Report
EUR 88.49
For Business Accounts Only
A brief peer comparison shows that its operating scale is in line with smaller peers such as S-Enjoy Services, Sichuan Languang, Eversunshine. And even though it operated with relatively lower overall revenue/sqm/mth, the company still had middling overall gross margin, boosted by its VAS and other services.
Valuation is undemanding. CCNL is offered at FY2020E P/E ratio of 17 - 21.8x compared to the smaller peer group average of 29.6x, implying 36 - 74% potential upside. Even if we assume a discount range, potential return is still positive.
We have covered the company previously in:
Central China New Life (建业新生活) Pre-IPO - Expanding Focus Beyond Property Management
In this note, we will compare CCNL to listed property management service companies in Hong Kong, share our thoughts on valuation, and run the deal through our ECM framework.
Central China New Life (建业新生活) IPO - More than just a property management service provider
Central China New Life (9983 HK) (CCNL) is looking to raise up to US$279m in its IPO.A brief peer comparison shows that its operating scale is in line with smaller peers such as S-Enjoy Services, Sichuan Languang, Eversunshine. And even though it operated with relatively lower overall revenue/sqm/mth, the company still had middling overall gross margin, boosted by its VAS and other services.
Valuation is undemanding. CCNL is offered at FY2020E P/E ratio of 17 - 21.8x compared to the smaller peer group average of 29.6x, implying 36 - 74% potential upside. Even if we assume a discount range, potential return is still positive.
We have covered the company previously in:
Central China New Life (建业新生活) Pre-IPO - Expanding Focus Beyond Property Management
In this note, we will compare CCNL to listed property management service companies in Hong Kong, share our thoughts on valuation, and run the deal through our ECM framework.
Underlying
Central China New Life
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Zhen Zhou Toh
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