The recovery of overseas demand is superimposed on the positive depreciation of RMB, and the recovery of furniture export is expected to be strengthened. As an export-oriented furniture product, linear driven furniture has attracted high market attention in recent years because of its certain scientific and technological attributes. The financial Associated Press reporter noted that the performance of major listed companies in the industry was differentiated in the first quarter, and the overall recovery of the industry still faces many uncertainties.
manufacturer Q1 performance differentiation
Recently, Loctek Ergonomic Technology Corp(300729) ( Loctek Ergonomic Technology Corp(300729) . SZ) and Zhejiang Jiecang Linear Motion Technology Co.Ltd(603583) ( Zhejiang Jiecang Linear Motion Technology Co.Ltd(603583) . SH) have successively released their first quarterly reports. The overall revenue scale of the two companies has expanded year-on-year, but the net profit of the former has decreased by more than 40% year-on-year, and the net profit of the latter has increased by about 17% year-on-year.
For the decline in performance, Loctek Ergonomic Technology Corp(300729) said it was mainly due to the increase in shipping costs. When asked about the overall changes in shipping costs in Q4 last year and Q1 this year, but the company’s net profit still fell sharply month on month, The relevant person in charge of the company explained to the financial Associated Press: “last year, the company’s Q4 freight was about 12000 US dollars / cabinet, which rose to 15000 US dollars / cabinet in the first quarter of this year, and has now dropped to 8 Tcl Technology Group Corporation(000100) 00 US dollars / cabinet. The freight change of other companies is unlikely to be due to different routes. The freight growth from Ningbo to Europe and Vietnam to the United States is relatively large, and the difference between Ningbo and the United States may be small.”
On the other hand, the person in charge of Zhejiang Jiecang Linear Motion Technology Co.Ltd(603583) said that “there was little difference between the first two quarters”. The financial Associated Press reporter learned from foreign trade people that, taking the route from Shanghai to the east of the United States as an example, the shipping cost experienced a round of rise and fall before and after the Spring Festival, and the price difference is about 1000 US dollars. In other words, the different proportion of shipments of the same route before and after the Spring Festival will also lead to a large difference in freight in the first quarter.
overseas recovery benefits from different
Despite the fluctuating shipping costs, the performance growth of the two companies depends on the recovery of the North American market, but the actual benefit degree is significantly different due to the channels of the two sides.
Zhejiang Jiecang Linear Motion Technology Co.Ltd(603583) mainly supplies to overseas brands, and the terminal supplies to individual consumers and enterprise customers, with relatively stable demand Loctek Ergonomic Technology Corp(300729) focuses on independent brand retail. Due to the advantages of high cost performance, its performance broke out in the last round of home office in Europe and America. However, with the resumption of normal office in Europe and America, the demand is under pressure. The company said: “nearly 15% of online sales come from enterprise users. After everyone returns to the office, the demand of enterprise users will rise greatly.”
At present, the recovery of furniture exports is expected to gradually increase. Yao Liangsong, chairman of Oppein Home Group Inc(603833) ( Oppein Home Group Inc(603833) . SH), said publicly a few days ago that overseas customers have started one after another this year, and the recovery momentum of foreign trade business is strong. Unfortunately, the current small volume of business has limited the overall performance.
However, for Chinese furniture enterprises, the recovery of demand side is still difficult to resolve the pressure from other aspects Zhejiang Jiecang Linear Motion Technology Co.Ltd(603583) the above-mentioned person in charge said that the company’s acquisition of leg consolidated statement last year eroded some profits. “Originally, the company planned to transfer some production of leg to China to obtain greater cost advantage and speed up profits, but at present, the shipping cost is high, the production capacity transfer cannot be realized, and the European market is more recognition of European local production, so it may be considered to increase production lines in Europe in the future. It’s hard to say when to turn losses into profits.”
