Wanda Valuation Outlook: Insufficient Potential, Concept Help

There is another good thing that "rent is not sold", that is, you can enjoy the appreciation of your property.

The focus of Wanda Commercial real estate is not how much it sells, but how much it holds. According to the prospectus, its assets are valued at 420 billion 550 million yuan.

The reason why the market value of Wanda Commercial real estate is estimated to be more than 300 billion is twice that of Vanke and Hengda.

Wanda Commercial real estate holding "investment property" valuation of up to 178 billion 745 million yuan, the valuation method used is "rent capitalization".

The smaller the capitalization rate, the higher the valuation.

In fact, people are more familiar with the concept of "rent to sale ratio": the rent is 3000 yuan / month, the housing price is 1 million 440 thousand, and the rental ratio is 480.

That is, 480 months (40 years) of rent can recover the cost of housing.

In this case, if the buyer calculates 1 million 440 thousand of the house price based on 3000 yuan rent, the capitalization rate is 2.5%.

According to the prospectus, Wanda investment property capitalization rate is 4.5% to 7%, corresponding to the rental ratio of 171~267, the valuation is not high.

But when capitalizing rent, we should use net income instead of gross rent, and Wanda's gross profit margin is 70%.

In the first half of 2014, the capitalization rate was 4%, and the rental ratio was 300.

If the rent does not rise, it will take 25 years to recover the investment and the valuation is not low.

Large Real Estate Company hold a certain number of "investment properties", such as office buildings, shopping malls, parking spaces, etc., with the purpose of letting and enjoying appreciation.

The accounting model used in the past has adopted the "cost method" to estimate the value of the enterprise's self occupied business site and the investment property and depreciate it year by year.

Appreciation of the word building, shopping malls on the report is becoming more and more worthless, obviously unreasonable.

Nowadays, the "fair value method" is widely used to measure the follow-up value of investment property. The side effect is a convenient way for financial manipulation of Housing enterprises.

Therefore, "value revaluation" has become a digital game played by real estate companies all the year round.

The valuation of investment property has increased year by year, and the days have gone up little.

The cost can be a little cost to the valuer.

There is another beauty in the value revaluation game.

According to the relevant accounting tax, investment

The change of fair value during holding period is not considered.

The magnitude of investment property held by commercial real estate is not comparable to that of other Real Estate Company.

In 2011, 2012, Wanda Commercial real estate valuation income was 1 billion 400 million and 2 billion 200 million respectively.

In 2013, the net profit was 24 billion 880 million, but the fair value increased by 15 billion 440 million. In the first half of 2014, the net profit was 4 billion 920 million, and the "fair value increase" reached 5 billion 230 million. This means that if we don't play a revaluation, Wanda will already lose money.

Covet

For many years, but Wanda has always been in the wrong way. Even the outstanding performance and concept of Wanda line has not been able to log in to A shares. The Wanda Commercial real estate is required to go to the main board of Hongkong.

However, the valuation of Wanda Commercial real estate investment is not low, and there is limited space to get profits through revaluation.

Not long ago, Wanda quickly joined the Tencent and Baidu to play the O2O flag. It is easy to imagine the intention to include the two Internet giant platforms, increase their imagination and ensure that the $60 billion valuation is fully recognized by the capital market.