Rating Action: Moody's changes Jinke Property's outlook to positive from stable; affirms ratingsGlobal Credit Research - 12 Apr 2021Hong Kong, April 12, 2021 -- Moody's Investors Service has changed the rating outlook on Jinke Property Group Co., Ltd. to positive from stable.At the same time, Moody's has affirmed Jinke Property's B1 corporate family rating (CFR) and B2 senior unsecured rating."The change in outlook to positive from stable reflects our expectation that Jinke Property's credit metrics will continue to improve over the next 12-18 months, supported by its strong revenue growth and controlled debt growth," says Celine Yang, a Moody's Assistant Vice President and Analyst.Specifically, Jinke Property's revenue growth will be driven by its strong sales execution. Proceeds from contracted sales will provide the funds for the company to execute its business expansion, as well as support its revenue growth and liquidity over the next 12-18 months.Moody's also expects the company will take a measured approach to pursing growth in the next 1-2 years.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Jinke Property Group Co., Ltd. Hong Kong, November 11, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Jinke Property Group Co., Ltd. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Jinke Smart Services Group, a property management company spun off from Shenzhen-listed Jinke Property Group, is seeking to raise up to US$816 million from a Hong Kong initial public offering, joining over a dozen firms from the sector that have tapped the city's capital market this year.The company is selling 132.9 million shares, or 21 per cent of its share capital, at a range of HK$41.8 (US$5.4) and HK$47.6 per share, with an overallotment option of up to 19.9 million additional shares to cover strong demand from investors, according to its prospectus.The company plans to use the IPO proceeds to pursue investment and acquisition opportunities, and on upgrading their digital and smart management systems.Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.The offer, which kicked off on Thursday, closes on Tuesday. Trading is set to start on November 17.Thirteen property services companies have listed in Hong Kong so far this year, raising a total of US$3.5 billion, versus US$857.6 million from seven deals in the same period last year, according to Refinitiv.Last Friday, KWG Living and Shimao Services debuted on the main board after raising HK$3 billion and HK$9.8 billion, respectively.More such IPOs are in the pipeline before the end of the year. Sunac Services, the property services arm of China's fourth largest developer, is pre-marketing its IPO to raise at least US$1 billion. Evergrande Services, a unit of the world's most indebted developer, is also targeting around US$1 billion that could kick off in December, according to people familiar with its plans.China's struggling home builders are looking to cash in on the profitable parts of their business amid a housing market slowdown this year. But some analysts are beginning to see investors' enthusiasm for the sector cooling off."Although developers would continue to spin-off and list their property management arms given the current tight credit [in China], we believe these potential IPOs would likely be priced at a discount to those [already] listed this year," Stephen Cheung, an analyst at Jefferies, wrote in a recent report.As of June, Jinke Smart oversaw 487 property management projects with a total gross floor area under management at about 129.7 million square metres. The company said it makes use of technology such as cloud applications, big data, internet of things and artificial intelligence to enhance operational efficiency and improve its services.The Chongqing-headquartered company, whose operations cover 24 provinces, municipalities and autonomous regions, posted an 83 per cent jump in net profit to 302.5 million yuan (US$45.4 million) for the six months ended June, from 165.6 million yuan during a year ago.The property services unit of China Evergrande could launch an IPO next month. Photo: Reuters alt=The property services unit of China Evergrande could launch an IPO next month. Photo: ReutersJinke Smart has already secured 10 cornerstone investors who have committed US$345 million. These include Chinese insurance firm Taikang Life, private equity manager Hillhouse Capital, and asset managers Snow Lake Capital, UBS Asset Management and CICC Capital Management.The joint sponsors and global coordinators for the deal are Citic Securities and Huatai International. The joint bookrunners include CICC, Citi, Guotai Junan International and ICBC International.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.