The real ceramic bathroom industry: moving forward steadily in conservatism!

A new paradigm in the home

2024-05-16 10:11Published in Guangdong

The traditional ceramic bathroom industry can no longer be traditional, and from time to time there will always be news of layoffs, factory closures, long vacations, etc., but what is the real situation? Today, the new paradigm of home furnishing peels back the 2023 financial reports of 13 listed Taowei companies and finds that Taowei, which seems to be full of holes, has actually learned to move forward steadily in conservatism in these years of trembling development. For example, their operating cash flow has increased year after year, maintained a good gross profit margin and asset-liability ratio, laid off less than 4% of the total number of employees, and the performance in 2023 is generally happy, with the per capita output value of Aopu Home, Yuexin Health, and Mona Lisa all exceeding one million...... The details are as follows:

The performance is not optimistic, but the overall recovery is improving

According to the statistics of the 2023 financial reports of listed companies in the Taowei industry of the new paradigm of home furnishing, the total revenue of the 13 listed companies is 55.313 billion yuan, the average decrease in revenue is 0.38%, and the average decrease in net profit is 19.77%. Although the double decline, and in the 13 major industries of the new paradigm of home furnishing statistics (see the article "13 major industries, 108 companies!") The performance of listed home furnishing companies in 2023 is average, but compared with the Taowei market situation in 2022, the decline has narrowed significantly, and the signs of improvement are obvious.

And judging from the external data, there will be 1,022 enterprises above designated size in building ceramics in 2023, a decrease of only 4 compared with 2022 - compared with the number of eliminated enterprises that have been more than a dozen or even dozens in previous years, the overall trend of the industry is continuing to improve.

The listing camp is more happy than worried

Judging from the 2023 performance of the new paradigm of home furnishing, among the 13 listed companies, 7 have a year-on-year increase in revenue and 8 have a year-on-year increase in net profit, and the number of companies that have grown has outnumbered the number of companies that have declined.

Dongpeng Holdings and Realt ranked first and second in revenue growth respectively, and they were the only two companies with an increase of more than 10%; Keda Manufacturing, Mona Lisa, Diou Home, Songlin Technology, Seagull Residential, and Huaci Shares experienced a decline in revenue.

Dongpeng Holdings became the top profit growth, and Seagull Residential's net profit fell the most.

Per capita ping efficiency PK, Aopu Home Furnishing won the double championship

From the perspective of per capita ping efficiency, the new paradigm of home furnishing was pleasantly surprised to find that the per capita output value and per capita profit of Aopu Home Furnishing last year were the highest, with a per capita output value of nearly 2 million / person and a per capita profit of more than 300,000 / person. Yuexin Health and Mona Lisa's per capita output value is more than one million. The three companies with the lowest per capita output value are Wrigley Home, Huida Sanitary Ware and Huaci Shares, all of which are less than 500,000 / person.

Keda Manufacturing and Dongpeng Holdings have the second highest per capita profits, with 137,900 yuan per person and 87,700 yuan per person respectively.

Very gratifying: the gross profit margin of most companies is in the normal range

It is generally accepted that a gross margin above 40% is generally considered excellent, while a gross margin below 20% can be a red flag. The statistics of the new paradigm of home furnishing found that despite the continuous price war of the terminal in 2023, among the 13 listed ceramic bathroom companies, the average gross profit margin is 29.31%, which is in the normal level range, and the gross profit margin of 10 is more than 25%.

Among them, the gross profit margin of Aopu Home Furnishing is as high as 48.09%, and the gross profit margin of Songlin Technology, Arrow Home, Huaci Co., Ltd., and Dongpeng Holdings is also well controlled, all exceeding 30%. The gross profit margin of Seagull Construction is as low as 16.34%, and the profitability needs to be improved urgently, and how to reduce costs and increase efficiency has become one of the key points of concern of enterprises.

A wave of layoffs? 10 companies reduced a total of 2,462 employees

In 2023, 10 of the 13 listed companies in the ceramic and sanitary ware industry will reduce the number of employees, with a total reduction of 2,462 people, accounting for less than 4% of the total number of employees of the reduced enterprises. Eight of the 10 companies that reduced headcount experienced a decline in revenue or net profit. In the case that the overall performance of the industry is not as expected, it has become a helpless move for enterprises to cut down on food and clothing or even reduce personnel.

Fortunately, there are still 3 companies that have made great contributions to stabilizing employment. Among them, the number of Keda manufacturing employees increased by 3,697, showing the growth resilience of Tao Wei's boss. The other two "Tianding" companies are Ruierte and Aopu Home, which have increased their employees by 292 and 93 respectively. The latter two companies also achieved double growth in revenue and net profit.

Assets and liabilities are relatively healthy

It seems that the performance of the ceramic bathroom industry in recent years is unsatisfactory, but in fact, the assets and liabilities of the head listed companies are relatively well controlled. As an asset-heavy industry, it is generally believed that the appropriate level of asset-liability ratio is about 40%~60%. Among the 13 listed companies, there are 3 companies with an asset-liability ratio of more than 60%, ranking Diou Home, Dongpeng Holdings, and Mona Lisa, with debt ratios of 66.92%, 64.23%, and 60.92% respectively, and their year-on-year growth in 2023 will be 4.42%, -15.06%, and 6.56% respectively.

The asset-liability ratio of 6 companies is less than 35%, of which the asset-liability ratio of Huaci shares is 19.09%, a year-on-year decrease of 11.06%, which is the lowest asset-liability ratio among the 13 companies. How to balance development opportunities and risk prevention may be one of the directions that enterprises should reconsider.

In 2023, the debt ratio of 8 companies will increase year-on-year, of which Keda Manufacturing will increase by 13.63% year-on-year, ranking first, and the asset-liability ratio will increase to 42.01%,

Remain high: the provision of bad debts is a big competition

Due to the adjustment and fluctuation of the real estate market in recent years, ceramic sanitary ware enterprises that have business dealings with real estate enterprises are facing a greater risk of bad debts. In addition, the competition in the industry has intensified, and enterprises may adopt sales methods such as credit sales in order to compete for market share, which has led to an increasing risk of bad debts. In 2023, the bad debts of 13 listed companies will be provided for a total of 4.268 billion yuan, which will exceed the total net profit of 13 listed companies (3.95 billion yuan) for the whole year, an increase of nearly 1.1 billion yuan over 2022.

In addition to the year-on-year decrease in the provision of bad debts of Ruierte and Huaci shares, the bad debts of the remaining 11 enterprises are showing a growth trend, among them, Diou Home Furnishing due to the rapid growth of Oushennuo architectural ceramics product engineering channel business in recent years, resulting in high bad debts now, with bad debts exceeding 1.093 billion yuan, a year-on-year increase of 28.37%; Huida Sanitary Ware's bad debts amounted to 440 million yuan, a year-on-year increase of 465.01%, turning profits into losses; Seagull Housing made bad debts of 274 million yuan, a year-on-year increase of 209.80%, turning profits into losses.

Therefore, the new paradigm of home furnishing believes that although engineering channels are important, the extension of the industrial chain, the diversification of operations and the management and control of funds are equally important for long-term stable growth.

Cash is king: Operating cash flow has been growing year after year

The new paradigm of home furnishing has found that the market is becoming more volatile, and businesses are gradually realizing that cash is king. Compared with the operating cash flow of the 13 listed companies, the operating cash flow of all enterprises is positive.

Dongpeng Holdings, a "modest" company, is the highest, with an operating cash flow of 1.766 billion yuan, a year-on-year increase of more than 3 times, and the second-ranked Arrow Home Furnishing's operating cash flow is 1.166 billion yuan, a year-on-year increase of 190.98%; The operating cash flow of the third Mona Lisa was 934 million yuan, a year-on-year increase of 55.15%.

Although the net profit of Diou Home Furnishing was 658 million yuan, the company's operating cash flow rose by 395.9% to 493 million yuan. Cai Jun, financial director of Diou Home, said that based on the changes in the industry in the early stage and the safety of operation and development, the company has paid more attention to cash flow security in business development in the past two years.

The market pattern has changed: Keda ended the 4-year myth, and Dongpeng overtook Wrigley

From the perspective of the sub-enterprises, Keda Manufacturing, as the only giant in the ceramic bathroom industry approaching the level of 10 billion, has maintained a double growth in revenue and net profit since 2019 and has achieved a triple-digit increase in annual profits, but in 2023, revenue and net profit will usher in a double digit decline in dismal performance, and the sharp turn is too sudden. In particular, its building materials machinery and equipment revenue decreased by 20.16% year-on-year, and the revenue of the lithium battery industry decreased by 38.85% year-on-year.

Dongpeng Holdings has achieved double growth of 12.16% and 256.63% in revenue and net profit respectively, catching up with Arrow Home Furnishing and successfully ranking second in the revenue list. New Paradigm of Home Furnishing learned that in 2023, Dongpeng Holdings will continue to optimize its product and channel structure, the proportion of revenue from high-gross margin products and large-scale rock slab products will continue to increase, and the large retail channel will be steadily optimized, with the performance of retail channels accounting for 71%.

Seagull's revenue and net profit declined across the board, turning from profit to loss, with a net profit decrease of 590.47% year-on-year, with a loss of 233 million yuan. Its main hardware leading product revenue accounted for more than 50% year-on-year fell 23.12% year-on-year to 1.457 billion yuan, and the revenue of custom cabinets increased by 53.20% year-on-year to 152 million yuan.

View original image 121K

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

•