Red Star: How To Evaluate The Traditional Mode?

Red Star Mei Kai Long listed, it is inevitable that investors will compare it with Wanda.

Wanda put forward a strategy of light assets pformation in 2015, and the stock price rose all the way.

Wanda also pointed out that the future will focus on the channel sink, to a wider range of small and medium-sized cities in the mainland, that is, to match this strategy.

Wanda is actually from tradition.

The pformation to the US model is to build and operate the whole industry chain from its own capital to the use of financial capital for light Asset Services.

By contrast, the company had already managed a light asset management model several years ago.

The prospectus shows that at present, red star MC has designed two types of business models, the first is self operated shopping malls, and the second is entrusted with the management of shopping malls.

From the prospectus of Hongxing Mei Kai Long, we can see a shadow of a vertical subdivision industrial platform supplier.

Compared with Wanda Commercial, Huarun land, Joy City and other pure modern single shopping center developers, sources from Hongkong said that the strategy of red star's focus on the vertical field has gained four times the capital market's over subscription multiplier.

By the end of 2014,

The built shopping center has increased to 158, with a total business area of 10 million 750 thousand square meters, providing more than 18000 brands of products in 115 cities in 26 provinces of China.

among

52, the total area is 4 million 30 thousand square meters. Most of these shopping malls are in the first and second tier cities.

Private rental stores account for 66.2% of total revenue, and the speed of opening stores is still accelerating.

In the prospectus, it was revealed that at the end of 2014, there were 25 self built shopping malls in reserve, with a total construction area of 3 million 460 thousand square meters, and 359 stores entrusted to manage shopping malls, with a total construction area of 20 million 470 thousand square meters.

Over the years, the shopping mall has been upgraded 8 times, and now it is the ninth generation of shopping malls.

Red Star MC has its own market gross margin of 82.9%, the rental market gross margin 41.8%, entrusted management mall gross margin reached 75.8%.

Compared with the highly dispersed Chinese real estate industry, the market concentration of home decoration industry is better than that of real estate.

By the end of 2014, red star MC accounted for 24.1% of the chain operator market, accounting for 10.8% of the home chain retail decoration market, accounting for 3.8% of the home shopping market, accounting for 2.6% of the total retail market.

Wang Yongping believes that the commercial mode of red star and the Wanda are different.

"Red Star" is mainly based on output management. Wanda's light assets are mainly capitalized, and it is a mode of fund management to take other people's money to buy land and cover shopping malls.

"Red Star" is a traditional management mode.

For investors in the ideal vertical electricity supplier mode, Wang Yongping bluntly, the cost of the line is very high, sales can not keep up with, if vertical electricity providers, merchants can not afford.

It depends on whether or not the experience shop can drain the line or exceed the rent of the physical store.

An electric business insider said that the Red Star Mei long long went on the market. "After having a certain scale, the red star has attracted the attention of the mainstream capital market. Now the red star is expanding and has grown up. Although it is not very profitable, there is a good future for the capital market to a higher level."

He pointed out that the current aesthetic style of the capital market has also changed significantly, from the heavy assets that used to be big and heavy to the light assets. Therefore, the strategy of "going to the real estate" by the red star is a key step.

"If Hongxing Mei Kai Long finds a good organization, the doubling of the stock price is not a problem, otherwise, it is possible to break the share price."