Recently, 3Trees' 2023 annual report was finally released, achieving revenue of 12.48 billion yuan, a year-on-year increase of 10%. In the context of the overall output of the industry increasing but the income is declining, it is not easy to hand over such a report card. What's even more commendable is that the performance quality of 3Trees is still improving. Key indicators such as operating cash flow and asset-liability ratio continue to improve, and 3Trees is taking practical actions to explain what it means to "rise against the trend and make progress while maintaining stability".
3Trees was able to maintain stability during the period of pressure in the industry, which was due to the company's initiative to shrink its key real estate customer business, and actively cultivate the retail market and diversify the layout of high-quality small B channels. Small B is mainly for regional real estate, office buildings, hospitals, municipal and other projects, as well as home improvement and complete companies, orders do not have continuity, terminal dispersion and customized service requirements are high, regarded as the top priority of the future development of the coating industry. At a time when most of its peers are deeply tied to the big B business, 3Trees has already seized the opportunity by deeply cultivating the small B channel. In 2023, 3Trees' small B channel construction will be increasingly improved, and the number of customers will continue to grow.
In terms of retail, 3Trees has continuously optimized and upgraded its stores, and promoted the transformation of high-end retail with home furnishing store experience stores and art paint experience stores. At the same time, it vigorously expands online e-commerce to achieve omni-channel coverage. At present, 3Trees has more than 200,000 outlets across the country, and in the first quarter of this year, 3Trees' retail segment maintained a rapid growth trend, becoming a strong driving force for the company's development. Overall, 3Trees' performance in 2023 is generally in line with expectations, and the results of the company's diversified transformation have begun to appear. Now that the era of stock housing has arrived, the demand for household consumption is accelerating, and policy opportunities such as old city renovation and rural revitalization will drive further growth in demand for coatings.
(3Trees Renovation Project)
China has the world's largest paint market, with the monopoly pattern of foreign giants being broken, the national paint brand represented by 3Trees continues to rise, the domestic paint market will usher in a broader growth space. 3Trees not only relies on latex paint, art paint, beautiful countryside, adhesives, Kiev materials, waterproof coatings, Komori board "seven-in-one" products and live in a better life solution to create a differentiated competitive advantage, but also with the acceleration of the clearance of small and medium-sized paint enterprises, the industry concentration will be further improved, and industry leaders like 3Trees will gain more market share. For investors who are optimistic about the long-term development potential of 3Trees, the current may be a good opportunity for layout.
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