Internationally, the intensified European debt crisis since the second half of last year has also had a significant impact on the demand for European and American furniture markets, leading to a sharp decline in furniture exports. Under the impact of internal and external factors, the performance of furniture industry companies was greatly affected last year. However, industry insiders said that the construction of affordable housing and the implementation of the trade-in policy for furniture are expected to inject new vitality into listed companies in the furniture industry.
Internal and external impact erosion profits
Up to now, 10 listed companies in the furniture industry have announced performance announcements or performance bulletins, with a pre-loss, an estimated net profit reduction of 5 from the same period last year, and 4 companies with expected performance growth. Among them, the largest increase is Ke Mian Wood and Meike shares, Ke Mian Wood is expected to grow 90% to 130%, Meike shares are expected to grow more than 100%.
In 2011, affected by real estate regulation and control policies, real estate sales were hovering at a low level, and the furniture industry as a downstream real estate industry, domestic sales have also been greatly affected. In addition, from a policy perspective, there are no signs of loosening of real estate regulation and control policies this year. Industry insiders said that generally speaking, furniture retailing will lag behind commercial housing sales by half a year to about a year, which also means that this year the furniture industry will also be affected by this.
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Furniture "waisted by the enemy" trade-in or inject new vitality to the industry
In addition to domestic factors, the deterioration of the external economic environment has also affected furniture exports. Seagull Sanitary Ware expects net profit to drop by 60% to 70% last year. The company said that due to the impact of the European debt crisis, the impact of the global financial crisis has not subsided, the overall demand for the decoration market in 2011 was flat, and the market showed signs of a second recession in the fourth quarter. Sales revenue and profits in this quarter contributed more than expected to the whole year cut back. Plum Blossom Umbrella (002174) also attributed the decline in performance to the impact of the external economic environment. The company said that due to the impact of the global financial crisis, it is expected that annual sales revenue will decline year-on-year, and net profit will decline 60% to 90% year-on-year.
In addition, many companies said that the price of basic materials is still high, and labor costs and other factors have also compressed profit margins. It is understood that since the beginning of 2011, global wood resources have become scarce, and the price of imported wood has continued to rise. In 2011, the price of wood imported from North America increased by at least 30%. Under the pressure of rising costs, domestic furniture companies are in trouble. In addition, the increase in labor costs has also eroded the profits of furniture companies. According to statistics, labor costs in 2011 increased by more than 20% year-on-year.
Trade in or inject new energy
It is understood that the Ministry of Finance and the State Administration of Taxation issued the “Notice on Adjusting and Improving the Value-added Tax Policy for Comprehensively Utilized Resources and Labor Services†last year, and implemented a policy of 80% VAT refund on sales of the following self-produced goods: Wood (bamboo, straw) fiberboard, wood (bamboo, straw) particleboard, blockboard, activated carbon, tannin extract, hydrolyzed alcohol, carbon rods produced from three types of agricultural and forestry residues such as food, sub-small fuelwood and crop straws; Liner paper produced with Salix as raw material. Although the implementation of the policy has increased the non-operating income of some furniture companies, it is still difficult to reverse the decline in performance.
Weihua Co., Ltd. once predicted in the third quarter report of 2011 that the net profit for the whole year will be 40 million to 45 million yuan, but in the fourth quarter of last year, it added 50.62 million yuan in value-added tax refund income in 2011. Weihua Co., Ltd. also revised its performance forecast and expected a full-year profit of 5 million to 10 million yuan. Even so, the year-on-year decline will be 50% -75%. Shengda Forestry can enjoy VAT rebates of RMB 12.1073 million for wood fiberboard products. However, due to the year-on-year tax reduction, the company expects that net profit will also fall by 20% to 50% last year.
Industry insiders said that due to the combined effect of various factors, the performance of listed companies in the furniture industry in 2011 was not good, but the construction of security houses and the implementation of the trade-in furniture policy in the future may inject new vitality into the furniture industry.
It is understood that during the "Twelfth Five-Year Plan" period, the state will invest in the construction of 36 million affordable housing, and the coverage rate of urban affordable housing in the country will reach about 20%. In the downturn of the market, the demand for furniture brought by the construction of affordable housing seems precious. On the other hand, relevant persons from the Beijing Municipal Commission of Commerce recently revealed that Beijing will implement the trade-in policy for furniture as a pilot, but the specific policy has not yet been introduced. In this regard, people in the industry said that furniture malls are export-oriented industries, accounting for nearly one-third of annual exports, but the sluggish global economic environment has caused furniture exports to be hit hard, and boosting domestic demand is crucial for the furniture industry. The implementation of the trade-in policy for furniture is expected to promote domestic sales of furniture and contribute new profit points to companies in the furniture industry. (Litian)
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