The tide of listings: Why are home furnishing companies no longer vying for listing?

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2018 There are 3 listed home furnishing companies, compared with 11 in 2017. In 2018, why did the number of companies listed in the home furnishing industry drop sharply? Obviously, the profitability of listed companies in 2018 is not optimistic, and it is more difficult for companies waiting for queuing to obtain investor blessing.

According to incomplete statistics, there are 3 home furnishing companies listed in 2018, compared with 11 in 2017. In 2018, the number of companies selected for listing in the home industry has dropped sharply? Investors are more sensitive to risks.

On the performance of the capital market, from the perspective of price-earnings ratio, Zhongyuan Home, Qiqi Technology (01739.HK, Qijiawang) and Dinggujichuang, which were newly listed in 2018, are currently 30 times, 36 times, 38 times, much higher than 23 times when issued. Compared with the home furnishing companies listed in 2017, the average P/E ratio is 20 times, and the difference is very obvious.

The data indicates that compared to the home furnishing companies listed in the 2017 listing, the investment risk of companies listed in 2018 Higher, the return on investment cycle is longer.

It is worth noting that among the companies listed in 2017, 8 out of 11 have lower P/E ratios than the current ones. The fixed value indicates that after a year of growth in the companies listed in 2017, the investment value generally rises, the risk is reduced, and the return period is shorter.

Faced with the same macroeconomic downturn and investment contraction background, companies listed in 2017 are clearly more favored by investors, which is not without reason. One of the key factors is the timing. Compared with the home market in 2017, the custom-made companies that took the lead in the card not only caught up with the “customized home” market, but also seized the advantage of the market position. When they went public again in 2018, they wanted It’s impossible to “first come first”.

In addition, in addition to the price-earnings ratio, the 2018 quarterly report that has been released also shows that the net profit of Zhongyuan Home and Dinggu Jichuang are only 0.49, and 50 million yuan, respectively. The net profit of the home delivery reached 12.00 yuan and 293 million yuan, which is very small. Among them, the net profit of Qiqi Technology listed in Hong Kong in 2017 was -82.4 million yuan.

Obviously, the earnings performance of listed companies in 2018 is not optimistic, and it is more difficult for companies waiting to be listed to obtain investor blessings.

Investors are no longer paying for the chasing tide

There are countless examples of capital investors helping companies rush to chase the market, but it is equally fast for investors to abandon. Just like once the city was full of small yellow cars, now, ofo small yellow car is a failure case of the capital reversal.

Lei Jun said in his early years that “standing on the wind, pigs can fly” became the supreme saying of the entrepreneurial tide of the last decade, and encouraged the entrepreneurial team of Qianjun Wanma to participate. When the rumor theory was no longer available, Xiaomi finally seized the tail of the capital’s ebb, and successfully listed, but stranded many followers of the gulf. The node where Xiaomi is listed is also the beginning of the capital open source and thrifty era.

In 2018, the golden age of entrepreneurship came to an abrupt end. Under the new direction of de-bubble and virtual reality, economic development has returned to a rational period of following the basic logic of the development of things. In the context of corporate investment, rational understanding is to value enterprises with clear business models and stable profitability. This type of enterprise is more likely to be recognized by investors and listed smoothly. From the 2017 and 2018 home business listing statistics, two key pieces of information can be found to support investors’ preferences.

First, investors are more generous in corporate finance for a longer history. Among the companies listed in 2017, the highest raised funds were the 2.80 billion yuan of Europa Home Furnishings, which was founded 24 years ago. It is the largest of all 14 companies. The Mona Lisa and Mercury Home Textiles, which raised more than 1 billion yuan, were founded. 20, 18 years; Secondly, investors give higher investment risk positioning to enterprises with shorter development history. Among the 14 listed companies listed in the statistics, 6 companies with an average price-earnings ratio were found to have an average creation time of 13.67 years, and the other 8 companies averaged 18.75 years.

It is also obvious that investors no longer support which type of business.

Projects with multiple rounds of financing and expansion, but no clear profit model are no longer optimistic, and the sharing economic boom suddenly retreats like a tide is the answer to the restart of the rational capital era. In addition to the “customization” enthusiasm in 2017, and the “Internet home improvement platform”, the home industry is now facing difficulties, including the listing of Qiqi technology, and the waiting for the Tuba rabbit.

In the capital market, Qiqi Technology suffered a break on the day of listing. Since the listing in July, Qixi Technology’s share price has fallen more than 30% to close on December 18, and the market value has evaporated. HK$2 billion, the total market value fell to 3.76 billion Hong Kong dollars.

The financial report shows that Qiqi Technology has suffered losses for three consecutive years. As of December 31, 2017, the accumulated loss was approximately 1.627 billion yuan. In the first half of this year, Qiyi Technology’s profitability improved, with adjusted net profit of RMB 21 million, compared with a loss of RMB 38 million in the same period last year.

Pakistan Rabbit Exchange IPO application form, according to GMVAccording to statistics, Tuba Rabbit occupies 37.5% of the domestic online home improvement market. According to the amount of the transaction, the online share of Tuba Rabbit is 18.8%. However, the profit is not optimistic. Between 2015 and 2017, the cumulative loss of the Tuba rabbit reached 2.427 billion yuan.

According to Zhongxin Jingwei, Hu Zhongxin, secretary general of the China Furniture and Building Decoration Association, believes that the integration of the Internet and the home improvement industry is still insufficient, and it is a “satisfaction”. There is no decoration enterprise or platform yet, and the pain of decoration can be solved by means of the Internet. The way of decoration construction is still very traditional.

As a result, there have been cases in which Qiqi Technology, which has already evaporated HK$2 billion, is in the forefront. The Tub rabbits who submitted the IPO plan very early are still waiting for listing.

The attitude of investors is very clear, that is, there is a longer founding year, which has fully proved that enterprises that can self-hematopoietic and develop calmly will give large amounts of financing and valuation; Investors who do not have a clear profit model, investors believe that the risk is too high, give less valuation, or no longer vote.

In addition, Bloomberg News reported that the most serious market crash since 1901 occurred in 2018. Data show that in 2018, the global stock market evaporated nearly $15 trillion (about 103.40 trillion yuan) in market capitalization. Combined with the risk of slowing global growth, investors have reason to be more cautious in spending money and be more cautious about new IPOs.

With the end of the golden age of entrepreneurship, the home furnishing industry has often reported bad news in 2018, but an era of competition has ended. The pursuit of the wind has become a thing of the past, and investors have turned quickly and steadily to those companies that can bring lucrative profits.

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