Talk every Monday: customized furniture leads the future development trend of the industry
Event: China’s customized furniture industry market is developing rapidly. In recent years, the market scale of China’s customized furniture industry is increasing year by year. In 2020, the market scale of China’s customized furniture industry reached 381.1 billion yuan, a year-on-year increase of 14%; From 2016 to 2020, the average annual compound growth rate of the market scale of customized furniture industry was 17.76%, and the overall growth rate was fast.
At present, the market penetration of customized furniture in China is low. According to the data of China business intelligence network, at present, the penetration rate of China’s customized furniture market is 30%, which is still a big gap compared with 60% in developed countries such as the United States. In the Chinese market, the overall cabinet started earlier, so its market penetration rate is higher, 60%, while the overall wardrobe market penetration rate is only 30%, while the penetration rate of other cabinets is lower, less than 10%.
Chinese household enterprises have laid out customized furniture. As early as 2014, Suofeiya Home Collection Co.Ltd(002572) invested 1 billion yuan to build a production base in Central China for the production of customized wardrobe, customized cabinet and supporting household products. Other companies in the industry, such as Markor International Home Furnishings Co.Ltd(600337) , Guangzhou Shangpin Home Collection Co.Ltd(300616) , have also successively expanded the customized home business and promoted the continuous improvement of the company’s product layout.
With the rise of emerging consumer groups, the demand for customized furniture is growing. In recent years, with the rise of a new generation of post-85 and post-90 consumer groups, the demand for customized furniture is growing with the characteristics of more personalized demand, more diversified functions, more controllable cost and more unified style.
Comparison of customized business income and gross profit margin of listed companies: Suofeiya Home Collection Co.Ltd(002572) over the years, the overall wardrobe income has been at the highest level in the industry, Zbom Home Collection Co.Ltd(603801) and the overall wardrobe income of gold cabinet has increased rapidly. Over the years, the overall cabinet revenue has been at the highest level in the industry, and the overall cabinet revenue of Suofeiya Home Collection Co.Ltd(002572) has increased rapidly. In 2020, Nanjing Olo Home Furnishing Co.Ltd(603326) overall wardrobe has the highest gross profit margin (47.26%), and Zbom Home Collection Co.Ltd(603801) overall cabinet has the highest gross profit margin (41.84%).
Market review (January 17 – January 21):
Among the Shenwan level industries, the light industry manufacturing industry fell by 1.83% this week, ranking 16th among the Shenwan 31 level-1 industries, outperforming the market. Among the sub sectors, household products performed better, down 0.46%, and packaging and printing performed poorly, down 4.49%; The textile and garment industry fell 3.41% this week, ranking 26th among Shenwan’s 31 primary industries, outperforming the market. Among the sub sectors, the textile manufacturing sector fell 2.41%, the clothing and home textile sector fell 4.02%, and the jewelry sector fell 3.51%.
Industry data tracking:
Furniture: the price of wood this week has decreased compared with that of last week, TDI price has increased, and MDI price has decreased. Papermaking: according to Zhuo Chuang information, in terms of pulp, on January 21, the market price of coniferous pulp was 6257.14 yuan / ton, down 0.11% from last Friday; The market price of broad-leaved pulp was 5210.23 yuan / ton, unchanged from last Friday; The market price of natural color pulp was 6166.67 yuan / ton, unchanged from last Friday; The market price of chemical mechanical pulp was 4691.67 yuan / ton, up 0.18% from last Friday. In terms of packaging paper, on January 21, the market price of corrugated paper was 3900.00 yuan / ton, unchanged from last Friday; The market price of white cardboard was 5871.00 yuan / ton, unchanged from last Friday. In terms of cultural printing paper, on January 21, the market price of double offset paper was 5675.00 yuan / ton, up 1.34% from last Friday; In terms of household paper, the market price on January 21 was 6400.00 yuan / ton, up 0.26% from last Friday.
Textile and clothing: on January 21, the price of cotton was 22611.54 yuan / ton, up 0.94% from last week; The price of yarn has increased, and the price of polyester has increased.
Investment strategy:
Recently, the policy margin of the real estate industry has been relaxed. We believe that we can pay attention to the home sector in the near future. It is suggested to pay attention to [ Oppein Home Group Inc(603833) ] and [ Suofeiya Home Collection Co.Ltd(002572) ]; Software home is recommended to pay attention to [ Jason Furniture (Hangzhou) Co.Ltd(603816) ] and [ Xlinmen Furniture Co.Ltd(603008) ].
Risk tips: raw material price fluctuation risk, exchange rate fluctuation risk, real estate policy risk and repeated epidemic risk.
