"Business is not good this year, and there are many people who come to consult, but fewer people actually place orders after the proposal is made. The price of raw materials is also rising this year, but because of the bad business, we dare not raise prices. At present, we here also began to unite with other categories of stores to form a "home alliance", hoping to attract each other in this way and increase the rate of orders." The person in charge of a custom furniture brand store in Guangzhou told reporters.

In the first half of this year, many places have increased their real estate control policies, and the real estate market' s prosperity has declined. The development of the furniture industry is closely related to the real estate industry. Recently, the semi-annual reports disclosed by a number of listed home customization companies also show that the industry' s performance in the first half of the year has diverged.

Related analysis believes that the current real estate regulation may have an impact on the incremental furniture customization market, but has little impact on the stock market. Industry concentration will further increase in the future, and the increase in stock and the proportion of second-hand renovations is expected to promote the steady growth of the customized home improvement market, and leading companies will benefit even more.

Performance in the first half of the year is now differentiated

According to the semi-annual report, all companies have achieved positive growth, but from the perspective of splitting, the Q2 performance of some companies is not as good as the same period last year.

Oppein Home achieved revenue of approximately 8.2 billion yuan, a year-on-year increase of 65.14%; net profit attributable to the parent was approximately 1.012 billion yuan, a year-on-year increase of 106.98%. Sogal achieved revenue of approximately 4.3 billion yuan, a simultaneous increase of 68.30%; realized net profit of about 446 million yuan, a simultaneous increase of 30.12%. Holike' s revenue and net profit attributable to the parent increased by 40.19% and 134.74% year-on-year respectively. The net profit of Holike’ s return to its parent has doubled year-on-year; the net profit of Topstrong’ s return to its parent has achieved a year-on-year increase of over 4 times.

However, according to the split data, the net profit of Oppein Home, Piano, and Homekoo in Q2 increased by 30.15%, 36.33% and 5.75% year-on-year; the net profit of Sogal and Topstrong Q2 decreased by 8.68% and 16.48 year-on-year%. The net profit of Holike Q2 returned to the mother after the newly added and consolidated Hubei Qianchuan recorded an increase of about 5%.

A source close to Topstrong told reporters that the main reason for the decline in Q2 was that the epidemic in the first quarter of last year caused some orders to be delayed to the second quarter, so the second quarter has a relatively large base. Holike also stated that the main reason for the increase in Q2 of the "Holike" segment was the company' s support to distributors, and the company' s multi-channel profit distribution for wardrobe and cabinet products. The company' s ex-factory prices under the condition that the cost of base material upgrades increased maintaining stability; the opening of the company' s two new production bases in Hanchuan and Conghua has brought about a short-term increase in manufacturing costs and management costs. It is expected that operations will continue to recover in the second half of the year.

Xie Yixuan, an analyst at Leadleo Research Institute, said that the development of the furniture industry and the development of the real estate industry are largely positively correlated. Affected by the new real estate regulations, the tightening of real estate loans and the cooling of the real estate market will impact the custom furniture market to a certain extent. Zhang Yi, CEO of iiMedia Research also told reporters, "The main reason is that under the strict regulation of real estate policies, consumers' demand for home improvement customization has declined."

It is worth noting that the data in the interim report showed that many companies' accounts receivable have increased, mainly because each company is actively expanding its engineering business this year. According to a brokerage analyst who declined to be named, the penetration rate of our country' s hardcover market is still at a low level. From the perspective of market structure, the hardcover market is gradually sinking, and the growth of low-tier cities in the future is still considerable. For enterprises, the engineering side is still a more important supplementary track.

Although excessively high accounts receivable may bring higher financial risks to the enterprise, the engineering business is still an "important battlefield" for all companies. It is reported that many companies have also indicated that they will improve the management of accounts receivable in the future. Oppein Home said that in the future, it will choose the top one hundred real estate companies with healthy cash flow to cooperate.

Head may benefit from increased concentration

Despite the tightening of real estate control policies, many parties are optimistic about the expectations of the customized home furnishing industry. With the gradual increase in the penetration rate of hard-covered houses, channels such as bulk and complete installation will be important channels for drainage, and markets such as the secondary refurbishment of old houses will also bring greater market space. Leading companies have advantages in channels, brand influence, and supply chains, or benefit from them.

According to the person in charge of the above-mentioned customized brand store, as the consumer group becomes younger, one-stop customized services will be the industry trend in the future. The market space is huge, but large companies currently have advantages in brands, channels, and supply chains, and will have more advantages in competition.

An industry personage who has been in the business for many years told reporters that the whole house custom home furnishing is still a blue ocean and the market is huge. The current real estate policy has an impact on the incremental market, but it has little impact on the stock market. The increase in the proportion of old house renovations may bring a larger market space for the industry. The current market has entered a stage of recklessly fighting for brand price, channel policies, and brand influence.

Xie Yixuan also said that the current proportion and penetration rate of custom-made furniture are relatively low, and there will be greater room for growth in the future. The increase in the proportion of hardcover, stock, and second-hand renovations will offset the decline in sales of rough new homes, which is expected to promote the steady growth of the customized home improvement industry.

The listed companies have also released positive signals to the outside world. Sogal said that in the future, the stock of housing will continue to increase, and the top brand will grow steadily. Now enter the stock market game, grab the share of small brands, and the competition will be more intense in the future. What is fighting now is the overall strength of the company, which is good for the top brand, and the integration speed will be accelerated.

Although top brands are more beneficial, people in the above-mentioned industries also emphasize that low-line brands can still differentiate themselves through products, channels, services, and brands.