\u3000\u3 Shengda Resources Co.Ltd(000603) 818 Qumei Home Furnishings Group Co.Ltd(603818) )
Core view:
In 2018, Qumei and Huatai's fund acquired ekornesasa, a Norwegian national treasure brand and high-end furniture manufacturer, for more than 4 billion yuan, becoming the largest M & a transaction in the field of major consumer goods between China and Norway.
Although from the perspective of the subject matter of the acquisition, the company will obtain more income after the acquisition. However, as far as M & A itself is concerned, there are a series of questionable places in the means of M & A and the way of financing. The biggest problem with this acquisition is that the target of the acquisition is large and expensive, and the conditions for the acquisition are also harsh. In the two years after completing the merger and acquisition of "snake swallowing elephant", in addition to the sluggish growth of operating revenue, Qumei Home Furnishings Group Co.Ltd(603818) 's profit continued to decline. The company is in a state of continuous "pit filling". How to better integrate the acquired resources and realize the sustainable growth of business has become a problem that the company's management needs to think about.
In order to reproduce the past glory and realize the continuous growth of performance, Qumei also carried out drastic reform and integration of the acquired Ekornes on the personnel side, the product side and the channel side after the M & A. First of all, the most fundamental change brought about by Qumei's entry into Ekornes is the change of the nature of the company. After Qu Mei became the owner, in a sense, the company really had its own "boss". The company has also transformed from a stable company with long-term dividends to a growth enterprise oriented by operating income growth. In addition, the entry of the new boss has also brought a new management team and new incentives to encourage professional managers to create more value for the company.
On the product side, the company vigorously carries out the development of new products. While consolidating the advantages of fist products and comfortable chairs, the company actively expands the categories of products to better meet the needs of target customers. For the fist product comfort chair, the company has launched comfort chair products with cushion and backrest heating function and comfort chair products with motor according to the results of consumer research and the feedback of dealers. In addition, the company actively assisted Ekornes in the development of new products, including stressless brand soft sofa, tea table, dining table chair and other non comfortable chair living room finished furniture, which made up for the lack of styles of stressless brand supporting products. With the introduction of new products and new categories, the company has made great achievements in the North American market.
On the channel side, the company continues to increase the operating revenue of the company's brand from both the quantity and quality of channels. In terms of quantity, under the guidance of the company's active expansion of revenue, the company's channels continue to expand. The total number of distributor stores of Ekornes's three brands increased from 5394 in 2018 to 6942 at the end of 2020, an increase of 28.70%. In addition, in addition to the traditional dealer channels, the company also actively expands the channels of key customers. The company has successively signed supply agreements with Costco, gplan and other large channel providers, and conducted distribution cooperation with channel providers with more than 100 chain stores to promote the all-round expansion of channels.
In the short term, we believe that the performance of Qumei Home Furnishings Group Co.Ltd(603818) in 2022 will maintain a medium and high growth rate. From the perspective of the overall industry, we believe that the North American market demand is expected to remain high in 2021, but the sales growth rate may slow down. With the continuous promotion of channel layout measures such as China's "thousand store plan" and the rapid growth of sofa and other non comfortable chair products, China and other emerging markets are expected to become important market growth drivers of the company. In the medium and long term, Qumei Home Furnishings Group Co.Ltd(603818) backed by the top brand strength of stressless, is still in the expansion period, and its performance is expected to maintain medium and high-speed growth in the medium term. From the perspective of development, its two growth drivers in the future: the expansion of new products such as electric products and the development of channels in emerging markets will continue in the medium term, and the company's performance will still be positive in the medium and long term.
