Company profile:
Over the years, the company has focused on customized wardrobes and matching furniture, fine hardware and customized ecological doors, the products have covered guest restaurants, bedrooms, study, children's rooms, kitchen, balcony, indoor and outdoor doors and windows and all kinds of fine hardware, realizing the personalized customization of home space, and can be upgraded to the direction of intelligence.
The controlling shareholder and concerted action of the company are Lin Xinda and Lin Caiju, who together control 62.27% of the shares before the issuance of the company.
Current situation and prospect of the industry
The growth of disposable income of urban residents has created the necessary conditions for the development of customized furniture. With the sustained and rapid economic development, the disposable income of urban residents in China continues to grow, and the consumption capacity of residents has increased significantly. According to the data of the National Bureau of Statistics, the per capita disposable income of urban residents in China increased from 19109 yuan in 2010 to 36396 yuan in 2017. With the growth of residents' disposable income, there are some changes in residents' consumption structure and consumption concept, from considering price and functional factors to paying more attention to comprehensive factors such as beauty and fashion, environmental protection and health, brand, quality and so on. Custom furniture is more and more favored by consumers. With the growth of residents' disposable income, their requirements for quality of life will also be improved, and sexual consumption with improved living conditions has become one of the main consumption of residents. At present, China has entered the peak period of secondary decoration, and most of the early residential units are small, and the structural rationality is poor. Custom-made furniture can make up for the narrow living space to a certain extent and make full use of the space effectively.
The secondary decoration of second-hand houses and the liberalization of the second-child policy further promote the development of custom-made furniture industry. Family secondary decoration is a relatively stable rigid demand in the custom furniture industry, especially second-hand housing transactions, more will carry out secondary decoration. According to Wind, furniture consumption demand from the decoration of new houses accounted for 56 per cent of the furniture consumption market in 2014, while furniture demand from renovating old houses accounted for 44 per cent of the furniture consumption market. Moreover, with the full liberalization of the two-child policy, it will stimulate the real estate market, and then promote the development of the whole custom furniture industry.
Highlights of the company:
The company is one of the well-known brands in the custom wardrobe and fine hardware industry. The company insists on independent innovation and has formed a strong ability of independent research and development, independent design and independent innovation, with obvious industry status and brand advantages. At present, the company has obtained 479 patents, including 21 invention patents, 142 utility model patents and 316 design patents. The R & D strength and the number of independent intellectual property rights are in the forefront of the industry. The company adopts a sales channel model dominated by dealers, supplemented by bulk customers and direct sales. The dealer network has covered all provinces and municipalities directly under the Central Government. As of June 30, 2018, the total number of dealers in the company is 1085. The total number of dealer stores is 1316. The company implements the Golden Elephant 6D (elite consultant, exquisite design, precise installation, meticulous maintenance, excellent quality, sincere logistics) service system, which constantly improves the user experience of consumers and provides meticulous and thoughtful service.
Fund-raising project
1. It is proposed to raise 209 million yuan for the Zhongshan annual production of 300000 sets of customized furniture construction project.
2. It is proposed to use the raised funds of 20 million yuan for the technical renovation project of the integrated information system upgrade.
3. It is proposed to use 35 million yuan to raise funds for the construction of brands and sales channels.
4. It is proposed to use the raised capital of 50 million yuan for other working capital related to the main business.
Main potential risks
The risks brought by the macro-control of real estate. As the downstream industry of the real estate, the development of the home industry is closely related to the development of the real estate industry. The state's macro-control of the real estate industry may have an adverse impact on the downstream home industry, thus ultimately affecting the development of the company's main business.
Risk of price fluctuation of major raw materials. The main raw materials needed for the production of the company's custom wardrobe are artificial plates and aluminum profiles, and the main raw materials for hardware products include aluminum profiles, zinc alloys, etc., and their prices change with the price fluctuations of base metals, wood, etc., especially affected by the price fluctuations of the international commodity metals aluminum and zinc. If the price of sheet metal and base metal fluctuates sharply in the future, resulting in a great change in the company's production cost, it will adversely affect the company's profit level.
Valuation
The issuer works in the furniture manufacturing industry, and as of September 10, 2018, the average static price-to-earnings ratio of the most recent month released by the CSI was 26.85 times earnings. Combined with the current market conditions, the initial pressure is expected to be 35 yuan-40 yuan.
