[앤츠랩] Home decorating fever brought about by Corona, interior chief?

Hanssem

= The 6th 3rd new town with a total of 70,000 households will be built in Gwangmyeong and Siheung, Gyeonggi-do. It is the largest among the 3rd new towns. Earlier, the government announced that it would secure new housing sites for 263,000 households (180,000 households in the metropolitan area) nationwide by 2025 during the second and fourth measures.

=The government, which was lukewarm about supply expansion, certainly seems to have changed its tone. Of course, the supply does not increase immediately. There are still fewer 2nd new towns built. Anyway, if you build a lot of apartments, there will be places to benefit. The construction company first catches your eye, but besides the shell, there are many things you need in your house, right? Furniture and interiors are typical. That is why I remembered Hanssem.

= In 2020, Hanssem smiled wide. Sales increased by 21.7% from 2019 (1,6984 billion KRW) to KRW 2.67 trillion. It is the best report card ever, and it is meaningful that it has returned to the 2 trillion won in sales in 3 years since 2017. Operating profit also increased by 66.7%.

=I saw some corona ducks. As more time spent at home, such as working from home, people boldly opened their wallets to change the atmosphere of their home. Lightly, buying new appliances or furniture. There was also a lot of demand for remodeling, that is, remodeling.

=Whether it’s a honeymoon or remodeling, anyone who knows about it will have heard of it. He said, “Turn around and eventually go to Hanssem.” The product range is diverse and the price is roughly medium-sized. Unlike Hyundai LIVART, which has a large proportion of B2B, B2C is the strength of Hanssem. There are many stores in each region, which is strong offline, but the online strategy centered on Hanssem Mall is also showing its own effect.

=When it comes to Hanssem, furniture comes to mind first, but the proportion of sales is larger in remodeling (including kitchen) than furniture. Hanssem’s remodeling brand rehouse is the strongest in this market. Since several years ago, we have been steadily increasing our stores nationwide and preparing for growth. Chairman Kang Seung-soo and Chairman Hanssem promised to achieve sales of 10 trillion won in 2027, only 6 to 7 years later, but this is where the confidence to dominate the remodeling market is built.

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= Actually, the remodeling market is expected to grow steadily. In the short term, it is related to the government policy emphasizing’one household, one house’,’real residence’, and’reconstruction regulations’. If you buy someone else’s house, you don’t have to pay for repairs, but for the time being, if you’re going to live in a house, the story is different.

=There is a high possibility that this home decorating fever is not a short-term issue caused by coronavirus. This is because it is linked with structural changes such as an increase in the proportion of households with one or two people and an increase in the proportion of old houses. It is also meaningful that the millennial generation who wants to live in a house that is clean even if it is small and old and a pretty house has emerged as the main pillar of consumption.

= In terms of stock prices, Hanssem’s heyday was from 2014 to 15. This is just after IKEA entered Korea. IKEA has shown that furniture doesn’t have to be bought on a product-by-product basis. It is a model that offers a large showroom and a solution for the whole room and the whole house.

= Although the emergence of IKEA was a strong threat, Hanssem has transformed itself into the most Korean Ikea. At that time, the stock price hit the 330,000 won level in anticipation. Even if it wasn’t the same level as then, the business conditions have improved, and it seems clear that it will improve.

=However, furniture sold so well last year, so it may sell less this year. We don’t change the furniture every year. Last year, the remodeling business went well due to a temporary increase in housing transaction volume. It means that the base effect may not meet expectations this year. It is also a weakness that investors are less interested in being tied around 100,000 won for about 3 years.

In conclusion, after 6 months

Not Again 2014, but it will eventually go.

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