Views: 2 Author: Site Editor Publish Time: 2020-07-27 Origin: Site
The home furnishing sector rose sharply during the intraday trading on the 27th. As of press time, the daily limit of Lege, Gold Cabinet, Zhibang Home Furnishing, Aopu Home Furnishing, Huida Sanitary Ware, Daya Dekor, Filinger, etc., Henglin and Piano are approaching Daily limit.
Regarding this sector, Huatai Securities pointed out that the "Government Work Report" once again clarified the positioning of "housing and not speculating", and at the same time reiterated the "policy in accordance with the city" that was not mentioned in the Politburo meeting on April 17, so as to stabilize the real estate and stability. The economy also leaves room for areas with greater pressure on the property market; the overall development of the real estate market may stabilize. For home furnishings, on the one hand, the completion of the year and the rapid increase in the penetration rate of hardcover houses will still support the rapid growth of enterprises in the hardcover industry chain. On the other hand, under the background of loose liquidity, the rebound in second-hand housing transactions is expected to support the medium and long-term consumer demand for home furnishings.
CITIC Construction Investment Securities believes that under the background of the continuous introduction of the fully-decorated finished housing policy and the continuous drive of the market, the trend of hardcover housing is the general trend. The home accessories industry in the post-real estate cycle will usher in new changes and developments, and the B-end business has become a new company growth point.
The agency pointed out that since 2016, full-decoration and fine-decoration policies have been intensively introduced throughout the country. Among them, the 13th Five-Year Plan for the Development of the Construction Industry in 2017 clearly stated that my country's newly-started and fully-decorated residential area will account for 30% in 2020; 2019 In February 2005, the Ministry of Housing and Urban-Rural Development further proposed in the "Residential Project Specification (Draft for Comment)" that newly-built residential buildings in cities and towns should be fully furnished and delivered. According to data from Aowei Cloud Network, the penetration rate of my country's hardcover housing market has rapidly increased to 32% in 2019. However, compared with more than 80% of fully furnished housing in developed countries, my country's hardcover housing still has a lot of room for development.
The proportion of large-scale real estate companies is relatively high, and the increase in the concentration of the real estate industry is gradually transferred to the fine decoration industry. In recent years, the concentration of the real estate industry has continued to rise. On the one hand, large-scale real estate companies pay more attention to product quality and cost-effectiveness. On the other hand, they are more inclined to adopt a centralized procurement model and choose powerful decoration suppliers to provide services. The increase in the rate and the rapid growth of scale have also promoted the increase in the concentration of the fine decoration industry, and further supported the growth of high-quality enterprises.
Home accessories B-end business benefited from the popularization of hardcover houses, leading companies are expected to be strong: fine decoration involves a wide range of functional spaces, and residential infrastructure involves a wide range of home accessories products such as flooring, hardware, cabinets, sanitary ware, doors and windows, and coatings. Among them, the allocation rate of indoor doors, tiles, wood floors, bathroom hardware, cabinets, hoods, stoves, etc. are all above 95%, while categories such as dishwashers, water heaters, air conditioners, and water purifiers have grown rapidly. As the decoration work is transferred to real estate developers, the purchasing behavior of home accessories tends to be more B-end.
The agency stated that, driven by policies and the market, hardcover houses are the general trend. The home furnishing accessories industry has ushered in integration opportunities, and home furnishing B-end dividends have grown. Leading companies have absolute advantages in cost, production capacity, service, and financial strength, and they are expected to achieve the strongest. Among them, in the hardware industry, recommend products + channels, and deepen the B-side layout of Jianlang hardware; in the wooden door industry, recommend Jiangshan Oupai, which has a steady volume of engineering business and strategic cooperation to promote growth; in the ceramic tile industry, recommend the B-side bright performance Mona Lisa, Diou Home Furnishing.