A leading company in unique creative household goods
The creative household goods industry where the company is located is highly fragmented. The company is in a leading position in the industry, has certain market influence and brand competitiveness, is scarce in the A-share market, and there are no similar listed companies with completely comparable business attributes.
The asset-light operating model is different from ordinary light industry manufacturers, which focus on R&D and design. The company is an asset-light enterprise that mainly engages in R&D and design of creative household goods, and independently selects suppliers to implement OEM. The company's core competitiveness lies in its R&D, design and channel expansion capabilities. This asset-light model is conducive to the company's steady expansion.
Export-oriented, steady management, improved profitability
In the first quarter of 2017, the company's revenue increased 17% year on year and net profit increased 36% year on year, maintaining a good growth trend. Export sales accounted for 97.55% in 2016, with sales revenue from Europe and the Americas accounting for 75.76% of main business revenue. Of the export sales share, close to 60% go through dealer channels, while nearly 40% are supermarket customers.
The company recently released its 2017 annual report. The company's net profit is expected to increase by 20%-30% year-on-year in the first half of 2017, maintaining good growth in a relatively stable industry.
When domestic consumption was being upgraded, follow the promotion process of the company's “Basijia” own brand. The company used its own brand “Basijia” for business promotion in China. The main models include offline direct-run stores and online sales. After closing some poorly managed stores, the number of the company's offline directly-managed stores was 18 by the end of 2016; the company opened official flagship stores on Tmall and JD. Since the creative home furnishing industry is still in its infancy, it is recommended to pay attention to the expansion of the company's domestic business, especially the marketing progress of “Basehouse”. This is the first time it has been covered, and there are no ratings yet.
Risk Reminder
The domestic growth rate of the creative home furnishing industry fell short of expectations
