With the soaring price of raw materials, custom home furnishing leader Oupai Home Furnishing announced a price increase! On September 27, an investor asked on the investor interactive platform, "Recently the price of raw materials has risen, how much has the company's gross profit margin been affected, how does the company respond, and can it increase the pressure on product prices to transfer costs?", Opai Home Furnishing The reply stated that the company used large-scale procurement advantages and capital advantages to ensure the stability of raw material prices, and also fine-tuned the prices of its own products. At the same time, the whole brand and all channels cooperate to increase revenue and ensure the relative stability of gross profit.
In this regard, Oupai Home Furnishing said that the average price of Oupai Home Furnishing products has increased by 1%, but in fact, consumers basically cannot feel it at the terminal store. The reporter visited Oupai Home Furnishing's store in downtown Guangzhou today and learned that the store has not yet received notice of price increase.
According to the financial report data of Opal Home Furnishing in the first half of this year, revenue in the first half of this year was 8.2 billion, a year-on-year increase of 65.14%. The net profit attributable to shareholders of listed companies was 1.012 billion, a year-on-year increase of 106.98%.
As a leading enterprise in custom home furnishings, Oupai Home Furnishing has an outstanding performance. However, as investors worry, the increase in raw material prices also puts a certain pressure on the company's gross profit margin. Since the first half of this year, the prices of timber and non-ferrous metals have risen. Oupai Home Furnishing's financial report for the first half of this year showed that the gross profit margin of all products has declined, and the gross profit margin of cabinets, wardrobes, bathroom and wooden doors decreased by 0.24, 1.01, 0.36 and 0.46 percentage points respectively.
In fact, not only Oupai Home Furnishing, the gross profit margin of the entire custom home furnishing industry is declining. According to the research report of Yihan Think Tank, with the rapid increase in operating income of bulk businesses with low gross profit margin and the impact of rising raw material prices, the gross profit margin of custom home furnishing companies has generally declined to a certain extent, and the average gross profit margin has increased from 2020. 35.87% in the same period of the year fell to 33.89% in 2021. In the case of a decline in the expense ratio during the period, the net profit margin of the customized home furnishing industry rebounded slightly from the same period in 2020, up 1.40 percentage points year-on-year. However, compared with 2019, the overall average net profit margin still fell by 1.55 percentage points, and the downward trend in overall profit levels has not been reversed.
However, overall, the prosperity of the home furnishing industry is still on the rise. According to data from the National Bureau of Statistics, from January to August this year, the sales area of commercial housing nationwide was about 1.142 billion square meters, an increase of 15.9% year-on-year; an increase of 12.1% over the first eight months of 2019, an average increase of 5.9% over the two years. The floor space of houses completed was approximately 467 million square meters, a year-on-year increase of 26.0%. In addition, according to the National Building Materials and Home Furnishing Prosperity Index (BHI) data jointly released by the Circulation Industry Development Department of the Ministry of Commerce and the China Building Materials Circulation Association in September this year, despite the traditionally low season, the BHI rose to 125.76 in August 2021. The national building materials and home furnishing market rebounded slightly, and the market's expectations for the peak season were obvious.
The research report of IFC Securities pointed out that the trend of continuous recovery in the short and medium term is still confirmed, which will ensure the continuation of the overall demand in the home furnishing industry, and the leading companies in the customization and software home furnishing industry rely on their forward-looking layout to superimpose the epidemic catalysis, and the increase in share has entered an accelerated period. . In terms of customized home furnishings, the retail market has stronger stamina and integrated channels will be the key to the mid- to long-term victory.