中国定制家具投资策略分析.pdfVIP

19 December 2018 | 8:06PM CST China Consumer Durables Customized furniture: Setting the table – Initiate Oppein at Neutral , Shangpin at Sell; reiterate Buy on Suofeiya China’s customized furniture industry – though facing headwinds from a property Nicolas Yi +86(21)2401-8922 | nicolas.yi@ downcycle and intensifying competition, especially in the furniture mall channel – Beijing Gao Hua Securities Company Limited offers a significant consolidation opportunity in a vast, yet fragmented, market. Going forward, we expect industry leaders to gradually, but consistently, gain share from smaller players. We expect industry leaders, which enjoy manufacturing and distribution advantages, to benefit from the rising portion of furbished new properties, accelerating their market share concentration. Developers’ channel: Long-term revenue opportunity for leading players According to All View Cloud (AVC), c. 4.6mn units of furbished new properties were sold in 2018, 23% of the total new properties sold. The number is expected to rise to 6.1mn by 2020E based on the 13th Five-Year Plan. In comparison, Suofeiya, a leading wardrobe manufacturer, only had 0.6mn customers in 2018. Hence, we believe capturing even a small portion of this growing segment will translate into considerable growth for furniture companies. Furthermore, we expect stringent requirements on product specifications, delivery time and payment period will mainly benefit large players with superior financial and distributor resources. Initiating on two market leaders; reiterate Buy on Suofe