Furniture stock prices plummeted, market value evaporates up to 380 million in one day

On the 13th, domestic furniture stocks performed weakly. As of the close, the wood furniture sector plummeted 6.91%, which was at the forefront of various industries. Meike (Maike Mejia's parent company), Sofia, Shengda Forestry, Del Home, and Yihua Wood Industry all closed at a much higher decline than the broader market. Among them, Meike shares ranked first in the industry with a decline of 8.66%, and the value of outstanding shares shrank by 380 million yuan within one day.

According to NetEase home monitoring and analysis, the entire wood furniture industry has fallen by an average of 30.62%, much higher than the 7.96% decline in the entire A-share market. The largest decline in US shares, the cumulative decline of more than 40% in the past three months, the market value loss is close to 2.8 billion. Del Home, which went public on November 11 last year, lost 40.77% in less than three months. Sofia, which was also listed last year, also fell 23.37% in three months.

Meike shares, mainly in the production and sale of furniture products, exports and domestic sales accounted for half of the 2011 operating income, its Meikemeijia furniture chain, opened more than 50 direct stores in China; Sofia headquartered in Zengcheng, Guangdong , Production and sales of customized wardrobes account for more than 90% of its operating income, mainly for the domestic market; Shengda Forestry is mainly engaged in forest planting, wood bamboo processing and processing, mainly for domestic sales; Del Home Furnishing is engaged in the production and sales of wooden floors, and the domestic sales account for absolute Proportion; Yihua Wood mainly produces wooden furniture, and more than 90% of its products are exported. It began to develop the domestic market in 2011.

The recent sharp decline in the wood furniture sector is the result of many adverse factors affecting the development of the industry. Domestic real estate purchase restriction policies have led to a deserted housing market, domestic land rents, labor and raw material costs have continued to rise, the European and American economies are in a downturn, and the appreciation of the RMB is expected. These factors will continue to haunt the furniture industry for a longer period of time.