Text/Leju Finance Yang Kaiyue
Home textiles, which belong to the textile industry and the home furnishing industry, are an important part of "soft decoration" and play a decisive role in creating a home environment.
With the complex changes in the global economy and the international situation in the first half of 2023, the home textile industry is also facing unprecedented challenges. However, the mainland home textile industry has also shown strong resilience and adaptability.
According to the data disclosed by the China Home Textile Industry Association, the operating income of bedding enterprises above designated size in 2023 will decrease compared with the previous year, and the realized profit margin of enterprises will be 4.97%.
Recently, Leju Finance conducted a multi-dimensional analysis of the 2023 annual report data of 4 listed home textile companies, hoping to show a more real situation in this industry through more intuitive and specific enterprise operating data.
In the past year, among the four listed home textile companies of Fuanna, Mercury Home Textiles, Vosges and Luolai Life, 1 experienced a year-on-year decline in revenue, and another saw a year-on-year decline in net profit, but the decline rate did not exceed 2%, which was small. The other two companies achieved a year-on-year increase in operating income and net profit, and the growth rate of net profit was about 40%, which was gratifying.
Among the four companies, Vosges Co., Ltd., which has the highest annual revenue, has achieved an annual revenue of 5.34 billion yuan, and Luolai Life, which ranks second in revenue, has achieved an annual revenue of 5.315 billion yuan, which is comparable to the revenue level of Vosges Co., Ltd. Compared with last year, the revenue of Luolai Life increased by 0.03% year-on-year, which is "standing still", and the revenue of Vosges shares increased by 1.75%.
In 2022, Luolai Life's revenue will be 5.314 billion yuan, ranking first on the list. In the same period, the operating income of Vosges shares was 52.48% yuan, a year-on-year increase of 1.77%. For two consecutive years, revenue increased by less than 2% year-on-year, but with only "small steps", Vosges successfully surpassed the revenue of Luolai Life and topped the list.
The net profit of Vosges shares is only 287 million yuan, while the net profit of Luolai Life is as high as 572 million yuan, more than double that of Vosges shares, which is still under the premise that the net profit of Luolai Life decreased slightly by 1.44% year-on-year and the net profit of Vosges shares increased by 40.8% year-on-year.
Obviously, there is also a large gap between the gross profit margin and net profit margin of the two companies. Among them, the gross profit margin of Vosges shares is 16.52% and the net profit margin is 4.93%, and the two indicators are the lowest among the four companies. The gross profit margin of the remaining three companies is in the range of 40%-56%.
Under the backward profit margin, the capital flow of Vosges shares is also a test. In 2023, Vosges shares will have monetary funds of 1.403 billion yuan, short-term borrowings of 1.947 billion yuan, and non-current liabilities due within one year of 385 million yuan, totaling 2.332 billion yuan, with a funding gap of about 929 million yuan.
When it comes to "short-term borrowing", in this indicator, Vosges shares are also in the lead. Fuanna's data tends to be close to 0, Mercury Home Textiles is only 06 million yuan, and the second-ranked Luolai Life has only 261 million yuan of short-term borrowings, while the short-term borrowings of Vosges shares are 7.5 times that of Luolai Life.
The highest profit margin is Fuanna, whose revenue is "at the bottom", only 3.03 billion yuan, but its net profit is 572 million yuan, tied for first place with Luolai Life. Its gross profit margin and net profit margin are the highest among the four companies, 55.63% and 18.88% respectively.
Historical data shows that in the past five years, Fuanna's gross profit margin has remained stable at 52%-55%, and its net profit margin has fluctuated slightly between 17%-19%.
According to the detailed information disclosed in Fuanna's annual report, the distribution of business in each channel in 2023 is: franchise operating income accounts for about 27.20%, direct operating income accounts for about 23.86%, e-commerce operating income accounts for about 39.95%, and other business (including group buying and home furnishing) accounts for about 8.99%.
However, the gross profit margin of the e-commerce model is only 47.99%, which is lower than the gross profit margin of 70.14% of the direct sales model and the gross profit margin of 56.21% of the franchise model. As of December 31, 2023, Fuanna has 484 directly operated stores in China, with a total store area of 71,233 m², and the proportion of direct sales revenue in operating income is about 23.86%; In 2023, the sales will be 723 million yuan, a decrease of 1.14% over the same period, and the average annual sales revenue of a single store will be 1.4936 million yuan, a decrease of 3.79% over the same period.
The performance of Mercury Home Textiles in the past year is also quite interesting. After experiencing a decline in revenue and net profit in 2022, Mercury Home Textiles will play a good "turnaround" in 2023 and achieve double-digit growth in revenue and net profit. Among them, its operating income increased by 14.93% year-on-year to 4.211 billion yuan, and net profit increased by 36.23% year-on-year to 379 million yuan. Historical data shows that the annual revenue level is a record high for Mercury Home Textiles since 2013, and the net profit level is the second highest in the same period, with a bright performance.
In terms of the total market capitalization that has attracted the attention of investors, the closing gap between the four listed home textile companies has also more than doubled. Among them, Fuanna has a total market value of 9.112 billion yuan to lead, Luolai Life 7.644 billion yuan followed, Mercury Home Textiles total market value of 4.955 billion yuan ranked third, and the total market value of Vosges shares, the highest revenue, was only 4.047 billion yuan, ranking last.