Home textile market operation-business climax in need of improvement in 2024

Recently, listed home textile companies have successively released their 2023 annual reports and Q1 2024 reports. The data analysis is as follows:

1. Listed home textile companies - recovery in operation, decrease in inventory

In terms of market value, compared to May last year, the total market value of 6 companies has shrunk by 2.639 billion yuan. Three companies have seen an increase in market value, with Mercury showing the highest growth at 19.2%. Fuanna has surpassed Luolai with the largest total market value, reaching 8.92 billion yuan, with an increase of 17.3%. Both Luolai and Mendale's market values have decreased by over 30%.

In terms of revenue, overall revenue in 2023 has shown some growth, reaching the second-highest level since 2017, with the total revenue of the 6 companies only 286 million yuan less than the peak in 2021. Except for slight decreases in Fuanna and Truelove, the revenue of the other companies was on the rise. In particular, Mercury has shown a significant increase, with Mercury, Luolai, and Sunvim all reaching new highs since 2017.

In the first quarter of 2024, overall revenue was slightly weaker than the same period last year, with only Mercury and Fuanna seeing a small increase, while the revenue of the others declined year-on-year.

In terms of profit, except for Truelove, profits of other companies have increased in 2023, with Mendale turning losses into profits, and Mercury and Fuanna's net profits deducting non-recurring profit and loss reaching a new high since 2017.

Regarding inventory, in 2023, the average inventory turnover days for the 6 brands were 146 days, a decrease of 5 days from 2022, reaching a relatively low level.

In recent years, the average inventory turnover days for the 6 companies have fluctuated downwards. In addition, the seasonal characteristics of home textile products are quite evident, with a general trend of inventory accumulation in the first half of the year and destocking in the second half.

2. Export Situation - Mixed performance in export

Looking at the main export markets, there has been an overall decline, with specific performance variations. The U.S. and European markets have shown signs of recovery, with exports increasing from the second half of 2023, ending the year on par with 2022. However, exports to other regions such as ASEAN have decreased, with insufficient overseas orders.

3. Chinese domestic sales situation - Intense competition in 2023-2024, business climate in need of improvement

Overall, the home textile market has seen a recovery in operation in 2023-2024, with the business climate still in need of improvement.