Wang Jianlin's "Business Dream" Hidden In Wanda Commercial Real Estate

Wanda Commercial Real Estate prospectus is clear: for Wanda electricity providers to be established, Wanda Commercial real estate and Wanda Investment Holding Co. Limited set up an enterprise called Wanda Information to hold 70% of Wanda Group and related companies in Wanda electricity supplier.

Wanda Investment Holding is a wholly owned company under Wang Jianlin's name, holding Wanda Information50% shares with Wanda Commercial real estate.

That is to say, Wang Jianlin and Wanda Commercial real estate hold 35% of Wanda electricity supplier.

The prospectus shows that Wang Jianlin owns 51.07% of Wanda Commercial real estate.

This means that his Wanda electricity supplier share accounted for nearly 53%.

It seems that Wang Jianlin's dream of electric business is not broken, but his personal will is more intense.

So why is he hiding the electricity supplier in Wanda Commercial real estate?

My view is that this is a key piece for Wanda Commercial real estate and even Wanda Group, which not only helps to enhance the valuation and investment value of Wanda Commercial real estate, but also is expected to play a platform for the entire Wanda Group to pform O2O in the future.

You know, Wanda Commercial real estate yesterday launched the IPO roadshow, which is expected to be listed in Hong Kong Stock Exchange later this month.

It will issue 600 million new shares with a price range of HK $41.8-49.6 per share, with a maximum scale of not more than US $4 billion 411 million (about 27 billion yuan).

Some pure real estate analysts said Wanda Commercial real estate selling point is the concept of commercial real estate and retail, not sexy, valuing or being suppressed.

This view may be too pessimistic and too narrow.

Commercial real estate is not as bad as expected.

National Bureau of statistics data show that since 2009, the cumulative growth of commercial commercial housing investment has been more than 20%; after 2012, the growth rate of business investment has been higher than the growth rate of residential investment.

Up to now, the total investment in the entire real estate industry is still relatively low, and there is considerable room for growth.

Recent central bank interest rate cut and other factors, is expected to promote the entire market gradually warming.

Wanda Commercial Real Estate lacks support.

Prospectus shows that from 2011 to 2013, Wanda Commercial real estate revenue was 50 billion 770 million, 59 billion 100 million, 86 billion 800 million, net profit were about 19 billion 800 million, 27 billion 300 million, 24 billion 600 million.

If a new blueprint can not be outlined, Wanda Commercial real estate may continue to be questioned.

In my opinion, placing 35% stake in Wanda's electricity supplier in the hands of Wanda Commercial real estate is Wang Jianlin's dream of listing for a listed company.

Wang Jianlin had outlined a profile before.

It is the integration of Tencent, Baidu technology and Wanda Group and related companies offline resources, including department stores, cinemas, Cara OK hall and hotel business, to build a huge O2O platform based on big data operation.

The Wanda Plaza in my eyes is the core foundation of this platform.

Look at this data: in 2013, the traffic volume of Wanda Plaza exceeded 1 billion 200 million passengers.

I believe that second companies will not be able to produce similar figures on a global scale.

Moreover, the membership of these 1 billion 200 million passengers has reached about 30000000, which is still the data accumulated before Wanda's electricity supplier has not been formally operated.

According to the insiders, the number of members is expected to exceed 100 million after the operation of Wanda's e-commerce platform.

If you throw away the visible part of Wanda Plaza, it looks very much like Ali's Taobao and Tmall.

It may not be the core profit platform, but it is an indispensable and huge traffic platform.

This is the brand spillover effect of Wanda, and many invisible services are born in this process of flow absorption.

Wanda

It is not only the traffic volume of Wanda Plaza, but also includes all kinds of resources such as culture, entertainment and commerce at home and abroad.

It can be said that in China's real estate industry, Wanda is not only the largest, but also the most abundant line.

Taking Wanda Plaza as an example, its rich consumption pattern is not worrying about conversion rate at all.

Almost everyone who comes out will produce consumption behavior.

This is the foundation of the birth of Wanda electronic business platform, and also the dominant part of Wang Jianlin, Ma Huateng and Robin Li.

In Wang Jianlin, it is the entire Wanda Group's online and offline resource integration entrance.

In my eyes, in the long run, the value of Wanda's electricity supplier will be far greater than its physical part in the future.

In a recent article, I said,

The concept of O2O can contain entity and virtual at the same time. It is more extensive than Wanda entity.

Of course, as of now, guarding the huge flow of Golden Rooster Wanda electricity providers, and did not really force.

Ma Huateng and Robin Li haven't really helped.

Prospectus shows that Wanda electricity supplier has not been formally established.

However, Wanda Group did not overlook the secret advance of technology and commerce.

It has been building a backstage foundation, and has placed a large number of WIFI hotspots in Wanda Plaza, enhancing the stickiness of consumers through mobile Internet networks, laying the groundwork for big data operation.

Many people believe that Wanda electricity supplier has been working for two years, but it is not effective, because it lacks the electricity supplier gene.

I think this view is very unreliable.

They understand the electricity supplier, and Wang Jianlin said the electricity supplier is not the same.

Wanda electricity providers do not sell standardized physical goods like Ali platform, but open up online and offline non standardized service platform.

From the point of view of the mode, Wanda electricity supplier is more like the public comment network.

However, it focuses more on resource integration in Wanda Group system, with strong regional business circle characteristics.

Wanda electricity providers, public comment such models can not be quickly copied, they must go deep below the line to build the ecosystem.

In fact, the development of public comment also confirms the complexity of O2O's ecological construction.

It was once regarded as a slow company, mainly focusing on a second tier city, lacking scale.

Slow logic is developing in strong regional characteristics, which is different from that of group buying. The latter is mainly in the three or four line market.

Up to now, BAT has all penetrated into the O2O field.

Tencent's injection of public comment, Baidu bought the glutinous rice net, and Ali's Taobao officially launched a new strategy in the first few days, namely, building a life cycle including commodity and one-stop service, and under the deep ploughing line.

In fact, before IPO, Tmall established a cooperation with a commercial real estate in Hangzhou. The service promoted was similar to Wanda O2O mode.

However, in the eyes of Internet users, so far, apart from public comment, no one in China has clearly manifested itself as an individual.

Model enterprises.

This is a marathon race.

You can also see a little caution from Wanda Commercial Real Estate prospectus, which has prepared for long-term preparations.

Prospectus shows that before 2017, Wanda Commercial real estate investment in Wanda's electricity supplier will not exceed RMB 1 billion 750 million yuan.

On the eve of this Wanda Commercial real estate IPO, Wang Jianlin hides his O2O dream, strengthening the direct holding status, and pouring new strength for Wanda Commercial real estate.

He must have seen the huge business opportunities and current situation of Wanda O2O.

I think his move is much more sober and more pragmatic than before.

If Wanda develops in the way of Jingdong, it is likely to be caught in the bitter situation of blind money burning.

In my view, from now until the 2017 two years ago, Wanda electricity providers have the ability to cultivate a new ecosystem.

In China and even in the global real estate industry, we do not see a richer business model than Wanda Group.

Wanda's electricity supplier is expected to activate the source of Wanda's future profit -- 1 billion 200 million passenger trips and about 30000000 active users (members), becoming the power to pull Wanda Commercial real estate valuation.

Hongkong's internal stock market is generally 5 to 7 times earnings.

But they are mostly real estate developers, lacking value-added and synergistic effects.

Wanda Commercial real estate has a more profit-making mode and development way. Its PE value should be taken into account by Wanda electricity supplier. I believe that from the ambition of Wang Jianlin and Wanda Group in Wanda electric business, we should refer to the close Internet Co of commercial companies and part of the entities, and its PE value should be up to 20 times.

Wanda Commercial real estate net profit forecast in 2014, Wanda Commercial real estate valuation or up to 300 billion yuan.

This data is about two times the market value of Vanke A (000002.SZ).