Fuanna Home Textile Main Business Overall Stability And Wardrobe Business Seeks To Break Out

Recently,

The company conducted in-depth exchanges with the chairman and Mr. Tung on the company's current situation and future development plan.

The main business is generally stable.

According to the China Daily report, the growth of home textile industry has gradually slowed down in recent years. On the one hand, it comes from being lukewarm under the line.

Slower growth.

From the sales point of view, the second half of the year is better than the first half of the year, but it has picked up in July, but the non market factor has increased by less than 10% compared with the same period last year.

The future electricity supplier should build its own platform and build an ecological chain. At present, the investment is insufficient. The double 11 plan is not yet clear.

In the first half of the year, the cost control was better, the rate of cost fell slightly, and the gross profit rate was relatively stable. The main reason was that the purchasing cost of the company was reduced by 10% through centralized purchase and quick payment, and at the same time, the terminal price was cut down and the profit margin was cut off.

Generally speaking, the main business of home textile industry in the future is difficult to grow at a high speed, and the overall business strategy is to maintain stability.

Business seeks to break out.

Prior to increasing the scope of business, the company is based on building a century old home brand.

The company's large household business includes wardrobe, tile, wallpaper, sofa, curtain, household clothes and bags.

Wallpaper and tile printing through 3D, custom wardrobe independent research and development, is the core area of the future.

Taking into account the prospects of the wardrobe industry, the company seeks to grow in the new business, mainly wardrobe, in addition to home textiles, and become the second main industry.

The wardrobe plans to open 3 stores this year, which are located in Shenzhen, Nantong and Changshu. They are priced directly at fuanna brand and are priced higher than Sophia.

The channel strategy is to join the direct and two or three tier cities in large cities and establish teams through external employment.

At present, the model products of the company headquarters can be seen (including other large household products), and will be put into operation in the first half of next year and put into operation in the second half year.

In view of the hundreds of millions of investment in home decoration business, there will be more amortization expenses in the future, and sales explosion will only take 17 years to see. So 16 years from the links of new and old businesses, the pressure will be relatively large.

Maintain "buy" rating, optimistic about the company's new business development.

It is estimated that the company's core EPS 0.46, 0.54, and 0.62 yuan will correspond to PE 25, 22, and 19 times in 15-17 years.

The main business of home textile industry has entered a stable state, and the future growth is sustainable. With the continuous promotion of large household, the future wardrobe based home decoration products are expected to become new selling points, giving companies 15-16 times 25 times PE and 3-6 months target price of 11.55-13.45 yuan.

Risk warning: systemic risk in large market; large household business promotion is lower than expected.