Funeral industry to attract low-profile gold: selling cemetery gross profit margin "seckill" real estate enterprises tomb type prices

Sino-Singapore Jingwei Client, April 4th (Zhang Yannan) At this time last year, a report of "Winning Grave Real Estate" reported refreshing public awareness of the funeral industry. Now it is another year of Ching Ming Festival. Under the epidemic, restrictions such as limited appointments, time-sharing sacrifice, and no burning of paper have made this moment of grief to relatives a little different this year, and how will it affect the entire funeral industry?

Gross profit margin is still "seckill" housing enterprises

On March 15th, Fushouyuan, which claims to be the "first funeral stock" of Hong Kong stocks, released a financial report showing that total revenue in 2019 was about 1.85 billion yuan (RMB, the same below), a year-on-year increase of 12.1%; net profit was 735 million yuan, a year-on-year increase of 19.4 %.

Most of Fushouyuan's 2019 revenue comes from cemetery services, accounting for 83.8% of total revenue in 2019. However, this proportion has decreased compared to 2018. In 2018, cemetery services accounted for 86.4% of the total revenue of the year. In addition, tomb sales are the largest component of Fushouyuan's cemetery service revenue, accounting for 91.5% of the cemetery's service revenue in 2019. Among them, the number of operating tomb sales increased by 8.2% compared with 2018, and the average unit price was basically flat.

Screenshot of Fushouyuan's 2019 financial report

The client of Sino-Singapore Jingwei noted that the operating profit margin of Fushouyuan Cemetery Service in 2019 was 54.4%, and it was 49.9% in 2018. In contrast, the gross profit margins of leading real estate development companies are overshadowed. In 2019, China Evergrande's gross profit margin is 27.8%, Country Garden is about 26.06%, and Vanke's real estate business's settlement gross profit margin is 27.2%.

Where is Fushouyuan sacred? Fushouyuan landed on the Hong Kong Stock Exchange on December 19, 2013. At that time, the company's net profit had exceeded 100 million. The prospectus shows that in 2010, 2011, 2012 and the period from January to June 2013, the company's net profit was 113.7 million yuan, 141.6 million yuan, 138.2 million yuan and 118.1 million yuan, and the gross profit margin was above 80%. .

It needs to be mentioned that the business map of Fushouyuan has not stopped at the dead. In 2015, Fu Shou Yuan launched a life contract, that is, a contract with a funeral service company for the parties to carry out funeral ceremonial services after their death. In 2019, Fushou Garden has sold life contracts in 18 cities in 10 provincial regions, signed a total of 4,873 contracts, an increase of 96.1% over 2018, and the contracted amount reached approximately 18 million yuan.

In addition, from the perspective of the A-share market, the financial report of Fucheng Co., Ltd., which is known as the "first funeral stock", is expected to be disclosed on April 28. According to Wind, Fucheng's main business in the early stage was animal husbandry and slaughtering and food processing. In 2014, it carried out mergers and acquisitions of the pagoda cemetery owned by the major shareholder, and added operational cemeteries to its business content.

Although funeral and funeral is not the main business of Fucheng Shares, from the past financial reports, in 2016, 2017 and 2018, gross profit margins of Fucheng's funeral industry reached 84.84%, 86.78% and 87.96%, respectively. In the same period, the company's gross profit margin for live cattle, beef, mutton, and probiotic powder was only about 20%.

Tomb type price increases 2000

Affected by the epidemic, this year's Qingming Festival, in addition to making appointments for time-sweeping and time-sharing, many cemeteries have also launched services for sacrifice-sweeping and cloud-sweeping. Due to the ban on open flames and the burning of paper money this year, the profits of some funeral supplies shops have also been greatly reduced.

When a client of Sino-Singapore Jingwei visited the “Funeral Street” in Majuqiao, Tongzhou District, Beijing, a shop owner said, “In the past, we could earn more income by selling cemeteries for cemeteries, but the cemeteries that are gradually becoming famous no longer need us. , The unnamed cemetery is not selling well. In addition, in recent years, the cemetery has basically increased its price every year, and the number of people considering ecological burial has increased. "

Source: Lingshan Pagoda Cemetery Official Website

The client of Zhongxin Jingwei noted that, taking Lingshan Pagoda Cemetery in Sanhe City, Hebei Province as an example, the official website shows that the tomb type is divided into 24 types, such as the biblical monument, tree burial area, Wanshou monument, and gospel monument, compared with April last year. There are 11 fewer tomb types. The price is distributed between 9900-146,000 yuan, and some tombstones have risen. Among them, the biblical monument is the cheapest, and the price is 9900 yuan, which is the same as the same period of last year. 146,000 yuan, consistent with the same period in 2019.

Another shop owner stated that the sales of sacrificial supplies were not as good as last year. "Last year, paper money was basically sold in bundles of 5, 6 and 10 bundles, and now it is only 1 or 2 bundles. Fewer people are buying. It is estimated that this year's profit will be reduced by nearly half. . "

Photograph by Zhang Xinan, Zhongxin Jingwei, a shop in the "Funeral Street" in Majuqiao, Tongzhou District, Beijing

Cui Ying, who lives in Dongcheng District, Beijing, told the client of Sino-Singapore Jingwei that he encountered a price a day when he bought the inscription on the tombstone. Cui Ying said: "The first time I went to buy it with a friend, a male shopkeeper said that the tablet cost 10 yuan a bag. I wanted to buy it two days before going to the cemetery, but I asked two days later. A female shopkeeper sold 15 yuan. With a bag of money, there is no way to bargain on this kind of thing, I bought it at 15. "

Some people think that the meaning of man is based on life, so why bother with hindrance?

In China, “ecological funeral”, a land-saving burial method, has been vigorously promoted in recent years, and many provinces and cities have also introduced subsidy policies to encourage “ecological funeral”. For example, Tianjin proposes to award 1,000 yuan for each ashes of the undertaker who participates in the land-saving ecological burial, and subsidizes the basic funeral service fee of 1,420 yuan for each ashes after the cremation. Hunan Changde has proposed that, by adopting ways such as reducing free fees or providing subsidies, it will provide a further benefit policy for the families of the deceased who carried out cremation of the remains in the urban area, with a maximum subsidy of 3,060 yuan. (Zhongxin Jingwei APP)

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