The amount of net profit is an important figure to prove the profitability of the company. The strong net cash flow is also considering the strength and vitality of the company. A big indicator. In the furniture industry, there are not a few companies with abundant cash flow, but there are many data that are not ideal enough. What is the reason behind this phenomenon? This article takes Gujiajia as an example to analyze and draw some factual conclusions.
Gujia Home recently made frequent moves in the acquisition. In the “Observation | Gujia home currency funds more than 800 million yuan, Gu Jiangsheng “buy buy and buy mode hard air open”, we analyzed the cash flow of Gujia home in detail The situation is that it has a strong cash flow to support this time-consuming purchase.
In fact, in the entire furniture industry, there are not a few cash flows, and the net cash flow generated by the recent operations of Weihua, Shengda Forestry, and My Le Home has been as high as The current net profit is more than three times.
In sharp contrast to these companies, although the net profit of four companies is positive, the net cash flow from operating activities is in a negative state, showing that although there is profit, it is real gold. Silver is hard to get. For the furniture industry company, what is the reason behind this phenomenon?
The cash situation on the home bill of the sofa is quite abundant, so is this industry characteristic or company characteristic? ?
We will look at the cash flow of the entire furniture industry along the home.
Sofa companies have abundant cash flow
The 2017 annual report of Gujia Home has not been released yet. Let us first look at the 2017 third quarterly report. In the first three quarters of 2017, Gujiajiao realized a profit of 620.081 million yuan, and the net cash flow generated from the realized business activities was 732.182 million yuan. In other words, in the first three quarters of last year, the company’s cash flow was nearly 20% more than the net profit.
In fact, the company is not just in the first three quarters of 2017, in 2016 and 2015. Cash flow is better than profit. For example, in 2016, the company’s profit was 575.051 million yuan, while the cash flow was 97,469,100 yuan. In 2015, the company realized a profit of 49,831,900 yuan, while the cash flow was 76,209,700 yuan.
For Gujia Home, the cash flow it gets in the year is better than the net profit, even early Received cash. This is mainly related to the mode of the industry. In the industry, it is basically in the form of “receiving money first, then re-delivery”.
As an old rival of Gujiajiao, Minhua Holdings’ performance is not bad.
Minhua Holdings listed earlier, and Gujiajiao listed late, the current market value of Minhua Holdings is 25.5 billion yuan, and the total market value of Gujia Home is 27 billion yuan, which has already become the meaning of later. Judging from the recent performance, Gujia Home is even slightly better.
The growth rate of operating income and net profit of Gujiajiao in the first three years of 2017 was 39.59% and 40.62%, respectively.
In 2017, Man Wah Holdings achieved a total revenue of approximately 9.503 billion yuan, a year-on-year increase of 28.6%, of which revenue from HomeGroup Ltd. was approximately 831 million yuan.
From the 2017 mid-year report, Minhua’s gross profit margin declined, and the overall gross profit margin fell from 42.7% to 38.3%. Excluding the business of HOME Group, which has a combined gross profit margin of only 23.6%, the prices of raw materials such as chemical products, steel products and packaging paperboard in the cost end have risen significantly, which has a great impact on gross profit margin.
The net cash flow generated by Minhua Holdings in the third quarter of 2017 was approximately 65,851,100 yuan. In the same period, the company’s profit was approximately 6,738,195,500 yuan, basically the net profit situation was slightly better. In the case of cash flow, but not as prominent as the performance of Gujiajia.
In the 2016 annual report and the 2015 annual report, the company realized profits of 155,573,600 yuan and 1,10,596.1 million respectively. Yuan, while the company’s cash flow for the same period was 154,513,100 yuan and 1,372,607,100 yuan. It can be seen that the cash flow situation of Man Wah Holdings is also quite good.
Net cash flow is more than three times the net profit
In fact, the cash flow status of Gujiajiao is not particularly prominent in the entire furniture sector, represented by my home. Some of the home business’s cash flow situation is enough to “smile.”
In several custom-made furniture companies that have been listed, the cash flow is basically based on the 2017 third quarterly report. The upper is 1.5 to 2 times the profit. Among them, my Le Home performance is even more amazing. The net cash flow from its operating activities in the third quarter of last year reached 127,475,400 yuan, while the company’s profit was only 40,461,900 yuan in the same period, and cash flow was three times the profit.
Shangpin’s home profit in the first three quarters of 2017 was 20,577,170 yuan, while the net cash flow during the same period reached 46,524,260 yuan, which means that cash flow is more than twice the profit. This performance is also very amazing.
If you expand your horizonsTo the entire furniture industry, there are companies with stronger cash flow.
Weihua’s profit in the first three quarters of 2017 was 18.53 million yuan, while the company’s cash flow during the same period reached 69.091 million yuan, and cash flow was 3.7 times the profit.
Followed by Shengda Forestry, with a profit of only 12.316 million yuan, the net cash flow from operating activities is as high as 40,439,500 yuan, and the cash flow is 3.28 times the profit. .
Weihua’s main business is fiberboard, and the company has extended its business to lithium salt and rare earth products in recent years. The company’s cash flow is mainly due to the company’s wood-based panel business.
However, for Shengda Forestry, the cash flow is in good condition, in addition to the main business, but also because of the reduced scope of consolidation and reduced expenditure.
The cash flow of the four listed companies is poor
At the same time, the cash flow performance of the four listed companies is quite bad.
Among them, the profit realized by Xilinmen in the first three quarters of 2017 was 214.39 million yuan, while the cash flow during the same period It is -924.11 million yuan; Jiangshan Ou Pai achieved profit of 88.9192 million yuan in the first three quarters of 2017, while the cash flow was -2,688,300 yuan; Yazheng’s profit in the first three quarters of 2017 was 4,187.35 million yuan, cash flow -983.15 million Yuan; Yongan Forestry’s profit for the first three quarters of 2017 was 29,367,500 yuan, and the cash flow was -5,665,700 yuan.
The cash flow of Xilinmen is not good, mainly due to factors such as increased procurement costs. Jiangshan Europa is mainly due to the increase in operating expenses and prepaid business promotion expenses. Yazheng’s home is mainly due to the increase in accounts receivable due to credit support for dealers’ newly opened stores, as well as new product development, increased custom products and increased inventory in the second half of the year. Yongan Forestry is due to the high factors of accounts receivable.
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