The Highest Growth Of 671%. More Than 10 Sanitary Ware And Home Furnishing Companies Released Their Performance Forecast

Bathroom Business School

Recently, many sanitary ware, home furnishing and home furnishing enterprises have made public the first half of 2021 performance forecast. From the public data, most enterprises have achieved growth in net profit in the first half of the year. Even if some enterprises lost money, but the loss amount is also significantly narrower than the same period in 2020. The home furnishing industry has shown a good development situation.

The performance forecasts of some sanitary ware and home furnishing enterprises for the first half of 2021.

The overall business situation of sanitary ware and home furnishing enterprises is good.

From the point of view of the performance forecast announced by the enterprises, the net profit of sanitary ware and home furnishing enterprises in the first half of the year have achieved different degrees of growth. In terms of bathroom-related enterprises, the more significant growth is Dongpeng Holdings and Seagull Sumitomo. It is forecast to increase by up to 100% and more, Dongpeng Holdings is expected to net profit of up to 432 million yuan.

Dongpeng Holdings first-half net profit is expected to reach more than 378 million yuan

Seagull Sumitomo’s first-half net profit is expected to increase by the highest 123.73%

For home companies, the largest increase in net profit is Tubaobao. It is forecast that its net profit in the first half of the year will increase by 577.00% to 671.00% year-on-year, reaching 290 million yuan – 330 million yuan. This is 5 to 6 times the net profit of 0.43 billion yuan in the first half of 2020. Tubaobao received attention from the bathroom industry last year for its wholly-owned subsidiary’s strategic investment in Hilk, which amounted to 42 million yuan at the time.

Tubaobao first half net profit of 5 to 6 times

As for home improvement companies, those prompting losses include Dongyi Risheng. Its loss ranged from 113 million yuan to 153 million yuan. However, it still outperformed the same period in 2020. In addition, Mingdiao shares also turned a loss into a profit in the first half of the year. It is reported that the home improvement industry is affected by seasonality. Many companies recovered their payments in the second half of the year or even later, which is one of the reasons why home improvement companies performed flatly in this wave of earnings forecast.

Dongyi Risheng’s loss narrowed in the first half of the year

As for the sellers, Juran Home forecasted a 159.72% ~ 181.56% increase in net profit for the first half of the year. Juran Home’s rival, apparently, is Red Star Macalline, which has yet to disclose its performance forecast. Recently the two outlet giants reached a strategic cooperation, saying that they reached five agreements under the premise of relevant laws and regulations. This reflects the formation of a new competitive relationship between the two selling giants.

Juran Home expects net profit of up to 1.160 billion yuan in the first half of the year

The reasons for the growth of profits of the major companies are different

For the growth of performance, each enterprise pointed out different reasons. The reason for many enterprises to achieve growth in net profit are in sales growth. Some companies achieved growth in both domestic and foreign sales. In addition, there are also companies listed the reasons for investment and risk management.

Dongpeng said that in the first half of the year, the company actively carried out brand upgrading, product leadership, channel sinking, localized supply, information technology construction and other key work. At the same time the company’s lean production, cost reduction and efficiency, and scale of operation, achieved greater growth in performance and profit in the first half of the year. Seagull Sumitomo performance said the company’s foreign sales orders continue to be full, and it’s domestic sales multi-category development. Operating income from both domestic and foreign sales increased significantly compared to the same period of the previous year. Haiyu Group’s net profit increased due to growth in investment income and effective foreign exchange risk management, in addition to growth in sales revenue. This also led to an increase in net profit for the reporting period.

The growth in performance of home furnishing companies was also mostly related to sales growth. Tubaobao indicated that its businesses were progressing well in the first half of the year. Its holding subsidiary Qingdao Yufeng Handang Wood Co., Ltd. also reported a revenue growth of about 68% in the first half, driving the company’s net profit growth. Pianor’s performance growth was not only due to strengthening the construction of mid-to-high-end brands in retail channels, but also due to accelerating the landing of orders and project acceptance for large customers such as Poly and Longhu in the bulk business.

Market rebound to promote home improvement and store corporate profit growth

According to the National Bureau of Statistics on July 15, 2021, the total retail sales of consumer goods reached 211.904 billion yuan in the first half of the year, an increase of 23.0%. Its two-year average growth rate was 4.4%, which shows that residents’ consumption continues to recover and grow. This has supported the performance growth of home improvement and selling companies.

The majority of construction work was suspended in the first half of 2020 due to the impact of the epidemic. Many communities turned home improvement companies away, which led to difficulties in conducting normal business for home improvement companies. As we enter 2021, the home improvement market gradually picks up as the new domestic epidemic is gradually brought under control. The business development of home improvement companies also returned to normal, forming the basis for the growth of home improvement companies’ performance. Dongyi Risheng said that the first half of the year carried out business promotion and customer resources development and other pre-project work as well as the whole store construction and upgrade costs invested more. It showed an overall loss, but the first half of the order data increased 52% over the same period of the previous year, the performance of the second half of the East Eastside is worth watching.

As for the stores, the market boom has returned to normal levels in the first half of 2021 compared to the first half of 2020 when home furnishing stores generally closed or restricted foot traffic. Juran Home pointed out that the continued rebound in the home furnishing industry boom has driven the growth in performance. Fusenmei even pointed out directly that it took the initiative to reduce the rent and service fees of its own shopping malls and market tenants in February by about 103 million yuan in the same period of the previous year (excluding VAT). In the current period, with the recovery of the economy and the rebound of household consumption, the results increased significantly compared to the same period of the previous year.