Institution: real estate industry or M & A in 2020

With the listed real estate companies successively announcing their 2019 results, the polarization within the industry is intensifying. From the perspective of the investment attitude of enterprises in the performance conference in 2020, the industry analysis believes that this year will be a big year for real estate enterprises to receive M & A.

At the same time of releasing the annual report, rongchuang, Aoyuan, shouchuang and other enterprises have expressed that they will continue to play their advantages in 2020, and take advantage of the liquidity pressure of some small enterprises to purchase; Zhengrong real estate said that this year, it will receive merger and acquisition in parallel with bidding, auction and listing, and may increase part of the land acquisition budget in case of good merger and acquisition project opportunities.

According to the statistics of China Index Research Institute, in the context of strict financing supervision, about 200 real estate enterprises participated in M & A in 2019. Among them, the proportion of top 100 real estate enterprises' m & a revenue to total M & a revenue is about 78%, and the concentration of real estate industry is further improved. In 2019, rongchuang, Yuexiu, Greenland, China Resources and other real estate enterprises have different degrees of merger and acquisition actions. Among them, rongchuang has continued the pace of M & A in previous years; Evergrande, Greenland and other enterprises have completed strategic adjustment through M & A to consolidate diversified achievements.

As an old real estate enterprise, Shimao has supplemented a large number of land reserves through multiple acquisitions in 2019 after the scale growth stagnated for a period of time. The land acquired by acquisitions accounts for about 67% of the total new area, and the annual sales performance also returns to the top ten of the industry. In the past few years, some large-scale real estate enterprises have accelerated the nationwide layout through merger and acquisition, and completed the scale growth stage rapidly. At present, they are basically in a relatively stable stage. But industry insiders believe that with the continuation of regulatory policies, real competition differentiation has just come. The sales side is generally subject to local regulation and control, the financing channel is continuously tightened by the regulatory authorities, and the land cost is constantly rising. In this context, a large number of small and medium-sized enterprises begin to face the situation of transformation or acquisition. "In particular, at the beginning of 2020, the epidemic is undoubtedly a huge pressure on small and medium-sized enterprises. Some small and medium-sized enterprises with weak capital chain and insufficient marketing capacity are facing a survival crisis, which will cause a new wave of M & A."

According to an analyst from China Securities Regulatory Commission, at present, the regulatory tone of the industry has not changed significantly, the supply side of funds will continue to be differentiated, and the financing of small and medium-sized real estate enterprises is still difficult; it is expected that in the second half of the year, with the improvement of the capital level of large-scale real estate enterprises, a new round of merger and acquisition will take place. "The new crown epidemic or the opportunity for leading real estate enterprises to further improve their market share." An analyst from Yihan think tank also believes that after the outbreak, due to the scale differences, real estate enterprises are also different in terms of resisting the impact of the epidemic. "Obviously, for large-scale real estate enterprises and 100 billion real estate enterprises with stable debt institutions, the epidemic is an opportunity to increase market share; but for growth real estate enterprises with high debt level and small and medium-sized real estate enterprises, the epidemic is even more a crisis."