Vanke’s Property Management Unit Onewo Cleared for Hong Kong IPO
Onewo, a property management service provider, on September 1 passed a review by the Hong Kong Stock Exchange (HKEx) for a public listing. The firm will become the sixth property stock listed in Hong Kong this year.
Onewo, formerly known as Vanke Service, was once the property service department of Vanke. The company’s earliest official announcement that it would split Onewo to go public was on November 5 last year. On April 1 this year, Onewo officially submitted a prospectus to the HKEx for listing, with co-sponsors CITIC Securities, Citibank and Goldman Sachs.
At present, the company has established a business model including the following three segments: residential consumption services, comprehensive services for commercial enterprises and urban space, and AIoT and BPaaS solution services, accounting for 55.5%, 36.7% and 7.8% of the company’s total 2021 revenue, respectively.
As for the valuation of Onewo, Vanke’s management team has always maintained a rather rational attitude. On August 31, at the 2022 interim results meeting, Vanke Chairman Yu Liang said that the firm had spun off Onewo for more development potential through a listing, instead of pursuing short-term profits.
Earlier, Yu also publicly stated that an excessive valuation may cause unrealistic expectations for employees, and that a relatively rational valuation is more conducive to employees’ business growth.
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According to the prospectus submitted before, from 2019 to 2021, the revenue of Onewo was 13.927 billion yuan, 18.145 billion yuan and 23.705 billion yuan respectively, with a CAGR of 30.46%. Corresponding annual profits were 1.04 billion yuan, 1.519 billion yuan and 1.714 billion yuan respectively, with a CAGR of 28.37%. In the first half of this year, Onewo achieved operating income of 14.35 billion yuan, a year-on-year increase of 38.2%.