In the subdivision field of home building materials retail, there are only two domestic A- share listed companies, jueran home and meikailong. Even if the industry concentration is not high, the number is obviously a little small in terms of the scale of home building materials retail industry. To some extent, this situation makes the crisis of the two companies not so strong.
In the subdivision field of home building materials retail, there are only two domestic A- share listed companies, jueran home and meikailong. Even if the industry concentration is not high, the number is obviously a little small in terms of the scale of home building materials retail industry. To some extent, this situation makes the crisis of the two companies not so strong.
The scale of MKL has been ahead of that of Juran home. By the end of 2019, MKL was still the offline home building materials retailer with the largest operating area, the largest number of shopping malls and the widest regional coverage in China, it has 428 self-operated and other home building materials stores and industrial streets.
After 2014, it took only five years for Juran home to double the number of home furnishing stores, but the gap with MKL is still obvious. By the end of 2019, Juran home had direct sales or joined a total of 355 furniture stores or other supermarkets nationwide. In terms of the number of home building materials cities, there are 73 fewer homes than MKL, and the actual business area is less than 60% of MKL.
The financial data of the two enterprises in 2019 can be clearly seen that in terms of scale index, MKL is much larger than that of Juran family, and MKL is regarded as the eldest brother in the industry.
If the comparison index is changed into the market value, Juran home is the first brand in the offline retail field of home building materials. As of August 13, 2020, the market value of Juran home was 1.6 times that of MKL, with 56.767 billion yuan and 35.022 billion yuan respectively. At the same time, the return on net assets is much higher than MKL at a value of 38.41%.
In terms of the important indicator "annual revenue per unit area" in the operation of home building materials city, Juran home also has great advantages.
As can be seen from the above table, in terms of the operating efficiency of the main business stores, the unit income of the stores in Juran home is almost 15 times that of MKL.
In fact, from the perspective of enterprise operation, the revenue and assets of MKL are 1.81 times and 3.62 times that of Juran House respectively, but its net profit is only 48.7% higher than that of Juran House. At the same time, combined with the return on net assets, it means that the operating efficiency of the enterprise and the ability of assets to leverage revenue are significantly higher than MKL.
To some extent, the above data support the valuation of Juran home, which is almost 4 times that of MKL, but there are still more reasons to be discussed.
Facing the new retail, we choose "going to the countryside"
at the end of 2019, China's building materials home market exceeded 4.43 trillion yuan as a whole, but the total sales volume of building materials home furnishing stores above the scale was shrinking year by year, from 1278.1 billion in 2011 to more than 90 billion. In contrast, the online sales scale of home building materials industry increased from 17.7 billion yuan in 2009 to more than 30 billion, with a compound growth rate of 38 percent; The online consumption penetration rate of the industry has increased from 2.9 percent to 8.5 percent in the past five years.
Facing the menacing online e-commerce, Juran home and meikailong chose to lay out to non-first-tier cities and large villages and towns. In the past six years, the two companies have set up stores "crazily. Among them, 315 new stores were added in MKL, and 277 stores were opened in Juran home. After a round of expansion, the revenue scale was finally maintained. The following data shows the operation data of offline stores of the two companies. You can see that economic development degree makes the store's income gap huge.
Photo Source: Annual Report of Juran House in 2019
photo source: MKL 2019 Annual Report
according to data from Frost Sullivan, even the largest MKL in China, its retail sales accounted for only of the market share of home furnishing stores (chain) of building materials in 2019, it accounts for 6.3 percent of the market share of home building materials stores (chain and non-chain). This means that in the field of home building materials stores, the overall industry concentration is not high. This means that it is reasonable for MKL and Juran home to choose to sink non-first-tier cities-after competition and merger with the local old building materials market, it is entirely possible to occupy the local market.
Red Star Macalline 2020 semi-annual report
red Star Macalline home furnishing Group Co., Ltd. (hereinafter referred to as MKL) disclosed its semi-annual report on 27th. In the first half of the year, the company achieved revenue of 6.024 billion yuan, down 22.34 percent year-on-year; Net profit attributable to shareholders was 1.101 billion yuan, down 59.29 percent year-on-year; the basic earnings per share was 0.28 yuan, down year-on-year.
Photo: Red Star Macalline 2020H1 financial report
(Image Source: Big home insight, invasion and deletion)
red Star Macalline operates 87 self-operated shopping malls, 247 Committee-managed shopping malls, and 12 home shopping malls in strategic cooperation, covering 212 cities, with a total operating area of 20.95 million square meters, authorize the opening of 50 franchise home building materials projects and 430 home building materials stores/industrial streets. The total number of shopping malls has been lower than that of Juran homes (358).
In the first half of this year, one self-operated shopping mall was newly opened, one was closed, one was newly opened, four were closed, and the operating area was reduced by 30000 square meters. The rental rate of shopping malls is also declining. Whether it is self-operated or administrative, it is above 90%, and the rental rate of shopping malls in 2019 is basically stable at 93.5%.
By the end of the reporting period, Red Star Macalline had 25,361 employees. At the end of 2019, the number of the company was 27,113, a decrease of 1752.
Juran home semi-annual report
on August 28, Juran home released its semi-annual report of 202020. from January to June 2020, the company realized its operating income of 3.918 billion yuan, down% year on year, and the net profit attributable to shareholders of listed companies was 0.407 billion yuan, year-on-year decline of 57.57 percent, earnings per share was 0.0700 yuan.
By the end of the reporting period, Juran home had 358 home furnishing stores, including 89 direct stores and 269 franchise stores. Among The Direct stores, 76 were leased properties. In the first half of the year, 9 new stores were opened, there are 6 closed stores and 3 new stores are added. In addition, there are 9 modern department stores, 1 shopping center and 106 supermarkets in Hubei.
(Image Source: Big home insight, invasion and deletion)
at present, the two home giants, MKL, win in the scale and the past, while the affordable home is more optimistic about the growing capital market. However, they all need to "struggle to survive the present".
(Article Source: Big home insight, invasion and deletion)
