Chapter 492 The Future Top Five Real Estate Tigers
Chapter 492 The Future Five Tigers of Real Estate
"Is there also a Yifong supermarket nearby?" Yang Wendong suddenly said.
Zheng Zhijie said: "Yes, and there is more than one. In Central, the number of Yifeng supermarkets is much higher than that of Carrefour. Even in Causeway Bay and Admiralty, the same is true."
Although the Cheung Hing Group is a new wealthy group in Hong Kong, its control over real estate in the core areas of Hong Kong is far inferior to that of Hong Kong Land and even some declining old British companies.
However, after this year's bottom-fishing, in terms of the quantity and quality of land reserves, no one can compare with Cheung Kong Property, except for Swire Properties. This economic crisis has allowed Cheung Kong Property to easily acquire a large number of high-quality properties that it might not have been able to obtain in ten years, especially buildings in Central.
"Then let's go and take a look." Yang Wendong suggested.
This is the first time that he has defeated the Jardine Matheson Group head-on. Although it is only a small industry, he is still very happy. In a few years, Hong Kong will enter an era where the Chinese will overthrow British capital, and he can do his own thing as he pleases. Especially after the reform and opening up after 78, it will be an era of feast for capital investment.
Zheng Zhijie quickly pointed in a direction and said, "Mr. Yang, this way please."
Following Zheng Zhijie's instructions, everyone walked to another building. Yifong's supermarket was on the third floor of the building.
Zheng Zhijie introduced: "Mr. Yang, in places like Central, supermarkets, hotels, restaurants and so on are basically all inside office buildings."
"I know, every inch of land is worth a lot of money." Yang Wendong smiled and said, "It may be the same for our Carrefour in the future. The current single-family houses will most likely be demolished in the future."
Different from supermarkets in mainland China, supermarkets in Hong Kong are basically not built on a single piece of land. The reason is naturally that the land price is too high, and it would be a huge loss to do so.
However, thanks to Carrefour's early investments in some currently marginal areas, there are also some supermarkets similar to those in the mainland in later generations, with independent doors and courtyards and even parking lots. The original purpose of doing so was to take advantage of this opportunity to hoard land. Therefore, even if such supermarkets make losses every year, when housing prices go up in the future, they will be able to easily buy all the goods inside a hundred stores.
He invested in cinemas, supermarkets, and even factories in his early years for this purpose.
After listening to this, Zheng Zhijie also smiled and said, "Yes, I have also acquired a lot of low-rise properties this year."
"In the future, real estate companies will need to rely on these properties." Yang Wendong nodded.
When everyone arrived at the third floor, they saw workers removing the sign and changing the Yifeng Supermarket sign to Carrefour Supermarket. Yang Wendong said to his assistant, "Xiaoying, take a few more photos of the changed name later. It may be useful in the future."
"Yes, Mr. Yang." Xiaoying agreed.
Afterwards, everyone followed in, walked around the supermarket, and bought some things as if they were shopping. At this time, Liu Huayu also rushed over: "Mr. Yang, I didn't know you were here. I'm late."
"It's okay." Yang Wendong said, "I just came to take a look."
Originally, I was just looking at the buildings in Central, so I didn't ask Liu Huayu to come over. I guess it was because I suddenly suggested coming here that my assistant informed him urgently.
Liu Huayu said: "Now all Yifeng supermarkets in Hong Kong are preparing to change their names. In the future, we will be the only comprehensive supermarket chain in Hong Kong."
Yang Wendong nodded and said, "What about Yifeng? I remember there are other supermarkets in Hong Kong, right?"
Hong Kong capital is good at learning. When others make money in a field, others will follow suit. After Carrefour's success, in addition to Jardine Matheson, others also saw the opportunity and got involved.
Liu Huayu said: "There are a few more, but they also suffered heavy losses in the previous price war between us and Yifeng, and the overall economy is not good this year, so they must be doing even worse;
I have also contacted several of them and want to acquire them. Two of them have agreed and are negotiating the price. The other two or three have not agreed. "
"If you don't agree, forget it. There's no need to force it. We will just operate normally in the future and beat all competitors in terms of cost, unless they adopt differentiated operations." Yang Wendong didn't care.
In the retail industry, the larger the scale, the lower the cost. Once a brand has achieved scale in a region, other brands will have almost no chance. This is why Walmart in the United States has always been the only dominant brand. When it expands, others cannot compete. When it monopolizes the market, others will have even less chance.
Although Hong Kong is just a city, it follows the same rules.
Liu Huayu nodded and said, "Yes, together with the properties that Zheng Sheng bought for me, once all of them are opened, we will have more than 100 Carrefour stores in Hong Kong, covering almost 95% of the urban population."
“After that, we will follow the development direction of each town. Where there is a new population gathering, we will build new stores and maintain the fastest speed. In this way, we will completely control the retail market of Hong Kong supermarkets.” Yang Wendong followed.
Any supermarket that wants to develop well must have its own foundation. Currently, Hong Kong is the first one. Although it is a little small, as long as it is well managed, it is not a problem to make a profit of tens of millions of Hong Kong dollars a year.
"Okay, Mr. Yang." Liu Huayu said.
Yang Wendong added: "As Hong Kong succeeds, we must also quickly use the same method to gain access to the markets in Taiwan and Singapore, and then Malaysia. We will prioritize investing in places where Chinese people gather. There are more than 10 million people in these places, which is a not small market."
In the era before the reform and opening up of the mainland, as a Chinese, it is natural to give priority to developing the Chinese market. If the supermarket successfully enters, it will be easier for other industries to enter in the future, such as various types of food, KFC, cinemas, and even real estate. Liu Huayu replied: "I have also been investigating Malaysia. There are indeed many Chinese people there, and the rich are all Chinese, which is suitable for us to invest."
“Well, after Southeast Asia and Singapore, our next key investment target is Malaysia,” Yang Wendong said with a smile.
Malaysia’s population is now about 1000 million, but most of the wealthy class are Chinese, and their spending power even exceeds that of Singapore;
There is no relevant data for this era, but decades later, the Chinese only accounted for 20% of the Malaysian population, but contributed 60% of the taxes, which is enough to show how astonishing the wealth controlled by the Chinese in Southeast Asia is.
With the supermarket industry dominating the Hong Kong market, Yang Wendong has achieved one of the goals he set earlier. It is basically impossible for other consortiums to come in. Even though anyone can invest in this field, the low cost formed by scale is the strongest moat.
Time soon came to November 11th. On this day, Zheng Zhijie suddenly came to Changxing Building with an acquaintance whom he had not seen for a long time.
"Mr. Huang, long time no see." Yang Wendong said with a smile.
The person who came was Huang Yaonan, the chairman of China Bus. Ever since Changxing Group cooperated with him to seize the operating rights of China Bus a few years ago, Yang Wendong has always abided by his verbal promise and not participated in the operation of China Bus, leaving everything to the Huang family.
"Hello, Mr. Yang." Huang Yaonan said politely.
A few years ago, although Yang Wendong was worth more than him, the gap between them was not that big. But now, the difference is huge.
"Sit down." Yang Wendong greeted him and asked, "Mr. Huang, what do you want to talk to me about?"
Huang Yaonan said: "Mr. Yang, according to our original agreement, if I suffer losses for three consecutive years, I need to explain to you. In the past three years, China-Pakistan Company has suffered losses continuously, so..."
"Oh, that's normal. The economy has been bad in the past three years." Yang Wendong said, "Don't even mention that your bus company is an asset-heavy operation. Even my media company has suffered losses."
From 65 to 67, the economy recovered slightly only in the first half of 66, and then fell rapidly again. House prices plummeted, a large amount of capital withdrew, the rich emigrated, local capital began to shrink, ordinary people lost their jobs and reduced consumption. Under such circumstances, companies that relied on the local market suffered heavy losses.
"Thank you for your understanding, Mr. Yang. Here are the operating data of China Bus for the first three quarters of this year. You can take a look at it when you have time." Huang Yaonan took out a document and said, "Mr. Yang, I have another thing to do today."
"Speak." Yang Wendong also guessed that Huang Yaonan definitely didn't come just for an explanation.
Huang Yaonan said: "Although China Bus has suffered some losses, it has not been seriously damaged. There are many other transportation companies in the market that have suffered greater losses, so I want to take the opportunity to acquire some."
Yang Wendong nodded and asked, "This is indeed an opportunity. Which companies do you want to acquire?"
Under the economic crisis, the entire industry is declining. If you want to buy at the bottom, you can buy in any industry, but Changxing Group's bottom-fishing is planned and targeted, that is, financial stocks, real estate, infrastructure or some industries with great market potential.
As for the other hundreds or thousands of small industries, they will not participate even if the growth is dozens of times in the future. A small-scale industry will gain limited profits no matter how big the growth is. In addition, the management capacity of a group is also limited. If it is not their own industry, they will not participate. Even if they are optimistic about it, they can just buy some stocks or shares through finance. Participating by themselves will only increase management costs or even result in losses.
However, if the company he invests in decides to invest or acquire based on his own needs, he will also support it.
Huang Yaonan said: "I have two directions. One is foreign-funded gas stations. In the early years, gas stations in Hong Kong were controlled by British and American capital. This can be said to be an industry that makes money without doing anything. Now some foreign capital wants to leave. I think this is a good opportunity.
With my own gas station, refueling my buses will be much more convenient, costs can be controlled, and the profitability is also very good.”
"That's fine. I agree." Yang Wendong nodded.
To him, the gas station business is just like snacks. Hong Kong is just a city with not many cars and limited potential, far less than the mainland. But for China Motor Bus, it is a good investment target.
Huang Yaonan went on to say: "My second target is the taxi company. Taxis in Hong Kong are licensed. It was easy to get one in the early years, but it is very difficult now. Each license is more expensive than a car. There is a taxi company that has more than 300 taxis and 120 red-plate cars that are being planned for sale. I want to acquire them."
"Are you talking about Zhongyang Taxi Company? Hu Zhong's?" Yang Wendong asked back.
There are very few cars in Hong Kong, and the same is true for taxis. There is only one company in Hong Kong that can have so many taxis, and that is Zhongyang Taxi Company.
Its founder was named Hu Zhong, who was not very famous. Yang Wendong only knew of this person. However, when it came to his son, many people in later generations knew him. His name was Hu Yingxiang, the founder of Hehe Industrial, one of the five real estate tycoons.
Yang Wendong had also checked their family information a long time ago, but Hu Yingxiang had not yet controlled the family wealth in his early years, so he did not intervene. He began to enter the business world after his father dissolved the rental company and retired this year, and he started to establish Hehe Industrial.
The future leader of the five real estate tigers is about to step onto the stage of history.
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(End of this chapter)