EASYHOME(SZ:000785) Zhong Guo Jin Rong Xin Xi Wang·2025-11-09 10:04Core Viewpoint - The company is undergoing significant transformation, focusing on professionalization, risk management, and a shift from rental to retail business, indicating a strong growth potential in the home furnishing industry [1][2]. Industry Outlook - The home furnishing and building materials industry is characterized by a large market size of approximately 5 trillion yuan, yet low market concentration, with leading companies like the company and Red Star Macalline holding less than 20% market share, suggesting substantial growth opportunities for top players [1][2]. - Over 82% of consumers still prefer traditional furniture markets for purchasing furniture and building materials, indicating a strong competitive advantage for offline home furnishing markets [1]. - The industry has low repurchase rates but high cross-selling potential, as consumers often buy multiple related products in a single transaction [1]. Company Strategy and Adjustments - The company is transitioning from a phase of rapid expansion to a focus on refined operations, adapting to a new cycle characterized by "survival of the fittest" [2]. - The company has established a standardized operational system across nearly 400 stores nationwide, enhancing its market presence [2]. - Organizational restructuring has led to the creation of a new retail marketing center, integrating online marketing tools with physical store operations to improve efficiency [2]. Business Segments and Future Plans - As of mid-2025, the company aims for a "retail-led" business structure, with retail revenue of 3.631 billion yuan, accounting for 56.34% of total revenue, reflecting a year-on-year growth of 29.49% [3]. - The company plans to develop 50 lifestyle experience centers in major cities over the next three years, focusing on immersive experiences for home office, pet cohabitation, and family interaction [3]. - The rental business remains a significant revenue source, generating 2.6 billion yuan, or 40.34% of total revenue, with a gross margin of 47.24% [4]. Digital Transformation and Brand Strategy - The company has reverted its name back to "居然之家" to emphasize a return to its core business essence, while integrating digital and intelligent upgrades into its operations [6]. - The company has achieved significant digital integration, with over 19 million registered designers globally and extensive design case studies, enhancing its service offerings [6]. International Expansion Plans - The company plans to integrate supply chains and promote domestic brands internationally, with a focus on Southeast Asia and the Middle East, targeting regions with rising property prices and a young population [7]. - The company aims to diversify its overseas business to include not only home furnishing but also local dining experiences, enhancing its market presence abroad [7]. Financial Management and Future Projections - The company maintains a moderate debt level, primarily for long-term beneficial projects, ensuring short-term repayment pressure is low [8]. - The company anticipates increasing its market share from 12.5% to 15-20% over the next three to five years, particularly in economically strong regions like East China [8].