Reflect the flooring industry winter
January 31st, 2013 | 
Author: Just released December 10 urban residential index (new house) ring show that the property market has been warmer than seven rising; "Daily Economic News" reporter survey found, supporting the floor as the downstream industry was still in weak sales, costs struggling under multiple pressures rise and increased competition. On January 18, China Flooring Holding Co., Ltd. (hereinafter referred to as the Chinese flooring) issued a profit warning to reflect the flooring industry winter is not yet over.
Last Friday (January 18), floor (02083, HK) issued a profit warning that, in 2012 year-on-year earnings will be significantly reduced, mainly due to the domestic real estate market sentiment continued to be weak so significant decrease in turnover and operating increased costs; following renewed rumors of the sharp drop in performance in the first half net profit plunged Jiucheng news.
August 31, 2012, the interim report released by the China floor display, due to poor market conditions, the decrease in demand led to the decline in sales, operating income fell 27 percent to 506 million yuan; while distribution costs and administrative expenses to increase, rising operating costs 29%, gross margin fell to 32%, net profit fell 96.3% to 3.523 million yuan. After the announcement, the Chinese flooring plunging, the company spent a total of nearly HK $ 12 million more in the next month, six announced repurchase.
To public information, the floor on May 26, 2011, listed on the Main Board of HKEx, the issue price of HK $ 2.95; Chinese floor once by investors as higher domestic market share of natural flooring brand owners, sought after, However, with the regulation of the domestic property market continued to raise the flooring industry "have become so interdependent, sales have fallen sharply, the floor price in July 2011 reached a historical high of 3.53 Hong Kong dollars after crashing; Currently, the company's share price compared to its highest ever level have fallen by nearly 54%, the market value has shrunk severely.
The impact of macro-control policies on the real estate related industry undoubtedly is still fermenting. January 14, data released by the China Building Materials Circulation Association, the national-scale home building materials stores in 2012 full-year sales of 1.2467 trillion yuan, a year-on-year decline of 2.46%. For the judgment of the 2013 real estate policy, the Hong Kong First Shanghai Securities chief strategist Linus Yip told the "Daily Economic News" reporter, said that the regulation should be neutral in this year, therefore, the market environment of the floor and other supporting industries will tend to be stable , a moderate.
Linus Yip, that the flooring industry, the biggest dilemma is that cost pressures, either store rent and manpower wages and other operating costs, raw material prices are significantly phagocytic corporate profits. The reporter noticed the flooring industry, including China flooring, including the third quarter of 2012, the performance of the data are generally not optimistic.
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