Hong Kong interior design company Junee (JUNE) went to the NASDAQ IPO to bet on the future of the smart home improvement track

Recently, Junee Limited, the de facto controlling shareholder of OPS Interior Design Consultants Co., Ltd., was successfully listed on NASDAQ with the stock code "JUNE". Based on Junee Limited's offering price of US$4 per share, the public proceeds are US$8 million.

Headquartered in Hong Kong, Junee Limited started its business in 1998 under the name Sannogi Holdings and later developed into OPS Interior Design Consultants Limited as a major operating subsidiary. It is reported that the proceeds of Junee's offering will be used to expand corporate service capabilities and fund potential strategic investments, acquisitions and operations.

Old limited迎来赴美上市窗口期

Industry insiders said that Junee Limited's listing in the United States this year has caught up with a window period, first, the external resistance to listing has decreased, second, the stock price is expected to gain greater support in the context of the relatively stable operation of the U.S. stock market, and third, the company has come out of the impact of the epidemic and will achieve profitability in 2023, and the steady performance of various financial data supports the growth of investment income.

In addition, the home improvement industry is ushering in a new round of development dividends. At the policy level, the regulation and control of the mainland real estate market continues to strengthen, and the policies at both ends of supply and demand are fully forced, and market confidence is expected to be boosted. At the industrial level, the promotion and application of new technologies and new models are also constantly promoting the self-renewal of the home improvement industry, helping enterprises to reduce costs and increase efficiency while further improving customer experience. On the consumer side, with the improvement of living standards, more and more people are willing to pay for quality living needs, which may further activate the stock market.

In 2023, Junee Limited's revenue will be US$6.14 million, gross profit will be US$1.278 million, and the gross profit margin will be 20.8%, and its profitability will exceed the industry average. The data proves that the financial situation of Junee Limited's business has "gradually recovered", changing the loss status of the previous year and achieving profitability, showing a benign development trend, which has made a good start for the listing in the United States.

In recent years, more and more Hong Kong companies have gone to the United States for IPO listing, raising funds of US$5 million to US$10 million, and the trend of "micro-IPOs" of Hong Kong enterprises in the United States continues.

Founded 26 years ago, it has become a leader in the home improvement industry

As a well-known company established for 26 years, specializing in providing interior design and renovation services, OPS won the MUSE Design Awards 2020 and was awarded the Most Valuable Company in Hong Kong Award 2020 by Mediazone. The company's design work is carried out by in-house designers, while renovation work and maintenance services are currently outsourced to subcontractors managed and supervised by OPS Hong Kong, which also provides a wide range of repair and maintenance services, including regular home maintenance services.

Most of the board members and management team of Junee Limited graduated from world-renowned universities, and are good at business management, capital operation, financial auditing, and brand marketing, and the founding team has more than 30 years of experience in home decoration design. A diversified and highly educated elite entrepreneurial portfolio is the key to the company's ability to successfully navigate through the industry cycle and continue to have strong combat effectiveness and innovation.

Some analysts pointed out that the opaque information of the home improvement industry has led to many problems such as process additions, delayed completion, and difficulty in after-sales, starting from the pain points of the demand side, OPS is developing a customer relationship management system, including Internet and mobile applications and network interfaces, to analyze and improve the relationship between the company and customers, update the project progress and related information in real time, and effectively improve corporate revenue and customer satisfaction. In addition, OPS intends to stimulate the creativity of people and organizations by upgrading the design software and accounting system, as well as the necessary IT hardware and professional equipment, relying on digital layout and scientific management methods to cope with the expected business growth.

The home improvement industry is a typical non-standard product provider, how to meet the individual needs of different customers test the professional ability of home improvement companies, but the realization of personalized needs mainly depends on excellent designers. OPS is a creative, talent- and technology-driven home improvement company, which firmly controls the key design links, optimizes the industrial chain collaboration and workflow, and operates in an asset-light manner in the form of cooperative outsourcing, which greatly improves the operating profits of the enterprise while ensuring the "people-oriented" refined and professional operation capabilities.

As the core competitiveness of OPS, designers have gradually formed a talent training mechanism and a virtuous circle in the company's development process, and strive to cultivate, retain and cultivate talents by providing careers rather than jobs. Every year, OPS will send a large number of home improvement design talents to the society, accelerate the professionalization of the industry, and cultivate a prosperous and growing employment environment. In addition, it will promote industry players to return to the essence of service, meet the upgrading demands of home improvement users with more professional service capabilities, further enhance product strength and enhance user stickiness.

Benchmark the layout of leading enterprises in intelligent home decoration

China's home decoration industry has a large base, a broad market space, and a stable growth rate, and an obvious trend of industry standardization. According to the data released by iResearch, the scale of the domestic home improvement market will exceed 3 trillion yuan for the first time in 2022, and the market size of the home improvement industry is expected to reach 3,780.2 billion yuan in 2025, with a compound annual growth rate of 7.6%.

How to make use of their own advantages and integrate social resources on the basis of traditional decoration to achieve development and growth, and to be unique and maintain a leading position in the decoration industry, has also become the main problem for decoration companies. With the rapid development of information technology and the mutual penetration and integration of the construction field, the mainstream of the development of the home improvement industry has gradually bid farewell to the tradition, from labor-intensive to technology-intensive.

Smart home decoration has the three characteristics of "precision, efficiency and intelligence", and Junee Limited is gradually promoting its application in business management and customer service. First of all, the work process speaks with numbers and standards, and the implementation of relevant industry standards such as design, budget, construction, and acceptance is more strict and in place. The introduction of intelligent decoration mode, such as the unified deployment of human and material resources through computer networks, can reduce costs and increase efficiency. Closely follow the pulse of the development of home technology, make full use of high-tech products, so that the quality of home life has brought unprecedented improvement.

In addition, based on the company's massive data assets such as floor plans, real shots and renderings accumulated in the industry, Junee Limited is also exploring the application of AIGC technology in the field of home decoration, quickly generating decoration design drawings through scientific and technological productivity, visualizing users' ideas for homes, and bringing AI home design to a new stage. This move is expected to allow Junee Limited to further expand its advantages in the AI era, break the growth bottleneck caused by manpower constraints, and continue to increase its market share.

Analysts pointed out that with the trillion-level market size, tens of billions of market value benchmarking enterprises, betting on the smart home improvement track, as Junee Limited continues to expand the domestic and overseas markets, the future development prospects are worth looking forward to.