Hardcover room shares thin building materials market profit

Analysts revealed that large-scale housing enterprises purchased hardcover housing products through bidding, which may in turn disguise the profits of some building materials and home-owners companies. At the beginning of the new year, Oriental Home, once the largest home building chain company in China, closed its only company in Beijing. 5 stores. In this regard, can not help but question the market, is this another signal that the home building materials market is weak?

“At present, the home building materials companies that have signed with us in the past have not raised the price”, a senior person from a leading Shanghai housing company told the “Securities Daily” reporter that with the trend of rising prices and prices of the property market, the building materials involved in bidding Home companies may also raise prices.

It is worth mentioning that some people in the industry have told this reporter that most real estate companies are increasing the proportion of investment in fine-tuned housing, while large-scale housing enterprises generally purchase fine-decoration building materials and household products through bidding. As a result, lowering the cost has become an important standard in the bid.

However, the above-mentioned executives of the housing enterprises also disclosed to this reporter that in fact the company can basically obtain exquisite decoration parts at the ex-factory price, so the profits of the successful bidder home building materials enterprises are generally very low.

The impact of home building materials store market According to a household statistics show that since August 2011, all types of home building materials stores in Beijing have been officially closed, and there are currently several are preparing to "departure."

What is more noteworthy is that according to incomplete statistics of “East Real Estate”, since October 2011, 17 of the runners reported extensively in the media have come from the home industry, and 7 from building materials and other related industries. More than 80% of the total number.

The above data may be a glimpse of the coldness of the home building materials industry. In addition to real estate control policies that led to the downturn in the property market over the past year or so, the home building materials industry chain in the downstream of the real estate industry has been greatly affected, the large number of fine decoration real estate market is also part of the resulting Furniture and building materials companies are caught in the main factor of cash flow dilemma.

"This real estate is a fine decoration products, you can stay in the bag," many real estate sales staff have told reporters, especially just need real estate and high-end luxury residential decoration proportion is growing.

According to public information, from the perspective of the development of the real estate industry, refined decoration has become the future development trend. The data shows that in the current sales of real estate, the proportion of well-decorated or fully-decorated rooms, Beijing is 50%, Guangzhou is 70%, Shenzhen is as early as 2008 plans to "completely renovated residential sales rate reached 100 before the end of 2010 %".

According to the reporter's understanding, the largest real estate company in China Vanke Real Estate's refined decoration room accounted for 90% of its total product, or even more, which is the result of its promotion of residential industrialization development model.

The general manager of a paint company told this reporter that after the large-scale renovation of the room into the market, the real estate engineering market began to rise, while the domestic engineering products are very competitive, which gave home building materials stores a heavy blow. The circulation link of the home building materials industry has also changed, and a large number of home building materials sales channels have begun to shift from traditional home stores to real estate engineering markets.

Diluted profits "In cost control, home building materials companies can directly cooperate with housing companies, eliminating part of the cost of circulation," a senior housing executive told this reporter, but if the home building materials companies want to win the bid, it is inevitable It is also necessary to lower the price of the product, and even the successful bidder usually sells the product at a factory price or at a low price that the dealer can get.

The person also revealed to reporters that from the above-mentioned situation, although the cooperation with the housing enterprises was able to obtain large orders, the actual cost of home building materials companies was not reduced and profits were even diluted. Because there are many potential costs, these potential costs include high capital costs.

As the general manager of the above-mentioned coating company revealed to this reporter, general home building materials companies will be awarded to the housing enterprises after winning the bid, but the housing enterprises will not receive the payment, but instead adopt another payment method. To open up this issue, most of the developer's fine-decoration house building materials and home furnishing products are delivered to the owner after the house is delivered, and the real estate company pays the supplier to the supplier. This kind of payment method is very costly for home building materials companies. Gao Pan, capital turnover capacity is weak.

In this context, developers not only look at the price, but also include the ability to withdraw funds, which is a heavy pressure on the enterprise.

What is worth mentioning is that the rebound in the property market cannot be returned to the building materials home market in the short term, because most of the 期房 that were sold in 2012 will be handed over in the second half of 2013 or 2014, and the buyers will not necessarily get the keys. As soon as it is renovated, from this perspective, the home building materials market in 2013 may still not be optimistic.

However, some people in the industry told this reporter that with the warming of the property market, prices are expected to rise strongly in the market, and increased delivery of real estate, market demand will also rise, so home building materials companies are still confident to survive the industry cold period.