Topstrong(SZ:300749) Xin Lang Zheng Quan·2025-05-16 09:38Core Viewpoint - The real estate market is entering a post-cycle phase, leading to a decline in new housing sales and a corresponding impact on the custom home furnishing industry, which is experiencing increased competition and reduced consumer confidence [1] Group 1: Market Performance - In 2024, the total sales area of new commercial housing reached 97.385 million square meters, a year-on-year decrease of 12.9%, while sales revenue totaled 96,750 billion yuan, down 17.1% [1] - The sales area and revenue for residential properties fell by 14.1% and 17.6% respectively compared to 2023 [1] Group 2: Company Financials - Nine listed custom home furnishing companies reported a collective operating cost of 30.775 billion yuan, a year-on-year reduction of 15.2%, aligning with the decline in operating revenue [1] - Operating costs for Oppein Home reached 12.128 billion yuan, approximately 18 times that of the lowest-ranked company, PIANO [1] - PIANO's operating costs decreased significantly by 27.7% due to a contraction in its main business areas [1] Group 3: Cost Management - In Q1 2024, over 70% of custom home furnishing companies saw an increase in operating costs, with notable increases for Haolaike, Sophia, and Jidong Jichuang [2] - By Q2 and Q3, companies began aggressive cost-cutting measures, with Oppein, Iole, and PIANO reporting cost reductions exceeding 20% [2][3] - In Q4, smaller companies like Jidong Jichuang and PIANO experienced operating cost declines of 35.9% and 40.7% respectively due to weak demand [3] Group 4: Raw Material and Labor Costs - The average price of aluminum and zinc increased by 6.5% and 7.8% respectively in 2024, impacting raw material costs [6] - Despite rising raw material prices, the overall raw material costs for eight custom home furnishing companies decreased, with Oppein leading at 9.226 billion yuan, down 21.7% [6][9] - Labor costs for Oppein were 9.79 billion yuan, a decrease of 20.8%, while Jidong Jichuang saw a significant drop of over 35% due to reduced order volumes [7][9] Group 5: Profitability Metrics - The average gross margin for the nine custom home furnishing companies in 2024 was approximately 32.9%, down from 34.5% in 2023 [10] - Iole ranked first with a gross margin of 46.3%, while PIANO and Jidong Jichuang faced declines in gross margin due to increased market competition [10]