Main European-style wood furniture, stable ownership structure. The company is mainly engaged in the R & D, design, production and sales of European style wood furniture products, basically covering all areas of civil furniture such as bedrooms, living rooms, studies and restaurants, covering middle and high-end positioning and maximizing market share. The company currently has a total share capital of 164 million shares, of which 54.75 million shares are to be issued, accounting for 25% of the total share capital of the company after issuance. Before listing, Gao Wei, Hu Meiyun and Gao Yinnan, the actual controllers of the company, held a total of 85.50% of the company through sub-vibration investment; after listing, the three still had actual control over the company, accounting for 64.12% of the shares, and the ownership structure was stable.
The performance has grown steadily and the gross profit margin has remained at a high level in the industry.
(1) from 2013 to 2015, the company's operating income increased by 4.13% in 540 million, 563 million and 583 million respectively, and its revenue in 2014-15 increased by 4.13% and 3.60% respectively compared with the same period last year. Net profit in 2014-15 increased by-8.99% and 4.01% respectively compared with the same period last year, and the company's performance decreased due to the overall furniture industry recession in 2014. From January to September 2016, the company realized revenue and net profit of 374 million and 42 million, respectively.
(2) as the company focuses on domestic sales, the brand has high added value, and the comprehensive gross profit margin is higher than the average level of comparable listed companies, with gross profit margins of 54.55%, 57.65% and 58.34% respectively from January to September 2016 reaching 58.99%.
The concentration of furniture industry is low, and the company has a broad space for development.
(1) according to the statistics of the China Industrial Information Network, the total industrial output value of enterprises above the scale of the furniture industry in 2015 was 787.25 billion yuan, an increase of 9.30% over the same period last year. From January to October 2016, the total industrial output value was 674.23 billion yuan, an increase of 8% over the same period last year. China is a large furniture production country, and there are more than 60,000 furniture manufacturing enterprises in China. Although the industry is still in a highly decentralized state, some small and medium-sized enterprises are facing closure and elimination, and the industry concentration is increasing.
(2) the company's products are located in the medium-and high-grade civil European furniture market, with high brand awareness and reputation. In the domestic comparable listed companies, Yihua wood industry sells flooring and furniture, and export accounts for a relatively large proportion; Zhejiang Yongqiang produces outdoor leisure furniture, which is mostly sold to Europe and North America; Meike home furnishings and Yazhen are furniture producers and sellers. Its domestic retail adopts the direct operation mode, and the comprehensive gross profit margin is higher, but the gross profit margin of Yazhen's direct operation mode is not much different from that of Meike.
Generally speaking, the domestic high-grade European furniture market lacks absolute leading brand, and the company has a lot of room for development.
Multi-brands occupy the market, raise funds to help production, and further expand channels.
(1) products: the company's products are all solid wood furniture and comprehensive wood furniture with solid wood as the main material, with "sub-vibration" and "sub-vibration"? Livia "and" Yazhen? Georgia "is the core brand, while authorizing the distribution of Italy's top furniture brand" Chelini ". The four brands have a clear positioning, covering the terminal consumer market of medium-and high-grade European furniture, and complement each other to reduce the company's operational risk.
(2) production: the company's products are mainly produced by the two production bases in Nantong, a small amount of which is processed by commission and the proportion decreases year by year; among them, the production capacity of the original production base has tended to be saturated, and this fund-raising will expand the plant at the existing factory site. expand the production scale and increase the annual production capacity of 40,000 pieces per set of furniture to meet the expanding market demand.
(3) channels: as of September 30, 2016, the company's sales network has grown to more than 80 cities across the country, with more than 160 stores of various types, including 30 direct stores, including more than 30 independent stores in Beijing, Shanghai, Shenyang and other places. This fund-raising plans to build a total of 50 direct flagship stores, shopping malls and image stores, increasing the proportion of direct stores in order to have a good radiation effect on the sales of dealers. At the same time, build an online e-commerce platform and build new competition barriers.
Investment suggestion: the company plans to issue 54.75 million shares to raise 633 million yuan. After the implementation of the project, it will expand the company's production scale, improve production efficiency and technical level, and effectively enhance the company's competitiveness and market share in the medium and high-grade furniture market. Further consolidate and enhance the company's dominant position in the industry. Combined with the company's 2016 performance forecast range of 6670-73.5 million, we expect 2016 of the company's net profit to be 70 million, down 9.3% from a year earlier, representing a year-on-year increase of 7.1%. The total share capital of 219 million after the offering, EPS is 0.32,0.34, the corresponding offering price is 7.79yuan per share, and the PE is 24.37,22.75. Coverage for the first time, giving a "overweight" rating.