Syswin (NYSE:SYSW) is a Chinese based real estate sales agency. Syswin provides its services mostly to residential property developers who are in Beijing or Northern China in general. In terms of gross floor area of properties sold, Syswin was the largest in its industry in Beijing with 13% of the market, 4 times more than its closest competitor. The company focuses on building relationships with a relatively small set of key developers in the relevant regions. As of the end of 2009, the Syswin had relationships with 36 land developers.
Syswin expects that the Chinese housing market will continue to grow rapidly as the country's economy continues to grow. In particular the growth of China's middle class is expected to continue to drive the housing market. In addition, Syswin expects that real estate companies will become increasingly specialized as the market grows. This specialization will push real estate developers to outsource the sales aspects to outside companies like Syswin so that the developers can focus on their core competencies.
The company's initial public offering of stock on the NYSE occurred on November 23, 2010. The company offered 9.6M ADSs each for $7. This was well below the initial range of 12M shares between $9.25 and $11.25. However, the company revised its range to $7-$8 and decreased the number of shares by 20%. The IPO raised a total of $67M. The lead underwriter of the deal was Morgan Stanley (MS).
Syswin increased its total revenues from 2008 to 2009 by 57%. The company's reported total revenues of 433M RMB or $65M in 2010 was above both its 2007 and 2008 numbers. Syswin had reported a 16% in total revenues drop between 2007 and 2008. The company's net income also increased by 85% between 2008 and 2009 and rose to 152M RMB or $23M.