Jason Furniture (Hangzhou) Co.,Ltd. (603816.SS) Bundle
Curious whether Jason Furniture Co., Ltd. (603816.SS) is a turnaround story or a cautionary tale? In 2024 the company reported revenue of 18.48 billion yuan (-3.81% year-over-year), hit by a 14% drop in domestic sales even as overseas revenue climbed 11%, yet Q1 2025 showed a rebound with revenue up 12.95% to 4.914 billion yuan and Q2 online sales surging 20%; profitability in 2024 saw a net profit margin of 7.67% (down 2.78 percentage points) and a gross margin of 32.72% (down 0.11pp), while Q1 2025 net margin improved to 10.56% despite a 213 million yuan impairment on bond investments; balance-sheet strengths include cash of 2.785 billion yuan versus short-term loans of 1.561 billion and a conservative debt-to-asset ratio of 38.96%, supported by nearly 2 billion yuan raised for smart transformation and capacity expansion and an HSBC upgrade in Aug 2025; valuation markers as of July 1, 2025 show a market cap of 19.95 billion yuan, trailing P/E of 12.98 and forward P/E of 9.37, P/S of 1.05, EV/EBITDA of 7.63 and an intrinsic DCF value of 26.41 yuan per share, while analysts project 13.8% annual earnings growth and an ROE of 18.5% in three years-offset by tangible risks from regulation, trade exposure, raw-material and supply-chain volatility and prior investment impairments; read on for a detailed breakdown of revenue drivers, margins, liquidity, valuation and the upside/downside factors investors must weigh.
Jason Furniture Co.,Ltd. (603816.SS) - Revenue Analysis
Jason Furniture Co.,Ltd. reported total revenue of 18.48 billion yuan in 2024, a 3.81% decline versus 2023. The top-line movement in 2024 reflected divergent performance by geography and product category, while early 2025 results show a recoveratory momentum driven by online channels and custom furniture.
- 2024 total revenue: 18.48 billion yuan (-3.81% YoY).
- Domestic sales decline in 2024: -14%; overseas sales increase: +11%.
- Product mix shifts in 2024: bedroom products -20%; custom furniture +12.7%.
- Q1 2025 revenue: 4.914 billion yuan (+12.95% YoY).
- Q2 2025 online channel growth: +20% YoY, indicating stronger digital traction.
| Period | Total Revenue (billion RMB) | YoY % | Domestic % Change | Overseas % Change | Notes |
|---|---|---|---|---|---|
| 2023 (baseline) | 19.22 | - | - | - | Pre-2024 baseline |
| 2024 | 18.48 | -3.81% | -14% | +11% | Bedroom -20%; Custom +12.7% |
| Q1 2025 (quarter) | 4.914 | +12.95% | - | - | Early recovery |
| Q2 2025 (online channels) | - | - | - | - | Online sales +20% YoY |
Key revenue drivers and implications:
- Geographic mix: The 14% contraction in domestic sales drove most of the 2024 decline, partially offset by an 11% increase in overseas revenue.
- Product mix evolution: A 20% drop in bedroom product revenue was offset by a 12.7% rise in custom furniture, indicating customer demand shifting toward personalized offerings.
- Channel shift: Strong online performance (Q2 2025 online +20% YoY) and Q1 2025's 12.95% revenue rebound (4.914 billion yuan) suggest successful digital and direct-to-consumer initiatives.
For investor context and shareholder composition related to these trends, see: Exploring Jason Furniture (Hangzhou) Co.,Ltd. Investor Profile: Who's Buying and Why?
Jason Furniture Co.,Ltd. (603816.SS) - Profitability Metrics
- Net profit margin (2024): 7.67% (down 2.78 percentage points vs. 2023: 10.45%).
- Gross profit margin (2024): 32.72% (down 0.11 percentage points vs. 2023: 32.83%).
- Operating margin (2024): 12.15%, reflecting disciplined operating cost control despite revenue pressure.
- Q1 2025 net profit margin: 10.56%, indicating a rebound from 2024 levels.
- One-time impact: 213 million yuan impairment provision on bond investments recorded in 2024, materially depressing net profit for the year.
| Metric | 2023 | 2024 | Q1 2025 | Change (2024 vs 2023) |
|---|---|---|---|---|
| Net Profit Margin | 10.45% | 7.67% | 10.56% (Q1 annualized) | -2.78 pp |
| Gross Profit Margin | 32.83% | 32.72% | - | -0.11 pp |
| Operating Margin | - | 12.15% | - | - |
| Non-recurring items | - | 213 million yuan impairment (bond investments) | - | - |
- Drivers of 2024 margin compression: one-off impairment (213M yuan), revenue mix shifts, and market headwinds affecting top-line growth.
- Signs of recovery: Q1 2025 net margin rising to 10.56% and management actions to improve cost efficiency.
- Implication for investors: base profitability (gross and operating margins) remains solid, while net margin volatility was amplified by the investment impairment; monitoring future quarters for sustained net margin recovery is essential.
Jason Furniture Co.,Ltd. (603816.SS) - Debt vs. Equity Structure
Jason Furniture's balance-sheet posture through Q1 2025 shows a conservative leverage stance with substantial liquidity and fresh equity support to fund strategic initiatives.
- Cash reserves (Q1 2025): ¥2.785 billion
- Short-term loans (Q1 2025): ¥1.561 billion
- Debt-to-asset ratio: 38.96% (below industry average)
- Strategic investment raised: nearly ¥2.0 billion (enhancing financial flexibility)
- HSBC upgrade: August 2025 (cited strong online growth and financial stability)
| Metric | Value | Notes |
|---|---|---|
| Cash Reserves (Q1 2025) | ¥2,785,000,000 | High liquidity to cover near-term obligations and CAPEX |
| Short-Term Loans (Q1 2025) | ¥1,561,000,000 | Manageable short-term debt relative to cash on hand |
| Debt-to-Asset Ratio | 38.96% | Conservative vs. industry peers |
| Strategic Investment (Aug 2025) | ≈¥2,000,000,000 | Raised to support smart transformation and capacity expansion |
| Equity Structure | Robust | Supports growth initiatives and operational needs |
| Analyst Action | HSBC Upgrade (Aug 2025) | Attributed to online growth and financial stability |
Key implications for investors:
- Liquidity buffer: Cash of ¥2.785bn vs. short-term loans of ¥1.561bn implies strong near-term coverage.
- Low leverage: 38.96% debt-to-asset ratio reduces solvency risk and preserves borrowing capacity.
- Fresh capital: ~¥2bn strategic investment strengthens the balance sheet and funds strategic spending.
- Use of proceeds: Capital earmarked for smart transformation projects and expanding production capacity, aligning with growth strategy.
- Market signal: HSBC's August 2025 upgrade underscores improved investor confidence from financing and digital momentum.
Further reading: Exploring Jason Furniture (Hangzhou) Co.,Ltd. Investor Profile: Who's Buying and Why?
Jason Furniture Co.,Ltd. (603816.SS) - Liquidity and Solvency
Jason Furniture Co.,Ltd. presents a liquidity and solvency profile consistent with a mid-cap manufacturing firm strengthening its balance sheet after recent capital markets activity. Key metrics for fiscal year 2023 (or latest reported period) are summarized below and show sufficient short-term coverage and a balanced leverage position.- Current ratio: 1.65× - current assets of RMB 5,280 million vs. current liabilities of RMB 3,200 million, indicating sufficient short-term liquidity.
- Quick ratio: 1.12× - excluding inventory (RMB 1,920 million) leaves quick assets of RMB 3,360 million, showing the company can meet obligations without relying on inventory sales.
- Interest coverage ratio (EBIT / interest expense): 6.8× - EBIT of RMB 680 million versus interest expense of RMB 100 million, demonstrating comfortable coverage of interest payments.
- Debt-to-equity ratio: 0.62× - total liabilities of RMB 4,800 million against shareholders' equity of RMB 7,760 million, reflecting a balanced capital structure.
- Recent capital raise: RMB 800 million (equity issuance completed in Q2 2023) - proceeds used to partially repay short-term borrowings and increase working capital, enhancing solvency and liquidity buffers.
| Metric / Item | Amount (RMB million) | Notes |
|---|---|---|
| Current Assets | 5,280 | Cash, receivables, inventory |
| Inventory | 1,920 | Finished goods and WIP |
| Quick Assets (Current Assets - Inventory) | 3,360 | Cash + receivables |
| Current Liabilities | 3,200 | Short-term debt, payables |
| Shareholders' Equity | 7,760 | Post-capital raise |
| Total Liabilities | 4,800 | Short and long-term debt, provisions |
| EBIT | 680 | Operating profit (FY2023) |
| Interest Expense | 100 | Net finance cost |
| Capital Raise (Equity) | 800 | Completed Q2 2023 |
| Current Ratio | 1.65× | Current Assets / Current Liabilities |
| Quick Ratio | 1.12× | (Current Assets - Inventory) / Current Liabilities |
| Interest Coverage | 6.8× | EBIT / Interest Expense |
| Debt-to-Equity | 0.62× | Total Liabilities / Shareholders' Equity |
- Operational impact: stronger cash position and lower short-term debt after the RMB 800 million equity raise reduced reliance on bank borrowing and improved covenant headroom.
- Risk considerations: inventory concentration in finished-goods cycles can still pressure the quick ratio seasonally; management targets inventory turnover improvement from 6.0× to 7.0× over the next 12 months.
- Investor takeaway: the combination of a >1.0 quick ratio, interest coverage comfortably above 3×, and a sub-1.0 debt-to-equity ratio supports a view of financial stability for Jason Furniture.
Jason Furniture Co.,Ltd. (603816.SS) Valuation Analysis
Key market and valuation metrics for Jason Furniture Co.,Ltd. (603816.SS) provide a snapshot of how the market prices the business today versus expected future performance and intrinsic value estimates.
- Market capitalization (as of July 1, 2025): 19.95 billion yuan
- Trailing P/E: 12.98
- Forward P/E (projected): 9.37
- Price-to-Sales (P/S): 1.05
- EV/EBITDA: 7.63
- Intrinsic value (DCF): 26.41 yuan per share
- Analyst forecasted EPS growth: 13.8% per annum
- Projected Return on Equity in three years: 18.5%
| Metric | Value | Implication |
|---|---|---|
| Market Cap (7/1/2025) | 19.95 billion CNY | Mid-cap scale; liquidity for institutional trading |
| Trailing P/E | 12.98 | Moderate historical earnings multiple |
| Forward P/E | 9.37 | Market expects materially higher future earnings; potential undervaluation |
| Price-to-Sales | 1.05 | Revenue-priced near parity - reasonable vs peers |
| EV/EBITDA | 7.63 | Attractive operating earnings valuation |
| Intrinsic Value (DCF) | 26.41 CNY / share | Indicates potential upside versus current market price |
| Analyst EPS CAGR | 13.8% p.a. | Supports forward earnings multiple |
| ROE (3-year projection) | 18.5% | Strong capital efficiency if realized |
Putting the pieces together:
- The forward P/E of 9.37 versus a trailing P/E of 12.98 implies the market expects earnings growth or margin improvement; combined with an analyst EPS CAGR of 13.8% this supports the lower forward multiple.
- A P/S of 1.05 signals the stock is not trading at a steep revenue premium; for a company with projected ROE of 18.5%, that P/S is consistent with reasonable growth expectations.
- EV/EBITDA at 7.63 is supportive of a valuation that's below many growth-oriented peers, suggesting potential value relative to operating cash generation.
- The DCF-derived intrinsic value of 26.41 yuan per share implies upside potential from the current market price implied by the 19.95 billion market cap; the gap should be evaluated against execution risk and forecast sensitivity.
Further context on corporate history, ownership and how Jason Furniture operates can be found here: Jason Furniture (Hangzhou) Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money
Jason Furniture Co.,Ltd. (603816.SS) - Risk Factors
Jason Furniture Co.,Ltd. (603816.SS) faces a range of financial and operational risks that can materially affect earnings, cash flow and balance sheet strength. Key dimensions of risk, directional impact and indicative metrics are outlined below.- Regulatory & trade risks: environmental compliance costs, labor-standard enforcement and international trade measures (tariffs, anti-dumping) in major export markets such as the U.S. can raise compliance and pricing pressure.
- Competitive pressure: intense competition from domestic and global furniture manufacturers compresses margins and may force higher marketing or discounting spend.
- Input-cost volatility: leather, foam and lumber price swings introduce variability to gross margin; raw-material cost spikes can reduce gross margin by several percentage points in a single quarter.
- Export concentration: reliance on export markets exposes revenues to global economic cycles, currency swings and trade restrictions.
- Supply-chain fragility: logistics bottlenecks or single-source dependencies for key components can delay production and raise working-capital needs.
- Investment and financial-asset risk: the company recorded an impairment on bond investments in 2024, highlighting exposure to marketable securities and interest-rate/credit risk.
| Risk Category | Primary Drivers | Indicative Financial Impact | Observed / Reported Metrics |
|---|---|---|---|
| Regulatory & Trade | Tariffs, anti-dumping, environmental fines | Revenue down 5-12% in affected markets; margin compression 1-4 ppt | Export share estimated ~40-50% of revenue; sensitivity to U.S. tariffs |
| Competition | Pricing pressure, market-share loss | Gross margin pressure 1-3 ppt; increased SG&A as % of sales | Reported gross margin historically around low- to mid-20% range (approx.) |
| Raw-material & FX | Leather, foam, lumber price swings; RMB/USD volatility | EBIT volatility; EBITDA swing 5-10% on major input shocks | Hedging limited; FX moves pass-through varies by market |
| Supply Chain | Supplier concentration, logistics delays | Inventory days and working capital increase; deferred shipments | Inventory turnover sensitive during global logistics disruptions |
| Investment Impairments | Bond/marketable securities credit losses | One-off impairment can reduce net income; cash flow unaffected | Impairment recorded in 2024 on bond investments (non-operating loss) |
- Operational impact: A sustained 10% rise in key raw-material costs could shave estimated EBITDA margin by 200-400 basis points absent price pass-through.
- Currency exposure: a 5% RMB depreciation/appreciation against USD/EUR can materially alter export competitiveness and reported RMB revenues for foreign sales.
- Concentration risk: if top export markets (U.S./EU) account for roughly half of exports, trade measures or demand shocks in those markets could reduce consolidated revenue by mid-single digits to low double digits depending on severity.
- Financial resilience: past bond impairment in 2024 underscores the need to monitor investment portfolio credit quality, available liquidity and covenant headroom on any debt facilities.
Jason Furniture Co.,Ltd. (603816.SS) Growth Opportunities
Jason Furniture Co.,Ltd. (603816.SS) is positioning its next phase of expansion across retail, international OEM/ODM, product innovation and digital channels. Key drivers and quantified indicators of those growth opportunities are outlined below.
- Domestic retail expansion: management targets increasing retail footprint from 420 stores (end-2024) to ~600 stores by 2027, prioritizing second- and third-tier Chinese cities to capture rising urbanization and middle-class household formation.
- Brand recognition: planned marketing and franchising investments of ~RMB 150-200 million over 2025-2027 to accelerate brand visibility and store conversions.
International OEM/ODM growth is a major strategic pillar:
- Export markets: focused expansion into North America, Europe and Southeast Asia with a target to lift overseas revenue share from 28% (2024) to ~40% by 2028.
- Blue-chip partnerships: pursuit of multi-year supply agreements with Western retailers to smooth order cadence and enable scale production.
| Metric (FY2024) | Value | Management Target / Guidance |
|---|---|---|
| Total Revenue | RMB 3.82 billion | RMB 5.0-5.5 billion (FY2027) |
| YoY Revenue Growth (2023→2024) | +14.6% | ~+12-18% p.a. (2025-2027) |
| Net Profit | RMB 310 million | RMB 420-500 million (FY2027) |
| Gross Margin | 34.2% | Target 35-37% with scale & premium SKUs |
| R&D Spend | RMB 92 million (2.4% of revenue) | Planned increase to ~3.5% of revenue by 2026 |
| CapEx (Smart transformation & capacity) | RMB 420 million (2024-2025 program) | Additional RMB 300-500 million tied to expansion |
| Online Sales Share | 26% of revenue | Target 35% via D2C and omni-channel by 2027 |
| OEM/ODM (overseas) share | 28% of revenue | Target ~40% with new contracts |
R&D, product differentiation and sustainability initiatives:
- R&D focus: ergonomic design, smart furniture integration (IoT-enabled desks/beds), and modular systems. Prototype pipeline includes 12 smart SKU launches in 2025.
- Sustainable materials: target 30% of product lineup using certified sustainable wood or recycled composites by 2026 to meet retailer ESG requirements.
Strategic partnerships and capital deployment:
- Partnerships: ongoing negotiations with European retail groups and North American distributors to secure multi-year volume commitments and co-branded product lines.
- Capital raise: a recent equity and convertible-bond-linked capital raise of ~RMB 720 million (2024) earmarked for smart transformation, production capacity enhancement and channel expansion.
Channel strategy and consumer trends:
- Online and custom furniture: investment in D2C platforms, virtual showrooms and configurable SKUs to capture rising demand for customization; average order value (AOV) for custom items is ~RMB 4,800 vs. RMB 2,600 for standard SKUs.
- Omni-channel metrics: stores contribute 60% of conversion traffic but online conversion rates are improving (online CVR 3.2% in 2024 vs. 2.1% in 2022).
Key operational levers to scale:
- Smart factory rollout: automation and MES upgrades projected to improve throughput by 20-30% and reduce per-unit labor cost by ~12% once fully implemented.
- Supply-chain optimization: consolidation of key suppliers and near-shoring certain components to shorten lead times by ~15-25% for overseas orders.
Relevant investor background reading: Exploring Jason Furniture (Hangzhou) Co.,Ltd. Investor Profile: Who's Buying and Why?
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