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Affected by the real estate industry, the performance of home furnishing companies was poor, and the differentiation was more obvious. Industry insiders said that the policy to promote the high-quality development of the home furnishing industry will enhance the development level of the entire industry chain and create more home application scenarios.

Significant difference in performance

The data shows that as of 17:00 on July 24, 23 A-share companies in the home furnishing industry have disclosed their 2022 semi-annual performance forecasts, with a slight increase of 1 company, a pre-increase of 5 companies, a first loss of 10 companies, a continued loss of 3 companies, and a pre-reduction of 4 companies. Family. The performance differentiation of companies in the home furnishing industry that has disclosed performance forecasts is more obvious.

Among the companies with good results, Yongan Forestry, Hals, and Dongpeng Holdings expect the lower limit of net profit attributable to shareholders of listed companies in the first half of the year to exceed 100 million yuan. The three companies, Yongan Forestry, Menglily and Hals, are expected to increase their net profit attributable to shareholders of listed companies by more than 100% in the first half of the year.

Yongan Forestry estimates that the net profit attributable to shareholders of listed companies in the first half of the year is 300 million to 330 million yuan, a year-on-year increase of 864.44% to 960.88%. Regarding the reasons for the changes in performance, the company stated that the sales volume of wood increased and the income increased; the operating income of wood-based panels increased, and the profit increased; the bad debt reserves that had been accrued were reversed.

Hals estimated that the net profit attributable to shareholders of listed companies in the first half of the year was 114 million yuan to 138 million yuan, a year-on-year increase of 100.55% to 143.45%. The company said that the overseas sales business has grown steadily. At the same time, the company has improved the R&D efficiency, manufacturing capacity, and operation level, and reduced costs. The current sales revenue and gross profit rate have increased compared with the same period of the previous year; Exchange gains, the same period last year was exchange losses; the impact of non-recurring gains and losses on the company's net profit was about 13.09 million yuan.

High raw material prices

Mona Lisa, Diou Home Furnishing, Meike Home Furnishing, Shandong Huapeng and other companies are expected to lose more than 100 million yuan in the first half of the year, and the high prices of raw materials and energy will have a greater impact on profits. Some companies accrued impairment losses.

Mona Lisa estimates that the net profit attributable to shareholders of listed companies in the first half of the year is a loss of 550 million to 400 million yuan. The company said that, continuing the strategy of sinking distribution channels and actively exploring the market, the operating income of distribution channels still increased. The credit risk of some real estate customers has increased, and the company has adopted a prudent strategy to actively shrink some orders. During the reporting period, the company accrued a corresponding credit impairment loss of about 500 million yuan. In addition, the prices of energy and some raw materials have risen and continued to run at a high level, and production costs have risen. Due to fierce market competition, the company has not fully transmitted costs to downstream customers.

Diou Home Furnishing estimates that the net profit attributable to shareholders of listed companies in the first half of the year is a loss of 280 million to 220 million yuan. During the reporting period, affected by the market price of bulk commodities, the upstream raw material and energy prices of the company continued to be high, and the gross profit margin of the main business dropped significantly.

At the same time, factors such as the epidemic have adversely affected the company's business development. The company proactively managed and controlled risks and adjusted some sales and delivery policies. Affected by the changes in customer demand from real estate developers, the company's engineering channel sales revenue declined significantly during the reporting period. In addition, the company plans to make corresponding impairment reserves for assets that may suffer impairment losses within the scope of the consolidated statements as of June 30, 2022.

Expand the high-end market

The home furnishing industry is closely related to the real estate industry. With the increase in the number of downstream real estate launches, the home furnishing industry is expected to gradually stabilize.

According to data from Aowei Cloud, from January to May 2022, there were 676 newly launched projects in the real estate fine decoration market, a year-on-year decrease of 45.4%; the scale was 502,600 units, a year-on-year decrease of 52.1%. Among them, 189 projects were launched in May, a year-on-year decrease of 48.6%; the number of real estate units was 135,900, a year-on-year decrease of 57.8% and a month-on-month increase of 14.8%. Since June, a large number of new listings have entered the market, and the home furnishing market has gradually recovered.

Zheshang Securities believes that with the restoration of real estate sales data, the fundamental improvement of the home furnishing sector will be supported in the second half of the year.

From the policy perspective, the home furnishing industry is expected to usher in a high-quality development window. He Yaqiong, director of the Consumer Goods Industry Department of the Ministry of Industry and Information Technology, said on July 22 that the Ministry of Industry and Information Technology will launch an action plan for the high-quality development of the home furnishing industry to promote the integrated development of the large home furnishing industry, including home appliances and furniture. In key links such as business management, public services, and brand promotion, a series of specific tasks will be deployed to improve the development level of the entire industry chain and create more home application scenarios.

In terms of listed companies, some listed companies in the home furnishing industry revealed that they will adhere to the high-end market strategy and seek high-quality development. Yuma Sunshade recently accepted an institutional survey and said that in the future, the company will adhere to the high-end market strategy, gradually expand the proportion of dimmable fabrics and sunshine fabrics, compress the proportion of shading fabrics, and increase the development of new products such as outdoor sunshade.