"Zhao Zong," Chen Xi's voice was a little wavy, "Property company? You are talking about...Henglong Property?"
"Yes."
"That's a cash cow!" Chen Xi was anxious,
"It contributes a stable profit of 120-150 million yuan every year, and the cash flow is extremely good. How can such an asset be sold?"
Zhang Qingxue pushed up his glasses and his tone rarely fluctuated:
"Chairman Zhao, although the valuation of the property company is not particularly high, it is more stable.
The price-to-earnings ratio given to property stocks in the capital market is generally over 15 times. If Henglong Property were to be listed separately, its valuation would be at least 2 billion."
She paused:
"And this is the company's High-Quality Assets. After selling it, it will lose more than 100 million in profits every year. What will investors think?"
Su Wantang didn't speak, but Jingjing looked at Zhao Chen.
She believed he had a reason.
Zhao Chen waited for them to finish speaking before speaking slowly:
"I know everything you said."
He paused:
"But have you ever thought about what the property company will look like in three years or five years?"
Chen Xi was stunned for a moment.
Zhao Chen continued:
"How do you make money from office properties? It depends on the rental rate.
The rental rate is high and property fees can be collected;
If the occupancy rate is low, the property management company will have to drink from the northwest wind."
He looked out the window:
"What do you think the office building occupancy rate will be like in the next few years?"
Chen Xi and Zhang Qingxue were silent.
They are all smart people and can tell everything at once.
"Internet companies are shrinking, the financial industry is rectifying, and foreign companies are withdrawing."
Zhao Chen said, "The vacancy rate will only get higher and higher, not lower."
He paused:
"As for residential properties --"
He shook his head:
"It is a labor-intensive industry. Security, cleaning, and maintenance are all manual labor.
Wages are rising every year, and it's difficult to raise property fees every five years. How much gross profit can we make?"
Chen Xi opened his mouth but was speechless.
"The market is good now and property stocks have high valuations."
Zhao Chen said,
"If you sell it at this time, you can get a good price. When the vacancy rate rises in three years, the property management company will become a burden and you won't be able to sell it even if you want to."
He looked at Chen Xi:
"So, let the news out. Just say that Henglong intends to sell the property company, and interested parties are welcome to come and negotiate."
Chen Xi took a deep breath and nodded:
"Understood. What price range?"
"Not less than 2 billion." Zhao Chen said, "If it is less than this amount, it will not be sold."
Zhang Qingxue pushed up his glasses:
"With this price... will any organization accept it?"
Zhao Chen laughed:
"Yes. There is a lot of money in the market now, but High-Quality Assets is less. The Henglong Property sign is worth the price."
He paused:
"Moreover, after the news is released, the stock price can rise again."
Chen Xi's eyes lit up:
"You mean..."
"The property company is individually valued at 2 billion. What is the current market value of Henglong?"
Zhao Chen said, "After Rights Issue, the stock price was around 7 yuan, and the market value was just over 4 billion. Even if it encounters the Short Squeeze market, it is only about 6 billion."
Once the market settles its accounts, it will feel that Henglong is undervalued and will naturally buy it."
Zhang Qingxue nodded:
"It makes sense. Expectations of spin-offs have always been a catalyst for stock prices."
Zhao Chen stood up:
"Then it's settled. Chen Xi is responsible for the release, and Aunt Zhang will prepare the legal framework for the spin-off and sale. Wantang--"
He looked at Su Wantang:
"Help me make appointments with a few interested institutions and meet first this week."
Su Wantang nodded:
"Okay."
Chen Xi and Zhang Qingxue got up and left.
Only Zhao Chen and Su Wantang are left in the office.
Su Wantang walked to him and asked softly:
"Are you sure? The property company sold it, but it can never be bought back."
Zhao Chen looked at her:
"You don't believe me either?"
Su Wantang shook his head:
"I believe it. It's just a pity."
Zhao Chen was silent for a few seconds.
"Wantang," he said, "Do you know what I'm most afraid of?"
Su Wantang Wait for him to continue.
"It's not that the stock price fell, it's that someone Short Selling."
Zhao Chen said, "I predicted what would happen in the future, but I couldn't stop it."
He looked out the window:
"In the next few years, Real Estate will be very difficult. Many companies will die. If Henglong wants to survive, it must be prepared in advance."
He paused:
"If the property company sells it now, it will be at a high price. If it sells it in three years, it will be at a broken price."
Su Wantang looked at him, with something complicated in his eyes.
"You always see farther than others," she said.
Zhao Chen shook his head:
"It's not that you can see far. It's..."
He didn't finish.
Su Wantang didn't ask any further questions.
She just held his hand gently:
"No matter what, I'll be here."
Zhao Chen nodded.
5:10 pm, Chaotianmen·Raffles Hotel Cloud Restaurant.
The elevator stopped on the 53rd floor.
The moment the door opens, the entire city spreads out in front of you - Yangtze River and Jialing River meet here, cutting Shan City into three pieces, and are stitched together by countless bridges.
The sun shines in through Floor-to-Ceiling Window, making the dark Dali stone floor shine.
Zhao Chen walked into the restaurant and glanced at the window seat.
Shen Jue is already here.
Her outfit today - a light-colored suit with a white silk shirt underneath - is a bit softer than yesterday in Meeting Room, but her crisp aura has not changed at all.
There was a glass of water in front of me without any unnecessary movements.
Seeing Zhao Chen, she nodded.
"Very punctual."
Zhao Chen sat down opposite her:
"Habit."
The waiter came over and Zhao Chen ordered a glass of water.
The two were silent for five seconds.
This isn't an awkward silence, it's just waiting for the other person to speak first.
In the end, Zhao Chen broke it first:
"You said you had something to talk about last night. Can you talk now?"
Shen Jue looked at him with a strange seriousness in his eyes.
"I want to enter Board of Directors of Henglong."
Zhao Chen was slightly startled.
Then he laughed.
The smile was very short, but it had a clear "as expected" feeling.
Shen Jue looked at his expression and raised his eyebrows slightly:
"You guessed it a long time ago?"
"I guessed part of it." Zhao Chen said,
"You would rather not get the fat in your mouth, but still keep 30 million shares,"
He paused:
"There are only two reasons for you to do this - either you want to be long-term, or you want to enter Board of Directors."
Shen Jue looked at him, a hint of appreciation flashed in his eyes:
"Then which one do you think I am?"
"Enter Board of Directors." Zhao Chen said, "If you want to be long-term, you can also sell them all first and buy them back when the stock price falls.
Moreover, you never concealed it from the beginning - you said you were optimistic about Henglong."
Shen Jue was silent for two seconds.
Then she laughed.
The smile was very short, but there was something in the eyes -
It was like I finally met someone who could understand me.
"Zhao Chen," she said, "You are smarter than I thought."
Zhao Chen picked up the water glass and took a sip:
"So this is what you wanted to talk to me about?"
Shen Jue nodded:
"That's it."
Zhao Chen Put down the water glass:
"Then I can tell you - Board of Directors has reserved a seat for you."
Shen Jue's brows raised slightly.
"Are you ready?"
"From the time you said you wanted to keep 30 million shares," Zhao Chen said, "I guessed it."
Shen Jue looked at him with something complicated in his eyes.