original420 million square metersIncrease to630 million square meters, market share has increased significantly.
| index | Country Garden Services (before acquisition) | Blu-ray Jiabao | Country Garden Services (after acquisition) |
|---|---|---|---|
| Area in the pipeline (100 million square meters) | 4.2 | 2.1 | 6.3 |
| Contract area (100 million square meters) | 7.5 | 3.8 | 11.3 |
| Revenue in 2020 (billion yuan) | 156.0 | 48.2 | 204.2 |
| Net profit (billion yuan) | 26.9 | 7.8 | 34.7 |
2. Reshaping the industry structure
After this acquisition, Country Garden Services' scale is second only to Vanke Property (under management area)780 million square meters) and Poly Property (under management area650 million square meters), becoming the third largest property management company in the industry. The following is a comparison of the scale of the leading companies in the property management industry:
| Ranking | Company Name | Area in the pipeline (100 million square meters) | Contract area (100 million square meters) |
|---|---|---|---|
| 1 | Vanke Property | 7.8 | 10.2 |
| 2 | Poly Property | 6.5 | 9.1 |
| 3 | Country Garden Services | 6.3 | 11.3 |
| 4 | Longhu Smart Service | 5.6 | 8.4 |
3. Market reaction and future prospects
The capital market responded positively to the acquisition. Country Garden Services' stock price rose after the announcement5.2%, while Blue Light Jiabao shareholders obtained a higher premium through cash exit. Analysts believe that the integration of the property management industry will be further accelerated, and the competition among leading companies in the future will focus onValue-added service capabilitiesandTechnology transformation.
In addition, Country Garden Service Management said that it will focus on promoting the following strategies in the future:
1.Regional deep cultivation: Integrate Blue Light Jiabao's advantageous resources in the southwest region to improve regional density;
2.Digital upgrade: Invest in intelligent IoT technology to reduce operating costs;
3.Community value-added services: Expand high-gross profit businesses such as housekeeping, pension, and retail.
4. Industry trend observation
In the past two years, the merger and acquisition wave in the property management industry has continued to heat up. From 2021 to the present, the industry has occurredFrom more than 20In the case of a billion yuan merger and acquisition, leading companies have rapidly expanded their scale through mergers and acquisitions. The following are the main mergers and acquisitions events in the property management industry in 2021:
| Acquisitioner | The acquired party | Transaction amount (billion yuan) | Increasing the area of the pipe |
|---|---|---|---|
| Country Garden Services | Blu-ray Jiabao | 54.32 | +50% |
| Longhu Smart Service | Yida Services | 12.73 | +18% |
| Evergrande Property | Asia Pacific Hotel Property | 15.00 | +25% |
Overall, Country Garden Services' acquisition not only consolidates its industry status, but also provides a new model for the integration of the property management industry. In the future, as the real estate industry enters the era of stock, the value of property management services will be further highlighted, and competition among leading companies will become more intense.
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