In recent days, the public housing custom furniture listed companies such as Oupai Home (603833.SH), Hollywood (603898.SH) and Shangpin Home Delivery (300616.SZ) have successively held shareholders' meetings, and the beautiful performance has also attracted many shareholders. Institutional participation. In the secondary market, such companies have also been buoyed, and stock prices have continued to reach new highs.
According to the 2017 annual report and the first quarterly report of 2018, the total number of custom home listed companies continued to maintain high gross profit and high growth. In particular, the increase in net profit of listed companies in the whole house was even more impressive.
Custom home
Continuous high gross profit
As the age structure of home-based consumers is younger, housing costs have led to an increase in the number of small and medium-sized houses, and customization of the whole house has become an industry trend. In the past two years, the custom furniture companies with continuous growth in performance have been listed in batches, and they have opened up from the traditional battlefield to the capital market.
According to the data, in 2017, of the 28 SWS listed companies in the third-generation furniture industry, 10 had revenues exceeding RMB 1 billion, and 22 had net profits exceeding RMB 100 million. Among them, the European school as the industry leader, last year's revenue as high as 9.7 billion, net profit of 1.3 billion, both ranking first in the industry; secondly, Yihua life (600978.SH), Daya Sheng (000910.SZ Last year, revenues were 8 billion yuan and 7.05 billion yuan respectively, and net profits were 750 million yuan and 660 million yuan respectively.
Further data shows that in 2017, 21 of the 28 listed furniture companies had revenues that increased more than 20% year-on-year, such as the highest increase in music song shares (300729.SZ), up to 53%, followed by Weihua shares (002240. SZ) and Xilinmen (603008.SH) increased by approximately 44%. From the perspective of net profit growth, there were 14 companies with a year-on-year increase of more than 20%. Most of them were full-house custom listed companies, such as the increase in sales of 48.7%. In addition, the growth rate of net profit such as Holly, Europa, Sofia (002572.SZ) exceeded 30%.
Behind the brilliant performance is the continuing high gross profit in recent years. According to the data, in 2017, of the 28 listed furniture companies, 20 had gross profit margins exceeding 30%, and 4 companies exceeded 40%. Among them, the highest gross profit margin for Yazheng households (603389.SH), up to 57.7%; followed by Meike home (600337.SH) and Lege shares (300729.SZ) gross margin was 54% and 47%, others The gross margin of the product is 45%.
“Currently, the custom furniture industry is still in a rising period and is still far from the bottleneck period.” On May 15, an executive of a listed company of custom furniture stated that the company’s stores are still expanding, and the three- and four-tier cities have also been rapidly laid out. .
The 2017 annual report shows that there are more than 6,000 sales networks of European-style home dealers and company-operated stores; Sophia’s newly opened 200 wardrobe cabinets in 2017, and the number of independent closets for wardrobe cabinets is close to 3,000; The total number of franchise stores at the end of 2017 reached 1,557, a net increase of 476 from the end of 2016. The total number of its direct-operated stores has reached 85, a net increase of 9 compared to the end of December 2016.
After years of high gross profit and high growth, the listed company’s cash is also very abundant. At the end of the second quarter of 2018, among the 28 listed furniture companies, there were 13 monetary funds exceeding RMB 500 million, of which the highest was Yihua's life, which was close to RMB 4 billion; followed by Zhejiang Yongqiang (002489.SZ) and Oupai households. They were respectively worth 2.2 billion yuan and 1.63 billion yuan.
Intense competition
The high gross profit of custom furniture has also attracted more and more competitors. In Guangzhou alone, there are five listed companies, including the industry leader Oupai Home Furnishings, Shang Pinju, Sofia, Hollywood, and Mrs. Good, both of which are under the control of Shen Han.
The research report issued by Pacific Securities recently pointed out that “In recent years, the effectiveness of the customized home appliance leading information system has been highlighted, scale advantages have emerged, sales margins have been steadily improved, price cuts have low-cost and high-efficiency support, and the current concentration of leading faucets is still low. In the background, price cuts will help increase market share."
In addition, many listed companies also respond to competition by increasing synergies.
At the general meeting of shareholders on May 15th, Yao Peisong, chairman of the Oupai households, disclosed that "In addition to the integration of large homes, the company is also committed to the integration of categories. In 2018, the company will integrate kitchen and clothing, namely, cabinets and wardrobes. The integration of the two, the dealer's coincidence degree of about 40%, such as wardrobes, cabinets can be sold together, you can reduce costs; sales of cabinets can also give away wardrobe coupons, in turn, wardrobe sales can also drive cabinets.”
“The company will respond to competition through channel improvement and sinking (down from first and second-tier cities to third- and fourth-tier cities), product upgrades, category extensions, etc.” On May 16th, Hao Laike and his deputy director Deng Tao told the 21st Century Business Herald. The reporter stated that the profit of Maori will be obtained from the cost control and changing the product structure (increasing the proportion of high premium products).
