① In 2023, Oupai Home Furnishing will achieve the net profit growth target set at the beginning of the year, and has not achieved the revenue growth target. ② According to related reports, home improvement consumption has entered an era of cost performance, and consumption differentiation has deepened.
Financial Services Association, January 29 (Reporter Ren Chaoyu) Today, Oupai Home (603833.SH) announced a pre-increase in its 2023 annual results. Against the backdrop of poor cyclical trends in the “pan-home” industry, the company will achieve the net profit growth target set at the beginning of the year in 2023, and will not meet the revenue growth target. This is in line with Chairman Yao Liangsong's judgment that he may be able to achieve one of the annual goals at the mid-term performance report meeting.
According to financial data, Oupai Home expects net profit to be 2,957 billion yuan to 3.226 billion yuan, up 10% to 20% year on year; deducted non-net profit will increase 5% to 15% year on year; and expected to achieve operating income of 22.48 billion yuan to 23.603 billion yuan, an increase of 0% to 5% year on year.
In April 2023, Oupai Home said it would strive to achieve a 10-15% year-on-year increase in revenue and net profit in 2023. However, due to poor performance in the 2023 interim report, Chairman Yao Liangsong once said that it may be possible to achieve one of the (two performance targets), and the estimated turnover (target) may be poor enough.
Oupai Home Furnishing is a leading company in the home furnishing industry. In October of last year, Yao Liangsong once again ranked first in the home building materials industry in the 2023 Hurun 100 Wealth List with 45.5 billion yuan. Therefore, Oupai Home Furnishing's performance growth has an indicative effect on other companies in the same industry.
Affected by the real estate boom, the “pan-home” industry will be cyclically cold in 2023. According to data from the National Bureau of Statistics, total retail sales of social consumer goods increased 7.2% year on year in 2023, but the furniture category only increased 2.8% year on year.
According to the home improvement consumer survey report released by Shell Research Institute in January 2024, China's overall clothing consumption level in 2023 had a “teardrop” structure, and consumption differentiation deepened.
Among the consumers surveyed, 40.36% had a budget of less than 100,000 yuan, 42.95% of the range of 11-200,000 yuan, 10.43% between 21-300,000 yuan, and 6.26% with a budget of 300,000 yuan or more.
According to the report, in the era of cost-effective consumption, it is difficult for consumers to be impulsive when it comes to simple “promotions” and “price cuts,” the number of expert and research consumers is increasing, they are more careful in making consumption decisions, and they are more rational and carefully considering the true value of home improvement products and services.