Across the country, over the past 40 years, various high-tech development zones, economic and technological development zones, science and technology parks, and industrial parks have sprung up, and “random flowers are gradually becoming enchanting” has become the norm. As the economy enters the stage of stock development, asset management has become an important way to revitalize existing assets and drive profit growth.
In this context, there is no doubt that the performance of companies that can efficiently acquire, revitalize, and manage assets can be boosted in the long term as a result.
Currently, companies are releasing quarterly reports one after another, which probably just gives us a window to observe the leading companies among them. Shoucheng Holdings (0697.HK), which saw a sharp increase in the share of asset operations in the first quarter, was quite remarkable. In fact, it is no accident that this business was able to achieve such impressive results; behind this is the fruit of the company's restructuring and transformation over the years. Through this report card, it may be proven that the company's hard strength and future prospects are worth looking forward to.
The superposition effect of the two major businesses is remarkable, and the efficiency of asset operation has increased dramatically
According to the company's latest results announcement, Shoucheng Holdings achieved revenue of HK$351 million in the first quarter of 2024, an increase of 9.0% over the same period last year; net profit to mother reached HK$118 million, an increase of 7.0% over the same period last year. Among them, asset operating revenue was approximately RMB 202 million, an increase of 42.2% over the previous year.
It is worth noting that the asset management business showed a sharp rise in terms of both revenue scale and share of total revenue. As can be seen from the quarterly report, the increase in revenue has mainly benefited from the continuous increase in the scale of management of Shicheng Holdings in core cities and the increase in the efficiency of asset operation and management in industrial parks.
In terms of parking operations, in the first quarter, Shoucheng Holdings efficiently completed the operation and handover of various projects, and successfully settled in the Beijing Fengtai Railway Station parking lot project and the Guangzhou Baiyun Airport parking lot management project. According to the data, Guangzhou Baiyun Airport carried nearly 20 million passengers in the first quarter of 2024, an increase of 43% over the previous year. This also means that under the strong growth of residents' travel demand, Shoucheng Holdings experienced a clear rebound in its business with its specialized, digital intelligence, and standardized asset operation capabilities.
In terms of industrial park asset operation and management, the company's park projects have continuously improved investment efficiency and have become a key driving force for the rapid development of asset management business. Take the Liugong Exchange Project as an example. The project has now successfully attracted diversified enterprises including Chinese high-tech enterprises, listed companies, central and local state-owned enterprises, and foreign-funded enterprises. In the first quarter, the project actively carried out investment promotion activities on the basis that the overall occupancy rate exceeded 95%, which is conducive to further increasing the project's revenue scale and profitability.
At the same time, by opening up the entire business chain, Shoucheng Holdings has enabled the two major businesses of asset operation and asset financing to empower and promote each other. Focusing on the asset financing business, in the first quarter, the company actively optimized and expanded the operation and project reserves of urban development funds, and comprehensively promoted the “fund-raising-investment-management-exit” ecological closed-loop development strategy to help customers achieve double growth in terms of asset size, quality, and return on assets.
The scale of high-quality assets continues to expand, and performance growth is highly certain
Whether judging from the data level or business level of Shoucheng Holdings' first-quarter results, Shoucheng Holdings not only showed steady growth in first-quarter results, but more importantly, the financial report revealed the certainty of the company's subsequent performance growth.
According to the author, the steady recovery of the macroeconomy and the gradual recovery in market demand have created a favorable external environment for the expansion of the company's business. In particular, the growing public demand for industries such as tourism, transportation, and infrastructure has opened up a wider development space for Shoucheng Holdings' core business, thus showing strong growth momentum for the company's future performance growth.
In this process, it can also be seen that Shoucheng Holdings is actively seizing market opportunities. While improving operating efficiency, the company is strengthening market expansion. By continuously expanding the scale of high-quality asset management, it has consolidated the project foundation for the company's future performance growth.
At the beginning of this year, Shoucheng Holdings successfully signed a contract for the Shougang Winter Olympics Plaza project. Currently, it has attracted many well-known companies and platforms such as the China Health Management Association (Sports Health Management Professional Committee), the China Health Management Association Media Center, and Zhongliang Health Management Co., Ltd. The company also completed the signing of parking lots for two major shopping malls in Hangzhou in April, and the scale of asset management has further grown. In addition, the company has also had in-depth exchanges with various municipal and district governments in Yantai and Nanjing, as well as companies such as Xinxing Group, etc., laying a solid foundation for further deepening cooperation and continuing to expand project reserves.
From this perspective, in the short term, Shoucheng Holdings can enhance its hematopoietic capacity and increase asset value by revitalizing its current high-quality asset projects, and ultimately lay a good foundation for the subsequent asset securitization process. In the long run, as the country continues to promote urban innovation and development, Shoucheng Holdings may develop a strong competitive advantage by accumulating extensive experience in the infrastructure field and achieving impressive results frequently. This provides a good foundation for the company's long-term growth and supports its long-term value improvement.
epilogue
In short, Shoucheng Holdings is actively developing a new layout and expansion for its core business while successfully building a stable and unique business model. Currently, while promoting high-quality growth in the company's performance, the asset management business can still bring unlimited room for imagination to the market, reflecting the accuracy of the company's strategic layout and continuous innovation.
From the perspective of long-term investment, Shoucheng Holdings has good fundamentals and high performance growth with high certainty. It is undoubtedly a high-quality target worthy of attention and investment. Furthermore, as the company's strategy continues to be deepened and market opportunities are grasped, its long-term value is expected to be further enhanced.